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Ratios

This document provides financial ratios for the years 2009 and 2010 for a company. It includes current ratios, quick ratios, cash ratios, working capital, debt ratios, times interest earned, accounts receivable turnover, average collection period, inventory turnover, fixed asset turnover, total asset turnover, gross profit margin, operating profit margin, net profit margin, return on assets, and return on equity. It also compares the company's ratios to industry averages and finds that the company's ratios are generally better than industry averages except for cash ratio, inventory turnover, fixed asset turnover, and total asset turnover which are worse.

Uploaded by

Amjad Ghumro
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© Attribution Non-Commercial (BY-NC)
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Download as XLS, PDF, TXT or read online on Scribd
70 views

Ratios

This document provides financial ratios for the years 2009 and 2010 for a company. It includes current ratios, quick ratios, cash ratios, working capital, debt ratios, times interest earned, accounts receivable turnover, average collection period, inventory turnover, fixed asset turnover, total asset turnover, gross profit margin, operating profit margin, net profit margin, return on assets, and return on equity. It also compares the company's ratios to industry averages and finds that the company's ratios are generally better than industry averages except for cash ratio, inventory turnover, fixed asset turnover, and total asset turnover which are worse.

Uploaded by

Amjad Ghumro
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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C.

A
C.L
Inventory
Prepaid Expenses
Cash
T.L
T.A
Fixed L
Fixed - A
EBIT
Interest Expense

120,433,800
###
34,840,843
###

Net Sales
Cogs
Gross Profit
105,734,438
###
Avg Inventory
7843820
### Total Share E
71,370,000
### Net Credit Sales
228,870,000
### A/C T.O
36634322
### Days
103,180,000
### NET PROFIT
89,826,065
### Gross Sales
1273312
###

142,571,863
41,948,928
100,622,935
157,392,486

365
59,177,125
155,792,457

2010

(1) CURRENT RATIOS

CURRENT ASSETS
CURRENT LIABILITIES

2009

120,433,800
34,840,843

3.46

85,460,768
21,287,498

4.01

105,734,438
34,840,843

3.03

69,261,888
21,287,498

3.25

7,843,820
34,840,843

0.23

3,973,818
21,287,498

0.19

(2) QUICK RATIO

CURRENT ASSETS - INV - PREPAID EXP


CURRENT LIABILITIES

(3) CASH RATIO


CASH
CURRENT LIABILITIES

(4) WORKING CAPITAL


WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
W-C
85,592,957

120,433,800 - 34,840,843 =

WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITI


C.A
C.L
W-C
85,460,768
21,287,498 64,173,270

(5) DEBT RATIO


TOTAL LIABILITIES OR TOTAL DEBTS
TOTAL ASSETS

71,370,000
228,870,000

0.31

51,820,000
177,990,000

0.29

71,370,000
157,392,486

0.45

51,820,000
126,171,396

0.41

89,826,065
1,273,312

70.55

81,853,950
926,027

88.39

(6) DEBT TO EQUITY RATIO


TOTAL LIABILITIES OR TOTAL DEBTS
SHARE HOLDER'S EQUITY

(7) TIME INTEREST EARNED


OPERATING PROFIT / EBIT
INTEREST EXPENSE / FINANCE COST

(8) ACCOUNTS RECEIVABLE TURNOVER


NET CREDIT SALES
AVERAGE A/R

142,571,863
951,165

149.89

130,829,579
924,854

141.46

(9) AVERAGE COLLECTION PERIOD


365
A/R TURNOVER

365
149.89

2.44

365
141

2.58

41,948,928
7,349,681

5.71

39,352,049
8,099,440

4.86

142,571,863
103,180,000

1.38

130,829,579
92,531,628

1.41

(10) INVENTORY TURNOVER


COST OF GOODS SOLD
AVERAGE INVENTORY

(11) FIXED ASSETS TURNOVER


NET SALES
FIXED ASSETS

(12) TOTAL ASSETS TURNOVER


Gross Sales
TOTAL ASSETS

Gross Sales
155,792,457
228,867,651

0.68

Gross Sales
142,913,303
177,992,396

0.80

(13) GROSS PROFIT MARGIN


GROSS PROFIT
NET SALES

100,622,935
142,571,863

0.71

91,477,530
130,829,579

0.70

88,552,753
142,571,863

0.62

80,927,923
130,829,579

0.62

59,177,125
142,571,863

0.42

55,539,641
130,829,579

0.42

59,177,125
228,870,000

0.26

55,539,641
177,990,000

0.31

59,177,125
157,392,486

0.38

55,539,641
126,171,396

0.44

(14) OPERATING PROFIT MARGIN


OPERATING PROFIT
NET SALES

(15) NET PROFIT MARGIN


NET PROFIT
NET SALES

(16) RETURN ON ASSETS


NET PROFIT
TOTAL ASSETS

(17) RETURN ON EQUITY


NET PROFIT
TOTAL SHARE HOLDER'S EQUITY

ENT LIABILITIES

CROSS SECTIONAL ANALYSIS


S.NO

RATIOS

COMPANY'S
RESULT

INDUSTRY
RESULT

DECISION

CURRENT RATIO

3.46

1.9

BETTER

QUICK RATIO

3.03

1.2

BETTER

CASH RATIO

0.23

1.1

WORSE

DEBT RATIO

0.31

0.45

BETTER

DEBT TO EQUITY RATIO

0.45

0.55

BETTER

13

GROSS PROFIT MARGIN

71%

30%

BETTER

14

OPERATING PROFIT MARGIN

62%

25%

BETTER

15

NET PROFIT MARGIN

42%

15%

BETTER

16

RETURN ON ASSETS

26%

12%

BETTER

17

RETURN ON EQUITY

38%

14%

BETTER

WORKING CAPITAL

RS 85,592,957

TIME INTEREST EARNED

70.55

10

BETTER

A/CS RECEIVABLE TURNOVER

149.89

20

BETTER

10

INVENTORY TURNOVER

5.71

15

WORSE

11

FIXED ASSETS TURNOVER

1.38

10

WORSE

12

TOTAL ASSETS TURNOVER

0.68

WORSE

AVERAGE COLLECTION PERIOD

2.44

20

BETTER

RS 4,500,000 BETTER

200
150
100
50
0

AVERAGE COLLECTIO

TOTAL ASSETS TURNO

FIXED ASSETS TURNO

INVENTORY TURNOVE

A/CS RECEIVABLE TUR

TIME INTEREST EARNE

COMPANY'S
INDUSTRY

100
50

TIME INTEREST EARNED

A/CS RECEIVABLE TURNOVER

INVENTORY TURNOVER

FIXED ASSETS TURNOVER

TOTAL ASSETS TURNOVER

AVERAGE COLLECTION PERIOD

COMPANY'S
INDUSTRY

TOTAL ASSETS TURNO

AVERAGE COLLECTIO

COMPANY'S
INDUSTRY

RETURN ON ASSETS

NET PROFIT MARGIN

COMPANY'S
INDUSTRY

RETURN ON EQUITY

DEBT TO EQUITY RATIO

DEBT RATIO

CASH RATIO

QUICK RATIO

OPERATING PROFIT MARGIN

GROSS PROFIT MARGIN

CURRENT RATIO

Rati
os

0
COMPANY'S
INDUSTRY

80%

60%

40%

20%

0%

TOTAL ASSETS TURNOVER

AVERAGE COLLECTION PERIOD

COMPANY'S
INDUSTRY

COMMON SIZE STATEMENT


103,181,149 X
228,867,651

100 =

45.08

3,231,435 X
228,867,651

100 =

1.41

1,902,330 X
228,867,651

100 =

0.83

118,937 X
228,867,651

100 =

0.05

14,527,278 X
228,867,651

100 =

6.35

172,084 X
228,867,651

100 =

0.08

82,992,291 X
228,867,651

100 =

36.26

2,216,881 X
228,867,651

100 =

0.97

616,641 X
228,867,651

100 =

0.27

17,031 X
228,867,651

100 =

0.01

92,695 X
228,867,651

100 =

0.04

11,120,823 X
228,867,651

100 =

4.86

7,843,820 X
228,867,651

100 =

3.43

43,009,284 X
157,392,486

100 =

27.33

3,859,682 X
157,392,486

100 =

2.45

110,523,520 X
157,392,486

100 =

70.22

16,728,843 X
142,571,863

100 =

11.73

23,727,818 X
142,571,863

100 =

16.64

1,492,267 X
142,571,863

100 =

1.05

7,902,370 X
142,571,863

100 =

5.54

1,598,161 X
142,571,863

100 =

1.12

1,273,312 X
142,571,863

100 =

0.89

4,660,671 X
142,571,863

100 =

3.27

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