Please refer to Appendix A and B for the detailed data.
This is a revenue-based analysis, which shows a constant drop from 2011 to 2014, 2012 to 2013 being the more abrupt drop period. The 2013 lower revenue was a result of lower average-realized prices for oil, as well as the lower nickel and cobalt realized prices. On the other hand, the cost of sales percentages of revenue remained stable on the last two years, 2014 and 2013, after the previous years’ oscillation, confirming the cost reduction strategy purposed by the company, which includes selling certain non-operating assets by the end of 2015.
The coal division strategic discontinuation affected all financial indicators, in order to concentrate on the company’s core strengths, enhance the liquidity, and to reduce the debt. The overall decrease of cost of sales contributed to …show more content…
Graph will be inserted here.
The Statement of Financial Position (Appendix B) shows the percentage of total assets and total liabilities depicted by other financial indicators.
Despite the decrease of 18.7% on the total assets of the company from 2011 to 2014, the total liabilities remained stable and even had a very slight percentage decrease of 0.46% and a considerable decrease on the nominal value. The amount of cash and cash equivalents have a slight increase as well throughout the years although the prepaid expenses were significantly increased on 2014. The company’s new strategy can also be noticed by looking at the reduction on the inventory levels since 2013 and decrease of 5.19% on the current assets, which as result increases the non-current assets to 83,77% despite of the exclusion of goodwill and finance lease
This is a revenue-based analysis, which shows a constant drop from 2011 to 2014, 2012 to 2013 being the more abrupt drop period. The 2013 lower revenue was a result of lower average-realized prices for oil, as well as the lower nickel and cobalt realized prices. On the other hand, the cost of sales percentages of revenue remained stable on the last two years, 2014 and 2013, after the previous years’ oscillation, confirming the cost reduction strategy purposed by the company, which includes selling certain non-operating assets by the end of 2015.
The coal division strategic discontinuation affected all financial indicators, in order to concentrate on the company’s core strengths, enhance the liquidity, and to reduce the debt. The overall decrease of cost of sales contributed to …show more content…
Graph will be inserted here.
The Statement of Financial Position (Appendix B) shows the percentage of total assets and total liabilities depicted by other financial indicators.
Despite the decrease of 18.7% on the total assets of the company from 2011 to 2014, the total liabilities remained stable and even had a very slight percentage decrease of 0.46% and a considerable decrease on the nominal value. The amount of cash and cash equivalents have a slight increase as well throughout the years although the prepaid expenses were significantly increased on 2014. The company’s new strategy can also be noticed by looking at the reduction on the inventory levels since 2013 and decrease of 5.19% on the current assets, which as result increases the non-current assets to 83,77% despite of the exclusion of goodwill and finance lease