. Perform common size analysis. What does this analysis tell you about your company? Are there any trends apparent with either the industry or your firm? Common Size Income Statement Income Statement...

6. Perform common size analysis. What does this analysis tell you about your company? Are there any
trends apparent with either the industry or your firm?
Common Size Income Statement
Income Statement Common Size-Analysis Commentary
Period Ending 2016 2015 2014 2016 2015 2014
Revenue 215639 233715 182795
Cost of revenue 131376 140089 112258 61% 60% 61% Percentage of COGS as a
part of sales has been same
in the recent years which is
evident from the fact that
the cogs is between 60 to
61% during the three years
Gross profit 84263 93626 70537 39% 40% 39% As a result of same COGS
GP margins is also same
Research and
development
10045 8067 6041 5% 3% 3% The amount of R&D
expenditure has increased
in dollars as well as in the
percentage of total sales.
Sales, General
and
administrative
14194 14329 11993 7% 6% 7% The Selling and admin
expenses as a portion of
total sales have remained
same during the three years
Total operating
expenses
24239 22396 18034 11% 10% 10% share of total operating
expenses over the sales
have remained same during
the three years with only
the slight increase in the
last year i.e., 2016
Operating
Income or Loss
60024 71230 52503 28% 30% 29% Operating income have
decreased in 2016 as
compared to 2015 mainly
due to increase in the
esearch and development
cost.
Interest Expense 1456 733 384 1% 0% 0% The interest expenses have
een increase from 2014 to
2016 due to increase in the
debt of the company.
Other Income 2804 2018 1364 1.30% 0.86% 0.75% Other Income have
increased from previous
years but with the nominal
amount only
Earnings before
taxes
61372 72515 53483 28% 31% 29% Earnings before taxes have
decreased in 2016 as
compared to 2015 and
2014 mainly due to
increase in the operating
cost and Interest cost.
less provision
for taxes
15685 19121 13973 7.27% 8.18% 7.64%
Net Income or
loss
45687 53394 39510 21% 23% 22% Net losses have been
educed as already
mentioned due to reduction
in operating expenses
Common Size Balance Sheet
Particulars Balance Sheet Common size Analysis Commentary
Period Ending 2016 2015 2014 2016 2015 2014
Assets
Cu
ent Assets
Cash And Cash
Equivalents
20484 21120 13844 6.37% 7% 5.97% Total cu
ent Asset
of Market Inc have
decreased as a
percentage of total
assets as compare to
2011.The major
eason for this is the
increase in Short
term investment .
Short Term
Investments
46671 20481 11233 14.51% 7% 4.85%
Net Receivables 15754 16849 17460 4.90% 5.80% 7.53%
Inventory 2132 2349 2111 0.66% 0.81% 0.91%
Other Cu
ent
Assets
21828 23033 19565 6.79% 7.93% 8.44%
Total Cu
ent
Assets
106869 83832 64213 33.22% 28.86% 27.70%
Non-cu
ent
assets
Gross property,
plant and
equipment
61245 49257 39015 19.04% 15.31% 12.13%
Accumulated
Depreciation
-34235 -26786 -18391 -10.64% -8.33% -5.72%
Net property,
plant and
equipment
27010 22471 20624 8.40% 7.74% 8.90% PPE have increased
in the value terms if
compared to 2014
showing that this
year investments in
fixed assets are
made .However if
compared in
percentage terms
than there is no
major...