Name: Furkan

Roll No: 212240012

Course Title: Strategic Financial Management
Section: A
Program: M. Com
Assignment No: 01
Submitted To: Hafiz Tahir Nawaz
Ratio Analysis on Treet Corporation Limited:
LIQUIDITY RATIO:
Current Ratio:
Current Asset Current Asset
2022 = Current Liability , 2021 = Current Liability

7,275,236 7,060,536
= 5,849,577 = 6,585,457

= 1.2437 = 1.0721

Quick Ratio:
Current Asset−Inventory Current Asset−Inventory
2022 = Current Liability
, 2021 = Current Liability
7,275,236−(3,222,335+414,584) 7,060,536−(2,714,981+ 343,934)
= , =
5,849,577 6,585,457
3,638,317 4,001,621
= 5,849,577 , = 6,585,457

= 0.6219 , = 0.6076

Cash Ratio:
Cash+ Marketable Securities Cash+ Marketable Securities
2022 = Current Liability
, 2021 = Current Liability
516,794+102,368 818,701+ 400,613
= 5,849,577
, = 6,585,457
619,162 1,219,314
= 5,849,577 , = 6,585,457

= 0.1058 , = 0.1851
PROFITABILITY RATIO:
Gross Profit Margin (GPM) =
Gross Profit Gross Profit
2022 = Net Sales , 2021 = Net Sales

2,669,058 2,546,931
= 15,789,923 , = 14,194,739

= 0.1690 , = 0.1794

Operating Profit Margin (OPM) =

EBIT EBIT
2022 = Sales , 2021 = Sales

794,211 401,329
= 15,789,923 , 2021 = 14,194,739

= 0.0502 , = 0.0282

Net Profit/Loss Margin (NPM) =

Net Income Net Income
2022 = Sales
, 2021 = Sale
(302,990) 547,885
= , 2021 = 14,194,739
15,789,923

= -0.0191 (NLM) , 2021 = 0.0385 (NPM)

Return on Asset (ROA) =
Net Income Net Income
2022 = Total Asset , 2021 = Total Asset

(302,990) 547,885
= , = 7,060,536+18,508,822
7,275,236+18,047,584
(302,990) 547,885
= , = 25,569,358
25,322,820

= -0.0119 , = 0.0214

Return on Equity (ROE) =

Net Income Net Income
2022 = Total Equity , 2021 = Total Equity

( 302,990) 547,885
= , = 9,796,233
9,357,851

= -0.0323 , = 0.0559
ASSET MANAGEMENT RATIO: / EFFICIENCY / UTILIZATION:
Account Receivable Turnover Ratio (A/R TR):
Sales
A/R T.R = Account Receivable

15,789,923 14,194,739
2022 = 1,926,211 , 2021 = 1,824,066

= 8.1974 Times , = 7.7819 Times

Inventory Turnover Ratio (ITR) =

Sales Sales
2022 = Inventory , 2021 = Inventory

15,789,923 14,194,739
= (3,222,335+ 414,584) , = (2,714,981+343,934)

15,789,923 14,194,739
= 3,636,919 , = 3,058,915

= 4.3415 , = 4.6404

Sales
Sales To Total Asset (STTA) = Total Assets

Sales Sales
2022 = Total Assets , 2021 = Total Assets

15,789,923 14,194,739
= 25,322,820 , = 25,569,358
 = 0.6235 , = 0.5551

DEBT MANAGEMENT RATIO:

Debt Ratio (DR) =
Total Liability Total Liability
2022 = Total Asset , 2021 = Total Asset

(13,124,813+2,528,649) (14,026,268+1,818,861)
= , =
25,322,820 25,569,358
15,653,462 15,845,129
= 25,322,820 , = 25,569,358

= 0.6181 , = 0.6196
How much Asset Finance by Liability.

Debt To Equity Ratio (DTER) =

Total Liability Total Liability
2022 = Equity
, 2021 = Equity
(13,124,813+2,528,649) (14,026,268+1,818,861)
= , =
9,357,851 9,796,233
15,653,462 15,845,129
= 9,357,851 , = 9,796,233

= 1.6727 , = 1.6174
MARKET MULTIPLE RATIO:
Price To Earnings Ratio (P/E RATIO) = MPS/EPS =
Market Price Per Share( MPS) Market Price Per Share( MPS)
2022 = Earning Per Share(EPS)
, 2021 = Earning Per Share(EPS)

Price to Book Ratio (PTBR) = MPS/BVPS =

Market Price Per Share Market Price Per Share
2022 = Book Value Per Share , 2021 = Book Value Per Share

Market To Cash Ratio = MPS/OCPS

Market Price Per Share Market Price Per Share
2022 = OperatingCash Per Share , 2021 = OperatingCash Per Share