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Explore the horizontal and vertical analysis of J&J Electrical's income and balance sheets over five years to uncover reasons behind revenue growth and net income decline. Discover key insights into costs, operating expenses, and areas for improvement to enhance profit success.
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Team 8: J&J Electrical Horizontal & Vertical Analysis of Balance & Income statements
Income Statement Horizontal Analysis (Cont’d) 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
Income Statement Vertical Analysis (Cont’d) 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.
Balance Sheet Horizontal Analysis (Cont’d) Write up needed..
Ratios & Indicator Analysis Content here..