Companies in brief 1 “Sharg’unko’mir”

2.0 Vertical and Horizontal analysis
2.1 Income Statement. As the “Sharg’unko’mir” is a coal mining company, over 70% of revenue is cost of goods sold. Before the pandemic situation, the gross margin was around 20%-30%. But after the Covid-19, the gross margin increased by 74,54% in 2022 compared to 2021, it is 44,57% of the revenue (Table-1). In the foreign company, “Peabody Energy”, the gross margin is even worse than the case company, in average 15%-20%. According to the industry sphere, maybe it is normal for companies, but from this side the case company has more positive results compared to foreign company.

	2020	2021	2022
Net revenue	100,00%	100,00%	100,00%
Cost of good sold	72,41%	67,13%	55,43%
Gross profit	27,59%	32,87%	44,57%

Table-1. “Sharg’unko’mir” joint-stock company

	FY 2021	FY 2022
Revenue	100%	100%
- Cost of Revenue	88%	73%
Gross Profit	12%	27%

Table-2. “Peabody Energy”
In terms of the Net income, till the pandemic “Sharg’unko’mir” experienced positive growth annually, nevertheless, from 2020, it started declining over 100% compared to previous year. Moreover, in 2022, the case company witnessed dramatic increase by 4301,43% in net income (Table-3). In case of “Peabody Energy”, the net income was very low $360,10 million. But it also managed rising the net profit by 260% in 2022. Both companies are doing well in term of the net profit. Generally, the foreign company has more attractive results, because the points are low but they are still making money other than the case company which had negative results (Table-4).

	2020	2021	2022			FY 2021	FY 2022
Net profit	-122,75%	-104,06%	4103,43%		Net Income	N/A	260%

Table-3. “Sharg’unko’mir” joint-stock company Table-4. “Peabody Energy”

2. 
   Balance Sheet. In the producing industry, more assets will be frozen by non-current assets, such as equipment, factories, machineries, and plant. In the foreign company the portion of the total non-current assets is around 55%-60% of the total asset. And the current asset is only about 35%-40% and half of it is cash and cash equivalents, which means, the company has very few receivables and inventories. It is very attractive outcome for the investors (Chart-1). On the other hand, before the pandemic, the case company had more current assets than the non-current ones, around 60%-70% and 40%-30%, respectively. However, after the Covid-19, “Sharg’unko’mir” joint-stock company liquidated its long-term assets, and now only 90% is current and 10% is non-current assets. It is very negative outcome for the following industry. It means the company has problems with debt. Nevertheless, comparing to the “Peabody Energy”, the nearly 95% of the current assets are receivables, additionally, the receivable turnover day is around one and half a year. It is very negative outcome for the investors.
   

Graph-1. “Sharg’unko’mir” JS company Chart-1. “Peabody Energy”


2.3 Cash Flow Statement. Before the pandemic situation, the cash generated by all operating, investing, and financing was stable, however, during the Covid-19, the case company faced serious problems. Firstly, annual expenses increased, sales decreased, as a result more debt was taken. Investing in fixed assets declined, even huge amount of the non-current assets was liquidated as the cash needed for the expenses. As a result, after the pandemic, more debt is paid, and again started increasing the non-current asset portion. It is very well performance done by the case company (Graph-2).
“Peabody Energy” increased the operating cash flow because of the huge increase in cash amount of 37%. However, the investing activities are very poor, because year by year, the investment amount is decreasing, which is bad for the company. Because increasing the fixed asset amount means security for both companies and investors. Long-term assets will be very attractive tool to gain more debt. But still, the company is gaining more debt in 2022 compared to 2021 (Graph-3).




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Graph-2. “Sharg’unko’mir” JS company Graph-3. “Peabody Energy”
3.0 Financial ratios
3.1 Liquidity ratio