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Annual Report Analysis Project

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The chosen company is Tiffany & Co.

© BrainMass Inc. brainmass.com March 22, 2019, 3:14 am ad1c9bdddf
https://brainmass.com/business/management-accounting/annual-report-analysis-project-606667

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HORIZONTAL, VERTICAL & RATIO ANALYSIS OF TIFFANY & CO. (TIF)
REQUIREMENT 1 & 2
Horizontal Analysis
A. Income Statement
TIFFANY & CO (TIF) INCOME STATEMENT WITH HORIZONTAL ANALYSIS
Fiscal year ends in January. 2014-01 2015-01 Change ($) Change (%)
Revenue 4031130000 4249913000 218783000 5.43%
Cost of revenue 1690687000 1712738000 22051000 1.30%
Gross profit 2340443000 2537175000 196732000 8.41%
Operating expenses
Sales, General and administrative 1555903000 1645746000 89843000 5.77%
Other operating expenses 480211000 N/A N/A N/A
Total operating expenses 2036114000 1645746000 -390368000 -19.17%
Operating income 304329000 891429000 587100000 192.92%
Interest Expense 62654000 62903000 249000 0.40%
Other income (expense) 13191000 -90989000 -104180000 -789.78%
Income before income taxes 254866000 737537000 482671000 189.38%
Provision for income taxes 73497000 253358000 179861000 244.72%
Net income from continuing operations 181369000 484179000 302810000 166.96%

B. Balance Sheet
TIFFANY & CO (TIF) BALANCE SHEET WITH HORIZONTAL ANALYSIS
Fiscal year ends in January. 2014-01 2015-01 Change ($) Change (%)
Assets
Current assets
Cash and cash equivalents 345778000 729957000 384179000 111.11%
Short-term investments 21257000 1500000 -19757000 -92.94%
Total cash 367035000 731457000 364422000 99.29%
Receivables 188814000 195168000 6354000 3.37%
Inventories 2326580000 2362112000 35532000 1.53%
Deferred income taxes 101012000 102613000 1601000 1.58%
Prepaid expenses 244947000 220037000 -24910000 -10.17%
Total current assets 3228388000 3611387000 382999000 11.86%
Non-current assets
Property, plant and equipment
Land 42710000 42666000 -44000 -0.10%
Fixtures and equipment 906253000 1002485000 96232000 10.62%
Other properties 1149679000 1222039000 72360000 6.29%
Property and equipment, at cost 2098642000 2267190000 168548000 8.03%
Accumulated Depreciation -1243547000 -1367683000 -124136000 9.98%
Property, plant and equipment, net 855095000 899507000 44412000 5.19%
Goodwill 39736000 38836000 -900000 -2.26%
Intangible assets 87870000 74520000 -13350000 -15.19%
Deferred income taxes 278390000 323449000 45059000 16.19%
Other long-term assets 262872000 232904000 -29968000 -11.40%
Total non-current assets 1523963000 1569216000 45253000 2.97%
Total assets 4752351000 5180603000 428252000 9.01%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 252365000 234013000 -18352000 -7.27%
Accounts payable 116601000 118012000 1411000 1.21%
Taxes payable 31976000 61629000 29653000 92.74%
Accrued liabilities 110484000 178241000 67757000 61.33%
Deferred revenues 70309000 66138000 -4171000 -5.93%
Other current liabilities 115005000 N/A -115005000 -100.00%
Total current liabilities 696740000 658033000 -38707000 -5.56%
Non-current liabilities
Long-term debt 751154000 882535000 131381000 17.49%
Pensions and other benefits 268112000 524218000 256106000 95.52%
Minority interest 13531000 15612000 2081000 15.38%
Other long-term liabilities 302377000 265146000 -37231000 -12.31%
Total non-current liabilities 1335174000 1687511000 352337000 26.39%
Total liabilities 2031914000 2345544000 313630000 15.44%
Stockholders' equity
Common stock 1283000 1293000 10000 0.78%
Additional paid-in capital 1095304000 1173625000 78321000 7.15%
Retained earnings 1682398000 1950603000 268205000 15.94%
Accumulated other comprehensive income -58548000 -290462000 -231914000 396.11%
Total stockholders' equity 2720437000 2835059000 114622000 4.21%
Total liabilities and stockholders' equity 4752351000 5180603000 428252000 9.01%

Vertical Analysis
A. Income Statement
TIFFANY & CO (TIF) INCOME STATEMENT WITH VERTICAL ANALYSIS
Fiscal year ends in January. 2014-01 2014 (%) 2015-01 2015 (%)
Revenue 4031130000 100.00% 4249913000 100.00%
Cost of revenue 1690687000 41.94% 1712738000 40.30%
Gross profit 2340443000 58.06% 2537175000 59.70%
Operating expenses
Sales, General and administrative 1555903000 38.60% 1645746000 38.72%
Other operating expenses 480211000 11.91% N/A 0.00%
Total operating expenses 2036114000 50.51% 1645746000 38.72%
Operating income 304329000 7.55% 891429000 20.98%
Interest Expense 62654000 1.55% 62903000 1.48%
Other income (expense) 13191000 0.33% -90989000 -2.14%
Income before income taxes 254866000 6.32% 737537000 17.35%
Provision for income taxes 73497000 1.82% 253358000 5.96%
Net income from continuing operations 181369000 4.50% 484179000 11.39%

B. Balance Sheet
TIFFANY & CO (TIF) BALANCE SHEET WITH VERTICAL ANALYSIS
Fiscal year ends in January. 2014-01 2014 (%) 2015-01 2015 (%)
Assets
Current assets
Cash and cash equivalents 345778000 7.28% 729957000 14.09%
Short-term investments 21257000 0.45% 1500000 0.03%
Total cash 367035000 7.72% 731457000 14.12%
Receivables 188814000 3.97% 195168000 3.77%
Inventories 2326580000 48.96% 2362112000 45.60%
Deferred income taxes 101012000 2.13% 102613000 1.98%
Prepaid expenses 244947000 5.15% 220037000 4.25%
Total current assets 3228388000 67.93% 3611387000 69.71%
Non-current assets
Property, plant and equipment
Land 42710000 0.90% 42666000 0.82%
Fixtures and equipment 906253000 19.07% 1002485000 19.35%
Other properties 1149679000 24.19% 1222039000 23.59%
Property and equipment, at cost 2098642000 44.16% 2267190000 43.76%
Accumulated ...

Solution Summary

This solution presents a vertical and horizontal analysis of Tiffany & Co. (TIF) income statement and balance sheet for the years ended Jan 2014 and Jan 2015. The solution also presents a ratio analysis of the company's key indicators for the same period.

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