Ministry of Education of the Republic of Moldova

State University of Moldova

Faculty of Economic Sciences

Department of Finance and Banking

Report
Topic: Analysis of economic efficiency of the Limited liability
company Gamplas

1st year student, gr.1602 (Eng)

Specialty: Finance and Banking

Malai Parascovia

Scientific leader: Neculseanu Andrei

Chiinu, 2016
 General information about Gamplas LLC

Short name LLC GAMPLAS

Long name Limited Liability Company GAMPLAS
Registration date 2010-03-29
Tax code (IDNO) 1010600010063
Legal form Limited liability company
Address mun. Chiinu, s. Botanica, str. Dacia bd., 44, ap. 123
List Leaders Ciobanu Dinu
List Founders LLC Fincocel, LLC Instalvest Group

Installation,
repair and
maintenance
machinery for
general
utilization

Wholesale of
wood
Market
materials,
research and
public opinion construction
poll materials and
sanitary
The object of equipment
activity of the
company

Wholesale of
Retail sales of
hardware, of hardware,
paints and water supply
and heating
glass equipment

GAMPLAS company is made up of a team of professionals with an experience of over 8

years in installations.
The company staff operates efficiently and dynamically, responding promptly to all customer
requests. The delivery system is very well developed and effective which has a good accuracy.
An advantage of this company is the existence of permanent stock of most items.
The financial analysis of the company
 Financial statement analysis is the process of reviewing and analyzing a company's
financial statements to make better economic decisions. Financial statement analysis is a method
or process involving specific techniques for evaluating risks, performance, financial health, and
future prospects of an organization.

profitability
indicators

market
liquidity
value
indicators
indicators

The system of
indicators used
for financial
analysis of the
company

debt asset
management management
indicators indicators

rentability
indicators

The profit and loss account

from 1 January to 31 December 2012
Indicators Reporting period Previous period
Income from sales 2996531 2736360
Cost of sales 1897687 1999388
Gross profit (global loss) 1098844 736972
Other operating income - 28642
Commercial expenses 711311 409161
General and administrative expenses 187764 250196
Other operating expenses 108136 71012
The result from operating activities: profit (loss) 91633 35245
The result from investing activities: profit (loss) - -
The result of financial activity: profit (loss) (84108) 66479
The result of financial and economic activities: 7525 101724
profit (loss)
Exceptional result: profit (loss) - -
Profit (loss) before taxation period 7525 101724
Expenses on income tax 1180 -
Net profit (loss) 6345 101724
 I. Analysis of financial results of the reporting period (2012) compared to the
previous period (2011):
1. Identification of gross profit:
Gross profit=Total sales Total expenses
For 2012: 2996531 1897687 711311 187764 108136
84108 =7525 (lei);
For 2011: 2736360+28642 1999388 250196 409161
71012 + 66479 =101724 (lei);
2. Identification of net profit:
Net profit=Gross profit Expenses on income tax
For 2012: 7525 1180 =6345 (lei);
For 2011: 101724 0 =101724 (lei).
Conclusion: After the data analyzed, we find that 2012 is a year less profitable than 2011,
because the amount of net profit was lowered by 95379 lei. This decrease was due to the absence
of other income from operating activities, which in previous periods were recorded an amount of
28642 lei. An other negative factor was the increasing of the commercial expenses with 302
150 lei. Also, 2012 has incurred and expenses on income tax in the amount of 1,180 lei, leading
to shrinking profits. Despite many moments negative, activity remains profitable, recording a
profit in the amount of 6345 lei. This entity will may use the amount of profit for: the
establishment of the reserve fund, the establishment of compensation fund for shareholders and
the establishment of fund for economic development.
II. Analysis of return for years 2012 and 2011:
Net profit
Financial return= Equity capital * 100%

For 2012: (6345/323618)*100% 1,96 %

For 2011: (101724/317273)*100% 32,06 %

Profit (loss) before taxation period

Economic return= T otal assets *100 %

For 2012: (7525/2364851)*100% 0,32%

For 2011: (101724/2335216)*100% 4,36%

Conclusion: To determine what profitability will bring of equity capital as a financing source,
we calculate the financial profitability indicator.
 Following data analysis we conclude that the company's financial activity in 2012 is one
unprofitable because did not exceed the interest rate of 5%, which in 2011 it was topped with a
share of 32.06%. Therefore, and economic profitability it is unfavorable, that is determined by
getting a small profit.
III. Analysis of liquidity for years 2012 and 2011:
Current liquidity=Current assets/current liabilities

For 2012: 2214292/1734578 1,28

For 2011: 2335316/927816 2,52

Conclusion:
Calculating current liquidity in 2011, shows that the company was not able to immediately
pay its debts in the short term, because the result was not within the limits set by 1.5-2.
Regarding 2012, we find that the entity short-term debts can be paid with of all current assets it
holds. So in 2012 this entity has a satisfactory level of liquidity as it comes in limits.
IV. Analysis of rates of structure
Stocks rate=(Stocks/Total assets)*100%

For 2012: (587117/2264851)*100% 25,92%

For 2011: (1090269/2335316)*100% 46,69%

Total debt ratio=(Total debts/Total Liabilities)*100%

For 2012: (1941233/2264851)*100% 75,71%

For 2011: (2018043/2335316)*100% 86,41%

Financial autonomy rate=(equity capital/ongoing capital)*100%

For 2012: (323618/323628+206655)*100% 61,03%

For 2011: (317273/317273+1090227)*100% 22,54%

Financial stability rate=ongoing capital/total liabilities

For 2012: (530283/2264852)*100% 23,41

For 2011: (1407500/2335316)*100% 60,27

V. Analysis of general solvency of the company:

General solvency ratio=Total assets/Total debts

For 2012: 2264851/1941233 1,17

 For 2011: 2334316/2014043 1,16

Conclusion: General solvency ratio reflects the ability of enterprise to handle all of its
maturities, both in the short, medium term and long term. According to the result, the entity can
cover their total debt at the expense of total assets, as the result exceeds the limit of 1, which
suggests a good situation of the entity, ie the company can to cover all debts and to increase
reserves with 17% of the benefit obtained.