Analysis Haier Company - Essay Example

Download file to see previous pages The first angle of analysis is the trend exploration of the company over the period of five years. Additionally, the common size analysis for the company will be done to figure out the item percentage change over the last five years. Secondly the report will address the cross-sectional investigation between Haier Company and Tesco plc Company. The main aim of the cross-sectional analysis is to compare the performance of the company with others so as to identify the key points to the failure or success of the firm. The third performance analysis will be for industrial average comparison to weigh how the company is performing compared to other firms globally. Finally, the recommendations pursuant to the analysis will be at last.
It is also known as the horizontal analysis. It is a financial psychoanalysis technique that demonstrates the variation in the amounts of matching items financial statements over a certain span of time (Logan, 2014). Two or more periods grants a trend analysis.
The first important item is the revenue. It can be evidently being seen that there is an increase in the total returns each year from 2010 to 2014. The returns amplified from 48,500 in the initial year 2010 to 50,089.9 in the following year. The increase percentage will be (which translates (1589.9/48500)*100 = 3.28%. In the year 2012, the revenue increased to 55615.0 hence an augmented revenue of (55615-48500) =7115. Calculated as an increase in percentage by (7115/48500)*100 = 14.67%. By the year 2013, the proceeds earned was 62,263.2 scaling up by 13763.2 leading to increase percentage of (13763.2/48500)*100 = 28.38%. 2014 had revenue of 67,134 and when calculated as a percentage increase the result is (18634/48500)*100 = 38.42%.It is evident that the income improved by 3.28% from 2010, 14.67% from 2011, 28.38% from 2012 and 38.42% from 2013. This demonstrates that the ...Download file to see next pagesRead More