- Key Changes Within Profit and Loss
When reviewing the profit and loss it should always be compared to previous year in order to determine how a business is going.
- In 2013:
- Sales Revenue decreased by $17,236
- Other Income decreased by $35,992
(When referring closer to Note 2 in the Annual Report - it is clearly seen the decrease came from Registry Services which is there main source of income, client disbursements recovered, interest received from bank accounts.)
Key Concept Question: Don't understand the client disbursement recovered?
Research findings: I did some research on this and what makes sense is that Advanced Share Registry must pay costs for their clients that they invoice the clients for?But then i also found it has something to do with unbilled cheques and clients? This is confusing me?
- Occupancy expenses increased by $10,177
- Administrative expenses decreased by $48,135
- Operating expenses increased by $10,529
- Depreciation and amortisation decreased by $16,307
Area of importance: Overall, expenses has decreased by $43,736 as per Note 3 in the Annual Report. This has come from a decreased in professional fees, directors fees, but seems to be of a decline in Salaries and wages which decreased by $44,346.
- Overall profit after income tax has decreased by $11,756
Percentage Interests: Net Profit Ratio 2013 versus 2012
2012
Total Profit after tax = $1 581 348
Total Revenue = $5 131 628
Percentage = 30.82%
2013
Total Profit after tax = $1 569 592
Total Revenue = $5 114 392
Percentage = 30.69%
This changed by 0.13% which is fairly constant between the two years. In my opinion this is fairly consistent over the two years and I need to gain more of an understanding of what Advanced Share Registry was having to deal with in the 2013 Financial year.
- Earnings per share which is the value of shares based on the profit after tax decreased by 0.03 cents in 2013
- Diluted earnings per share decreased by 0.02 cents in 2013
Key Concept Question: What do you understand of Diluted earnings per share? When looking at Note 23 in the Annual Report from what i can see is that it refers to the share rights that are outstanding. From what i understand of rights is that shareholders get into a agreement to purchase so many shares at a certain value sometime in the near future? Another fact that i found when reading my Annual report is that the employees are entitled to performance right shares which as my understanding is what allows employees based on their performance to purchase shares below market value or nil value? Please let me know your point of view?
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