Write report on the financial statements of DORSAVI Ltd.
Here, DORSAVI Ltd is selected and its financial statements are analysed in order to understand if this company is worth of investing on it or not. The analysis is executed in the four parts. These parts are known as part 1, part 2, part 3 and part 4. The information of the financial condition for the years 2014 and 2015 are collected from the balance sheet of the company that is found in the company website. These two years are analysed in order to understand that the financial condition of the company in getting better or falling.
Here, in this report the financial statements of DORSAVI Ltd (Australian Securities Exchange – www.asx.com.au, 2016)of the last two years are analysed. These are analysed and evaluated below. It is done in order to understand the financial condition of the company so that it can be understood that investing on this company is good or bad.
From the balance report of DORSAVI Ltd (DORSAVI annual report // 2015, 2016), total amount of current assets, non – current assets, current liabilities, non – current liabilities and the stock holder’s equity are found and they are given in the below table. In the below table, the information are provided from the balance sheet of the year 2014 and 2015.
Table 1: (Hoovers.com, 2016)
|
a) |
Current Assets |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Cash |
$ 13,121,200.00 |
$ 4,396,700.00 |
-66% |
|
|
Net Receivables |
$ 645,800.00 |
$ 790,300.00 |
22% |
|
|
Inventories |
$ 178,900.00 |
$ 105,600.00 |
-41% |
|
|
Other Income Assets |
$ – |
$ – |
0% |
|
|
Total Current Assets |
$ 13,945,900.00 |
$ 5,292,600.00 |
-62% |
|
|
b) |
Non – Current liabilities (Hoovers.com, 2016) |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Net Fixed Assets |
$ 186,400.00 |
$ 248,600.00 |
33% |
|
|
c) |
Current Liabilities (Hoovers.com, 2016) |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Accounts Payable |
$ 393,500.00 |
$ 779,900.00 |
98% |
|
|
Short Term Debt |
$ – |
$ 29,300.00 |
NA |
|
|
Other Current Liabilities |
$ 269,200.00 |
$ 231,100.00 |
-14% |
|
|
Total current liabilities |
$ 664,714.00 |
$ 1,042,315.00 |
57% |
|
|
d) |
Non Current Liabilities (Hoovers.com, 2016) |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Long Term Debt |
$ – |
$ – |
0% |
|
|
Other Noncurrent Liabilities |
$ 13,200.00 |
$ 31,200.00 |
136% |
|
|
Total non – current liabilities |
$ 13,200.00 |
$ 31,200.00 |
136% |
|
|
e) |
Stockholder’s Equity (Hoovers.com, 2016) |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Equity |
||||
|
Preferred Stock Equity |
$ – |
$ – |
0% |
|
|
Common Stock Equity |
$ 22,438,300.00 |
$ – |
-100% |
|
|
Other Noncurrent Liabilities |
$ 16,077,200.00 |
$ (278,000.00) |
-102% |
|
|
Equity Summary (Hoovers.com, 2016) |
||||
|
Total Equity |
$ 13,763,300.00 |
$ 5,065,100.00 |
-63% |
|
|
Shares Outstanding |
$ 121,450,000.00 |
$ 121,800,000.00 |
0% |
In the above tables the information from the balance sheets of 2014 and 2015 are provided and the change percentage is calculated. In the table 1 ( serial no a of this part ) current assets are written. It contains the particulars like cash, net receivables, inventories, other income assets and the total current assets. From the table it can be seen that in the year 2014, the cash that was found in the company’s balance sheet was $ 1312200.00. In the year 2015, that amount has changed to $ 4396700.00. It can be clearly seen that the amount of cash has decreased. The percentage amount of decrease is calculated to be 66 %. Hence, it can be said that a lot amount has decreased. If the particular net receivables are seen then it can be seen that in the year the value was found to be $ 645800.00 and ion the year 2015, the value of that same particular was found to be $ 790300.00. It is seen that this particular has increased and the calculated value expresses that it has increased 22 %. It is also a significant change. Now in case of inventories, it is found from the balance sheet of the company that in the 2014, the company has items in the inventory of $ 178900.00 and the value has changed in the year 2015. In the year 2015, the value of the current assets that were found in the inventory was $ 105600.00. From the calculation it is found that the current assets in the inventory have decreased and the value of this decrement was 41 %. It is also a significant change and it is very good characteristics. As the current assets in the inventory are reducing, it means that the company has sold most of its products. There are no values of other income assets in both of the year ( 2014 and 2015 ). A change is observed in case of the total current assets. In the year 2014, it can be seen that the company had a current assets worth $ 13945900.00 whereas in the year 2015, the company had total current assets worth $ 1042315.00. The change is calculated to be 57 %.
In the table 1 ( serial no b of this part ) the non – current liabilities of the company are given. The non – current liabilities of both year i.e. of 2014 as well as 0215 are given. It contains the value of the net fixed assets of the two year. In the year 2014, the net fixed assets were worth $ 186400.00 whereas in case of 2015, the net fixed assets were worth of $ 248600.00. It is also a significant change and the percentage value of this change is found to be 33 %.
In the table 1 ( serial number c of this part ) contains the current liabilities of this company. It is also given for the two years i.e. for 2014 as well as for 2015. There are several current liabilities that are found from the balance sheet of the company. It includes the short term debts, account payable and also the other current liabilities. From the table it can be seen that in the year the value of accounts payable was $ 393500.00 whereas in case of 2015, that value changed to $ 779900.00. It can be clearly seen that the there is a vast change in the value. If it is calculated in percentage it can be found that the increase is of 98 %. It is a very significant change. In case of short term debt, the value of 2014 cannot be found from the balance sheet of the company, but the value of 2015 is found and it is $ 29300.00. As the value of 2014 is missing, therefore the change and the percent change cannot be calculated. From the table it can be seen that the other liabilities of 2014 was worth $ 269200.00 whereas in the year 2015,it was found to be worth $ 231100.00. The value is found to be decreasing and it is calculated to be 14 %. The total current liabilities of 2014 were worth $ 664714.00 whereas the total current liabilities of 2015 were worth $ 1042315.00. It is also a significant change and the percentage value of this change was calculated to be 57 %.
In the table 1 ( serial number d of this part ) contains the non – current liabilities of the company and it is also written for both the years i.e. for the year 2014 as well as for 2015. It includes long term debts and the other non – current liabilities of the company. The value of long term debts for both years cannot be found from the balance sheet of the company. Therefore, the cells are kept blank. The change percentage cannot be calculated also. The other non – current liabilities of the company are found from the balance sheet of the company. In the year 2014, the value of all other non – current liabilities was found to be $ 132000.00 whereas in the year 2015, that changed to 312000.00. It is a huge change and if it is calculated it can be found that it has increased 136 %.
In the table 1 ( serial number e of this part ) the stock holder’s equity is discussed. The preferred equity stock cannot be found from the balance sheet of the company. It cannot be found for both the years ( 2014 as well as for 2015 ). Therefore the change % cell is also kept blank in this case. In the year 2014, the common stock equity of the company was worth $ 22438300.00. The value of this cannot be found for the year 2015. Therefore, the change % cannot be calculated also. So the cells are kept empty. Other non – current liabilities of this company in the year 2014 was found to be of $ 16077200.00 whereas the value of other non – current liabilities of 2015 were worth $ 278000.00. It has been decreased significantly and the calculated percentage of change was 102 %. Total amount equity in the year 2014 was worth $ 13763300.00 whereas in the year 2015, it was changed to $ 5065100.00. The change % was 63 %. The share outstanding for both the year of this company was same and the value was $ 121450000.00.
In this part the operating revenues, costs of goods sold, total expenses ( Before income taxes ), any non – operating gains and losses and the earning per common share are discussed. These are explained in the below tables:
Table 2: (De.advfn.com, 2016)
|
a) |
Total Operating revenues |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Revenue |
$ 529,381.00 |
$ 1,358,218.00 |
157% |
|
|
b) |
Costs of Goods Sold |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Costs of goods sold |
$ 42,004.00 |
$ 114,177.00 |
172% |
|
|
c) |
Total Expenses ( Before income taxes ) |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Total Expenses ( Before income taxes ) |
$ 4,889,024.00 |
$ 10,535,125.00 |
115% |
|
|
d) |
Any non – operating gains and losses |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Income tax benefits |
$ 559,583.00 |
$ 648,548.00 |
16% |
|
|
e) |
Earnings per common share |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Loss per share |
$ (0.04) |
$ (0.07) |
81% |
In the table 2 ( serial number a of this part ) total operating revenues of the company in the last two years are discussed. From the table it can be seen that in the year 2014, the value of revenue was worth 529381.00 whereas in the year 2015, that value was changed to $ 1358218.00. A huge change can be observed in this one year. The change % is calculated to be 157 %. It is a significant change within this short period of time.
In the table 2 ( serial number b of this part ), the costs of goods sold in the two years ( 2014 and 2015 ) are given. From the balance sheet of the company, it can be seen that in the year 2014, costs of good that were sold was worth $ 42004.00 whereas in the year 2015, the value changed to $ 114177.00. From the data the change can be understood. In order to have proper quantitative understanding the change % is calculated and it is found to be 172 %. It is also a significantly huge change.
In the table 2 ( serial number c of this part ), total expenses of the company ( before income taxes ) are discussed. It can be seen that in the year 2014, the total expenses of the company ( before income taxes ) were worth $ 4889024.00 whereas in the year 2015, total expenses of the company was worth $ 10535125.00. A huge change can be observed and the change % is found to be 115 %. It is a tremendous enhancement in the total expenses ( before income taxes ) of the company.
In the table 2 ( serial number d of this part ), non – operating gain or losses of the company are discussed. From the table it can be seen that income tax benefits of the company in year 2014 were worth $ 559583.00 whereas in the year 2015 that value changed to $ 648584.00. It can be seen that the income tax benefits were increased. The change % is calculated and it is found to be 16 %.
In the table 2 ( serial number e of this part ), earning per common share of the company is discussed. In the year the company lost $ 0.04 per common share , but in the year 2015,the company lost $ 0.07 per common share. The change % is calculated and it is found to be 81 %.
In this part the net cash flow ( inflow and outflow ) are discussed. These include the net cash flow through operating activities, financial activities, investing activities and also for the entire year.
Table 3: (De.advfn.com, 2016)
|
a) |
Net Cash inflow ( outflow ) from operating activities |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Revenue |
$ (3,178,549.00) |
$ (7,889,988.00) |
148% |
|
|
b) |
Net Cash Inflow ( outflow ) from financial activities |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Costs of goods sold |
$ 17,077,979.00 |
$ 58,252.00 |
-100% |
|
|
c) |
Net Cash Inflow ( outflow ) from investing activities |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Total Expenses (Before income taxes) |
$ (234,776.00) |
$ (363,196.00) |
55% |
|
|
d) |
Net Cash Inflow ( outflow ) during the year |
|||
|
Particulars |
2014 |
2015 |
Change % |
|
|
Income tax benefits |
$ 13,664,654.00 |
$ (8,194,932.00) |
-160% |
In the table 3 ( serial number a of this part ), the net cash flow ( inflow and outflow ) of the company from the operating activities in the year 2014 and 2015 are found. The value of the revenue in the year 2014 was found to be $ 3148549.00 whereas that value in the year 2015 changed to $ 7889988.00. A significant in the revenue of the company within this one year can be observed. The change percentage ( % ) is calculated and it is found to be 148 %. In the one year the value of revenue of the company has increased a lot.
In the table 3 ( serial number b of this part ), the net cash flow ( inflow and outflow ) of the company from the financial activities in the year 2014 and 2015 are found. In the year the costs of goods that were sold was worth $ 17077373.00 whereas in the year 2015, that value was found to be $ 58252.00. A huge reduction can be observed and when the change percentage ( % ) is calculated it is found to be 100 %.
In the table 3 ( serial number c of this part ), the net cash flow ( inflow and outflow ) of the company from the investment activities in the year 2014 and 2015 are found. The total expenses ( before income taxes ) of the company in the year 2014 was worth $ 234776.00 whereas that value change to $ 363196.00 in the year 2015. The change % is calculated to be 55 %. This change must also be taken into account while judging the financial condition of the company.
In the table 3 ( serial number d of this part ), the net cash flow ( inflow as well as outflow ) of the company during the entire year of 2014 as well as of 2015 are discussed. In this table the income tax benefits of the company are discussed for both of the years ( 2014 and 2015 ). In the year 2014, the income tax benefits of the company were worth $ 13664654.00 whereas in the year that value changed to $ 8194932.00. It has decreased tremendously and the change % is calculated and it is found to 160 %.
Conclusion:
Therefore, it can be said that investing DORSAVI Ltd is not a bad idea. In this one year ( 2014 – 2015 ) the revenue of the company has increased tremendously. The costs of goods that were sold also increased significantly in this one year. Therefore, is is advised to invest in this company and it will definitely give profits.
References
Australian Securities Exchange – www.asx.com.au. (2016). Company details – DVL – ASX – Australian Securities Exchange.
De.advfn.com. (2016). Dorsavi Fpo Financial Data.
Hoovers.com. (2016). !company_name! | Revenue and Financial Reports.
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