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Operating Ratios:
Ratio
Rafhan
Maize
Limited
Gross profit ratio
17.80
41.78
Gross profit ratio of EFL is better than RMP, because EFL has more sales and gross profit figure
as compared to RMP.
Ratio
Rafhan
Maize
Limited
Operating profit
1.70
Operating profit ratio of EFL is better than RMP. The reason behind this difference is that the
EBIT of RMP is very low because they have incurred with the financial charges that appears in
other expenses showing a big deduction from EBIT.
Ratio
Rafhan
Limited
Maize
Net profit ratio of RMP is better than EFL, because as EBIT of EFL is low so Earning After
Taxes (EAT), will also be low, and we already know that net sales figures of EFL is less than the
RMP.
Ratio
Rafhan
Maize
Limited
Operating ratio
84.49
The operating ratio of EFL is better than RMP, because the difference between the operating
revenue and expenses is very low as compared to EFL.
Ratio
Rafhan
Maize
Limited
Total assets turnover
ratio
1.99
Turnover on total assets of RMP is comparatively better than EFL, because RMP has more sales
with respect to total assets as compared to EFL.
Ratio
Rafhan
Limited
Return on total
assets
23.33
Maize
Return on Fixed assets of RMP is better than EFL. The reasons behind that EAT and interest is
more of RMP is more than that of EFL. It indicates that RMP efficiently utilize its assets
Ratio
Rafhan
Maize
Limited
4.57
Fixed assets
turnover ratio
Return on Fixed assets of RMP is slightly better than EFL, because RMP have more sales as
compared to EFL and have more fixed assets than EFL.
Ratio
Rafhan
Maize
Limited
Return
on
capital
employed
31.10
The overall performance and effectiveness of management in generating profits with its available
funds of RMP is better than EFL. Unilever Pakistan foods ltd.
Ratio
Rafhan
Maize
Limited
Return on equity
33.02
Generally, present and prospective investors use this ratio. Higher ratio is better so RMP yields
more profits than EFL, because RMP has more PAT as well as equity as compared to EFL.
Liquidity Ratios
Ratio
Both companies have sufficient working capital to meet payments requirements with respect to
their current assets and current liabilities.
Ratio
Current ratio
2.42
0.68
Current ratio of RMP is better than UPF. This ratio comprises the quantum of the current assets
viz a viz-current liability. The reason behind that the amount of current liabilities and current
assets of UPF is very close to each other as compared to RMP.
Ratio
Liquid/Solvency/Acid/Qu
ick ratio
Quick ratio of RMP is better than UPF. This ratio comprise the quantum of cash and cash
equivalent viz a viz-current liabilities. The reason behind that RMP has more liquid assets as
compared to UPF to satisfy their current liabilities.
Ratio
Rafhan
Maize
Limited
Absolute liquid ratio
0.
0.1
71
This ratio shows that HSM is not using its cash to its best advantage, whereas FSM is using it.
But it also tells that HSM has enough cash to satisfy the liabilities whereas FSM do have enough
cash.
Ratio
Rafhan
Maize
Limited
Utilization of current assets
3.5
5.7
Activity Ratio
Ratio
Rafhan
Maize
Limited
Inventory turnover ratio
6.
Rafhan
Limited
Unilever
Pakistan
foods ltd.
8.15
10
Ratio
Product
Maize
Product Uniliver
Limited
Pakistan
Food
These ratios indicate efficiency in controlling stocks of raw materials, work in process and
finished goods in this case the control of RMP is better than UPF.
Ratio
Rafhan
Maize
Limited
Product Uniliver
Pakistan
Food
Limited
Debtor collection period of HSM is better than FSM because management of HSM efficiently
recover its debtors.
Ratio
Rafhan
Maize
Limited
Creditor turnover ratio (CTR)
6.82
3.46
Ratio
Rafhan
Maize
Limited
Creditor collection period
105.49
53.52
Management of HSM pays its debts more effectively than FSM, because FSM has more credit
purchases as compared to HSM.
Ratio
Rafhan
Maize
Product Uniliver
Limited
Pakistan
Food
Limited
30.46
56.88
Generally present and prospective investors use this ratio. Higher ratio is better so UPF yields
more profits than RMP, because UPF has more capital employed.
Debts Ratio
Ratio
Rafhan
Maize
Limited
Product Uniliver
Pakistan
Food
Limited
This ratio shows that FSM assets are more financed by creditors as compared to assets of FSM.
So HSM is in better position as compared to FSM.
Ratio
Equity ratio
Rafhan
Maize
Product Uniliver
Limited
Limited
70.66
19.33
Pakistan
Food
This ratio tells us that RMP assets are more financed from equity as compared to UPF, so we can
say that RPM is in a better position than UPF.
3Ratio
Rafhan
Maize
Limited
Debts equity ratio
38.28
This ratio shows that HSB has very low debt to equity ratio it means HSB is in a better position
than FSM, because FSM has high amount of long term debts.
Profitability Ratios
Ratio
Rafhan
Maize
Limited
Product Uniliver
Pakistan
Food
Limited
Return on Equity
33.02
This ratio shows that HSM is getting a high return with respects to equity as compared to FSM.
Ratio
Rafhan
Maize
Limited
Return on Asset
7.36
0.98
Management of HSM utilizing the assets in best way and getting a high return over it as
compared to FSM