Advanced Technologies Solution
Below are the financial highlights for the five year period from the year 1993 to 1997 indicating significant trends and fluctuation of Advanced Technologies Inc., performance for such period as follows;
From the above table, we can clearly see that the total asset base of the company has been consistently increasing by 68% during 1993-1994, 61% during 1994-1995 and 40% during 1995-1996 and finally 34% for during 1996-1997. This considerable increase in revenue is solely due to increase in sales revenue for such years from a minimum of 10% during 1996-1997 to a maximum of 80% during 1993-1994. There is however slightly a varying trend in the total liabilities which include both long term and short term liabilities. The total liabilities have increased by 204% during 1993-1994 because of substantial increase in trade creditors and the company’s accrued expenses. Although, the company is burdened by the long term debt yet it has defaulted in the interest and current maturities. Further, the cost of goods sold has also increased each subsequent year from a minimum of 14% during 1996-1997 to a maximum of 77% during 1993-1994. This is truly dependent on the volume of sales. The total expenses include research and development costs and the related selling, general and administrative overheads which have increased continuously subject to a maximum increase in 1993-1994 because of major increase in sales volume by 80%. Similarly, the interest expense on the borrowings exhibit major increase of 250% due to higher sales in 1993-1994 but eventually it remains stable. Overall, the company’s financial performance is healthy as we can see that net income is continually increasing which had resulted in equity growth.