balance-sheet- pwc& deloitte-summary & analysis

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Balance sheet analaysis of 2 Big4s

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Comparative Analysis between PwC and Deloitte

2013 2012Parameters PwC Deloitte PwC DeloitteCurrent Ratio 1.57 1.39 1.58 1.45Cash Ratio 0.35 0.03 0.26 0.05Quick Ratio 1.57 1.39 1.58 1.45

384 205 346 221Revenues (£mn) 2369 2063 2304 1950Operating expenses (£m 1569 1382 1540 1273Operating profit (£mn) 765 642 732 637Depreciation (£mn) 35 47 32 40Net profit (£mn) 748 610 736 560Profit after Tax (£mn) 740 609 727 560

Cash Ratio Analysis:

Current Ratio Analysis:

Quick Ratio Analysis:

Working Capital

Revenues & Profit

Working Capital (£mn)

PwC's cash ratio has been consistent and better than deloitte for both the years. As a creditor I would be willing to extend the credit to the PwC rather than Deloitte

Again PwC has a consistent and better current ratio for both the years and hence I feel PwC is more capable the company is to pay its obligations.

Again PwCs quick ratio is comfortable placed as compared to Deloitte and it proves its ability to use its quick assets (cash and cash equivalents, marketable securities and accounts

receivable) to pay its current liabilities.

PwCs working capital has increased and grown better as compared to Deloitte. Hence as an investor I would like to invest my equity with PwC

Again PwCs revenue and profit has increased and grown better as compared to Deloitte. Hence as an investor I would like to invest my equity with PwC

Comparative Analysis between PwC and Deloitte

PwC's cash ratio has been consistent and better than deloitte for both the years. As a creditor I would be willing to extend the credit to the PwC rather than Deloitte

Again PwC has a consistent and better current ratio for both the years and hence I feel PwC is more capable the company is to pay its obligations.

Again PwCs quick ratio is comfortable placed as compared to Deloitte and it proves its ability to use its quick assets (cash and cash equivalents, marketable securities and accounts

receivable) to pay its current liabilities.

PwCs working capital has increased and grown better as compared to Deloitte. Hence as an investor I would like to invest my equity with PwC

Again PwCs revenue and profit has increased and grown better as compared to Deloitte. Hence as an investor I would like to invest my equity with PwC

Page 3 of 7

BALANCE SHEETA. PwC 2013

CURRENT RATIO 1.57 CASH RATIO 0.35 QUICK RATIO 1.57 WORKING CAPITAL £ 384.00

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash and cash equivalents £ 236.00 Trade and other payables £ 600.00

Trade & other receivables £ 824.00 Corporation tax £ 13.00

Borrowings £ 41.00

Provisions £ 4.00

Members capital £ 18.00

TOTAL CURRENT LIABILITIES £ 676.00

Total current assets £ 1,060.00

NON CURRENT LIABILITIES

NON CURRENT ASSETS Borrowings £ 10.00

Property, plant, and equipment at cost £ 172.00 Provisions £ 52.00

Goodwill £ 43.00 Deferred tax liabilities £ 1.00

Retirement benefit assets £ 249.00 Members capital £ 171.00

Investments £ 8.00 Other non-current liabilities £ 41.00

     

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ASSETS LIABILITIESInterests in joint ventures £ 1.00 TOTAL OTHER LIABILITIES Err:507

Intangible assets £ 30.00

Total other assets Err:507 TOTAL LIABILITIES £ 951.00

TOTAL ASSETS € 1,563.00

NET ASSETS € 612.00

Page 5 of 7

BALANCE SHEETA. PwC 2012

CURRENT RATIO 1.58 CASH RATIO 0.26 QUICK RATIO 1.58 WORKING CAPITAL £ 346.00

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash and cash equivalents £ 159.00 Trade and other payables £ 547.00 `

Trade & other receivables £ 788.00 Corporation tax £ 13.00

Borrowings £ 23.00

Provisions £ 5.00

Members capital £ 13.00

TOTAL CURRENT LIABILITIES £ 601.00

Total current assets £ 947.00

NON CURRENT LIABILITIES

NON CURRENT ASSETS Borrowings £ 13.00

Property, plant, and equipment at cost £ 153.00 Provisions £ 54.00

Goodwill £ 41.00 Deferred tax liabilities £ -

Retirement benefit assets £ 262.00 Members capital £ 152.00

Investments £ 5.00 Other non-current liabilities £ 34.00

Interests in joint ventures £ - TOTAL OTHER LIABILITIES Err:507

Intangible assets £ 19.00

Total other assets Err:507 TOTAL LIABILITIES £ 854.00

TOTAL ASSETS € 1,427.00

NET ASSETS € 573.00

     

1k 2k 1k 2k

Page 6 of 7

BALANCE SHEETB. Deloitte 2013

CURRENT RATIO 1.39 CASH RATIO 0.03 QUICK RATIO 1.39 WORKING CAPITAL £ 205.00

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash and cash equivalents £ 14.00 Trade and other payables £ 378.00 `

Client & other receivables £ 723.00 Borrowings £ 115.00

Provisions £ 32.00

Members capital £ 7.00

TOTAL CURRENT LIABILITIES £ 532.00

Total current assets £ 737.00

NON CURRENT LIABILITIES

NON CURRENT ASSETS Retirement benefit obligation £ 218.00

Property, plant, and equipment at cost £ 190.00 Deferred Taxation £ 1.00

Intangible assets £ 41.00 Provisions £ 1,050.00

Interests in joint ventures £ 4.00 Members capital £ 125.00

Investments and associates £ 2.00

TOTAL OTHER LIABILITIES Err:507

Total other assets Err:507 TOTAL LIABILITIES £ 1,926.00

TOTAL ASSETS € 974.00

NET ASSETS € (952.00)

     

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Page 7 of 7

BALANCE SHEETB. Deloitte 2013

CURRENT RATIO 1.45 CASH RATIO 0.05 QUICK RATIO 1.45 WORKING CAPITAL £ 221.00

ASSETS LIABILITIES

CURRENT ASSETS CURRENT LIABILITIES

Cash and cash equivalents £ 27.00 Trade and other payables £ 294.00 `

Client & other receivables £ 686.00 Borrowings £ 155.00

Provisions £ 36.00

Members capital £ 7.00

TOTAL CURRENT LIABILITIES £ 492.00

Total current assets £ 713.00

NON CURRENT LIABILITIES

NON CURRENT ASSETS Retirement benefit obligation £ 297.00

Property, plant, and equipment at cost £ 194.00 Deferred Taxation £ 1.00

Intangible assets £ 36.00 Provisions £ 893.00

Interests in joint ventures £ 1.00 Members capital £ 123.00

Investments and associates £ 2.00

TOTAL OTHER LIABILITIES Err:507

Total other assets Err:507 TOTAL LIABILITIES £ 1,806.00

TOTAL ASSETS € 946.00

NET ASSETS € (860.00)

     

1k 1k 1k 2k

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