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Financial Statement Analysis for SIDENOR S.A. Efstratios Patsatzis MBA Canditate Supervisor Dr. Nicos Sykianakis. Presentation key points. Sector – Main Competitors The Company (History, Products, Shareholders, Structure) Financial Statements of SIDENOR S.A. - PowerPoint PPT Presentation
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Financial Statement Analysis for SIDENOR S.A.
Efstratios PatsatzisMBA Canditate
SupervisorDr. Nicos Sykianakis
Presentation key points
Sector – Main Competitors The Company
(History, Products, Shareholders, Structure) Financial Statements of SIDENOR S.A. Financial Statement Analysis
Presentation key points
Liquidity Ratios Turnover Ratios Return Ratios Capital Structure Ratios Investor Ratios Conclusions
Sector – Main Competitors
SectorSteel production and trading sector
Main Competitors“HELLENIC HALYVOURGIA”“HALYVOURGIKI”
SIDENOR S.A. - History
1962 - Establishment of the Company with the name “VIOHALCO - SANITAS SA”
1971 - The corporate name is changed into “STEEL INDUSTRY OF NORTHERN GREECE SA”
1974 - ERLIKON SA and SIDENOR SA commence co-operating
1977 - The corporate name is changed to “SIDENOR - STEEL INDUSTRY OF NORTHERN GREECE SA”
1979 - The corporate name is changed to “SIDENOR Steel Products Manufacturing Company SA”
SIDENOR S.A. - History
1994 - ERLIKON SA lists its stock through public offering in the Main market of Athens Stock Exchange
1997 - Absorption of SIDENOR SA by ERLIKON SA and change of corporate name into SIDENOR SA
1999 - Commencement of production by rolling mill of SOVEL SA (subsidiary)
2001 - The electrode production sector is split-off from the Company and incorporated into ERLIKON Wire Processing SA. SIDENOR takes over 75% of the Bulgarian STOMANA INDUSTRY SA. The new steel mill of SOVEL SA commences production.
SIDENOR S.A. - History
2003 - The holding of SIDENOR SA in the subsidiary STOMANA INDUSTRY SA increases to 79.50%. KEM SA and ATTICA METAL PROCESSING SA was finalized by SOVEL SA. Sidenor’s Quality Management System is certified according to ISO 9001:2008. SIDENOR launches High Ductility grade C concrete reinforcing steel into the
market. 2004 - SIDENOR acquires majority holding in CORINTH
PIPEWORKS SA. 2006 - SIDENOR establishes new subsidiary DOJRAN
STEEL.
SIDENOR S.A. - Products
SD Integrated Concrete Reinforcing System
Merchant Bars Wire Rod Pipes - Hollow Sections Hot-Rolled Steel Plates Special Steels
SIDENOR S.A. - Structure
SIDENOR S.A. - Shareholders
Financial StatementsStatement of Financial Position
Financial StatementsStatement of Comprehensive Income
Financial StatementsCash Flow Statement
Financial StatementsCash Flow Statement
Financial StatementsStatement of Financial Position
Fixed Assets / Total Assets360.770.511 / 593.401.564 = 0,6080 or 60,80%
Current Assets / Total Assets232.631.053 / 593.401.564 = 0,3920 or 39,20%
(Note: Intangible Assets / Total Assets equals zero)
Financial StatementsLiquidity Ratios
Current RatioCR = Current Assets / Current Liabilities232.631.053 / 274.675.258 = 0,846Quick RatioQR = Current Assets - Inventories / Current
Liabilities150.967.120 / 274.675.258 = 0,549
Financial StatementsLiquidity Ratios
Acid RatioAR = Cash / Current Liabilities
8.320.061 / 274.675.258 = 0,030
Financial StatementsTurnover Ratios
Inventory Turnover Ratio
ITR = Cost of Sales / Avg. Inventory232.381.323 / 111.739.687 = 2,1times / year
Days in Inventory = 365 / 2.1 = 174days
Financial StatementsTurnover Ratios
Receivables Turnover Ratio
RTR = Sales / Avg. Receivables276.530.121 / 49.460.084 = 5,57times / year
Days in Accounts Receivables = 365 / 5,57 = 66days
Financial StatementsTurnover Ratios
Accounts Payable Turnover Ratio(Purchases = Cost of Sales - Ending Inventory + Starting Inventory)
PTR = Purchases / Avg. Payable235.730.038 / 98.467.193,5 = 2,39times / year
Days in Suppliers = 365 / 2,83 = 153days
Financial StatementsTurnover Ratios
Inventory Conversion Cycle240 days
Net Cash Conversion Cycle87 days
Financial StatementsCash Flow Analysis
Cash Flow from Operating Activities
CF(OA) = - 49.589.580
(CFoa < Current Liabilities)
Financial StatementsCash Flow Analysis
Cash Flow from Investing Activities
CF(IA) = - 5.818.290
Cash flow from Financing Activities
CF(FA) = 33.497.870
Financial StatementsCash Flow Analysis
Net decrease in cash & cash equivalents for the period
-21.910.000 Cash & cash equivalents at the end of the
period
8.320.061
Financial StatementsReturn Ratios
Return on Total Assets Ratio
ROTA = Net Earnings / Avg. Total Assets
-25.443.969 / 598.607.226 = -0,043 or -4,3% Return on Equity Ratio
ROE = Net Earnings / Avg. Equity
-25.443.969 / 265.185.196,5 = -0,096 or -9,6%
Financial StatementsReturn Ratios
Return on Sales Ratio
Net Earnings / Sales
-25.443.969 / 276.530.121 = -0,092 or -9,2% Total Assets Turnover Ratio
Sales / Avg. Total Assets
276.530.121 / 598.607.226 = 0,462 or 46,2%
Financial StatementsCapital Structure Ratios
Financial Leverage
– Avg. Total Assets / Avg. Equity
598.607.226 / 265.185.196,5 = 2,26
(equity = 1, liabilities = 1,26)
Financial StatementsCapital Structure Ratios
– Equity / Assets
252.463.212 / 593.401.564 = 42,5%
– Liabilities / Assets
340.938.352 / 593.401.564 = 57,5%
– Debt / Equity
340.938.352 / 252.463.212 = 1,35
Financial StatementsInvestor Ratios
Nominal Value per Share
Share Capital / No of Shares
39.460.002 / 96.243.908 = 0,41 euro
Net Accounting Value per Share
Equity / No of Shares
540.166.817 / 96.243.908 = 5,61 euro
Financial StatementsInvestor Ratios
Earnings per Share
Net Earnings / No of Shares
-55.898.679 / 96.243.908 = -0,51 euro
P / E – P / BV
Price / Earnings per Share
2,42 / -0,51 = -4,75 times
Price / Book Value
2,42 / 5,61 = 0,43 times
Financial Statement AnalysisConclusions
Disability to cover short-term debt Large amount of Inventory held Long period in Accounts Receivables Negative Cash Flow from OA
Financial Statement AnalysisConclusions
Negative ROTA, ROE, Return on Sales Losses per Share Financing Conflict
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