Mid-term Assignment

Gift University
Gujranwala

Mid-Term Assignment

Submitted by
Nimra Shahbaz
20101240007
MBA 1.5 years

Course Name
Corporate Finance

Submitted to
Prof. Asim Illyas

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Mid-term Assignment

Contents
SAPPHIRE TEXTILE..............................................................................................................................2
Current Ratio.........................................................................................................................................3
Quick Ratio............................................................................................................................................3
Daily Sales Outstanding........................................................................................................................4
Net Profit Margin..................................................................................................................................4
Return on Equity...................................................................................................................................4
Return on Assets....................................................................................................................................5
FINACIAL STATEMENT AND BALANCE SHEET............................................................................6

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Mid-term Assignment

SAPPHIRE TEXTILE
2020
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Current Ratio = 35738238258 / 22269158568
Current Ratio = 1.60 times

Quick Ratio
Quick Ratio = (Current Assets – Inventories) / Current Liabilities
Quick Ratio = (35738238258 – 11491779760) / 22269158568
Quick Ratio = 1.08 times

Daily Sales Outstanding

Daily Sales Outstanding = Account receivables / Average Sale per day
Daily Sales Outstanding = 11627624567 / (52967395731 / 365)
Daily Sales Outstanding = 80.12 days

Net Profit Margin

Net Profit Margin = Net Income / Sales
Net Profit Margin = 7864279180 / 52967395731
Net Profit Margin = 0.15 %

Return on Equity
Return on Equity = Net Income / Shareholder’s Equity
Return on Equity = 7864279180 / 22415130852
Return on Equity = 0.35 * 100
Return on Equity = 35%
2019

Current Ratio
Current Ratio = Current Assets / Current Liabilities
Current Ratio = 28638327303 / 22117792816
Current Ratio = 1.29 times

Quick Ratio
Quick Ratio = (Current Assets – Inventories) / Current Liabilities

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Mid-term Assignment

Quick Ratio = (28638327303– 9737203625) / 22117792816

Quick Ratio = 0.85 times

Daily Sales Outstanding

Daily Sales Outstanding = Account receivables / Average Sale per day
Daily Sales Outstanding = 5587782714 / (49641617037 / 365)
Daily Sales Outstanding = 41.08 days

Net Profit Margin

Net Profit Margin = Net Income / Sales
Net Profit Margin = 5039308690 / 49641617037
Net Profit Margin = 0.10 %

Return on Equity
Return on Equity = Net Income / Shareholder’s Equity
Return on Equity = 5039308690 / 18138839745
Return on Equity = 0.27 * 100
Return on Equity = 27.7 %

Return on Assets
2020
Return on Assets = Net Income / Total Assets
Return on Assets = 7864279180 / 109787335604
Return on Assets = 0.07 * 100
Return on Assets = 7%

2019
Return on Assets = Net Income / Total Assets
Return on Assets = 5039308690 / 102761832068
Return on Assets = 0.049 * 100
Return on Assets = 4.9 %

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Mid-term Assignment

FINACIAL STATEMENT AND BALANCE SHEET