9. 1.Comparative Financial Statement Analysis of Impala Ltd for the year Ended June
2020
Income statement
Particulars 2021 R’m 2020.R'm Absolute
Change
%Change
Revenue 69 851 48629 21222 30.38%
COST OF SALES (46 580) (41 791) (4789) 10.28%
GROSSINCOME 23 271 6 838 16433 70.62%
Impairment - (2 432) (2 432) 100%
Other income 471 1 424 (953) 66.92%
Other expenses (1 963) (1 799) (164) 8.35%.
Finance income 538 368 170 31.60%
Finance cost (1 155) (1 136) (19) 1.65%
Net exchange
transactio
n
gain/losse
s
796 (362) 1158 319.89%
Share of profit of
equity
accounted
entities
1 082 398 684 63.22%
Profit before tax 23 030 3 299 19731 85.68%
Income tax
expenses
(6 546) (2 120) (4426) 67.61%
PROFIT FOR THE
YEAR
16 484 1 179 15305 92.85%
10. Interpretation of the above analysis:
Revenue increased firm 2020 to 2021 by 30% and Gross income also increased by 70.62% as for Profit for the year increased
by 92. 82%
Just based on those few items, the reason why the the figures of 2021 year end looks more improved its because, in 2020
year end the companies were closed down and they were restricted to, do their business as usual for couple of months
11. 1. Current Ratio
Current Assets/Current liabilities
2021 2020
38941/12500 = 3.5% 24251/10283 = 2.4%
For 2020 the company had the current ratio of 2.4 meaning the entity can easily
settle each rand on loan or accounts payable twice. Whereas at 2021 it had a
current ratio of 3.1 which means the impala holdings was capable of settling each
and every rand on loan 3 times
2.Acid test Ratio
(Current Assets - inventories)/Current Liabilities
2021 2020
(38941-19451)/12500 = 1.56. (24251-11811)/10283 = 1.21
>the liquidity of the company is acceptable and it seems to
have a significant increase in the 2021 from 1.21 to 1.56
3.Total debt ratio
(Total assets - Total Equity) /Total Assets
2021 2020
(95855-64546)/95885. (66 954-41080)/66954
= 0.33. = 0.39
Total debt ratio for 2020 and 2021as 0.39and 0.33 respectively which fall with
the segment 0.3 to 0.6 which is regarded as a good ratio
12. 4.Debt Equity ratio
Total liabilities /total shareholders equity
2021 2020
31309/64596 25874/41080
=0.49 =0.63
>In 2020 debts equity ratio was 0.63 and i2021 it was 0.49 which is a good thing
on both years since its below 1.0 though it improved by having a decrease from
2020 to 2021
5. Cash Ratio
Cash And cash Equivalent /total current liabilites
2021 2020
13 331/12500 8242/10283
=1.07 = 0.80
>In 0 2020the Company had a ratio of 0.80 which is less than 1 which means
there's more current liabillitiesies than cash to cover the short term loans
whereas in 2021 the impala holdings had a cash ratio of greater than 1 which
simple means the company has the ability to cover all short term loans and still
remain with cash
6. Long term debt ratio
Long-term debt/(long-term debt +total equity)
2021 2020
13. 7. Profit Margin
NPAT/SALES
2021 2020
16484/69851 1179/48629
= 23.56% = 2.42%
In 2020 and 2021 the profit margin was 2.42 and 23.36% respectively which.
Means the % increased and shows that the company in 2020 was more efficient in
making sales into actual profit
8.Return on Equity
NPAT /TOTAL EQUITY
2021 2020
16484/64546 *100 1179/41080*100
=25.53% =2.87%
In 2021 ROI is a good ratio since it is greater than 15% this shows that the
investor s capital is being reinvested efficiently but as for 2020 it was not a good,
since it was 2.87%, soo it improved
