Sensitivity ROE (2)

Year
2002
2003
2004
2005
2006

Net Profit AT/Sales

13.54%
10.29%
12.25%
8.06%
12.70%

Base case
Sales/Total Assets
37.31%
27.20%
28.07%
30.40%
31.08%

ROA
5.05%
2.80%
3.44%
2.45%
3.95%

Total Assets/SE
150.40%
170.70%
175.50%
159.41%
148.68%

Year
2002
2003
2004
2005
2006

Net Profit AT/Sales

13.54%
10.29%
12.25%
8.06%
12.70%

Sensivity to profit margin

Sales/Total Assets
ROA
31.08%
4.21%
31.08%
3.20%
31.08%
3.81%
31.08%
2.51%
31.08%
3.95%

Total Assets/SE
148.68%
148.68%
148.68%
148.68%
148.68%

ROE
% change
6.26%
4.75%
-24.00%
5.66%
19.05%
3.72%
-34.20%
5.87%
57.57%
Average
4.60%
Dispersion 42.18%

Year
2002
2003
2004
2005
2006

Net Profit AT/Sales

12.70%
12.70%
12.70%
12.70%
12.70%

Sensitivity to asset turnover

Sales/Total Assets
ROA
37.31%
4.74%
27.20%
3.45%
28.07%
3.56%
30.40%
3.86%
31.08%
3.95%

Total Assets/SE
148.68%
148.68%
148.68%
148.68%
148.68%

ROE
% change
7.05%
5.14%
-27.10%
5.30%
3.20%
5.74%
8.30%
5.87%
2.24%
Average
-3.34%
Dispersion 16.06%

Year
2002
2003
2004
2005
2006

Net Profit AT/Sales

12.70%
12.70%
12.70%
12.70%
12.70%

Sensitivity to leverage
Sales/Total Assets
ROA
31.08%
3.95%
31.08%
3.95%
31.08%
3.95%
31.08%
3.95%
31.08%
3.95%

Total Assets/SE
150.40%
170.70%
175.50%
159.41%
148.68%

ROE
% change
5.94%
6.74%
13.50%
6.93%
2.81%
6.29%
-9.17%
5.87%
-6.73%
Average
0.10%
Dispersion 10.32%

Sensitivity analysis of ROE

80.00%

% change in ROE

60.00%
Sensitivity to NPM

40.00%

Sensitivity to asset
turnover

20.00%

Sensitivity to leverage

0.00%
2003

2004

2005

2006

-20.00%

-40.00%

Page 1

ROE
7.60%
4.78%
6.03%
3.91%
5.87%

40.00%

35.00%

30.00%

25.00%

Gross Profit Margin

20.00%

Operating Profit Margin

Net Profit Margin

15.00%

10.00%

5.00%

0.00%
1

12.00

10.00

8.00

Fixed Asset Turnover

6.00

Total Asset Turnover

4.00

2.00

0.00
1

FINANCIAL ANALYSIS MODEL

Note: Enter data in Blue-coded cells; Black cells are computer generated
2
3
4 NAME OF COMPANY
Glaxosmith Kline Ltd.
5
FIRST CALENDAR YEAR OF
6 DATA
2008
7
8 NUMBER OF YEARS OF DATA
5
9
10
11
12 INCOME STATEMENT
2008
2009
2010
13 Sales Revenue
$1,888,105
$3,023,672
$3,632,095
14 Less: Cost of Goods Sold
$1,416,432
$2,079,389
$2,389,742
15 Gross Profits
$471,673
$944,283
$1,242,353
16 Less: Operating Expenses:
$557,808
17 Selling Expense
$174,935
$396,326
$7,372
18 Distribution expenses
$5,879
$3,139
19 General / Admin. Exp.
$82,667
119,889
$145,717
20 Other income/(expenses)
($4,436)
($6,930)
($4,141)
21 Total Operating Expenses
$259,045
$512,424
$706,756
22 Operating Profits
$212,628
$431,859
$535,597
23 Less: Interest Expense
($8,427)
($831)
($820)
24 Add :Other income
$408
$7,794
$17,983
25 Net Profits Before Taxes
$204,609
$438,822
$552,760
26 Less: Taxes
($61,660)
($115,035)
($142,583)
27 Net Profit After Taxes
$142,949
$323,787
$410,177
Earnings Available for Common
28 Stockholders
$142,949
$323,787
$410,177
29
30
31 BALANCE SHEET
32 Current Assets:
33 Inventories
$596,205
$610,525
$695,231
34 Trade and other receivables
$420,316
$409,464
$462,904
35 Cash and cash equivalents
$1,937
$314,295
$666,043
36
37
38 Total Current Assets
$1,018,458
$1,334,284
$1,824,178
39 Gross Fixed Assets (at cost):
40 Freehold land
$5,052
$5,052
$5,053
41 Lease hold land
$631
$631
$631
42 Freehold buildings
$160,842
$161,080
$181,168
43 Plant and machineries
$377,439
$390,017
$431,888
44 Furniture fixtures and equipment
$95,443
$108,776
$128,954
45 Vehicles
$77,711
$87,849
$93,078
46 Capital work in progress
$17,640
$43,371
$10,083
47 Total Gross Fixed Assets
$734,758
$796,776
$850,855
48 Less: Accumulated Depreciation
$408,291
$447,961
$482,753
49 Total fixed assets
$326,467
$348,815
$368,102
50 Deferred tax asset
$17,423
$18,403
$22,005
51 Net Fixed Assets
$343,890
$367,218
$390,107
52 Total Assets
$1,362,348
$1,701,502
$2,214,285
53
54 Current liabilities:
2008
2009
2010
55 Trade and other payable
$328,495
$361,463
$632,879
56 Current tax liabilities
$13,167
$66,521
$69,219
57 S/T obligation under finance lease
$2,337
$1,173
$1,298
58 Total current liabilities
$343,999
$429,157
$703,396
59 Fixed liabilities:
60 Retirement benefit obligations
$68,811
$66,919
$80,020
61
62
63
64
65
66

L/T obligations under finance lease

Deferred tax liability
Total fixed liabilities
Total liabilities
Equity:
Share capital

2011
$4,735,121
$3,386,670
$1,348,451
$748,174
$8,261
$187,216
($12,126)
$931,525
$416,926
($3,759)
$52,163
$465,330
($183,262)
$282,068
$282,068

$1,138,844
$211,364
$770,584

$2,120,792
$5,052
$631
$181,892
$469,891
$135,300
$146,245
$63,888
$1,002,899
$522,237
$480,662
$480,662
$2,601,454
2011
$995,094
$32,469
$6,623
$1,034,186
$82,139

$1,300
$36,028
$106,139
$450,138

$4,939
$36,769
$108,627
$537,784

$3,639
$46,079
$129,738
$833,134

$26,938
$35,901
$144,978
$1,179,164

$120,465

$120,465

$120,465

$120,465

A
Capital reserve
General reserve
Retained earning
Total stockholder's equity
Total Liabilities and stock holder's
71 equity
Reconciliation TA & TL/SE
72
73 Number of Common Shares
74 End-of-Year Stock Price
75
76 RATIO ANALYSIS
77 Current Ratio
78 Quick Ratio
79
80 Inventory Turnover
81 Average Collection Period
82 Fixed Asset Turnover
83 Total Asset Turnover
84
85 Debt Ratio
86 Debt-to-Equity
87 Times Interest Earned
88
89 Gross Profit Margin
90 Operating Profit Margin
91 Net Profit Margin
92
93 Return on Total Assets (ROA)
94 Return on Equity (ROE)
95
96 Earnings Per Share
97
98 Price/Earnings Ratio
99
100 DUPONT ANALYSIS
101 Net Profit AT/Sales
102 Sales/Total Assets
103 ROA
104 Net Profit AT/Total Assets
105 Total Assets/Stockhldrs. Equity
106 ROE
67
68
69
70

$59,742
$5,000
$727,003
$912,210

$59,742
$5,000
$978,511
$1,163,718

$59,645
$5,000
$1,196,041
$1,381,151

$59,645
$5,000
$1,237,180
$1,422,290

$1,362,348
$0
12,046,449
$114.70

$1,701,502
$0
12,046,449
$111.31

$2,214,285
$0
12,046,449
$94.98

$2,601,454
$0
12,046,449
$107.59

2.96
1.23

3.11
1.69

2.59
1.60

2.05
0.95

2.38
80.14
5.49
1.39

3.41
48.75
8.23
1.78

3.44
45.88
9.31
1.64

2.97
16.07
9.85
1.82

0.33
0.00
-25.23

0.32
0.00
-519.69

0.38
0.00
-653.17

0.45
0.00
-110.91

24.98%
11.26%
7.57%

31.23%
14.28%
10.71%

34.20%
14.75%
11.29%

28.48%
8.80%
5.96%

10.49%
15.67%

19.03%
27.82%

18.52%
29.70%

10.84%
19.83%

$0.01

$0.03

$0.03

$0.02

9665.88

4141.27

2789.46

4594.91

7.57%
138.59%
10.49%
10.49%
149.35%
15.67%

10.71%
177.71%
19.03%
19.03%
146.21%
27.82%

11.29%
164.03%
18.52%
18.52%
160.32%
29.70%

5.96%
182.02%
10.84%
10.84%
182.91%
19.83%

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66

2012
$5,553,812
$3,964,900
$1,588,912
$1,065,900
$21,365
$141,904
($15,927)
$1,213,242
$375,670
($21,523)
$55,192
$409,339
($165,372)
$243,967
$243,967

$1,059,544
$487,398
$1,019,434

$2,566,376
$5,052
$631
$184,515
$552,262
$154,173
$166,191
$18,660
$1,081,484
$583,654
$497,830
$497,830
$3,064,206
2012
$1,369,468
$56,654
$7,735
$1,433,857
$83,874
$22,403
$38,512
$144,789
$1,578,646
$120,465

67
68
69
70

$59,645
$5,000
$1,300,450
$1,485,560

71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106

$3,064,206
$0
12,046,449
$105.78

1.79
1.05
3.74
31.59
11.16
1.81
0.52
0.01
-17.45
28.61%
6.76%
4.39%
7.96%
16.42%
$0.02
5223.14

4.39%
181.25%
7.96%
7.96%
206.27%
16.42%