Group-2

Team Members:
• Muhammad Rehan – Team Lead
• Syed Faizan Nabi
• Zubair Khan
• Nauman Wasif Ali Khan
• Moiz Shahbaz
• Farooq Muhammad
 8.8
7.0
17.9

• A high current ratio of 2times indicate company’s ability to pay off creditors.
• A steady increase in cash ratio is indicative of good returns on short term investments.
• Company is able to generate cash from operations, hence less reliability on outsider liabilities.
 Activity ratios
100

90

80

70

60

50
Axis Title
40

30

20

10

0
Inventory Turnover No. of Days in Debtor Turnover No. of Days in Creditor turnover No. of Days in Total Assests Fixed Assests Operating Cycle
ratio Invenory ratio Receivables ratio creditors turnover ratio turnover ratio

• Effective utilization of working capital is depicted in earning good return against Fixed Assets in FATO.

• Paying off creditors in a month time earns their trust & depicts companies ability to generate quick cash flows.
 Profitability Ratios
30

25

20

15
Axis Title

10

0
Profit before tax Gross Yield on Gross Spread ratio Cost/Income ratio Return on Equity Return on Capital Gross Profit ratio Net Profit ratio Net Profit to Sales
ratio Earning ratio employed

• A steady earnings for owners of company is depicted in ROE for past 3years.
• High operating efficiency is depicted in Return on Capital employed with avg
return of 19%.
• Net profit margin for company has remained >9% for past 3years.
 Solvency ratio
70

60 58.4

50

40
31.8
30

20 16.2
10.8
10 8.6

0.1 0.1 0.1

0
Debt to Equity ratio Debt to Asset ratio Interest cover ratio

2018 2019 2020

• Company has very low risk of default owed to its small debt to asset
ratio, since it is not relying heavily on debt financing for its assets.
• High interest cover ratio indicating stronger solvency, making
company less risky for lenders.
 KPIs

Key Performance Indicators

2018 2019 2020

   

Sales Revenue 34,007 36,582 35,090 MRS

Return on equity 21.0 18.8 19.3 %

Earnings/share 10.2 9.6 10.6 MRS

Shareholder's Equity 15,420 16,138 17,479 MRS

Total Assets Turnover ratio 1.5 1.6 1.4 Times

Current ratio 2.1 2.0 2.0 Times

Market capitalization 35,832 51,061 57,310 MRS

 Horizontal Analysis
Horizontal Analysis
       
Profit or Loss Analysis 2018 2019 2020
  %
Net Sales 3.8 7.6 -4.1
Cost of Sales 6.2 12.8 -4.6
Gross Profit -3.1 -8.3 -2.3
Selling, Marketing & Distribution Exp 8.9 -7 -16.7
Admin Exp 9.5 2.1 21.2
Other Operating Exp -9.5 -1 8.3
Other Operating Income 42 35.3 -0.7
Operating Profit -3.5 1 2
Financial Charges 96.5 67 -71
Profit before Tax -4.7 -2 6.6
Tax -23.1 6.8 -2
Profit after Tax 6.8 -5.9 11
 Vertical Analysis
Vertical Analysis
Profit or Loss Analysis 2018 2019 2020
  %

Net Sales 100 100 100

Cost of Sales 75.3 78.9 78.5
Gross Profit 24.7 21.1 21.5
Selling, Marketing & Distribution Exp 10.5 9.1 7.9
Admin Exp 3.2 3 3.8
Other Operating Exp 1.2 1.1 1.2
Other Operating Income 4.3 5.4 5.6
Operating Profit 14.2 13.4 14.2
Financial Charges 0.4 0.8 0.2
Profit before Tax 13.8 12.6 14
Tax 4.3 4.3 4.4
Profit after Tax 9.5 8.3 9.6
Verdict (Buy? Sell? Hold?)