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Operating Ratios:
Ratio

Rafhan

Maize

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Net profit ratio


11.75

Maize

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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

Rafhan Maize Product Limited

Unilever Pakistan foods ltd.

Net working capital


3,953,423
3,356,838

Both companies have sufficient working capital to meet payments requirements with respect to
their current assets and current liabilities.

Ratio

Rafhan Maize Product Limited

Uniliver Pakistan Food Limited

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

Rafhan Maize Product Limited


1.71

Uniliver Pakistan Food Limited


0.59

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

Limited
Utilization of current assets

3.5

5.7

Unilever Pakistan foods ltd.


Utilization of current assets of HSM is better than FSM. This ratio comprise the quantum of the
current assets viz a viz sales.

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

Average age of inventory


5.98

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

Debtors turnover ratio (DTR)

Debtor collection period of HSM is better than FSM because management of HSM efficiently
recover its debtors.

Ratio

Rafhan

Maize

Product Unilever Pakistan foods ltd.

Limited
Creditor turnover ratio (CTR)
6.82

3.46

Ratio

Rafhan

Maize

Product Unilever Pakistan foods ltd.

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

Net profit percentage ofapital


employed

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

Total debts ratio

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

Product Unilever Pakistan foods ltd.

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

Product Unilever Pakistan foods ltd.

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