wasif file
- 1. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios. BALANCE SHEET Rupees in thousands 2015 2014 EQUITYAND LIABILITIES SHARE CAPITAL AND RESERVES Authorized capital 6,000,000 6,000,000 Issued, subscribed and paid up 4,431,029 4,431,029 Capital reserve 1,293,858 1,293,858 Accumulated profit 7,891,437 5,301,554 TOTAL EQUITY 13,616,324 11,026,441 ADVANCES AGAINST ISSUE OF ORDINARYSHARES 1,575,252 SURPLUS ON REVALUATIONOF PROPERTY,4,804,200 4,568,357 PLANT AND EQUIPMENT LIABILITIES Non- current liabilities Redeemable capital 3879209 4,826,469 Long term finances 2186,511 2442807 Liabilities against assets subject to finance lease 61,349 74,715
- 2. Deferred taxation 2261,892 2394344 Deferred income 42,900 45,158 8,431,861 9,783,493 Current liabilities Trade and other payables 815179 881429 Accrued interest/ mark-up 260,904 500,528 Short term borrowings 4,668,901 4,243,261 Current portion of non- current liabilities 1,976,655 1,523,155 7,721,639 7,148373 TOTAL LIABLITIES 16,153,500 16,931,866 ASSETS 2015 2014 NON- CURRENT ASSETS Property, plant and equipment 15,509,612 14,466,890 Intangible assets 338,321 3334,008 Long term investments 8,906 63,890 Long term deposits 289,784 192,808 Long term advances 571,991 - . 16,718,614 15,067,596 CURRENT ASSETS Stores, spares and loose tools 793,379 462,140 Stock in trade 6,181,986 6,316,868 Trade debts 7,700,373 7,123,859 Due against construction work in progress –unsecured 1,023,647 1,004,864 Considered goods Short term advances 913,881 829,649 Short term deposits and prepayments 1,331,229 853,209 Other receivables 390,118 187,730
- 3. Short term investments 85,524 21,596 Advance income tax 432,838 319,067 Cash and bank balances 577,687 340,086 19,430,662 17,459,068 Total assets 36,149,276 32,526,664 PROFIT AND LOSS ACCOUNT Rupees in thousands 2015 2014 Revenue 29,323,34824,125,716 Sales tax and discount (4,201,081) (3,607,686) Revenue – net 25,122,267 20,518,030 Cost of sales (17,688,038) (14,208,775) Gross profit 7,434,2296,309,255 Other income 35,86832,483 Distribution cost (1,331,075)( 1,089,521) Administrative and generalexpenses (758,487) (689,570) Other expenses (187,582) (113,604) (2,227,144) (1,892,695) Operating profit 5,192,953 4,449,043 Finance cost (1665,305) (1,892,828)
- 4. 3,527,648 2,556,215 Share of loss of associate (13,485) (10,924) Profit before taxation 2,880,021 2,241,469 Other comprehensive- - Total comprehensive income 2,880,021 2,241,469 Earning per share- basic anddiluted7.13 6.61 Calculation of ratios 2015 1. Liquidity ratios Current ratio Current Ratio= Total current assets/ Total current liabilities = 19430662/7721639 = 2.52 times Quick ratio Quick Ratio= (Total current assets-inventory)/ Total current liabilities = (19,430,662-6,181,986)/7,721,639 = 1.71 2. Acid-test ratio Inventory turnover ratio Inventory turnover ratio = COGS/ average inventory =17,688,038/6181986 =2.86 times Average age of inventory Average age of inventory = 365/inventory turnover ratio =365/2.8612 =128 days Average collection period Average collection period= account recievebles/average sales per day =11359248/68,828 =92 days Assets turnover ratio Assets turnover ratio=total sales/total assets =251222267/36149276 = 0.694 3. Debt ratio Debt ratio Debt ratio = total liabilities/ total assets =16153500/36149276 =0.446
- 5. Times interest earned ratio Times interest earned ratio = EBIT/annual interest = 3514163/1682503 =2.08 4. Profitability ratio Gross profit ratio Gross profit ratio = gross profit/ sales *100 =7434229/25122267*100 =29.59% Operating profit Operating profit = operating profit/net sales *100 = 5192953/25122267*100 =20.67% Net profit ratio Net profit= net profit/sales*100 = 2880021/25122267*100 =11.46% Return on assets Return on assets = net income/ total assets = 2880021/36149276 =7.96 % Return on equity Return on equity =return on assets / ownership ratio = 7.97/53.31 =14.40% 5. Marketability ratio Price earning ratio= market price per share/ EPS =62.54/7.13 =8.77times Summary of ratios Current ratio Quick ratio 2.52 1.61 Inventory turnover ratio Assets turnover ratio Average age of inventory Average collection period 2.83 0.69 128 92 Debt ratio Times interest earned ratio 0.44 2.08
- 6. Calculations if ratios 2014 Liquidity ratios Current ratio Current Ratio= Total current assets/ Total current liabilities = 17459/7148 = 2.44 times Quick ratio Quick Ratio= (Total current assets-inventory)/ Total current liabilities = (17459-6316868)/714 = 881.2 times Acid-test ratio Inventory turnover ratio Inventory turnover ratio = COGS/ average inventory =14208775 / 6140170 =2.31times Average age of inventory Average age of inventory = 365/inventory turnover ratio =365/2.31 =158 days Average collection period Average collection period= account recievebles/average sales per day =187730/56213.78 = 3.33 days Assets turnover ratio Assets turnover ratio=total sales/total assets =20518030/32527 = 6307.7 Debt ratio Gross profir ratio Operating profit Net profit Return on assets Return on equity EPS 29.59% 20.67% 11.46% 7.96 % 14.40% 7.13 Market price per share 62.54 Price earning ratio 8.77times
- 7. Debt ratio Debt ratio = total liabilities/ total assets =7148/32527 =22% Times interest earned ratio Times interest earned ratio = EBIT/annual interest = 5159/2019898 =255 Profitability ratio Gross profit ratio Gross profit ratio = gross profit/ sales *100 =6309/20518030*100 =0.03% Operating profit Operating profit = operating profit/net sales *100 = 2241/20518030*100 =0.010% Net profit ratio Net profit= net profit/sales*100 = 4449/20518030*100 =0.02% Return on assets Return on assets = net income/ total assets = 22414691/32526664 = 68.32% Return on equity Return on equity =return on assets / ownership ratio = 6.87/0.338 =20.2% Marketability ratio Price earning ratio= market price per share/ EPS =40.93/6.61 =6.19 times Summary of ratios 2014 Current ratio Quick ratio 2.44 881.2 Inventory turnover ratio Assets turnover ratio Average age of inventory Average collection period 2.31 158 1018.35 3.33 Debt ratio 0.22
- 8. Times interest earned ratio 2.55 Gross profir ratio Operating profit Net profit Return on assets Return on equity EPS 0.03% 0.010% 0.02% 68.32% 20.2% 6.61 Market price per share 60.31 Price earning ratio 6.61