LIQUIDITY RATIO: 1. CURRENT RATIO 2.

ACID TEST RATIO

2007 2008 2009 2010

Current ratio Quick ratio

2.27 0.98

4.44 1.49

3.74 1.65

3.01 1.55

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 2007 2008

200

ANALYSIS:
Pak Suzuki enjoys a fairly strong liquidity position of company which depicts good trend and increase in the current assets of the company but the current liabilities are also being increase due to the current ratio decreases from the last year. The acid test ratio indicates that it is increasing and the cash in hand is also increase which will help the company to pay in the case of emergency.

PROFITABILITY RATIO: 1. GROSS PROFIT MARGIN 2. NET PROFIT MARGIN 3. RETURN ON INVESTMENT

4. RETURN ON EQU
16 14 12 10 8 6 4 2 0 gross profit margin operating profit margin net profit margin return on total assets return on shareholders equity 2008 2009 2010

ITY

2008 2009
Gross profit margin Operating profit margin Net profit margin Return on total assets Return on shareholder's equity

2010
2.40% 14.00% 4.44% 1.09% 1.45%

1.48% 2.50% 1.57% 3.68% 4.41%

2.17% 1.63% 0.97% 1.45% 1.78%

ANALYSIS:
Profitability ratio weakens as being compare to last years. Gross profit declined from 9.4 % to 2.40% due to decrease in net profit margin. Profit margin is also declined and did not post a healthy trend due to increase in cost of goods manufactured. This declined have many factors among which one is decrease in net sales. Return on investment and equity also show a negative trend due to decrease in net profit after taxes.

2008
debt ratio

2009

2010

16.53% 18.86% 24.68% times interest earned( in times) 16.76times 6.18times 17.86times Funded debts to net working 0.016times 0.005times 0.019times
capital ( in times) DEBT OR LEVERAGE RATIOS: 1. debt ratio 2. times interest earned( in times) 3. Funded debts to net working capital ( in times)

250.00% 200.00% 150.00% 2008 100.00% 50.00% 0.00% 2008 2009 2010 2010 2009

ANALYSIS:
Debt to equity ratio of the company shows that company was more debt financed than equity financed showing that company reduced its leverage performance. Increase in debt to total asset indicates that total liabilities have increased.

EFFICIENCY RATIOS:
1. 2. 3. 4. 5. 6. 7. 8. Inventory turnover(in times) Inventory turnover(in days) Accounts receivable turnover(in times) Average Collection period( in days) Average payment period( in days) Operating Cycle(in days) cash cycle( in d ays) Total Asset turnover

ANALYSIS:
Due to demand in automobile, inventory level has risen thus giving rise to higher inventory turnover. By looking at ITO ratio we can say the company is able to sell off its inventory. It is increasing also due to decrease in inventory. The company is efficient in converting its assets into sales because as compared to last year asset turnover has the same ratio. Average collection period shows how quickly the company is able to collect the dues from its debtors. Payable turnover ratio depicts in how much time Pak Suzuki pay its payables.

EQUITY OR MARKET RATIOS ( in times):

1. market to book ratio 2. Price to earnings ratio

ANALYSIS: