Evaluative Activity Axis 3 - Credit Analysis.

Financial reasons.

Presented by:

Ena Luz Zapata Diz.

Group 213

Tutor:

Joan Adrián Salcedo Miranda.

University Foundation of the Andean Area.

Faculty of Administrative, Economic and Financial Sciences.

Financial Management Specialization.

August 2021.

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 CONTENT.

INTRODUCTION ................................................. .................................................. ..................

3 V-SOLUTIONS

SAS........................... .................................................. ..................................4

FINANCIAL SITUATION…. ................................................................................................5

VERTICAL

ANALYSIS................................................ .................................................. ............8

HORITZONTAL

ANALYSIS................................................ .................................................. ...8

FINANCIAL RATIO................................................ .................................................. ............9

FINANCIAL

ANALYSIS…….............................................. ...................................................10

CONCLUSIONS…………………………………… .................................................. ...........el

even

BIBLIOGRAPHY……….............................................. .................................................. ...........

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 INTRODUCTION.

In this activity, the financial analysis of the company V-SOLUTIONS SAS will be

carried out, in order to obtain a clear vision about its financial structure; as well as determine

the weight or importance of the accounts within the financial statement and in one way or

another look for an ideal structure for our company that allows greater profitability and a

balanced situation, establishing great interest in evaluating the structural changes produced

from the analysis. vertical and horizontal.

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 V-SOLUTIONS SAS: We are a company dedicated to electronic security systems

(security cameras, electric fencing, pedestrian and vehicular access control, alarms... among

others), we are located in the city of Barranquilla, but we offer our services nationwide.

MISSION: We are an integrated company dedicated to providing the marketing and

installation service of security equipment, access control, electric fences and structured

cabling, all in order to satisfy the needs of our clients. We provide innovative and effective

solutions with high quality products, which allow us to guarantee credibility, reliability and

peace of mind to our clients.

VISION: we will be the reference company in the area of electronic security

throughout the Caribbean coast, thanks to the responsibility we have in the execution of our

installation, surveillance and security projects, which go hand in hand with the innovation and

evolution of our products and services.

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 V-SOLUTIONS SAS
NIT. 900.816.772-5
STATEMENT OF FINANCIAL POSITION
from January 1 to December 31

ASSETS
2.018 2.019
CURRENT ASSETS Grad
es
Cash and Cash Equivalents 1 5.416.725 3,4% 27.538.013 17,4%
Comercial debts and other counts under charge 2 137.589.104 86,7% 203.385.373 128,2%
Inventories 6.284.000 4,0% 12.840.000 8,1%
TOTAL CURRENT ASSETS 149.289.829 94,1% 243.763.386 96,3%

NON-CURRENT ASSET
Properties Plant and Equipment 9.329.645 5,9% 9.329.645 5,9%
TOTAL NON-CURRENT ASSETS 9.329.645 5,9% 9.329.645 3,7%

TOTAL ASSETS 158.619.474 100% 253.093.031 100%

PASSIVES
CURRENT LIABILITIES
Trade creditors 3 2.409.257 37,8% 67.447.812 96,9%
Current Tax Liabilities 3 3.958.000 62,2% 2.137.000 3,1%
TOTAL CURRENT LIABILITIES 6.367.257 4,9% 69.584.812 35,0%
NON-CURRENT LIABILITIES
Long-term liabilities 4 124.000.000 100,0% 129.382.000 100,0%
TOTAL CURRENT LIABILITIES 124.000.000 95,1% 129.382.000 65,0%

TOTAL LIABILITIES 130.367.257 82,2% 198.966.812 78,6%

HERITAGE
Share Capital Quotas 5.000.000 17,7% 5.000.000 9,2%
Accumulated Surpluses (7.232.030) -25,6% 23.252.217 43,0%
Surpluses of the Period 30.484.247 107,9% 25.874.002 47,8%
TOTAL ASSETS 28.252.217 17,8% 54.126.219 21,4%
TOTAL LIABILITIES + EQUITY 158.619.474 100% 253.093.031 100%

Victor Molina Teran Arturo De La Hoz Villalba

Legal representative Public
Accountant TP
122127-T
Table 1: Financial Situation.
Own source.

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 V-SOLUTIONS SAS
NIT. 900.816.772-5
COMPREHENSIVE INCOME STATEMENT
from January 1 to December 31

Table 2: Comprehensive Income Statement

Own source.

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NOTES TO THE FINANCIAL STATEMENTS AS OF DECEMBER 31

2.018 2.019
NOTE 1. - CASH AND CASH EQUIVALENT
Box 2.000.000 2.000.000
Banks 3.416.725 25.538.013
TOTAL 5.416.725 27.538.013

NOTE 2. - COMMERCIAL DEBTORS AND OTHERS

COMMERCIAL DEBTORS
Construseñales sas 109.106.700 146.731.019
Districargo Operations sa 5.126.520 5.276.020
Grama sa Group 5.180.448 17.026.582
Procargo Zona Franca sas 10.203.120 0
Macroparts of Colombia sas 2.938.303 0
Distriservices sa 0 11.491.973
Jeco Decorations SAS 0 13.355.511
Furniture and decorations Deninsa sas 0 8.103.443
Miscellaneous Others 5.034.013 1.400.825
TOTAL 137.589.104 203.385.373

NOTE 3. - TRADE CREDITORS

DEFERRED CHARGES
Use Virtual Marquet SAS 2.409.257 52.790.490
Miscellaneous Others 14.657.322
CURRENT TAX LIABILITIES

Withholdings payable 2.819.000 1.937.000

VAT payable 615.000 175.000
ICA payable 524.000 205.000

TOTAL 6.367.257 69.764.812

NOTE 4 - LONG-TERM LIABILITIES

Debts with partners 124.000.000 129.382.000
TOTAL 124.000.000 129.382.000
Table 3: Financial Statement Notes.
Own source.

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  Vertical Analysis:

The most important current asset account in 2018 and 2019 is the TRADE DEBTORS

AND OTHER ACCOUNTS RECEIVABLE account, the non-current assets, with 5.9% and

5.9%, respectively. The most important account is the INVENTORIES account, with 4% and

8.1%.

 Horizontal Analysis:

In 2018 there were assets of $5,416,725 and in 2019 the assets were $27,538,013, so

we have $5,416,725 – $27,538,013 = $22,121,288. That is to say, the asset increased or had a

positive variation in the period in question, evidencing a growth in the ASSET account in the

last period.

It means that the asset obtained a growth of 17.4% compared to the previous period;

The company's performance in said period was good. The variation is due to the increase in

ASSETS, as a consequence of income from commercial activities that are carried out and thus

guaranteeing a significant growth in ASSETS for the following year.

Taking into account the values obtained in the horizontal analysis, it is intended to

COLLECT ALL COMMERCIAL DEBTORS and thus guarantee the CASH AND CASH

EQUIVALENT in terms of improving the performance set by the company, which is to

increase the SALES and PROFIT MARGIN, thus obtaining efficiency in the administration of

resource management, so that economic results are always favorable.

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 Calculations of the Financial Liquidity Ratio and would generate an

interpretation of the results between the periods analyzed. Arguing whether or not the

behavior of the analyzed financial ratio is favorable.

YEAR 2018

General liquidity ratio = Current assets / Current liabilities

General liquidity ratio = $149,289,829 / $6,367,257

General liquidity ratio= 23.4

YEAR 2019

General liquidity ratio = Current assets / Current liabilities

General liquidity ratio = $243,763,386 / $69,584,812

General liquidity ratio = 3.5

This means that the company has a very good capacity and according to this ratio the

company has no problems in meeting its short-term obligations.

Finally, the behavior found is considered favorable according to what was previously

analyzed.

Image 1: Liquidity Ratio.

Own source .
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 FINANCIAL ANALYSIS.
YEAR YEAR
2018 2019
ASSET
NON-CURRENT ASSET $ 9.329.645 $ 9.329.645
CURRENT ACTIVE $ 149.289.829 $ 243.763.386
TOTAL, ACTIVE $ 158.619.474 $ 253.093.031

EQUITY AND LIABILITIES

HERITAGE $ 28.252.217 $ 54.126.219
NON-CURRENT LIABILITIES $ 124.000.000 $ 129.382.000
CURRENT LIABILITIES $ 6.367.257 $ 69.584.812
TOTAL, EQUITY AND LIABILITIES $ 158.619.474 $ 253.093.031

Correct data entry $ 158.619.474 $ 253.093.031

LIQUIDITY 23,44649022 3,503111943

INDEBTEDNESS 0,821886832 0,786141014

Rdo Exercise $46.047.747 $37.342.816

Financial profit $ 2 $ 1

Current capital $ 142.922.572 $ 174.178.574

Liquidity situation Adequate Adequate

Debt Level Failed Failed

Total profitability of the company 2,31980185 2,31980185

COMPANY SITUATION ISSUES ISSUES

Table 4: Financial Analysis.
Own source.

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 Conclusions.

After carrying out the analysis of V-SOLUTIONS SAS, it presents adequate liquidity

levels, in terms of profitability and debt, the results do not completely benefit the company,

because the shareholders' capital is quite committed to third parties. and high accounts

receivable. The company does not have quality clients, that is, clients who demonstrate

commitment to payments, which is why its sales are maintained; but they do not generate

profits in the short term, which causes an increase in operating costs, which amount to more

than 6.4% of total operating income, the above indicates that the company works to pay its

costs, which are not used in their entirety due to the decrease in commercial relationships

and payment commitment on the part of clients. When evaluating the Financial Statements

of the company, it is observed that it presents deficiencies in the management of operational

and sales expenses. As a result of the increase in debt with partners, financial costs also

represent an important part of the company's expenses and are influencing the result of the

Profit and Loss Statement.

V-SOLUTIONS SAS currently does not have an action plan that allows it to establish

strategies that can deal with the changes that the market presents at the present and how it

may affect it in the future; on the contrary, its investment and Sales have focused on a short-

term vision that resulted in a decrease in links with clients and as a result, a loss in the

income statement. An inadequate management of resources is observed, in less than a year,

the debt increased and the equivalent income has to be collected, which represents a risk,

since the resources invested in inventories are largely compromised.

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 BIBLIOGRAPHY.

Marlon M. (2020) What are liquidity ratios? Recovered from: ▷ What are LIQUIDITY

RATIOS and how are they CALCULATED? (contaestudio.com)

Mariana, G. (2017) Recovered from: Profitability, Liquidity and Debt Analysis of SkyNet

de Colombia - Mariana Garzón Gonzále.pdf (ucatolica.edu.co)

Financial Analysis Case Solution. Recovered from:

________________________________________________________________________

___________________________________ (unizar.es)

National Technological University. Accounting Vertical and Horizontal Analysis.

Recovered from:

Microsoft Word - Note Unit 3- Vertical and Horizontal Analysis.doc (utntyh.com)

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