The document analyzes the financial health of Qlik Technologies, Inc. by comparing its financial ratios and performance metrics to competitors and industry averages. Qlik has strong liquidity with current ratios above 2, indicating it can easily pay short-term debts. While return on assets is lower than competitors and the industry average, Qlik has high gross margins and its stock has outperformed others in recent months. The analysis finds that Qlik is financially stable but could improve returns by better utilizing capital.

1. Evaluating Financial Health 1
Final Project: Evaluating Financial Health
Kristy Martinez
ACC/230
April 17, 2011
Cynthia Kacmar

2. Evaluating Financial Health 2
Final Project: Evaluating Financial Health
The analysis of the accounts and the economic prospects of Qlik Technologies, Inc. will
reveal the firm’s strengths, weaknesses, and trends as they relate to its competitors and industry.
A comparison of its competitors and industry will take its financial data and break it down into
smaller more easily understood elements. The intent of this analysis is to gain a better
understanding of the current financial health and future growth potential of Qlik Technologies,
Inc.
Business Overview
Qlik Technologies Inc. is a software company founded originally in 1993 in the country
of Sweden and is currently headquartered in Radnor, Pennsylvania. The company went public in
July 2010. QlikTech develops and sells data analysis and reporting solutions software and also
offers maintenance and professional services. The company markets and sells its products and
services through its direct sales force and indirectly through a global partnering network to
resellers of packaged goods, master resellers, and retailers and various industries such as
financial, healthcare, pharmaceutical, and manufacturing. For 18 years, QlikTech has been
focusing on the simplification of decision making for business users across the globe. QlikTech
delivered the world’s first Business Discovery platform reigning #1 to this day−−QlikView. A
new kind of business intelligence software, QlikView is a markedly innovative solution with an
industry-leading 96% satisfaction rate. QlikView provides instant analysis and insight stopping
the guesswork into knowing how to make faster, smarter decisions. QlikTech has grown its
customer base from over 4,000 active customers in 2006 to approximately 18,000 active
customers in over 100 countries at December 31, 2010 and it increased its revenue by a 50.4%
compound annual growth rate in the same period. The Company operates in the technology

3. Evaluating Financial Health 3
sector for development, commercialization, and implementation of software products and related
services and is positioned in the upper ranks of about 143 companies.
Financial Strength
Current Ratio
QLIK SFSF¹ Industry
2010 2009 2010 2009 2010 2009
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
251,710
102,641
93,361
78,532
452,025
267,222
392,487
182,916
2.45x 1.19x 1.59x 2.15x 2.10x
Quick Ratio
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
--- --- --- ---
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝑃𝑟𝑒𝑝𝑎𝑖𝑑 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
244,603
102,641
89,391
78,532
444,003
267,222
386,808
182,916
2.38x 1.14x 1.66x 2.11x 1.8x²
Fraser, L. M., & Ormiston, A. (2007).Understandingfinancial statements (8thed.).
1SuccessFactors, Inc.. Upper Saddle River, NJ: Pearson/PrenticeHall.
²Retrieved from http://www.reuters.com/finance/stocks/financialHighlights?symbol=QLIK
There are two main financial ratios used to measure a company's liquidity as illustrated in
the above chart. Looking at a current ratio of 2.45 times, it is clear that QlikTech has very good
market liquidity especially when compared to the industry average and one of its competitors.
Because its total current assets are more than twice its current liabilities, the company should
have no problem paying its short-term debts. It is not unusual in an industry of this nature for a
firm to carry a zero or even negative balance in its inventory account. Neither of the two
companies in the above comparison carried inventory from one year to the next so a quick ratio
comparison using the indicated method was not possible. However, some companies use another
method which also eliminates prepaid expenses and other assets such as supplies. If the option to
eliminate inventory together with prepaids and supplies is used, a comparison is possible. Either

4. Evaluating Financial Health 4
way QlikTech exceeds the average for the industry. With this computation of quick ratio,
QlikTech would appear to be doing quite well with a quick ratio of 2.38 times, a figure well
above its competitors and industry. The competitor’s liquidity factor declined from the previous
year while Qlik’s liquidity increased ensuring proper cash flow levels for continued operations
and company growth.
Management Effectiveness
http://biz.yahoo.com/p/826conameu.html Fraser, L. M., & Ormiston,A. (2007). Understandingfinancial statements (8thed.).
Upper Saddle River, NJ: Pearson/Prentice Hall.
Both debt and equity comprise the assets of the company. These two types of financing
are used to fund the operations of the company. Management's most important job is to make
wise choices in allocating its resources to generate profit. The ROA figure indicates how
effectively the company converts investments into net income. The higher the ROA number, the
better the company looks to investors. QlikTech is earning less money on more investment
Return on Assets
QLIK SFSF Industry
2010 2009 2010 2009 2010 2009
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
13,516
265,064
6,861
102,967
(12,450)
577,413
(12,634)
408,697
0.05% 0.07% (0.02%) (0.03%) 6.80%
Return on Equity
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒 𝑟′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
13,516
159,190
6,861
(9,103)
(12,450)
271,329
(12,634)
202,503
0.08% --- (0.05%) (0.06%) 10.9%
Net Profit Margin
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠
13,516
226,521
6,681
157,359
(12,450)
205,926
(12,634)
153,054
0.06% 0.04% (0.06%) (0.08%) 8.9%

5. Evaluating Financial Health 5
which needs to be turned around. The industry averages for income to assets and income to
equity are far greater than Qlik’s or even its competitors. Qlik can increase its ROA if it
increases operating profit margin by efficiently managing costs like marketing expenses,
general selling, and administrative expenses or by increasing total asset turnover by selling
inventories and collecting accounts receivables as quickly as possible.
Profitability
SFSF QLIK QSFT ORCL Industry
Market Cap: 3.02B 2.14B 2.28B 172.97B 35.71M
Employees: 1,047 780 3,460 105,000 127.00
Qtrly Rev Growth (yoy): 42.50% 31.60% 11.40% 36.90% 35.50%
Revenue (ttm): 205.93M 226.52M 767.10M 34.35B 38.06M
Gross Margin (ttm): 72.57% 89.53% 90.08% 75.34% 49.55%
EBITDA (ttm): -14.59M 29.89M 163.61M 13.63B 2.57M
Operating Margin (ttm): -11.34% 12.44% 15.72% 34.36% 8.88%
Net Income (ttm): -12.45M 10.87M 98.57M 7.70B N/A
EPS (ttm): -0.17 0.21 1.06 1.51 0.06
P/E (ttm): N/A 128.71 23.06 22.65 34.03
PEG (5 yr expected): 48.74 3.22 1.25 1.03 1.58
P/S (ttm): 14.57 9.56 2.97 4.98 1.70
When a company relies solely on information its managers continually receive through
informal impressions about competitors, they put the company at risk of dangerous competitive
blindspots. Performing regular systematic competitor analyses provide an offensive as well as
defensive marketing and strategic management of the strengths and weaknesses of current and
potential competitors identifying opportunities and threats. The above chart is expanded to
include three more competitors, one being the industry leader. This will give an idea of where
QlikTech needs to focus during the production process. The company that boasts a higher gross
profit margin than its competitors and industry is the more efficient company. QlikTech is right
.QSFT = Quest Software, Inc.
ORCL = Oracle Corp. (Industry Leader)
Industry = Business Software & Services
Yahoo, Inc. (2011). Yahoo!Finance. http://finance.yahoo.com/q/co?s=QLIK
M = Millions; B = Billions
ttm = Trailing Twelve Months (as of Dec 31, 2010)
yoy = Year Over Year (as of Dec 31, 2010)

6. Evaluating Financial Health 6
up there with the industry leader (Oracle Corp.) exceeding the industry average once again. With
continued control of overhead costs such as rent and utilities, QlickTech should be able to make
a decent profit.
http://finance.yahoo.com/q/bc?s=QLIK&t=1y&l=on&z=l&q=l&c=SFSF%2CQSFT%2CORCL%2CIND%2C^IXIC
Judging by Qlik’s stock performance for the past 6 months and ending on April 15, 2011
as illustrated in the above basic chart, QlikTech is performing very well in the Nasdaq stock
market. QlikTech rose above the others and hovered for a period of about 3½ months in the 6
month period covered by the chart.
The information covered in this analysis has proven QlikTech to be in very good shape
financially exhibiting very little risk in its existing capital structure, if any. Management
performs its duties in a highly efficient and growth inspiring manner. However, the money
provided by its investors could be better used to promote a larger return on investment. Cash
flow has not been a problem, but should be the focus for future growth and opportunities. Putting
a cap on sales, marketing, and administrative costs is recommended so the company will realize
future increased return on assets and operating profit margin. Given that technology business
software and services is an industry that has experienced rapid growth over the past decade and
is extremely competitive, Qlik Technologies, Inc. holds its own nicely.

7. Evaluating Financial Health 7
References
Fraser, L. M., & Ormiston, A. (2007). Understanding financial statements (8th ed.). Upper
Saddle River, NJ: Pearson/Prentice Hall.
Qlik Technologies, Inc. (2011). Form 10-K (annual report). Retrieved from
http://files.shareholder.com/downloads/ABEA-4QVVLE/1203541731x0xS950123-11-
25777/1305294/filing.pdf
Quest Software, Inc. (2010). SEC Filings. http://phx.corporate-
ir.net/phoenix.zhtml?c=95476&p=irol-sec&secCat01.5_rs=11&secCat01.5_rc=10
SuccessFactors, Inc. (2011). Investor – SEC Filings – annual filing. Retrieved from
http://www.successfactors.com/investor/sec/all/group/annual-filings/page/1/
Thomson Reuters (2011). Reuters Financials. Retrieved from
http://www.reuters.com/finance/stocks/ratios?symbol=QLIK.O
Thomson Reuters (2011). Reuters Financials. Retrieved from
http://www.reuters.com/finance/stocks/ratios?symbol=SFSF.O
Yahoo, Inc. (2011). Yahoo! Finance. Retrieved from http://biz.yahoo.com/p/826conameu.html
Yahoo, Inc. (2011). Yahoo! Finance. Retrieved from http://finance.yahoo.com/q/co?s=QLIK
Yahoo, Inc. (2011). Yahoo! Finance. Retrieved from http://finance.yahoo.com/q/co?s=SFSF