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Ratios
Current ratio Quick ratio Cash ratio Working capital Debt ratio Debt to equity ratio Time interest earned Account receivable turn over Average collection period Inventory turnover Fixed assets turnover Total assets turnover Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity

Companys Result(2009)
1.5 1.48 0.67 5469534 0.61 1.58 126.21 times 9.05 times 40.30 days 265.86 times 33.18 3.38 5.32% 5.91% 4.98% 16% 43%

SHORT TERM SOLVENCY RATIOS (2009) 1) Current ratio= current asset Current liabilities = 16408160 / 10938626 =1.5:1 2) Quick ratio= Current asset-stock in trade(inventory) Current liabilities =16263826 / 10938626 =1.48:1 3) Cash ratio= Cash Current liabilities

= 7434910 / 10938626 =0.67:1 4) Working capital= Current assets-Current liabilities =16408160-10938626 = 5469534

LONG TERM SOLVENCY RATIO(2009)

5) Debt ratio= Total debts or Total liabilities Total assets =11190164 / 18272432 =0.61:1 6) Debt to equity ratio= Total debts or Total liabilities TOTAL SHAREHOLDERS EQUITY =11190164 / 7082260 =1.58:1 7) Time interest earned= Operating profit or EBIT Interest expense = 3659248 / 28992 = 126.21 times.

ASSESTS UTILIZATION RATIO(2009) 1) Account receivable turnover= net credit sale Avg. A/R = 61863152 / 6830695 = 9.05 times. #Avg A/R = A/R(2008) +A/R(2009) 2 = 5825869 + 7835521 / 2 =6830695

2) Average collection period = 365 A/R turnover =365 / 9.05 = 40.30 days. 3) Inventory turnover = cost of goods sold Avg Inventory =58570802 / 220300

= 265.86 times. #Avg Inventory = Inventory(2008) +Inventory(2009) 2 = 299092 + 141507 / 2 =220300 4) Fixed assets turnover =

Net sales Fixed assets = 61863152 / 1864272 = 33.18 times.

5) Total assets turnover = Net sales Total assets = 61863152 / 18272432 = 3.38 times.

PROFITABILITY RATIOS(2009) 6) Gross profit margin = Gross profit Net sales = 3292350 / 61863152 = 0.532 or 5.32% 7) 0perating profit margin = operating profit Net sales = 3659248 / 61863152

= 0.591 or 5.91%

8) Net profit margin = Net profit Net sales = 3082419 / 61863152 = 0.498 or 4.98% 9) Return on assets = Net profit Total assets = 3082419 / 18272432

= 0.16 or 16% 10) Return on equity = Net profit Total shareholders equity = 3082419 / 7082268 = 0.43 or 43 % Earning per share = profit after taxes-dividend to preferred dtock holdes
No: of share holders equity issued

= (00000) / 00000 = RS.

#Company has not announced dividend

Serial no:
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Ratios

Companys Industry Result Result (2010) (2010)

1.63 1.55 0.77 7512066 0.56 1.32 14.34 times 10.72 times 34.04 days 139.28 times 41.12 times 3.86 times 4.54% 5.54% 4.34% 16.76% 38.91% 1.9 1.2 1.1 4500000 0.45 0.55 10 times 20 times 20 days 15 times 10 times 8 times 30 % 25 % 15 % 12 % 14 %

Decision

Current ratio Quick ratio Cash ratio Working capital Debt ratio Debt to equity ratio Time interest earned Account receivable turn over Average collection period Inventory turnover Fixed assets turnover Total assets turnover Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity

Worst Better Worst Better Worst Worst Better Worst Worst Better Better Worst Worst Worst Worst Better Better

SHORT TERM SOLVENCY RATIOS (2010) 1) Current ratio= current asset Current liabilities = 19429233 / 11917167 =1.63:1 INTERPRETATION: Current ratio measure a firm ability to meet its short term obligation and commitments. It shows the relationship between current assets and current liabilities. In this companys current ratios is 1.63 times. It means that company current assets are 1.63 times more than that of its current liabilities. If we compared the result of the company with result of an industry. Companys results are showing worst position because a company current ratio is less than that of an industry current ratios.

2) Quick ratio=

Quick Assets Current liabilities = 18429321 / 11917167 = 1.55:1

INTERPRETATION: quick ratio measure a firm ability to meet its short term obligation and commitments. It shows the relationship between quick assets and current liabilities. In this companys quick ratios is 1.55times. It means that company quick assets are 1.55 more than that of its current liabilities. If we compared the result of the company with result of an industry, Companys results are showing better position because a company quick ratio is more than that of an industry current ratios.

3) Cash ratio= Cash Current liabilities = 9275603/11917167 =0.77:1 INTERPRETATION: cash ratio measure a firm ability to meet its short term obligation and commitments. It shows the relationship between cash and current liabilities. In this companys cash ratios is 077 times. It means that company cash are 0.77 times of its current liabilities. If we compared the result of the company with result of an industry, Companys results are showing worst position because a company cash ratiois less than that of an industry current ratios.

4) Working capital= Current assets-Current liabilities =19429233-11917167 = RS.7512066 INTERPRETATION: Working capital shows the excess of current assets over the current liabilities. It shows the firms ability to pay off its current liabilities with its current assets. In this company working capital is 7512066. It means that company has excess of current assets worth Rs; 7512066 over its current liabilities. If we compare the results of the company with the results of an industry. Companys results are showing better position because a working capital is more than that of an industry working capital.

LONG TERM SOLVENCY RATIO(2010)

5) Debt ratio= Total debts or Total liabilities Total assets =12206075 / 21442652 = 0.56:1 INTERPRETATION: debt ratio measure a firm ability to meet its long term obligation and commitments. It shows the relationship between total liabilities and total assets. In this companys debt ratios is 0.56times. It means that company total liabilities are 0.56 times that of its total assets. If we compared the result of the company with result of an industry, Companys results are showing worst position because a company debt ratio is more than that of industry debt ratios.

6) Debt to equity ratio=

Total debts or Total liabilities TOTAL SHAREHOLDERS EQUITY =12206075 / 9236577 =1.32:1

INTERPRETATION: debt to equity ratio measure a firm ability to meet its long term obligation and commitments. It shows the relationship between total liabilities and total equity. In this companys debt equity ratios is 1.32times. It means that company total liabilities are 1.32 times more than that of its total share holders equity. If we compared the result of the company with result of an industry, Companys results are showing worst position because a company take equity ratio is more than that of industry take to equity ratio.

7) Time interest earned= Operating profit or EBIT Interest expense = 4587928 / 319865 = 14.34 times. INTERPRETATION: Time interest earned measure a firm ability to meet its long term obligation or commitments. It shows the relationship between operating profit and interest expense. Time interest earned indicates that how many times a company can pay its interest expense from its operating profit. In this companys time interest earned 14.34times. It means that company can pay its interest expense 14.32 times from its operating profit during a year. If we compared the result of the company with result of an industry, Companys results are showing better position because a company time interest earned is more than that of its industry time interest earned.

ASSESTS UTILIZATION RATIO(2010) 8) Account receivable turnover= net credit sale Avg. A/R = 82791918 / 7718791 = 10.72 times. #Avg A/R = A/R(2009) +A/R(2010) 2 = 7835521 + 7602060 / 2 =7718791 INTERPRETATION: Account receivable turnover indicates how many times a company convert its receivables into cash during a particular time period. In this company account receivable turnover is 10.72 times. It means that a company converts its receivables 10.72 times into cash. If we compare the results of the company with the result of an industry, companys results are showing worst results because a company account receivable turnover is less than that of its industry account receivable turnover.

9) Average collection period =

365 A/R turnover =365/ 10.72 = 34.04 days

INTERPRETATION: Average collection period indicates after how many days a company converts its receivables into cash during a particular time period. In this company average collection period is 34.04days. It means that a company converts its receivables into cash after every 34.04 days. If we compare the results of the company with the result of industry, companys results are showing worst results because a company average collection period is more than that of its industry Average collection period.

10)

Inventory turnover = cost of goods sold Avg. Inventory =79032034 / 567395 = 139.28 times #Avg Inventory = Inventory(2009) +Inventory(2010) 2 =141507 + 993282 / 2 =567395 INTERPRETATION: inventory turnover indicates how many times a company converts its inventory into cash or sales. In this company inventory turnover is 139.28times. It means that a company converts its inventory into cash or sales 139.28 times in a given period of time or in a year. If we compare the results of the company with the result of industry, companys results are showing better position because company inventory turnover is more than that of its industry turnover.

11)

Fixed assets turnover =

Net sales Fixed assets

= 82791918 / 2013419 = 41.12 times.

INTERPRETATION: Fixed assets indicates that how many times the campany genterates revenuce from its fixed assets of its own worth. In this company fixed assets turnover is 41.12times. It means that a company generates revenue from fixed assets 41.12 times of its own worth. If we compare the results of the company with the result of industry, companys results are showing better poisition because company fixed asset turn over is more than that of its industry fixed asset turnover.

12)

Total assets turnover = Net sales Total assets = 82791918 / 21442652 = 3.86 times INTERPRETATION: Total assets turnover indicates how many times revenue generated by its company from total assets & its own worth. In this company total assets turnover is 3.86 times. It means that a company total assets generate revenue 3.86 times of its own worth. If we compare the results of the company with the result of industry, companys results are showing worst position because company total asset turn over is less than that of its industry total asset turnover.

PROFITABILITY RATIOS(2010)

13)

Gross profit margin = Gross profit Net sales = 3759884 / 82791918 = 0.454 or 4.54%

INTERPRETATION: It shows the relationship between gross profit and net sales it is the percentage of gross profit based on the value of net sales. In this company gross profit margin is 4.54%. It means that company generate 4.54 gross profit based on the value of net sales. If we compare the result of the company with the result of an industry. Companys results are showing worst position because a gross profit margin is less than that of an industry gross profit margin.

14)

0perating profit margin = operating profit Net sales = 4587928 / 82791918

= 0.554 or 5.54% INTERPRETATION: It shows the relationship between operating profit and net sales. It is the percentage of operating profit based on the value of net sales. In this company operating profit margin is 5.54%. It means that company generates 5.54 operating profit based on the value of net sales. If we compare the results of the company with the results of an industry. Companys results are showing worst position because a company operating profit margin is less than that of an industry operating profit margin.

15)

Net profit margin = Net profit Net sales = 3594309 / 82791918 = 0.434 or 4.34%

INTERPRETATION: It shows the relationship between net profit and net sales. It is the percentage of net profit based on the value of net sales. In this company net profit margin is 4.34%. It means that company generate 4.34% net profit based on the value of net sales. If we compare the results of the company with the results of an industry. Companys results are showing worst position because a net profit margin is less than that of an industry net profit margin.

16)

Return on assets = Net profit Total assets = 3594309 / 21442652 = 0.1676 or 16.76%

INTERPRETATION: It shows the relationship between net profit and total assets. It is the percentage of net profit based on the value of total assets. In this company return on assets is 16.76%. It means that company generates 16.76 net profit based on the value of total assets. If we compare the results of the company with the results of an industry. Companys results are showing better position because a company return on assets is more than that of an industry return on assets.

17)

Return on equity =

Net profit Total shareholders equity

= 3594309 / 9236577 = 0.3891 or 38.91% INTERPRETATION: It shows the relationship between net profit and total share holders equity. It is the percentage of net profit based on the value of total share holders equity. In this company return on equity is 38.91%.It means that company generate 38.91% net profit based on the value of total shareholders equity. If we compare the results of the company with the results of an industry. Companys results are showing better position because a company return on equity is more than that of an industry return on equity Earning per share = profit after taxes-dividend to preferred dtock holdes
No: of share holders equity issued

= 00000 / 000000 = RS. 00000

#Company has not announced dividend