Financial statement analysis for sidenor s a
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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.

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Financial Statement Analysis for SIDENOR S.A.

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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.

  • Financial Statement Analysis


Presentation key points

  • Liquidity Ratios

  • Turnover Ratios

  • Return Ratios

  • Capital Structure Ratios

  • Investor Ratios

  • Conclusions


Sector – Main Competitors

Sector

  • Steel 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 Assets

    360.770.511 / 593.401.564 = 0,6080 or 60,80%

  • Current Assets / Total Assets

    232.631.053 / 593.401.564 = 0,3920 or 39,20%

    (Note: Intangible Assets / Total Assets equals zero)


Financial StatementsLiquidity Ratios

  • Current Ratio

    CR = Current Assets / Current Liabilities

    232.631.053 / 274.675.258 = 0,846

  • Quick Ratio

    QR = Current Assets - Inventories / Current Liabilities

    150.967.120 / 274.675.258 = 0,549


Financial StatementsLiquidity Ratios

  • Acid Ratio

    AR = Cash / Current Liabilities

    8.320.061 / 274.675.258 = 0,030


Financial StatementsTurnover Ratios

  • Inventory Turnover Ratio

    ITR = Cost of Sales / Avg. Inventory

    232.381.323 / 111.739.687 = 2,1times / year

    Days in Inventory = 365 / 2.1 = 174days


Financial StatementsTurnover Ratios

  • Receivables Turnover Ratio

    RTR = Sales / Avg. Receivables

    276.530.121 / 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. Payable

    235.730.038 / 98.467.193,5 = 2,39times / year

    Days in Suppliers = 365 / 2,83 = 153days


Financial StatementsTurnover Ratios

  • Inventory Conversion Cycle

    240days

  • Net Cash Conversion Cycle

    87 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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