Salt Mine

Tuzla JSC
Financial Analysis, Džejlana Harbaš
 Table of contents

01 Introduction 02 Vertical and Horizontal

analysis

03 Ratio Analysis 04 Conclusion

01
INTRODUCTIO
N
 ABOUT THE COMPANY:

• The Salt Mine „Tuzla” JSC was established in 2001

• Ownership structure of the company makes up from state capital

(72.6371%) and stock capital of (27.3629%)

• It employes 126 individuals

• Owner of the Panonica LLC

02
HORIZONTAL AND
VERTICAL ANALYSIS
BALANCE SHEET  2022 2021 2020

A) Long-term assets 125.225.773 128.054.635 126.315.339

1. Buildings, Plants, and Equipment 98.156.017 100.043.066 97.274.891

2. Intangible Assets 27.062.816 28.004.629 28.871.412

B) Short-term assets 19.500.556 15.560.349 17.143.567

1. Inventories 2.734.591 2.083.919 1.800.436

2. Cash and Cash Equivalents 14.763.548 12.172.331 14.174.667

C) Capital 142.705.932 140.735.716 140.204.097

D) Long-term liabilities 1.234.158 511.298 601.515

E) Short-term liabilities 1.769.886 3.287.696 1.486.694

 INCOME STATEMENT 2022 2021 2020
A) Revenues 18.448.864 15.020.965 13.731.576

1. Revenues from contracts with customers 17.747.381 13.604.476 13.241.252

2. Other revenues 701.483 1.416.489 490.324

B) Expenses 16.654.077 14.453.187 13.108.226

1. Operating expenses 15.263.301 12.600.807 12.324.048

1.1. Cost of salaries 5.439.984 4.469.152 4.225.751

2. Other expenses 1.390.776 1.852.380 784.178

C) Profit/Loss 1.641.989 531.619 577.104

 STRUCTURE OF THE 2022 BALANCE
SHEET
Asset Side Structure

11%
Buildings, Plant and
Equipment
19% Intangible Assets
Cash and Cash Equiva-
Structure of Capital and Liabilities
lents
Capital Long-Term Liabilities Short-Term Liabilities

70% 1% 1%

98%
 ABSOLUTE CHANGES IN THE BALANCE
SHEET

ASSETS 2022 2021

B. Current Assets 3.940.207 (1.583.218 )

I Inventories 650.672 283.483

Cash and Cash Equivalents 2.591.217 (2.002.336 )

CAPITAL AND LIABILITIES 2022 2021

A. Capital 1.970.216 531.619

B. Long-term Liabilities 722.860 (90.217)

C. Short-term Liabilities (1.517.810) 1.801.002

INCOME STATEMENT

Revenues structure in 2022

• Between 2020 and 2021, revenues
4%
increased by 1,289,389 BAM,
representing a growth rate of
9.39%.
Operating Revenues
Other Revenues
• Furthermore, from 2021 to 2022,
there was a significant increase of
3,427,899 BAM in revenues,
indicating a growth rate of 22.82%.
96%
INCOME STATEMENT

EXPENSES 2022 Absolute 2021 Absolute 2020

1. Operating
Expenses 15.263.301 2.662.494 12.600.807 276.759 12.324.048

1.1. Cost of Salaries 5.439.984 970.832 4.469.152 243.401 4.225.751

2. Other Expenses 1.390.776 (461.604) 1.852.380 1.068.202 784.178

In 2022, operating expenses accounted for 91.65% of total expenses, while other
expenses constituted the remaining 8.35%. Among the operating expenses, the largest
component was the cost of salaries, representing 32.66% of total expenses.
03

RATIO ANALYSIS
 LIQUIDITY RATIOS
The decrease in current assets and the increase in short-term
2020 2021 2022
Current liabilities are contributing factors to the decline in the current
ratio ratio in 2021.
11,53 4,73 11,02

2020 2021 2022 Changes could be tied to better inventory management in 2021,
Quick Ratio and poorer in 2022.
10,32 4,01 9,47

2020 2021 2022 Maintaining substantial cash reserves may played a crucial
Cash Ratio
9,53 3,70 8,34 role in preserving the company's liquidity in 2021.
SOLVENCY RATIOS

2020 2021 2022

Debt Ratio
0,01 0,03 0,02

2020 2021 2022

Debt to Equity
Ratio
0,02 0,03 0,02
 ACTIVITY INDICATORS
2020 2021 2022
2020 2021 2022 Current Asset
Receivables
Turnover
Turnover Ratio 0,80 0,97 0,95
11,68 12,71 12,17

2020 2021 2022 2020 2021 2022

Asset Turnover Inventory Turnover
Ratio Ratio
0,10 0,10 0,13 7,35 6,53 6,49

2020 2021 2022 2020 2021 2022

Fixed Assets Days Sales
Turnover Outstanding
0,11 0,12 0,15 31,24 28,72 30,00
 PROFITABILITY INDICATORS

2020 2021 2022 The net income margin exhibits a logical trend, with the lowest value
Net Income Margin observed in 2021, which corresponds to the year of lower revenues.
4,36 3,91 9,25

2020 2021 2022 In 2022, the ROA significantly increased to 1.13, indicating a substantial
Return on Assets improvement in the company's profitability relative to its assets.
0,40 0,37 1,13

2020 2021 2022 The increase in ROE in 2022 could be attributed to factors such as higher net
Return on Equity
0,41 0,38 1,15 income, improved financial performance, or effective capital utilization.
04

CONCLUSION
CONCLUSION AND RECOMMENDATIONS

o Amount of the cash reserves

o Source of financing

o Employee Management

o Investments in sustainable projects

REFERENCES

Lalithchandra, B., & Rajendhiran, D. N. (2021, April 5). Liquidity Ratio: An Important Financial
Metrics. Turkish Journal of Computer and Mathematics Education, 12(2), 1113-1114.

Langer, P. (2013). The Importance of Salt Mines for Mining Towns. Geology, Geophysics &
Environment, 39(3), 189-209.

Lesakova, L. (2007). Uses and Limitations of Profitability Ratio Analysis in Managerial Practice. 5th
International Conference on Management, Enterprise and Benchmarking , (pp. 259-264). Budapest,
Hungary.

Saleem, Q., & Rehman, R. U. (2011, July 7). Impacts of liquidity ratios on profitability.
Interdisciplinary Journal of Research in Business, 1(7), 95-98.