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Vertical analysis of PEL is done for the last five years starting from 2010 to 2014.
In 2010 out of total liabilities and equity, total shareholder`s equity of PEL was
almost 34% whereas its total liabilities were almost 66%. Among its total liabilities
its non-current liabilities were more than 30% and current liabilities were 35%.
Which means than company is relying on every type of financing . they are not
preferring any single financing but are relying on each type.
In 2011, total equity slightly decreases and goes to nearly equal to 32% where as
total liabilities increases and goes to 68%. Among liabilities its non-current liability
was almost 28%whereas its current liabilities were 40%. Which shows that in 2011
PEL was relying more on current liabilities than other two financing activities.
In 2012, total equity decreases more and becomes 30% whereas non-current
liability increases a little and current decreases and becomes 30% and 39%
respectively.
In 2013, PEL equity part increases in terms of percentage whereas its liability part
decreases by a large amount . its equity becomes 40% whereas liability becomes
60% of total liability and equity.
In 2014, PEL financing further through its own equity whereas financing from short
and long term financing continue to decrease. Total equity in 2014 becomes almost
48% and total equity bcomes less than 52%. And its financing through current or
short term loan decreases largely and goes to 22%.
Overall, company equity share increases whereas liability decreases . the reason
bhind this company has paid its liability and not taken more loans again whereas
invested on its own.