D.

M Textile Mill

CALCULATIONS:

1. Current Ratio:
Current Ratio= Current Assets
Current Liabilities

2012 2013

355,404,76 38,889,619
462,312,065 460,238,525
=0.07 =0.08
 Current Ratio

0.08
0.08
0.08 Current Ratio
0.07 0.08
0.07
0.07
0.07
0.07
0.07
0.06
2012 2013

2. Acid Test Ratio/Quick Ratio:

Acid Test Ratio/Quick Ratio= Current Assets- Inventories
Current Liabilities

2012 2013
355,404,76-244,001,7 38,889,619-161,792,88
462,312,065 460,238,525
=0.07 =0.04
 Quick Ratio

0.07

0.06

0.05 Quick Ratio

0.07
0.04

0.03 0.04
0.02

0.01

0
2012 2013

Debt Ratios:
1. Debt to Equity Ratio:
Debt to Equity Ratio= Total Debt
Total Shareholder Equity

2012 2013

108,974,722 127,363,917
180,016,843 210,832,862
= 0.60 = 0.60
 Debt to Equity Ratio

0.6

0.5

0.4 Debt to Equity Ratio

0.6 0.6
0.3

0.2

0.1

0
2012 2013

2. Debt to total Assets:

Debt to total Assets= Total Debt

Total Assets

2012 2013

108,974,722 127,363,917
933,495,726 902,296,992
= 0.19 = 0.14
 Debt to Total Asssets

0.2
0.18
0.16
0.14 Debt to Total Asssets
0.12 0.19
0.1
0.14
0.08
0.06
0.04
0.02
0
2012 2013

Coverage Ratios:
1. Interest Coverage Ratio:
Interest Coverage Ratio= Earnings before Income Tax
Interest Expense

2012 2013

58,209,157 27,492,545
42,1730 605,827
= 138 = 45
 Interest Coverage Ratio

140

120

100
Interest Coverage Ratio
80 138

60

40 45
20

0
2012 2013

4. Accounts Payable Turnover in Days:

Accounts Payable Turnover in Days= Days in a year
Accounts Payable turnover

2012 2013

365/-0.49 365/-0.57
= -744.8 = -640.3
 Account payable turnover in days
2012 2013
-580
-640.3
-600
-620
Account payable turnover
-640 in days
-744.8
-660
-680
-700
-720
-740
-760

5. Inventory Turnover:
Inventory Turnover= Cost of goods sold (C-G-S)
Inventory

2012 2013

53,338,850 66,526,280
2,440,017 16,179,288
= 22 =4
 Inventory Turnover

25

20
Inventory Turnover
15
22

10

5 4

0
2012 2013

6. Inventory Turnover in Days:

Inventory Turnover in Days= Days in a year
Inventory
turnover

2012 2013

365/21.8 365/4.11
=18 =89
 Inventory Turnover in Days

90
80
70
60 Inventory Turnover in Days
89
50
40
30
20 18
10
0
2012 2013