Financial and Non Financial Analysis of Vestas

Topics: Wind power, Renewable energy, Financial statements Pages: 4 (1444 words) Published: January 7, 2011
Financial and non financial analysis of the company:
To analyse the performance of a company could be made by analysing the financial performance or the non-financial; in the financial analysis there is two ways: horizontally and vertically analysis. By using the comparison the preformation over the years (Vertical analysis) or using different ratios to analyse and evaluate the performance of the company (horizontal analysis). Base on the annual report of 2009 which I will focus all my approaches of financial or non-financial analysis. * Financial:


Observant all those figures giving the annual report 2009, illustrating above we do observe that the company doing very well. The most accurate evolutions showing in the income statement are the revenue which has increased by 85% since 2005 and the Gross Profit with 160%. In 2009, revenue increased by 10 per cent to EUR 6.6bn; below the expected revenue of EUR 7.2bn. The lower revenue is primarily due to the delayed order intake. Accounting for 68 per cent of revenue, Europe was once again Vestas' largest market overall. The Americas accounted for 21 per cent of revenue, and Asia/ Pacific for 11 per cent. In addition to this, the balance sheet of the company over the years is very positive and having up and down trends in the average interest-bearing position due to fluctuations in exchange rates. Overall the company develop a respectable provision along side with the significantly increase of amount of the equity. Finally, Liquidity risk is the risk that Vestas is unable to meet its obligations as they fall due because of inability to realise assets or obtain adequate funding. The Group ensures that a strong liquidity position is maintained in order to service its financial obligations as they fall due, both under normal and more pressing conditions. Group Treasury is in charge of ensuring that substantial capital resources are in place at all times through a combination of liquidity management,...
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