Business Finance

COMSATS INSTITUTE OF INFORMATION

1 TECHNOLOGY, LAHORE
PRESENTED BY:

 Muhammad Yasir Iqbal BBA-SP09-103

 Muhammad Khurram BBA-SP09-087
 Muhammad Naveed BBA-SP09-091
 Muhammad Asim BBA-SP09-081
 Babar Raza BBA-SP09-027
 Rao Umer BBA-SP09-115
PACKAGES LIMITED
 Introduction of the Company

Packages Limited was established in1957 to convert paper

and paperboard into packaging for consumer industry.

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MISSION STATEMENT

 “To be a leader in the markets we serve by providing

quality products and superior service to our customers,
while learning from their feed back to set even higher
standards for our products.”

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VISION AND OBJECTIVES

 “Position ourselves to be a regional player of quality

packaging, paper & paperboard and consumer products.”

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RATIO ANALYSIS OF PACKAGES LIMITED

1) Liquidity Ratio
2) Asset Management Ratios
3) Debt Management Ratios
4) Profitability Ratios
5) Market Value Ratio

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LIQUIDITY RATIO
 Current Ratio:
2007 2008 2009 Cherat
Current Assets Papersack
Current Liabilities

2.46 1.23 4.57 1.34

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ASSET MANAGEMENT RATIOS
 Inventory Turnover Ratio

2007 2008 2009 Cherat

sales Papersack
inventory 4.77 3.91 4.03 5.14

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ASSET MANAGEMENT RATIOS
 Days sales outstanding
2007 2008 2009 Cherat
Receivables Papersack
Avg. daily Sales
44.63 38.87 38.68 42.15

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ASSET MANAGEMENT RATIOS
 Fixed assets Turnover
2007 2008 2009 Cherat
Sales Papersack
Fixed Assets 0.368 0.509 0.598 5.25

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ASSET MANAGEMENT RATIOS
 Total assets Turnover
2007 2008 2009 Cherat
Sales Papersack
Total Assets 0.315 0.408 0.464 1.77

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DEBT MANAGEMENT RATIOS
 Total Debt to Total Asset
2007 2008 2009 Cherat
Total Debt Papersack
Total Assets 5.8% 16% 4.9% 49%

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DEBT MANAGEMENT RATIOS
 Time-interest-earned

2007 2008 2009 Cherat

EBIT Papersack
Interest Charges
1.59 0.24 (1.67) 1.99

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PROFITABILITY RATIOS
 Profit Margin on Sales
2007 2008 2009 Cherat
Net Income Papersack
Sales 41% (1.3)% 24.5% 4.85%

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PROFITABILITY RATIOS
 Basic Earning Power

2007 2008 2009 Cherat

EBIT Papersack
Total Assets 1.75% 1.15% (5.98)% 17.1%

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PROFITABILITY RATIOS
 Return on Total Assets

2007 2008 2009 Cherat

Net Income Papersack
Total Assets 12.93% (0.56)% 11.4% 8.59%

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PROFITABILITY RATIOS
 Return on Common Equity

2007 2008 2009 Cherat

Net Income Papersack
Common Equity
23.8% (1.2)% 17.3% 20.3%

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MARKET VALUE RATIO
 Price/Earning

2007 2008 2009 Cherat

Price per share Papersack
Earning per share
2.53 (56.03) 2.69 7.2

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MARKET VALUE RATIO
 Price/Cash flow

2007 2008 2009 Cherat

Price per share Papersack
Cash flow per share
(31862.74) (4642.8) 29748.28 96202.5

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MARKET VALUE RATIO
 Market/Book

2007 2008 2009 Cherat

Market price Papersack
Book Value
13.00 7.6

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CONCLUSION:
 Higher profit margin on sales and higher return on equity
than the industry seem to build confidence in company’s
current shareholders and also it makes the company look
attractive to the investors in the market. But still the
company needs to improve its performance because their
profits are not constant in these 3 observed years.

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