Team 8: J&J Electrical. Horizontal & Vertical Analysis of Balance & Income statements. Income Statement Horizontal Analysis. Income Statement Horizontal Analysis (Cont’d).
Horizontal & Vertical Analysis of Balance & Income statements
J&J Electrical had growth in their revenue over the five year span, but its net income after taxes saw a decline almost every year as well.
There was a substantial increases in costsfrom 2003 – 2004 which was a major reason for their decrease in net income.
They also had a big increase in Operating Expenses
When analyzing the companies financial success vertically, it’s evident that costs have taken up a high percent of sales.
In 2004, 80% of the companies net sales where costs. This obviously isn’t a good look for the company and that’s somewhere they would need to improve on if they want to see profit success again.
Write up needed..