Session

Management, Business and Economics

Description

The main source of information for financial analysis is the financial statements. Analyzing financial statements helps in making the best decisions possible by maximizing profit and minimizing costs. This paper analyzes the income statement and balance sheet for the manufacturing company Kamila in Kosovo. A wide variety of techniques can be used to assess the financial viability of an organization. In this paper are included the methodologies of horizontal analysis, vertical analysis and report analysis for three years, respectively for the years 2016, 2017 and 2018. Through the above and comparative analysis over the years, we reach a conclusion by clarifying the status of assets, liabilities, capital and business profits, and answering the research questions of the paper why the business during the three years has had the same sales turnover and different profit and why the company realized higher profit in 2017 and lower profit in 2018. Finally, it is recommended that Kamila LLC will focus on increasing its own production and increasing exports to international markets.

Keywords:

Accounting; Financial Analysis; Financial statement; Kosovo.

Session Chair

Ylber Limani

Session Co-Chair

Gonxhe Beqiri

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-96-7

First Page

40

Last Page

54

Location

Lipjan, Kosovo

Start Date

31-10-2020 3:15 PM

End Date

31-10-2020 4:45 PM

DOI

10.33107/ubt-ic.2020.327

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Oct 31st, 3:15 PM Oct 31st, 4:45 PM

Financial Statement Analysis: Case study of Kamila LLC (2016-2018)

Lipjan, Kosovo

The main source of information for financial analysis is the financial statements. Analyzing financial statements helps in making the best decisions possible by maximizing profit and minimizing costs. This paper analyzes the income statement and balance sheet for the manufacturing company Kamila in Kosovo. A wide variety of techniques can be used to assess the financial viability of an organization. In this paper are included the methodologies of horizontal analysis, vertical analysis and report analysis for three years, respectively for the years 2016, 2017 and 2018. Through the above and comparative analysis over the years, we reach a conclusion by clarifying the status of assets, liabilities, capital and business profits, and answering the research questions of the paper why the business during the three years has had the same sales turnover and different profit and why the company realized higher profit in 2017 and lower profit in 2018. Finally, it is recommended that Kamila LLC will focus on increasing its own production and increasing exports to international markets.