Financial management and application

Final Project:
Submitted to:
Sir Mudeer Ahmed
Company Name:
Thal Ltd
Introduction:
Thal limited started its journey in 1966. A public listed entity, TL is listed on the Karachi and
Lahore stock Exchanges.
Operating under the umbrella of the prestigious house of Habib group, Thal limited derives its
energy both from its determine organization as well as its values and cherishes its own diversity.
The house of Habib does now not need any advent employing over 10,000 people, HOH is an
established and mature company participant presenting an array of merchandise to people. From
vehicles to audio media, building materials to banking and computers to chemical compounds,
HOH has its imprints throughout a variety of sectors. coping with a community of public (listed
at the Pakistan stock Exchanges) and private companies, HOH has equity and technical
collaborations with japanese, european and American organizations, like Toyota, Denso, Koito,
Gabriel and many others.; giving it a distinct facet on competition. aside from this, the group has
a decentralized organizational structure and has a innovative and dynamic philosophy.

Purpose:
The purpose of this task to conduct a depth ratio analysis of Thal Ltd Ratio analysis facilitates
the management to recognize whether the firm’s financial position is improving or deteriorating
or is constant over time by putting a trend with the assist of ratios The analysis with the assist of
ratio analysis can recognize the course of the trend of strategic ratio might also assist the
management within the task of planning, forecasting and control. The study also covers all the
information related to the investor risk-return relationship of securities lling.

Objective:
 To study the ratio analysis of Thal Ltd
 To study the risk involved in the securities of Thal Ltd.
 To study the systematic risk involved in the Thal Ltd securities.

Sector Size:
Sector Size 35,218,541,570

Financial Ratio Analysis:

Current Ratio:
Current Ratio= Current Assets
Current Liabilities
The current ratio for 2022 is
= 20,719,233
7,679,939
= 2.69 Times
The current ratio for 2021 is
= 17,173,292
5,306,820
= 3.2 Times

Current Rati o
3.3
3.2
3.2
3.1
3
2.9
2.8
2.7
2.69
2.6
2.5
2.4
2022 2021

In 2021 company is more liquidly as compared to 2022. In 2021 the ability of company to meet
its short term liabilities from the use of his current asset is good i.e 3.2 times.

The debt to net worth:

Debt to net worth= Total Debt
Net worth
Debt to net worth for 2022 is
= 3,465,841
 34,139,827
= 10.1%
Debt to net worth for 2021 is
= 5,626,808
23,905,603
= 23.5%

Debt to Net Worth

25.0%
23.5%
20.0%

15.0%

10.0%
10.1%

5.0%

0.0%
2022 2021

Debt to net worth ratio is good in 2022 as compared to 2021. In 2021 company finances involve
23.5% debt.

The return on Asset:

Return on asset= NPAT
Avg Total assets
Return on asset for 2022 is
= 4,257,248
33,569,054.5
= 12.6%
Return on asset for 2021 is
= 3,482,195
 25,849,364
= 12.9%

Return on Assets
13.0%

12.9%

12.8%

12.6%
12.6%

12.4%
2022 2021

Return on asset is good in 2021 as compared to 2022. In 2021 company generates 12.6% from
the use of its assets.

Return on Investment:
Return on Investment= Net income
Avg Total equity
Return on investment for 2022 is
= 4,215,523
25,567,730
= 16.4%
Return on investment for 2021 is
= 3,612,206
22,403,393
= 16.1%
 Return on Equity
16.6%

16.4%
16.4%

16.2%

16.1%
16.0%

15.8%
2022 2021

Return on investment is good in 2022 as compared to 2021. In 2022 company generates 16.4%
profit from its shareholder investment.

Excel Sheet:
The systematic risk of International Industries is greater than 0.2 which means the risk on return
of stock is lower.

Excess return on Kse& stock

0.0000 0.0000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-0.0200
-0.0400 -0.0500
-0.0600
-0.0800 -0.1000
-0.1000
-0.1200 -0.1500
-0.1400
-0.1600 -0.2000
-0.1800
-0.2000 -0.2500

Excess Return on KSE Excess Return on Stock

The expected return on kse is -0.1498, variance 0.00043 and standard deviation is 0.0065624.
The expected return on stock is -0.149908276, variance is 0.447893 and standard deviation is
0.669248.

Conclusion:
Thal limited performed better in 2021 as compared to 2022. This project of Ratio analysis in the
production concern is not merely a work of the project. But a brief knowledge and experience of
that how to analyze the financial performance of the firm. Financial ratios analysis gives a
true representation of a company’s financial health and soundness. During the past two
years, despite fluctuations in its financial statement and the economy in general, Thal Ltd has
achieved efficiency in all its operations. The business is more stable and has a higher return on
investment.