Analyzing Company Performance using Ratios
0 likes100 views
Unity Foods Limited is a public listed company focused on providing food products by transforming crops to meet global food sector needs. The financial statements indicate substantial growth in assets, with total assets reaching approximately 18.94 billion PKR in 2020, and a profit after taxation of around 209.63 million PKR for the same year. The company emphasizes customer satisfaction, employee development, and maintaining corporate governance while striving for continuous improvement and innovation in its product offerings.
Analyzing Company Performance using Ratios
- 1. Department of Commerce Jinnah University for Women Status: Public Listed Company, 1991 Vision Mission Values JINNAH UNIVERSITY FOR WOMEN Assignment: Financial Statement Analysis Class: BS Commerce (3rd Year, 5th Semester) Submitted by: Wajiha Muhammad Ismail Submitted to: Miss Nudrat Waheed Introduction Unity Foods Limited aims to provide food for life. We transform crops into products that serve the vital global needs of the food sector in this ever-growing world. We have diversified our business portfolio to operate in an assorted agro product mix for a global breadbasket, handling various agro commodities to connect them from farm to dining table. Our products include Edible Oil, Industrial Fats and various feed ingredients for poultry and livestock sector. Along with innovation, we provide customized solutions to industries handling food and feed products to help them enhance their performance and profitability. To be a leading Company, committed to total Customer satisfaction by providing high quality value added products catering to customers’ needs through continuous research & development. The Company has taken on a mission to introduce new products with improved quality in its line of business, continuously improve Company’s profitability and meet its financial commitments. It further commits to focus on the professional growth of its employees and give a fair return to its shareholders while complying with the best practices of Corporate Governance. We support our leadership culture through distinctive systems and policies which ensure open communication and foster a healthy work environment for its employees who are the company’s partners in success. Through integrity, accountability, passion, humility, simplicity and a focus on success, we have created a vibrant company culture where ideas can blossom, people can thrive and success can flourish. Page 1
- 2. Department of Commerce Jinnah University for Women Unity Foods Limited Unconsolidated Statement of Financial Position As at June 30, 2018-19-20 2020 2019 2018 ASSETS Current assets Stock-in-trade 5,048,540,001 3,201,229,920 1,479,257,110 Trade debts 7,765,666,856 3,063,574,186 1,148,211,099 Advances, deposits, short-term prepayments 91,306,367 30,920,000 107,098,427 Other receivables 9,753,965 1,050,000 30,995,650 Sales tax receivable - 292,485,386 143,749,417 Taxation - net of provision 1,983,954,200 711,161,726 96,643,514 Cash and bank balances 163,360,179 40,043,834 9,958,442 Stores and spares 64,470,283 30,913,536 - Total Current Assets 15,127,051,851 7,371,378,588 3,015,913,659 Non-current assets Property, plant and equipment 3,330,924,966 3,081,521,152 1,521,820,847 Intangible assets 10,912,981 8,654,440 5,703,979 Long-term deposit/investment 366,541,770 - 25,000 Deferred tax 19,150,507 4,072,001 23,719,099 Right of use assets 88,807,491 - - Total Fixed Assets 3,816,337,715 3,094,247,593 1,551,268,925 Total assets 18,943,389,566 10,465,626,181 4,567,182,584 LIABILITIES AND EQUITIES Current liabilities current portion of Long term loan 51,023,399 - - current portion of Lease liabilities 16,765,785 - - current portion of Deferred government grant 11,136,710 - - Trade and other payables 8,838,121,773 1,983,666,956 1,744,791,482 Accrued mark-up 65,799,695 39,065,955 9,549,688 Short-term borrowings 3,892,256,023 2,567,371,277 616,198,108 Unclaimed dividend 747,612 1,188,311 - Sales tax payable 1,195,396 - - Loan from related party - 179,866,504 422,725,648 Total current liabilities 12,877,046,393 4,771,159,003 2,793,264,926 Non-current liabilities Long term loan 127,888,256 - - Lease liabilities 82,789,524 - - Page 2
- 3. Department of Commerce Jinnah University for Women Deferred government grant 5,974,419 - - Total Non-Current Liabilities 216,652,199 - - Total Liabilities 13,093,698,592 4,771,159,003 2,793,264,926 EQUITIES Share capital and reserves Issued, subscribed, paid-up (share capital) 5,440,500,000 5,440,500,000 1,690,500,000 Unappropriated profit / (loss) 409,190,974 253,967,178 83,417,658 Total Equities 5,849,690,974 5,694,467,178 1,773,917,658 Total Liabilities and Equities 18,943,389,566 10,465,626,181 4,567,182,584 Unity Foods Limited Unconsolidated Statement of Profit or Loss Account For the year ended June 30, 2018-19-20 2020 2019 2018 Net Sales 29,872,020,642 14,097,237,284 2,782,172,064 Cost of goods sold 27,842,732,989 12,820,034,063 2,534,098,638 Gross profit 2,029,287,653 1,277,203,221 248,073,426 Selling and distribution on expenses 690,610,361 356,514,340 55,590,338 Administrative expenses 219,731,575 180,917,399 55,078,582 Other operating expenses 387,940,582 177,992,759 21,840,927 Total Expenses 1,298,282,518 715,424,498 132,509,847 Operating Income 731,005,135 561,778,723 115,563,579 Other income 8,533,876 1,150,457 34,074,118 Profit before interest and taxation 739,539,011 562,929,180 149,637,697 Finance cost 544,988,721 288,207,562 51,840,371 profit/loss before taxation 194,550,290 274,721,618 97,797,326 Taxation (Current) - - - Taxation (Deferred) 15,078,506 19,647,098 - 23,719,099 Profit/loss after taxation 209,628,796 255,074,520 121,516,425 Page 3
- 4. Department of Commerce Jinnah University for Women Current Ratio Year 2020 1.17 Year 2019 1.54 Year 2018 1.08 1.27 Acid test/ Quick Ratio Year 2020 1.17 Year 2019 1.54 Year 2018 - 1.35 Debt-To-Equity Ratio Year 2020 0.71 Year 2019 0.48 Year 2018 0.59 0.59 Debt-To-Total-Assets Ratio Year 2020 0.22 Year 2019 0.26 Year 2018 0.23 0.24 Long-term Capitalization Ratio Year 2020 0.01 Year 2019 - Year 2018 - 0.01 Industry Average (127888256+82789524)/(127888256+82789524+18943389 566) - - Long-Term Debt / Total Capitalization (51023399+16765785+3892256023+127888256+82789524 )/18943389566 (2567371277+179866504)/10465626181 (616198108+422725648)/4567182584 Total Debt / Shareholder's Equity (Current Assets-Inventories) / Current Liabilities (15127051851-64470283)/12877046393 (7371378588-30913536)/4771159003 - Current Assets / Current Liabilities Liquidity Ratios 15127051851 / 12877046393 7371378588 / 4771159003 3015913659 / 2793264926 Industry Average Industry Average (51023399+16765785+3892256023+127888256+82789524 )/5849690974 (2567371277+179866504)/5694467178 (616198108+422725648)/1773917658 Total debt / Total Assets Industry Average Industry Average Computation for Trend Analysis Financial Leverage (Debt) Ratios Page 4
- 5. Department of Commerce Jinnah University for Women Interest Coverage Ratio Year 2020 1.36 Year 2019 1.95 Year 2018 2.89 2.07 Receivables Activity Year 2020 5.91 Year 2019 4.03 Year 2018 1.68 3.87 Receivables Turnover in Days Year 2020 61.76 Year 2019 90.57 Year 2018 217.26 123.20 Payable Activity Year 2020 - Year 2019 - Year 2018 - - Payable Turnover in Days Year 2020 - Year 2019 - Year 2018 - - Inventory Activity Year 2020 431.87 Year 2019 414.71 Year 2018 - 423.29 Industry Average 365/1.68 Annual Credit Purchase/Account Payable Days in the year/Payable Turnover OR (Account Payable X Day in the year)/Annual Credit Purchase Industry Average Industry Average Cost of Goods Sold/Inventory 27842732989/64470283 12820034063/30913536 - Industry Average Industry Average Industry Average Coverage Ratio Activity Ratios Annual Net Credit Sales/Receivables 29872020642/(5048540001+9753965) - - - - 14097237284/(3201229920+1050000+292485386) Earnings before interest and taxes (EBIT) / Interest Expense 739539011/544988721 562929180/288207562 149637697/51840371 2782172064/(1479257110+30995650+143749417) Days in the year/Receivable Turnover OR (Receivables X Day in the year)/Annual Credit Sales 365/5.91 365/4.03 - - Page 5
- 6. Department of Commerce Jinnah University for Women Inventory Turnover in Days Year 2020 84.52 Year 2019 88.01 Year 2018 - 86.27 Total Asset or Capital Turnover Year 2020 1.58 Year 2019 1.35 Year 2018 0.61 1.18 Gross Profit Margin Year 2020 6.79 Year 2019 9.06 Year 2018 8.92 8.26 Net Profit Margin Year 2020 0.70 Year 2019 1.81 Year 2018 4.37 2.29 Return on Investment/Assets Year 2020 1.11 Year 2019 2.44 Year 2018 2.66 2.07 Return on Equity Year 2020 3.58 Year 2019 4.48 Year 2018 6.85 4.97 Industry Average Industry Average Industry Average Industry Average ((30913536*365)/12820034063)*100 - Profitability Ratios (Net Sales - Cost of goods sold)/Net Sales ((29872020642-27842732989)/29872020642)*100 ((14097237284-12820034063)/14097237284)*100 ((2782172064-2534098638)/2782172064)*100 Industry Average 29872020642/18943389566 14097237284/10465626181 2782172064/4567182584 Industry Average Net Sales/Total Assets ((64470283*365)/27842732989)*100 Days in the year/Inventory Turnover OR (Inventory X Day in the year)/COGS Net Profit After Taxes/Shareholder's Equity (209628796/5849690974)*100 (255074520/5694467178)*100 (121516425/1773917658)*100 Net Profit After Taxes/Total Assets (209628796/18943389566)*100 (255074520/10465626181)*100 (121516425/4567182584)*100 Net Profit After Taxes/Net Sales (209628796/29872020642)*100 (255074520/14097237284)*100 (121516425/2782172064)*100 Page 6
- 7. Department of Commerce Jinnah University for Women Stock-in-trade Year 2020 26.65 Year 2019 30.59 Year 2018 32.39 Trade Debts Year 2020 40.99 Year 2019 29.27 Year 2018 25.14 Advances, Deposits, Short-Term Prepayments Year 2020 0.48 Year 2019 0.30 Year 2018 2.34 Other Receivables Year 2020 0.05 Year 2019 0.01 Year 2018 0.68 Sales Tax Receivables Year 2020 - Year 2019 2.79 Year 2018 3.15 Taxation-Net of Provision Year 2020 10.47 Year 2019 6.80 Year 2018 2.12 Cash and Bank Balances Year 2020 0.86 Year 2019 0.38 Year 2018 0.22 Stores and Spares Year 2020 0.34 Year 2019 0.30 Year 2018 - Computation for Common-Size Analysis (Stock-in-trade/Total Assets)*100 (5048540001/18943389566)*100 (3201229920/10465626181)*100 (1479257110/4567182584)*100 (Trade Debts/Total Assets)*100 ( 7765666856/18943389566)*100 ( 3063574186/10465626181)*100 (1148211099/4567182584)*100 (Advances, Deposits, Short-Term Prepayments/Total Assets)*100 (91306367/18943389566)*100 (30920000/10465626181)*100 (107098427/4567182584)*100 (Other Receivables/Total Assets)*100 (9753965/18943389566)*100 (1050000/10465626181)*100 (30995650/4567182584)*100 (Sales Tax Receivables/Total Assets)*100 - ( 292485386/10465626181)*100 (143749417/4567182584)*100 (Taxation-Net of Provision/Total Assets)*100 (1983954200/18943389566)*100 (711161726/10465626181)*100 (96643514/4567182584)*100 (Cash and Bank Balances/Total Assets)*100 (163360179/18943389566)*100 (40043834/10465626181)*100 (9958442/4567182584)*100 (Stores and Spares/Total Assets)*100 (64470283/18943389566)*100 (30913536/10465626181)*100 - Page 7
- 8. Department of Commerce Jinnah University for Women Total Current Assets Year 2020 79.85 Year 2019 70.43 Year 2018 66.03 Property, Plant and Equipment Year 2020 17.58 Year 2019 29.44 Year 2018 33.32 Intangible Assets Year 2020 0.06 Year 2019 0.08 Year 2018 0.12 Long-Term Deposit/Investment Year 2020 1.93 Year 2019 - Year 2018 0.001 Deferred Tax Year 2020 0.10 Year 2019 0.04 Year 2018 0.52 Right of Use Assets Year 2020 0.47 Year 2019 - Year 2018 - Total Fixed Assets Year 2020 20.15 Year 2019 29.57 Year 2018 33.97 Total Assets Year 2020 100.00 Year 2019 100.00 Year 2018 100.00 (Property, Plant and Equipment/Total Assets)*100 (3330924966/18943389566)*100 (3081521152/10465626181)*100 (1521820847/4567182584)*100 (Intangible Assets/Total Assets)*100 (10912981/18943389566)*100 (8654440/10465626181)*100 (5703979/4567182584)*100 (Long-Term Deposit/Investment/Total Assets)*100 (366541770/18943389566)*100 - (25000/4567182584)*100 (Deferred Tax/Total Assets)*100 (19150507/18943389566)*100 (4072001/10465626181)*100 (23719099/4567182584)*100 (Right of Use Assets/Total Assets)*100 (88807491/18943389566)*100 - - (Total Current Assets/Total Assets)*100 (15127051851/18943389566)*100 (7371378588/10465626181)*100 (3015913659/4567182584)*100 (Total Fixed Assets/Total Assets)*100 (3816337715/18943389566)*100 (3094247593/10465626181)*100 (1551268925/4567182584)*100 (Total Assets/Total Assets)*100 (18943389566/18943389566)*100 (10465626181/10465626181)*100 (4567182584/4567182584)*100 Page 8
- 9. Department of Commerce Jinnah University for Women Current Portion of Long Term Loan Year 2020 0.27 Year 2019 - Year 2018 - Current Portion of Lease Liabilities Year 2020 0.09 Year 2019 - Year 2018 - Current Portion of Deferred Government Grant Year 2020 0.06 Year 2019 - Year 2018 - Trade and Other Payables Year 2020 46.66 Year 2019 18.95 Year 2018 38.20 Accrued Mark-up Year 2020 0.35 Year 2019 0.37 Year 2018 0.21 Short-Term Borrowings Year 2020 20.55 Year 2019 24.53 Year 2018 13.49 Unclaimed Dividend Year 2020 0.004 Year 2019 0.01 Year 2018 - Sales Tax Payable Year 2020 0.01 Year 2019 - Year 2018 - (Current Portion of Long Term Loan/Total Assets)*100 (51023399/18943389566)*100 - - (Current Portion of Lease Liabilities/Total Assets)*100 ( 16765785/18943389566)*100 - - (Current Portion of Deferred Government Grant/Total Assets)*100 (11136710/18943389566)*100 - - (Trade and Other Payables/Total Assets)*100 ( 8838121773/18943389566)*100 (1983666956/10465626181)*100 (1744791482/4567182584)*100 (Accrued Mark-up/Total Assets)*100 (65799695/18943389566)*100 (39065955/10465626181)*100 (9549688/4567182584)*100 (Short-Term Borrowings/Total Assets)*100 (3892256023/18943389566)*100 (2567371277/10465626181)*100 (616198108/4567182584)*100 (Unclaimed Dividend/Total Assets)*100 (747612/18943389566)*100 (1188311/10465626181)*100 - (Sales Tax Payable/Total Assets)*100 (1195396/18943389566)*100 - - Page 9
- 10. Department of Commerce Jinnah University for Women Loan from Related Party Year 2020 - Year 2019 1.72 Year 2018 9.26 Total Current Liabilities Year 2020 67.98 Year 2019 45.59 Year 2018 61.16 Long Term Loan Year 2020 0.68 Year 2019 - Year 2018 - Lease Liabilities Year 2020 0.44 Year 2019 - Year 2018 - Deferred Government Grant Year 2020 0.03 Year 2019 - Year 2018 - Total Non-Current Liabilities Year 2020 1.14 Year 2019 - Year 2018 - Total Liabilities Year 2020 69.12 Year 2019 45.59 Year 2018 61.16 Share Capital Year 2020 28.72 Year 2019 51.98 Year 2018 37.01 (Loan from Related Party/Total Assets)*100 - (179866504/10465626181)*100 (422725648/4567182584)*100 (Long Term Loan/Total Assets)*100 (127888256/18943389566)*100 - - (Lease Liabilities/Total Assets)*100 (82789524/18943389566)*100 - - (Deferred Government Grant/Total Assets)*100 (5974419/18943389566)*100 - - (Share Capital/Total Assets)*100 (5440500000/18943389566)*100 (5440500000/10465626181)*100 (1690500000/4567182584)*100 (Total Non-Current Liabilities/Total Assets)*100 (216652199/18943389566)*100 - - (Total Liabilities/Total Assets)*100 (13093698592/18943389566)*100 (4771159003/10465626181)*100 (2793264926/4567182584)*100 (Total Current liabilities/Total Assets)*100 (12877046393/18943389566)*100 (4771159003/10465626181)*100 (2793264926 /4567182584)*100 Page 10
- 11. Department of Commerce Jinnah University for Women Unappropriated Profit/(Loss) Year 2020 2.16 Year 2019 2.43 Year 2018 1.83 Total Equities Year 2020 30.88 Year 2019 54.41 Year 2018 38.84 Total Liabilities and Equities Year 2020 100.00 Year 2019 100.00 Year 2018 100.00 Net Sales Year 2020 100.00 Year 2019 100.00 Year 2018 100.00 Cost of Goods Sold Year 2020 93.21 Year 2019 90.94 Year 2018 91.08 Gross Profit Year 2020 6.79 Year 2019 9.06 Year 2018 8.92 Selling and Distribution on Expenses Year 2020 2.31 Year 2019 2.53 Year 2018 2.00 Administrative Expenses Year 2020 0.74 Year 2019 1.28 Year 2018 1.98 (Unappropriated Profit(Loss)/Total Assets)*100 (409190974/18943389566)*100 (253967178/10465626181)*100 (83417658/4567182584)*100 (Net Sales/Net Sales)*100 (29872020642/29872020642)*100 (14097237284/14097237284)*100 (2782172064/2782172064)*100 (Cost of Goods Sold/Net Sales)*100 (27842732989/29872020642)*100 (12820034063/14097237284)*100 (Total Equities/Total Assets)*100 (5849690974/18943389566)*100 (5694467178/10465626181)*100 (1773917658/4567182584)*100 (Total Liabilities and Equities/Total Assets)*100 (18943389566/18943389566)*100 (10465626181/10465626181)*100 (4567182584/4567182584)*100 (2534098638/2782172064)*100 (Selling and Distribution on Expenses/Net Sales)*100 (690610361/29872020642)*100 (356514340/14097237284)*100 (55590338/2782172064)*100 (Administrative Expenses/Net Sales)*100 (219731575/29872020642)*100 (180917399/14097237284)*100 (55078582/2782172064)*100 (Gross Profit/Net Sales)*100 (2029287653/29872020642)*100 (1277203221/14097237284)*100 (248073426/2782172064)*100 Page 11
- 12. Department of Commerce Jinnah University for Women Other Operating Expenses Year 2020 1.30 Year 2019 1.26 Year 2018 0.79 Total Expenses Year 2020 4.35 Year 2019 5.07 Year 2018 4.76 Operating Income Year 2020 2.45 Year 2019 3.99 Year 2018 4.15 Other Income Year 2020 0.03 Year 2019 0.01 Year 2018 1.22 Profit before Interest and Taxation Year 2020 2.48 Year 2019 3.99 Year 2018 5.38 Finance Cost Year 2020 1.82 Year 2019 2.04 Year 2018 1.86 Profit/Loss Before Taxation Year 2020 0.65 Year 2019 1.95 Year 2018 3.52 Taxation Current Year 2020 - Year 2019 - Year 2018 - (Other Operating Expenses/Net Sales)*100 (387940582/29872020642)*100 (177992759/14097237284)*100 (21840927/2782172064)*100 (1298282518/29872020642)*100 (715424498/14097237284)*100 (132509847/2782172064)*100 (731005135/29872020642)*100 (561778723/14097237284)*100 (115563579/2782172064)*100 (Other Income/Net Sales)*100 (8533876/29872020642)*100 (1150457/14097237284)*100 ( 34074118/2782172064)*100 (Profit before Interest and Taxation/Net Sales)*100 (739539011/29872020642)*100 (562929180/14097237284)*100 (149637697/2782172064)*100 (Finance Cost/Net Sales)*100 (544988721/29872020642)*100 (288207562/14097237284)*100 (51840371/2782172064)*100 (Profit or Loss Before Taxation/Net Sales)*100 (194550290/29872020642)*100 (274721618/14097237284)*100 (97797326/2782172064)*100 (Taxation Current/Net Sales)*100 - - - (Total Expenses/Net Sales)*100 (Operating Income/Net Sales)*100 Page 12
- 13. Department of Commerce Jinnah University for Women Taxation Deferred Year 2020 0.05 Year 2019 -0.14 Year 2018 0.85 Profit/Loss After Taxation Year 2020 0.70 Year 2019 1.81 Year 2018 4.37 Stock-in-trade Year 2020 341.29 Year 2019 216.41 Year 2018 100.00 Trade Debts Year 2020 676.33 Year 2019 266.81 Year 2018 100.00 Advances, Deposits, Short-Term Prepayments Year 2020 85.25 Year 2019 28.87 Year 2018 100.00 Other Receivables Year 2020 31.47 Year 2019 3.39 Year 2018 100.00 Sales Tax Receivables Year 2020 - Year 2019 203.47 Year 2018 100.00 (Taxation Deferred/Net Sales)*100 (15078506/29872020642)*100 (-19647098/14097237284)*100 (23719099/2782172064)*100 (Profit or Loss After Taxation/Net Sales)*100 (209628796/29872020642)*100 (255074520/14097237284)*100 (121516425/2782172064)*100 Computation for Indexed Analysis (Stock-in-trade/Stock-in-trade 2018)*100 (5048540001/1479257110)*100 (3201229920/1479257110)*100 (1479257110/1479257110)*100 (Trade Debts/Trade Debts 2018)*100 (7765666856/1148211099)*100 (3063574186/1148211099)*100 (1148211099/1148211099)*100 (Advances, Deposits, Short-Term Prepayments/Advances, Deposits, Short- Term Prepayments 2018)*100 (91306367/107098427)*100 (30920000/107098427)*100 (107098427/107098427)*100 (Other Receivables/Other Receivables 2018)*100 (9753965/30995650)*100 (1050000/30995650)*100 (30995650/30995650)*100 (Sales Tax Receivables/Sales Tax Receivables 2018)*100 - (292485386/143749417)*100 (143749417/143749417)*100 Page 13
- 14. Department of Commerce Jinnah University for Women Taxation-Net of Provision Year 2020 2052.86 Year 2019 735.86 Year 2018 100.00 Cash and Bank Balances Year 2020 1640.42 Year 2019 402.11 Year 2018 100.00 Stores and Spares Year 2020 - Year 2019 - Year 2018 - Total Current Assets Year 2020 501.57 Year 2019 244.42 Year 2018 100.00 Property, Plant and Equipment Year 2020 218.88 Year 2019 202.49 Year 2018 100.00 Intangible Assets Year 2020 191.32 Year 2019 151.73 Year 2018 100.00 Long-Term Deposit/Investment Year 2020 1466167.08 Year 2019 - Year 2018 100.00 Deferred Tax Year 2020 80.74 Year 2019 17.17 Year 2018 100.00 (Taxation-Net of Provision/Taxation-Net of Provision 2018)*100 (1983954200/96643514)*100 (711161726/96643514)*100 (96643514/96643514)*100 (Cash and Bank Balances/Cash and Bank Balances 2018)*100 (163360179/9958442)*100 (40043834/9958442)*100 (9958442/9958442)*100 (Stores and Spares/Stores and Spares 2018)*100 - - - (Total Current Assets/Total Current Assets 2018)*100 (15127051851/3015913659)*100 (7371378588/3015913659)*100 (3015913659/3015913659)*100 (Property, Plant and Equipment/Property, Plant and Equipment 2018)*100 (3330924966/1521820847)*100 (3081521152/1521820847)*100 (1521820847/1521820847)*100 (Intangible Assets/Intangible Assets 2018)*100 (10912981/5703979)*100 (8654440/5703979)*100 (5703979/5703979)*100 (Long-Term Deposit-Investment/Long-Term Deposit-Investment 2018)*100 (366541770/25000)*100 - (25000/25000)*100 (Deferred Tax/Deferred Tax 2018)*100 (19150507/23719099)*100 (4072001/23719099)*100 (23719099/23719099)*100 Page 14
- 15. Department of Commerce Jinnah University for Women Right of Use Assets Year 2020 - Year 2019 - Year 2018 - Total Fixed Assets Year 2020 246.01 Year 2019 199.47 Year 2018 100.00 Total Assets Year 2020 414.77 Year 2019 229.15 Year 2018 100.00 Current Portion of Long Term Loan Year 2020 - Year 2019 - Year 2018 - Current Portion of Lease Liabilities Year 2020 - Year 2019 - Year 2018 - Current Portion of Deferred Government Grant Year 2020 - Year 2019 - Year 2018 - Trade and Other Payables Year 2020 506.54 Year 2019 113.69 Year 2018 100.00 (Right of Use Assets/Right of Use Assets 2018)*100 - - - (Total Fixed Assets/Total Fixed Assets 2018)*100 (3816337715/1551268925)*100 (3094247593/1551268925)*100 (1551268925/1551268925)*100 (Total Assets/Total Assets 2018)*100 (18943389566/4567182584)*100 (10465626181/4567182584)*100 (4567182584/4567182584)*100 (Current Portion of Long Term Loan/Current Portion of Long Term Loan 2018)*100 - - - (Current Portion of Lease Liabilities/Current Portion of Lease Liabilities 2018)*100 - - - (Current Portion of Deferred Government Grant/Current Portion of Deferred Government Grant 2018)*100 - - - (Trade and Other Payables/Trade and Other Payables 2018)*100 (8838121773/1744791482)*100 (1983666956/1744791482)*100 (1744791482/1744791482)*100 Page 15
- 16. Department of Commerce Jinnah University for Women Accrued Mark-up Year 2020 689.02 Year 2019 409.08 Year 2018 100.00 Short-Term Borrowings Year 2020 631.66 Year 2019 416.65 Year 2018 100.00 Unclaimed Dividend Year 2020 - Year 2019 - Year 2018 - Sales Tax Payable Year 2020 - Year 2019 - Year 2018 - Loan from Related Party Year 2020 - Year 2019 42.55 Year 2018 100.00 Total Current Liabilities Year 2020 461.00 Year 2019 170.81 Year 2018 100.00 Long Term Loan Year 2020 - Year 2019 - Year 2018 - Lease Liabilities Year 2020 - Year 2019 - Year 2018 - (Accrued Mark-up/Accrued Mark-up 2018)*100 (65799695/9549688)*100 (39065955/9549688)*100 (9549688/9549688)*100 (Short-Term Borrowings/Short-Term Borrowings 2018)*100 (3892256023/616198108)*100 (2567371277/616198108)*100 (616198108/616198108)*100 (Unclaimed Dividend/Unclaimed Dividend 2018)*100 - - - (Sales Tax Payable/Sales Tax Payable 2018)*100 - - - (Loan from Related Party/Loan from Related Party 2018)*100 - (179866504/422725648)*100 (422725648/422725648)*100 (Total Current liabilities/Total Current Liabilities 2018)*100 (12877046393/2793264926)*100 (4771159003/2793264926)*100 (2793264926/2793264926)*100 (Long Term Loan/Long Term Loan 2018)*100 - - - (Lease Liabilities/Lease Liabilities 2018)*100 - - - Page 16
- 17. Department of Commerce Jinnah University for Women Deferred Government Grant Year 2020 - Year 2019 - Year 2018 - Total Non-Current Liabilities Year 2020 - Year 2019 - Year 2018 - Total Liabilities Year 2020 468.76 Year 2019 170.81 Year 2018 100.00 Share Capital Year 2020 321.83 Year 2019 321.83 Year 2018 100.00 Unappropriated Profit/(Loss) Year 2020 490.53 Year 2019 304.45 Year 2018 100.00 Total Equities Year 2020 329.76 Year 2019 321.01 Year 2018 100.00 Total Liabilities and Equities Year 2020 414.77 Year 2019 229.15 Year 2018 100.00 (Deferred Government Grant/Deferred Government Grant 2018)*100 - - - (Total Non-Current Liabilities/Total Non-Current Liabilities 2018)*100 - - - (Total Liabilities/Total Liabilities 2018)*100 (13093698592/2793264926)*100 (4771159003/2793264926)*100 (2793264926/2793264926)*100 (Share Capital/Share Capital 2018)*100 (5440500000/1690500000)*100 (5440500000/1690500000)*100 (1690500000/1690500000)*100 (Unappropriated Profit(Loss)/Unappropriated Profit/(Loss) 2018)*100 (409190974/83417658)*100 (253967178/83417658)*100 (83417658/83417658)*100 (Total Equities/Total Equities 2018)*100 (5849690974/1773917658)*100 (5694467178/1773917658)*100 (1773917658/1773917658)*100 (Total Liabilities and Equities/Total Liabilities and Equities 2018)*100 (18943389566/4567182584)*100 (10465626181/4567182584)*100 (4567182584/4567182584)*100 Page 17
- 18. Department of Commerce Jinnah University for Women Net Sales Year 2020 1073.69 Year 2019 506.70 Year 2018 100.00 Cost of Goods Sold Year 2020 1098.72 Year 2019 505.90 Year 2018 100.00 Gross Profit Year 2020 818.02 Year 2019 514.85 Year 2018 100.00 Selling and Distribution on Expenses Year 2020 1242.32 Year 2019 641.32 Year 2018 100.00 Administrative Expenses Year 2020 398.94 Year 2019 328.47 Year 2018 100.00 Other Operating Expenses Year 2020 1776.21 Year 2019 814.95 Year 2018 100.00 Total Expenses Year 2020 979.76 Year 2019 539.90 Year 2018 100.00 Operating Income Year 2020 632.56 Year 2019 486.12 Year 2018 100.00 (Net Sales/Net Sales 2018)*100 (29872020642/2782172064)*100 (14097237284/2782172064)*100 (2782172064/2782172064)*100 (Cost of Goods Sold/Cost of Goods Sold 2018)*100 (27842732989/2534098638)*100 (12820034063/2534098638)*100 (2534098638/2534098638)*100 (Selling and Distribution on Expenses/Selling and Distribution on Expenses 2018)*100 (Gross Profit/Gross Profit 2018)*100 (2029287653/248073426)*100 (1277203221/248073426)*100 (248073426/248073426)*100 (690610361/55590338)*100 (356514340/55590338)*100 (55590338/55590338)*100 (Administrative Expenses/Administrative Expenses 2018)*100 (219731575/55078582)*100 (180917399/55078582)*100 (55078582/55078582)*100 (Other Operating Expenses/Other Operating Expenses 2018)*100 (387940582/21840927)*100 (177992759/21840927)*100 (21840927/21840927)*100 (Total Expenses/Total Expenses 2018)*100 (1298282518/132509847)*100 (715424498/132509847)*100 (132509847/132509847)*100 (Operating Income/Operating Income 2018)*100 (731005135/115563579)*100 (561778723/115563579)*100 (115563579/115563579)*100 Page 18
- 19. Department of Commerce Jinnah University for Women Other Income Year 2020 25.05 Year 2019 3.38 Year 2018 100.00 Profit before Interest and Taxation Year 2020 494.22 Year 2019 376.19 Year 2018 100.00 Finance Cost Year 2020 1051.28 Year 2019 555.95 Year 2018 100.00 Profit/Loss Before Taxation Year 2020 198.93 Year 2019 280.91 Year 2018 100.00 Taxation Current Year 2020 - Year 2019 - Year 2018 - Taxation Deferred Year 2020 63.57 Year 2019 -82.83 Year 2018 100.00 Profit/Loss After Taxation Year 2020 172.51 Year 2019 209.91 Year 2018 100.00 (1150457/34074118)*100 (34074118/34074118)*100 (Profit before Interest and Taxation/Profit before Interest and Taxation 2018)*100 (739539011/149637697)*100 (562929180/149637697)*100 (149637697/149637697)*100 (15078506/23719099)*100 (-19647098/23719099)*100 (23719099/23719099)*100 (Profit or Loss After Taxation/Profit or Loss After Taxation 2018)*100 (209628796/121516425)*100 (255074520/121516425)*100 (121516425/121516425)*100 (Finance Cost/Finance Cost 2018)*100 (544988721/51840371)*100 (288207562/51840371)*100 (51840371/51840371)*100 (Profit or Loss Before Taxation/Profit or Loss Before Taxation 2018)*100 (194550290/97797326)*100 (274721618/97797326)*100 (97797326/97797326)*100 (Taxation Deferred/Taxation Deferred 2018)*100 (Taxation Current/Taxation Current 2018)*100 - - - (Other Income/Other Income 2018)*100 (8533876/34074118)*100 Page 19
- 20. Department of Commerce Jinnah University for Women 2018 2019 2020 Industry Median Current Ratio 1.08 1.54 1.17 1.27 Acid test/ Quick Ratio - 1.54 1.17 1.35 Debt-To-Equity Ratio 0.59 0.48 0.71 0.59 Debt-To-Total-Assets Ratio 0.23 0.26 0.22 0.24 Long-term Capitalization Ratio - - 0.01 0.01 Interest Coverage Ratio 2.89 1.95 1.36 2.07 Receivables Activity 1.68 4.03 5.91 3.87 Receivable Turnover in Days 217.26 days 90.57 days 61.76 days 123.2 days Inventory Activity - 414.71 431.87 423.29 Inventory Turnover in Days - 88.01 days 84.52 days 86.27 days Total Asset or Capital Turnover 0.61 1.35 1.58 1.18 Gross Profit Margin 8.92% 9.06% 6.79% 8.26% Net Profit Margin 4.37% 1.81% 0.70% 2.29% Return on Investment/Assets 2.66% 2.44% 1.11% 2.07% Return on Equity 6.85% 4.48% 3.58% 4.97% Trend Analysis Liquidity Ratios Financial Leverage (Debt) Ratios Coverage Ratio Activity Ratios Profitability Ratios Page 20
- 21. Department of Commerce Jinnah University for Women Explanation Financial ratios for the Unity Foods Limited over 2018 to 2020 period along with industry median. The current ratio in 2018 is 1.08 and industry average is 1.27. It is fluctuating year a year and becomes 1.54 in 2019 and 1.17 in 2020 but it not exceed industry median, it means company has an ability to meet their current debt with their current assets but not enough. There is not acid test ratio in year 2018 but 1.54 in year 2019 and 1.17 in year 2020 and year 2020 is not exceed by industry median as it is 1.35, means it have ability to meet current debt with most liquid current assets but not enough. The debt to equity ratio in 2018 is 0.59 and industry median is 0.59, but by the time ratio fluctuates and decrease to 0.48 in 2019 and increase to 0.71 which exceed industry median. It indicates the extent to which debt financing is used relative to equity financing more by the time. The debt to total asset ratio is 0.23 in 2018 and industry median is 0.24, but it fluctuates and arrive to 0.26 in 2019 and 0.22 in 2020 which is not maintain to industry median. It shows the relative extent to which the firm is using borrowed money less from asset due to borrowed more from equity. The interest coverage ratio is 2.89 in 2018 and industry median is 2.07, but by the time it decreases and goes 1.95 in 2019 and 1.36 in 2020 below industry median. It indicates company has not enough ability to cover interest charge due to the more interest expense tells by the number of time interest earned. The receivable activity is 1.68 in 2018 and industry mean is 3.87, but it increases by the time 4.03 in 2019 and 5.91 in 2020 it exceed industry average. It measures that after each 62 days receivables turnover into cash which is good for company. The inventory activity, there is no turnover in 2018 but 414.71 in 2019 and 431.87 in 2020 exceeds industry median which is 423.29. It measures that after each 85 days inventory turnover(sold) which helps to insight liquity of inventory and tendency to overstock. The capital turnover in 2018 is 0.61 and industry average is 1.18. By the time capital turnover increases to 1.35 in 2019 and 1.58 in 2020 which exceed industry median. It indicates that company has enough assets to generate sales. The net profit margin is 4.37% in 2018 which fluctuates from year to year as 1.81% in 2019 and 0.70% in 2020 which is not meet to industry average as it is 2.29%. It measures that company has not gain enough profit on their generated sales. The ROI is 2.66% in 2018 which is decreased overtime as 2.44% in 2019 and 1.11% in 2020 which is less than industry median as it is 2.07%. As it shows overall effectiveness in generating profits with available assets, the company has low profits due to the less investment of assets The ROE is 6.85% in 2018 which decreases over the period as 4.48% in 2019 and 3.58% in 2020 which is near to industry average 4.97%. The company has profits due to the investment of shareholder's equity. Page 21
- 22. Department of Commerce Jinnah University for Women 2018 2019 2020 32.39 30.59 26.65 25.14 29.27 40.99 2.34 0.30 0.48 0.68 0.01 0.05 3.15 2.79 - 2.12 6.80 10.47 0.22 0.38 0.86 - 0.30 0.34 66.03 70.43 79.85 33.32 29.44 17.58 0.12 0.08 0.06 0.00 - 1.93 0.52 0.04 0.10 - - 0.47 33.97 29.57 20.15 100.00 100.00 100.00 - - 0.27 - - 0.09 - - 0.06 38.20 18.95 46.66 0.21 0.37 0.35 13.49 24.53 20.55 - 0.01 0.00 - - 0.01 9.26 1.72 - 61.16 45.59 67.98 - - 0.68 - - 0.44 - - 0.03 - - 1.14 61.16 45.59 69.12 37.01 51.98 28.72 1.83 2.43 2.16 38.84 54.41 30.88 100.00 100.00 100.00 Common-Size Analysis Common-Size (%) Sales tax receivable Taxation - net of provision Cash and bank balances Stores and spares Total Current Assets Property, plant and equipment Intangible assets Long-term deposit/investment Deferred tax Assets Stock-in-trade Trade debts Advances, deposits, short-term prepayments Other receivables Lease liabilities Deferred government grant Total Non-Current Liabilities Issued, subscribed, paid-up (share capital) Unappropriated profit / (loss) Total Equities Total Liabilities and Equities Right of use assets Total Fixed Assets Total Assets Liabilities And Shareholder's Equity Current portion of Long term loan Current portion of Lease liabilities Current portion of Deferred government grant Trade and other payables Accrued mark-up Short-term borrowings Unclaimed dividend Sales tax payable Loan from related party Total current liabilities Long term loan Total Liabilities Page 22
- 23. Department of Commerce Jinnah University for Women 2018 2019 2020 100.00 100.00 100.00 91.08 90.94 93.21 8.92 9.06 6.79 2.00 2.53 2.31 1.98 1.28 0.74 0.79 1.26 1.30 4.76 5.07 4.35 4.15 3.99 2.45 1.22 0.01 0.03 5.38 3.99 2.48 1.86 2.04 1.82 3.52 1.95 0.65 0.85 -0.14 0.05 4.37 1.81 0.70 The common-size income statement shows the gross profit margin fluctuate year to year. An improved gross margin coupled with better relative control over selling, general and administrative expenses, which cause an improvement in profitability. Over the three year span, the percentage of current assets increased, and that was particularly true for cash. In addition, we see that stock in trade decrease from 2019 to 2020. On the liability and equity portion of balance sheet, the total debt of a company increases due to the increment in payables. however, with the increase in assets occurred the debt finance also increases. Explanation Profit/loss after taxation Total Expenses Operating Income Common-Size (%) Other income Other operating expenses Profit before interest and taxation Finance cost Profit/loss before taxation Taxation (Deferred) Net Sales Cost of goods sold Gross profit Selling and distribution on expenses Administrative expenses Page 23
- 24. Department of Commerce Jinnah University for Women 2018 2019 2020 100.00 216.41 341.29 100.00 266.81 676.33 100.00 28.87 85.25 100.00 3.39 31.47 100.00 203.47 - 100.00 735.86 2052.86 100.00 402.11 1640.42 - - - 100.00 244.42 501.57 100.00 202.49 218.88 100.00 151.73 191.32 100.00 - 1466167.08 100.00 17.17 80.74 - - - 100.00 199.47 246.01 100.00 229.15 414.77 Current portion of Long term loan - - - Current portion of Lease liabilities - - - - - - Trade and other payables 100.00 113.69 506.54 Accrued mark-up 100.00 409.08 689.02 Short-term borrowings 100.00 416.65 631.66 Unclaimed dividend - - - Sales tax payable - - - 100.00 42.55 - Total current liabilities 100.00 170.81 461.00 Long term loan - - - Lease liabilities - - - Deferred government grant - - - Total Non-Current Liabilities - - - Total Liabilities 100.00 170.81 468.76 Issued, subscribed, paid-up (share capital) 100.00 321.83 321.83 Unappropriated profit / (loss) 100.00 304.45 490.53 Total Equities 100.00 321.01 329.76 Total Liabilities and Equities 100.00 229.15 414.77 Current portion of Deferred government grant Loan from related party Total Assets Liabilities And Shareholder's Equity Total Fixed Assets Taxation - net of provision Cash and bank balances Stores and spares Total Current Assets Property, plant and equipment Intangible assets Long-term deposit/investment Deferred tax Right of use assets Indexed Analysis Indexed (%) Assets Stock-in-trade Trade debts Advances, deposits, short-term prepayments Other receivables Sales tax receivable Page 24
- 25. Department of Commerce Jinnah University for Women 2018 2019 2020 Net Sales 100.00 506.70 1073.69 Cost of goods sold 100.00 505.90 1098.72 Gross profit 100.00 514.85 818.02 Selling and distribution on expenses 100.00 641.32 1242.32 Administrative expenses 100.00 328.47 398.94 Other operating expenses 100.00 814.95 1776.21 Total Expenses 100.00 539.90 979.76 Operating Income 100.00 486.12 632.56 Other income 100.00 3.38 25.05 Profit before interest and taxation 100.00 376.19 494.22 Finance cost 100.00 555.95 1051.28 Profit/loss before taxation 100.00 280.91 198.93 Taxation (Deferred) 100.00 -82.83 63.57 Profit/loss after taxation 100.00 209.91 172.51 Explanation When we compare stock in trade and spare and store with net sales. However, an increase do not seem to much out of line. there was a noticeable increase in fixed assets but the change was accompanied by a some what favorable more than proportionate change in sales over past two years. On the liability portion of the balance sheet, we note the increment in payables and other liabilities that occurred. Increase in debt also helped finance the increase in asset that occurred over past two years. The indexed income statement, improvement in sales but decrement in profitability was happened due to the interest expense and other expenses. Moreover, the indexed income statement give us more information on the magnitude of absolute changes in profits and expenses. with common-size, we have no information about how the absolute amounts change over time. Indexed (%) Page 25