hse group

2.15 compared to 2001 when was set at
2.87. Both in 2002 as well as in 2001 the
value has been above 1, which means
that the company is using long-term financing
not only for inventories but also
other short-term assets.
Current Ratio
The current ratio displays the level of
financing the company’s short-term assets
by using short-term liabilities. The
current ratio has dropped in 2002 to
2.18 but it still displays that the company’s
solvency is at a high level.
Accounts Receivable to Accounts
Payable Ratio
The HSE accounts receivable to accounts
payable ratio shows us that the company’s
accounts receivable substantially outweigh
its accounts payable. The value of
this ratio for the financial year 2002 is 6.61.
Fixed Operating Assets Turnover Ratio
The company’s fixed operating assets
turnover ratio for 2002 is set at 0.04. The
low value of this ratio shows us that the
turnover period for fixed assets is long
and that the company’s fixed assets are
depreciated over an average period of 25
years. Regarding the fact that a majority
of the company’s fixed assets are still to
be activated (they are still under construction
or in process and are not yet
being depreciated) this is understandable.
Operating Effectiveness Ratio
The operating effectiveness ratio is
above 1, which means that the company’s
operating revenues exceed the company’s
operating expenses. This shows
that the company is displaying an operating
profit. The value of this ratio has
been reduced from 3.40 in 2001 to 1.16
in 2002. Regarding the volume of operations
generated during each year the figures
are not comparable.
Overall Effectiveness Ratio
The value of the overall effectiveness ratio
of 1.15 means that in 2002 HSE managed
to achieve total revenues in the amount of
SIT 115 per SIT 100 of total expenses.
Operating Revenue Profitability
The operating revenue profitability
shows us that the company generated
an operating profit of SIT 13.92 per SIT
100 of operating revenues.
Total Revenue Net Profitability
The total revenue net profitability ratio is
set at 13.37 percent; this shows us that
the company generated a net profit of SIT
13.37 per SIT 100 of total revenues.
Added Value
The added value for 2002 amounted to
SIT 13,353,741,000, which is a substantial
rise compared to SIT 62,527,000 generated
in 2001.
Net Return on Capital
The net return on capital coefficient
shows us that the company managed
to generate a net profit of SIT 7 per SIT
100 of invested capital. Regarding the
fact that HSE is a capital-intensive company
the value is quite reasonable.
Operating revenues net inflow ratio
The operating revenues net inflow ratio
is calculated as the relation between
the surpluses of inflows from operating
activity over operating revenues. The
ratio of 11.61% shows us that the company
generated an excess of SIT 11.61
of inflows from operating activity per
SIT 100 of operating revenues.
HSE BALANCE SHEET
STRUCTURE AS OF 31 DECEMBER 2002
Assets
Short-term
assets
11 %
Longterm
assets
89 %
Short-term
liabilities
5 %
Capital
and
longterm
liabilities
95 %
Liabilities
33