Contribution to the profitability analysis of a public company

In the course of our work, we carried out a financial diagnosis of the Company with a view to identifying SIP’s strengths and weaknesses, and the Company’s compliance with its financial equilibrium. This diagnosis consisted firstly in reprocessing the accounting balance sheets to obtain functional balance sheets enabling us to carry out our analyses. Secondly, we calculated and analyzed certain indicators, namely working capital, working capital requirements, cash flow, intermediate management balances, ratios, balance sheet structure, and the growth and breakdown of income and expenses. Our analysis shows that the Company is characterized by: positive working capital, which means that a portion of stable resources partly finance the operating cycle; positive working capital requirement, except for 2011, which is characterized by a surplus of resources that increases cash flow; positive cash flow for all three years under analysis; positive self-financing capacity; low level of indebtedness; high solvency; negative economic profitability, except for 2012.