Elf Corporation Financial Analysis

Question: Discuss about theElf Corporationfor Financial Analysis. Answer: Introduction Elf Corporation execution throughout the years, has been on the ascent because of forceful deals battle that one attempts in 2013 which means expanded income. The gross net revenue stays consistent for all the three years in spite of the adjustments in turnover. There is additionally an expansion in net overall revenue from 2011 2013. It is credited by an adjustment in profit both net wage and deals over the three years. common size income statement Elf Corporation Income Statements for the Years Ending December 31 (in millions) 2013 2012 2011 Sales 700.00 650.00 550.00 Cost of goods sold 350.00 325.00 275.00 Gross profit 350.00 325.00 275.00 Operating Expenses: (150.00) (175.00) (175.00) Operating profit 200.00 150.00 100.00 Interest expense 70.00 50.00 30.00 Earnings before tax 130.00 100.00 70.00 Tax expense (50%) 65.00 50.00 35.00 Net income 65.00 50.00 35.00 The sales from 2011-2013 is expanding every year. Thus, the cost of products sold additionally increments. The working costs lessened in 2013 yet stay steady in 2012 and 2011 individually. It assist means expanded working benefit in 2013 inferable from diminishment in working costs. The reasons for ascend in operating income is ascribed to huge notice battles intended to build the deals (Rodgers, 2008). Effects. The increased in profitability ratio in 2013 indicates a positive growth in the company and one can easily project that the business will grow further in future. Moreover, the revenue generated from tax will also increase owing to increased operating profit. However, the times interest ratio reduces with time. Implying that the rate at which earnings are able to meet the expenses also reduces (Robinson, 2009). References Rodgers, P., Chartered Institute of Management Accountants. (2008).Financial analysis. Oxford: CIMA. Robinson, T. R. (2009).International financial statement analysis. Hoboken, N.J: John Wiley Sons.