Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    PCI Slide Presentation

    Uploaded by

    something
    This document analyzes various financial ratios of a company in 2020 and 2019, including liquidity, efficiency, and profitability ratios. Liquidity ratios like current and acid-test ratios improved in 2020 compared to 2019, indicating better ability to meet short-term obligations. Efficiency ratios like inventory turnover and fixed asset turnover also improved, showing more efficient use of company resources. Profitability ratios such as gross profit margin, net profit margin, and return on assets significantly increased from 2019 to 2020, demonstrating higher profit generation.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    PCI Slide Presentation

    Uploaded by

    something
    14 views16 pages
    This document analyzes various financial ratios of a company in 2020 and 2019, including liquidity, efficiency, and profitability ratios. Liquidity ratios like current and acid-test ratios improved in 2020 compared to 2019, indicating better ability to meet short-term obligations. Efficiency ratios like inventory turnover and fixed asset turnover also improved, showing more efficient use of company resources. Profitability ratios such as gross profit margin, net profit margin, and return on assets significantly increased from 2019 to 2020, demonstrating higher profit generation.

    Original Description:

    pci

    Original Title

    PCI-slide-presentation

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document analyzes various financial ratios of a company in 2020 and 2019, including liquidity, efficiency, and profitability ratios. Liquidity ratios like current and acid-test ratios improved in 2020 compared to 2019, indicating better ability to meet short-term obligations. Efficiency ratios like inventory turnover and fixed asset turnover also improved, showing more efficient use of company resources. Profitability ratios such as gross profit margin, net profit margin, and return on assets significantly increased from 2019 to 2020, demonstrating higher profit generation.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    14 views16 pages

    PCI Slide Presentation

    Uploaded by

    something
    This document analyzes various financial ratios of a company in 2020 and 2019, including liquidity, efficiency, and profitability ratios. Liquidity ratios like current and acid-test ratios improved in 2020 compared to 2019, indicating better ability to meet short-term obligations. Efficiency ratios like inventory turnover and fixed asset turnover also improved, showing more efficient use of company resources. Profitability ratios such as gross profit margin, net profit margin, and return on assets significantly increased from 2019 to 2020, demonstrating higher profit generation.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 16

    RATIO

    ANALYSIS
    - Liquidity Ratio
    - Efficiency Ratio
    - Profitability Ratio
    Liquidity Ratio

    Current Ratio Acid Test Ratio


    Current Ratio
    Formula:
    Current Assets
    Current Liabilities
    2020 2019
    95,908,325 68,395,631
    83,336,294 93,087,813
    =1.15 times =0.73 times
    Acid Test Ratio

    Formula:
    Current Assets-Inventory
    Current Liabilities

    2020 2019
    95,908,325-45,575,893-8,453,275 68,395,631-27,434,751-15,506,128
    83,336,294 93,087,813
    =0.5 times =0.27 times
    Efficiency Ratio

    Inventory Average Fixed Total


    Turnover Collection Asset Asset
    Ratio Period Turnover Turnover
    Ratio Ratio
    Inventory Turnover Ratio

    Formula:
    Cost of Goods Sold
    Ave. Inventory

    2020 2019
    250,093,545 164,790,461
    45,575,893 27,434,751

    =5.49 times =6.01 times


    Average Collection Period
    Receivables
    Formula: X 365 Days
    Sales

    2020 2019
    8,453,275+37,573,273+2,299,900 15,506,128+18,750,095+3,966,368
    +1,100,000 +1,100,000
    298,146,915 176,877,312
    X 365 Days X 365 Days
    =60.51 days =81.15 days
    Fixed Asset Turnover Ratio
    Formula: Net Sales
    Average Fixed Assets

    2020 2019
    298,146,915 176,877,312
    33,496,912 37,654,798

    =8.9 times =4.7 times


    Total Asset Turnover Ratio
    Formula: Sales
    Average Total Assets

    2020 2019
    298,146,915 176,877,312
    33,496,912+95,908,325 37,654,798+68,395,631

    =2.3 times =1.67 times


    Profitability Ratio

    Gross Profit Margin Return on Asset

    Net Profit Margin Return on Equity


    Gross Profit Margin
    Gross Profit
    Formula: X 100
    Net Sales

    2020 2019
    48,053,370 12,086,851
    298,146,915 x100 176,877,312 x100

    =16.27% =6.83%
    Net Profit Margin
    Net Profit
    Formula: X 100
    Net Sales

    2020 2019
    32,620,500 x100 (9,232,476) x100
    298,146,915 176,877,312

    =10.94% =(5.22)%
    Return on Asset
    Net Income
    Formula:
    Total Assets X 100

    2020 2019
    32,620,500 x100 (9,232,476) x100
    33,496,912+95,908,325 37,654,798+68,395,631

    =25.21% =(8.71)%
    Return on Equity

    Profit After Interest and Tax


    Formula: X 100
    Shareholder’s Fund

    2020 2019
    32,620,500 x100 9,232,476 x100
    44,942,799 11,842,738

    =72.58% =77.96%
    Debt Ratio

    Formula:
    Total Debts
    Total Assets

    2020 2019
    83,336,294+1,126,144 93,087,813+1,119,878
    33,496,912+95,908,325 37,654,798+68,395,631

    =65.27% =88.83%

    You might also like