Perform a vertical analysis on both companies.Comment on at least three points, interpreting the data into management information Fiscal year is October-September. All values CAD Millions.202120202019201820175-year trendSales/Revenue18,28317,99816,76814,38313,175Sales Growth1.59%7.34%16.58%9.17%Cost of Goods Sold (COGS) incl. D&A16,19315,92914,69112,65311,566COGS excluding D&A15,71515,46814,40512,41911,371Depreciation & Amortization Expense478462286233194Depreciation400387210185164Amortization of Intangibles7875754830COGS Growth1.66%8.43%16.11%9.40%Gross Income2,0902,0682,0771,7311,610Gross Income Growth1.05%-0.41%19.99%7.52%Gross Profit Margin11.43%SG&A Expense8358371,009876842Other SG&A8371,009876842SGA Growth-0.19%-17.06%15.23%3.98%Other Operating Expense11EBIT1,2551,2311,068844768Unusual Expense237(175)(5)Non Operating Income/Expense(5)(12)391,104(5)Non-Operating Interest Income14118292co Interest Expense14314410910661Interest Expense Growth-0.42%31.56%3.60%72.10%Gross Interest Expense14314410910661Pretax Income1,1211,0849692,046708Pretax Income Growth3.36%11.88%-52.63%188.85%Pretax Margin6.13%Income Tax295288255358193Income Tax - Current Domestic255271232422151Income Tax - Deferred Domestic401723(63)42Equity in Affiliates3194Consolidated Net Income8267967141,719608Minority Interest Expense313217Net Income8237957121,717592Net Income Growth3.50%11.75%-58.54%190.10%Net Margin4.50%Net Income After Extraordinaries8237957121,717592Net Income Available to Common8237957121,717592

Vertical Analysis of Financial statements is a method which discloses the relationship between items…

Answered: Perform a vertical analysis on both…

Perform a vertical analysis on both companies. Comment on at least three points, interpreting the data into management information

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Perform a vertical analysis on both companies.
Comment on at least three points, interpreting the data into management information

Fiscal year is October-September. All values CAD Millions.
2021
2020
2019
2018
2017
5-year trend
Sales/Revenue
18,283
17,998
16,768
14,383
13,175
Sales Growth
1.59%
7.34%
16.58%
9.17%
Cost of Goods Sold (COGS) incl. D&A
16,193
15,929
14,691
12,653
11,566
COGS excluding D&A
15,715
15,468
14,405
12,419
11,371
Depreciation & Amortization Expense
478
462
286
233
194
Depreciation
400
387
210
185
164
Amortization of Intangibles
78
75
75
48
30
COGS Growth
1.66%
8.43%
16.11%
9.40%
Gross Income
2,090
2,068
2,077
1,731
1,610
Gross Income Growth
1.05%
-0.41%
19.99%
7.52%
Gross Profit Margin
11.43%
SG&A Expense
835
837
1,009
876
842
Other SG&A
837
1,009
876
842
SGA Growth
-0.19%
-17.06%
15.23%
3.98%
Other Operating Expense
11
EBIT
1,255
1,231
1,068
844
768
Unusual Expense
2
37
(175)
(5)
Non Operating Income/Expense
(5)
(12)
39
1,104
(5)
Non-Operating Interest Income
14
11
8
29
2
co

Interest Expense
143
144
109
106
61
Interest Expense Growth
-0.42%
31.56%
3.60%
72.10%
Gross Interest Expense
143
144
109
106
61
Pretax Income
1,121
1,084
969
2,046
708
Pretax Income Growth
3.36%
11.88%
-52.63%
188.85%
Pretax Margin
6.13%
Income Tax
295
288
255
358
193
Income Tax - Current Domestic
255
271
232
422
151
Income Tax - Deferred Domestic
40
17
23
(63)
42
Equity in Affiliates
31
94
Consolidated Net Income
826
796
714
1,719
608
Minority Interest Expense
3
1
3
2
17
Net Income
823
795
712
1,717
592
Net Income Growth
3.50%
11.75%
-58.54%
190.10%
Net Margin
4.50%
Net Income After Extraordinaries
823
795
712
1,717
592
Net Income Available to Common
823
795
712
1,717
592

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