Need Ideas

If there is an increase in gross profit that large and still a decrease in net profit after taxes, what might be an explanation.

Attached: ALTD.png (627x521, 40.83K)

have a bump because business related and because double dubs
i dunno op maybe get an accountant

High interest rates on loans?

Can an accountant work with such limited data from a private company? All I can access is this data from the income statements. Just seems strange the overhead is so large in 2007. My hunch is that something is up here.

Depreciation on fixed assets? Would help if you posted what the business is involved in

Embezzlement

This company operates in manufacturing automotive stampings. Small company with

I started trying to find financial info because an employee claims they ship to one location in Germany and have stock piled to the ceiling in a warehouse there. One employee and almost no product turnover. Thought that in combination of stories on how the company was run may warrant a look into the financial aspect of the company.

high growth company doubling top line revenue will aggreessively expanding busines through opex spending or rd
could be anything really

Opex could include salaries for employees as well as all other operating costs. Seeing as they have around 70ish employees and basically no R&D it seems like maybe there was a possible "major expense" in the opex spending.

Net profit is profit after ALL costs, including "indirect" ones such as marketing/management/board level costs ("business" trips, marketing campaigns, etc.), salaries and bonuses. Gross profit does not include those indirect costs.

They might have spent a lot on marketing, or on corporate trips, compensation, who knows. Maybe they gave out huge bonuses because they doubled sales. Maybe they figured out the optimum allocation of bonuses vs. corporate profit to reduce the owners/managers' overall tax liability (transferring money from the "corporate profit" category onto the "personal income" category, which might be a good idea depending on tax brackets etc).

Hmm, good thinking. My employee source claims no bonuses made their way to the staff in 2007. Must have went elsewhere.

Do you no have access to a
Full trial balance? This is a BS w/ p&l figures at the bottom? Or at least a proper p&l?

Side note- the delta is mostly G&A. They must have had a massive g&a spike or some crazy indirect expenses... which you’d see on a proper p&l

>”indirect” ones
We call that overhead, son

Your gross profit increased, fine, but the overall profitability of whatever you’re doing decreased.

You’re spending twice as much to make just as much. Maybe your workers are less efficient than they previously were, maybe the material cost of whatever you do skyrocketed. There’s plenty of justifiable reasons.

If we had flags, you'd realize english isn't my first language.

ps: I poo in loo.

Are you a textbook or do you work in finance? Answer is pretty obvious

No.... not even close

All I could find is the financials from Mergent and D&B. Most recent reported year on Mergent appears to be 2007. I don't have direct access to any of the company financials outside of what might be posted on Mergent or D&B. Any ideas if i'm doing something wrong? I have some ideas as to where expenses might have gone but private companies can guard that info in house mostly as it seems.

This is a YouTube response. Material costs aren’t a delta between GP and Net Income. This one hurt.

Company has about a 1/3 makeup of relatives of the only three shareholders. Lots of inefficient workers. Just don't see how 2006 was just a much better year as their workforce appeared to be the same group of dipshits.

The simple answer is you won’t be able to see what happened without a P&L. Your expenses doubled in a year... and no lol, not material expenses as ppl are saying. Your g&a / indirect / overhead like the other textbooks are saying doubled.

Salaries / bonuses would be my guess but obviously we don’t have enough info

Wait wtf, just realized the sales barely moved.. So your mfg costs went down, but G&a doubled. Sketch. Unless they changed their business model which sounds like they didn’t.

Thanks. What is the best way to get ahold of proper income P&L statement for private companies? They don't report to SEC, only sometimes with D&B database...is it only possible through contacting the company and potentially signing an NDA?

not an accountant but how the fuck does cash go up by a million dollars in 1 year? money laundering?

Not possible if not published and almost every private company won’t publish. If their employee base didn’t change and you know that, I’d be almost certain there’s some sketch going on.

Look at the AR delta

Here's the other side. Private company with one employee in germany, they send product there and dont move/sell it. Company in germany appears to have VPs name in title. Could he be purchasing their own product, storing it, reporting it as profit and then taking it back in the form of personal income? Source says the room falls silent when there is any mention of the "German branch" of their company.

Lots of hypotheticals and knowns I'm asking you to consider so apologies..

If they don’t move or sell it, it’d be interco and nets out when you consolidate (if Germany is a different entity for them). Wouldn’t count as sales. You’d still see it in inventory and their inventory delta is small.

Good point. Sketch for sure. I'll try to pry more info from my source. Not sure what I will do if I ever get an answer. Would be nice to know there is some reason behind the numbers. Also maybe some updated numbers for recent years would help to pinpoint if there is a trend or something ongoing.