Analysis of Financial Statements – LOLC Finance PLC


Analysis of Financial Statements – LOLC Finance PLC

Word count 3751


Executive Summary

Background Analysis.

Company Background

Analysis of Industry

Porter’s Five Forces

PESTEL Analysis

Financial Statement Analysis

Comparative Financial Statement Analysis

Common Size Financial Statement Analysis

Ratio Analysis

Analysis of financing activities

Analysis of investment activities

Analyzing operating activities

Cash Flow Analysis

Liquidity Analysis



Additional information


Executive Summary

Financial health and sustainability of a business entity will be determined by its financial analysis. An accurate financial analysis will be a priceless and inaccurate analysis might be the disaster of the same entity. Because of that reason, financial analysis will be one of the most critical activities in today business organizations. By using financial analysis interpretation a firm can identify market patterns, sales patterns, determine profit margin, track inventory, determine debt to equity and able to see improvement overtime.

LOLC Finance PLC is one of the renowned financial brands in Sri Lanka that comes under the LOLC Group. Being a member of Banking Finance and Insurance sector of the economy that involves in lending and borrowing business, the results of analysis of a company like LOLC Finance PLC can be very helpful in analyzing the direction of the entire finance market.
The objective of this report is to obtain an understanding about the financial position, performance and future trend of the Keels Food Products PLC by critically analyzing the operating, financing and investing activities of the company. In this report, a financial statement of LOLC Finance PLC is carried out for three years starting from 2015 to 2017.

Background Analysis

Company Background

Lanka ORIX Finance PLC (LOFC) comes under the mother brand LOLC; a brand originated in Japan. It was established in 1980 and today has become one of the most renowned and diversified finance groups in the island. It recently acquired Commercial Leasing Company, another known financial institute. Today, Lanka ORIX Finance PLC (LOFC) is the largest subsidiary of the LOLC Group companies and is a fully owned subsidiary with the mother company holding a 90% of total issued shares. The portfolio of Lanka ORIX Finance PLC (LOFC) spreads over ATMs, Islamic Finance, Fixed deposits, normal savings and call deposits, internet banking etc. Lanka ORIX Finance PLC (LOFC) is considered to be a stable and strong company in the Sri Lankan due the back up from Mother Company as well as the strategic standing of the company itself.