Group ASSIGNMENT

Instructor
Ms. Ayesha Hameed

Prepared By:
Abdul Muizz Khan 20221-32073
Asad Ahmed Khan 20221-32356
Ahmed Shabbir 20221-32351
Alina Illyas 20221-32686
Komal Kumari 20221-33129
 U NIT Y F OO D S L I M I T E D
Overview
Unity Foods Limited was incorporated in Pakistan in 1991 as a Private
Limited Company under the Companies Ordinance, 1984 (now
Companies Act, 2017) and subsequently converted into a Public Limited
Company on June 16, 1991. The principal business activity of the
Company has been changed from yarn manufacturing to edible oil
extraction, refining and related businesses.
Unity Foods Limited aims to provide food for life. We transform crops
into products that serve the vital global needs of the food sector in this
ever-growing world. We have diversified our business portfolio to operate
in an assorted agro product mix for a global breadbasket, handling various
agro commodities to connect them from the farm to the dining table. Our
products include Edible Oil, Staples (Flour, Rice, Lentils, Pulses),
Industrial Fats and various feed ingredients for poultry and livestock
sector. Along with innovation, we provide customized solutions to
industries handling food and feed products to help them enhance their
performance and profitability.
U NIT Y F OO D S L I M I T E D
RAT I O A N A LY S I S
RAT I O A N A LY S I S
 RAT I O A N A LY S I S
1. Liquidity - the ability of the firm to pay its way.

2. Investment /Shareholders - information to enable

decisions to be made on the extent of the risk and the
earning potential of a business investment.

3. Gearing - information on the relationship between the

exposure of the business to loans as opposed to share
capital.

4. Profitability - how effective the firm is at generating

profits given sales and or its capital assets.

5. Financial - the rate at which the company sells its

stock and the efficiency with which it uses its assets.
 RATIO ANALYSIS

FINANCIAL DATA Values in 000s

2020 2021 2022

1 Current Assets 15,127,052 33,728,469 49,032,816
2 Fixed Assets 3,816,338 8,809,906 9,588,166
3 Total Assets 18,943,390 42,538,375 58,620,981
4 Average Total Assets 9,471,695 21,269,187 29,310,491
5 Cash & Cash equivalent 163,360 718,318 318,043
6 Inventory 5,113,010 10,790,944 11,263,347
7 Average Inventory 5,113,010 7,951,977 11,027,145
8 Current Liabilities 12,877,046 28,812,367 37,121,522
9 Owner's Equity 5,849,691 13,379,279 21,156,548
10 Number of Common Shares 544,050 994,050 1,194,050
11 Average number of Common Shares 544,050 769,050 1,094,050
12 Average Owner's Equity 5,849,691 9,614,485 17,267,914
13 Market Price per share 32.04 26.47 14.17
14 Dividend Paid - - -
15 Book Value per Share 10.75 11.20 17.72
16 Total Sales 32,659,473 66,400,968 82,184,553
17 Operating Expenses 1,298,283 1,428,274 1,601,753
18 Operating Income 739,539 4,516,851 3,950,072
19 Other Expenses 387,941 263,564 217,232
20 Earnings Before interest & Taxes 739,539 4,516,851 3,950,072
21 Interest Expense 544,989 960,978 1,800,963
22 Net Income 209,629 3,338,193 2,181,310
23 Total Liabilities 13,093,699 29,159,096 37,464,434
24 Earnings Per Share 0.39 4.34 1.99
 RATIO ANALYSIS

1. Current Ratio:
Current Ratio= Current Assets /Current Assets

2020 2021 2022

15,127,051 33,728,468 49,032,815
=1.17 =1.17 =1.32
12,877,046 8,809,906 9,588,165

Comment:

CURRENT RATIO
1.32

1.17 1.17

2020 2021 2022

2. Quick Ratio:
Quick Ratio= Current assets – Inventory /Current liabilities

2020 2021 2022

15,127,051- 5,113,010 33,728,468-10,790,943 49,032,815-11,263,346
=0.778 =0.796 =1.017
12,877,046 8,809,906 9,588,165

Comment:

QUICK RATIO

1.02

0.78 0.80

2020 2021 2022

 RATIO ANALYSIS

3. Net working capital ratio:

Net working capital ratio = Current assets – current liability /total assets

2020 2021 2022

15,127,051- 12,877,046 33,728,468-8,809,906 49,032,815-9,588,165
=0.12 =0.12 =0.20
18,943,390 42,538,375 58,620,981

Comment:

NET WORKING CAPITAL RATIO

0.20

0.12 0.12

2020 2021 2022

4. Cash ratio:
Cash ratio = Cash and cash equivalent /Current liability

2020 2021 2022

163,370,179 718,318,480 318,042,746
=0.01 =0.02 =0.01
12,877,046 8,809,906 9,588,165

Comment:

CASH RATIO

0.02

0.01
0.01

2020 2021 2022

 RATIO ANALYSIS

5. Operating ratio:
Operating ratio = Operating expenses /operating income

2020 2021 2022

1,298,282 1,428,274 1,601,753
=1.76 =0.32 =0.41
739,539 4,516,850 3,950,071

Comment:

OPERATING RATIO

1.76

0.41
0.32

2020 2021 2022

6. Operating Expenses to Sales:

Operating expenses to sales = Operating expenses /total net sales

2020 2021 2022

1,298,282 1,428,274 1,601,753
= 3.98% = 2.15% = 1.95%
32,659,472 66,400,968 82,184,552

Comment:

OPERATING EXPENSES TO SALES

3.98%

2.15%
1.95%

2020 2021 2022

 RATIO ANALYSIS

7. Inventory turnover ratio:

Inventory turnover ratio =Total sales /average inventory

2020 2021 2022

32,659,472 66,400,968 82,184,552
= 6.39 = 8.35 = 7.45
5,113,010 7,951,976 11,027,145

Comment:

INVENTORY TURNOVER RATIO

8.35
7.45
6.39

2020 2021 2022

8. Fixed assets turnover ratio:

Fixed assets turnover ratio = Total sales /fixed assets

2020 2021 2022

32,659,472 66,400,968 82,184,552
= 8.56 = 7.54 = 8.57
3,816,337 8,809,906 9,588,165

Comment:

FIXED ASSETS TURNOVER RATIO

8.56 8.57

7.54

2020 2021 2022

 RATIO ANALYSIS

9. Total assets turnover ratio:

Total assets turnover ratio = Total sales /total assets

2020 2021 2022

32,659,472 66,400,968 82,184,552
= 8.56 = 7.54 = 8.57
18,943,389 42,538,374 58,620,981

Comment:

TOTAL ASSETS TURNOVER RATIO

1.72
1.56
1.40

2020 2021 2022

10. Assets to equity ratio:

Assets to equity ratio = Total assets /owner’s equity

2020 2021 2022

18,943,389 42,538,374 58,620,981
= 3.24 = 3.18 = 2.77
5,849,690 13,379,279 21,156,547

Comment:

ASSETS TO EQUITY RATIO

3.24
3.18

2.77

2020 2021 2022

 RATIO ANALYSIS

11. Return on assets ratio:

Return on assets ratio = Net Income /average total assets

2020 2021 2022

209,628 3,338,192 2,181,309
= 2.21% = 15.69% = 7.44%
9,471,694 21,269,187 29,310,490

Comment:

RETURN ON ASSETS RATIO

15.69%

7.44%

2.21%

2020 2021 2022

12. Return on equity ratio:

Return on equity ratio = Net income /average owner’s equity

2020 2021 2022

209,628 3,338,192 2,181,309
= 3.58% = 34.72% = 12.63%
5,849,690 9,614,485 17,267,913

Comment:

RETURN ON EQUITY RATIO

34.72%

12.63%

3.58%

2020 2021 2022

 RATIO ANALYSIS

13. Profit Margin ratio:

Profit Margin ratio = Net income /total net sales

2020 2021 2022

209,628 3,338,192 2,181,309
= 0.64% = 5.03% = 2.65%
32,659,472 66,400,968 82,184,552

Comment:

PROFIT MARGIN RATIO

5.03%

2.65%

0.64%

2020 2021 2022

14. Basic earning ratio:

Basic earning ratio = Earning before interest and taxes / Total assets

2020 2021 2022

739,539 4,516,850 3,950,071
= 3.90% = 10.62% = 6.74%
18,943,389 42,538,374 58,620,981

Comment:

BASIC EARNING RATIO

10.62%

6.74%

3.90%

2020 2021 2022

 RATIO ANALYSIS

15. Total debt ratio:

Total debt ratio = Total liabilities /Total assets

2020 2021 2022

13,093,698 29,159,095 37,464,433
= 0.69 = 0.69 = 0.64
18,943,389 42,538,374 58,620,981

Comment:

TOTAL DEBT RATIO

0.69
0.69

0.64

2020 2021 2022

16. Interest coverage ratio:

Interest coverage ratio = EBIT/ Interest expense

2020 2021 2022

739,539 4,516,850 3,950,071
= 1.36 = 4.70 = 2.19
544,988 960,978 1,800,963

Comment:

INTEREST COVERAGE RATIO

4.70

2.19

1.36

2020 2021 2022

 RATIO ANALYSIS

17. Debt/Equity ratio:

Debt/Equity ratio = Total liability /owner’s equity

2020 2021 2022

13,093,698 29,159,095 37,464,433
= 2.24 = 2.18 = 1.77
5,849,690 13,379,279 21,156,547

Comment:

DEBT/EQUITY RATIO

2.24 2.18

1.77

2020 2021 2022

18. Earning per share - EPS ratio:

Earning per share EPS ratio = Net income / Average no. of common stock

2020 2021 2022

209,628 3,338,192 2,181,309
= 0.39 = 4.34 = 1.99
544,050 769,050 1,094,050

Comment:

EARNING PER SHARE - EPS RATIO

4.34

1.99

0.39

2020 2021 2022

 RATIO ANALYSIS

19. Price to earning ratio:

Price to earning ratio = Market price per share /Earning per share

2020 2021 2022

32.04 26.47 14.17
= 82.15 = 7.44 = 6.24
0.39 4.34 1.99

Comment:

PRICE TO EARNING RATIO

82.15

7.44 6.24

2020 2021 2022

20. Dividend payout ratio:

Dividend payout ratio = Dividend paid /Net income

2020 2021 2022

0 0 0
=0 =0 =0
209,628 3,338,192 2,181,309

Comment:

DIVIDEND PAYOUT RATIO

- - -
2020 2021 2022