Reference no: EM132889495
Financial Position
1. The percentage of Right-of-use Assets was 0% in 2018. However, it became 1.9% in 2019. This increase means that the company may have introduced new system which is related to Right-of-use Assets in 2019.
2. The increase in retained earnings may indicate that not all earnings derived from operations were returned to shareholders. There is possibility that the company has a plan for expansion where such will be financed from internal sources.
3. Accounts Receivables, Inventory and Investment Properties take up high percentages in Assets. Especially, the percentage of Investment Properties is high. It's 34.04% in 2019.
It is said that companies that have a lot of land are stable so we can say that the company is stable from the point.
4. Accounts and Other Payable, Long-Term Debt- Net Current Portion and Retained Earnings take up high percentages in Liabilities and Equity.
5. There are no big changes in the data of Vertical Analysis on Balance Sheet. So, the company is relatively stable.
Problem 1: Find the Result of Operation