55542475 business finance report financial ratio m tauqeer

7/29/2019 55542475 Business Finance Report Financial Ratio M Tauqeer

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Business Finance I 1

Institute of Business & Technology(BIZTEK) M.Tauqeer

FFiinnaanncciiaall RReeppoorrtt

((FFiinnaanncciiaall RRaattiioo AAnnaallyyssiiss OOnnllyy))

Company: Gul Ahmed Textile (Pvt) Limited.

BBuussiinneessss FFiinnaannccee

Institute of Business & Technology

Submitted By: Muhammad Tauqeer Ahmad

Submission Date: 2009

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Company History

The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading intextiles in the early 1900s. With all its know-how and experience, the group decided to enter the

field of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private limitedcompany, in the year 1953. In 1972 it was subsequently listed on the Karachi Stock Exchange.Since then the company has been making rapid progress and is one of the best composite textilehouses in the world. The mill is presently a composite unit with an installed capacity of 130,296spindles, 223 wide width air jet looms, and a state of the art processing and finishing unit.

List of Membership of Trade Bodies and Organization

The Karachi Stock Exchange (Guarantee) Limited. Lahore Stock Exchange (Guarantee) Limited. All Pakistan Textile Mills Association. Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association. All Pakistan Bed sheets & Upholstery Manufacturers Association. Karachi Cotton Association. Chamber of Commerce & Industry, Karachi. Employees Federation of Pakistan. All Pakistan Textile Processing Mills Association


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Horizontal Analysis of Financial Statements,


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Vertical Analysis of Financial Statements,


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Profit And Loss Account, (For the Year Ended June 30, 2009)


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FINANCIAL RATIOS

2009 2008

LIQUIDITY

0.95 0.9

0.39 0.42

ACTIVITY

107 95

66 77

76 61

1.07 1.05

DEBT.

0.77 0.78

1.16 1.27

Current RatioCurrent Assets

Current Liabilities

Quick RatioCurrent Assets-Inventory

Current Liabilities

Inventory Turnover(Days)

Cost of Good Sold

Inventory

Average CollectionPeriod (Days)

Average Accounts Receivable

Average Daily Sales

Average PaymentPeriod (Days)

Accounts Payable

Average Daily Purchasees

Total Asset TurnoverSales

Total Assets

Debt RatioTotal Liabilities

Total Assets

Times Interest EarnedRatio

Earnings before Interest and Taxes

Interest Expense


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FINANCIAL RATIOS

2009 2008

PROFITABILITY

16.81 15.14

13.7 12.5

0.58 0.88

1.45 1.86

0.6 0.83

2.73 3.79

MARKET

26.79 21.51

Gross Profit MarginGross Profits

Sales

Operating Profit MarginOperating Profits

Sales

Net Profit MarginEarnings available for common stockholders

Sales

Earning Per ShareEarnings available for common stockholders

Number of shares of common stockoutstanding

Return On Total AssetsEarnings available for common stockholders

Total Assets

Return On commonEquity

Earnings available for common stockholders

Common stock equity

Price/Earning RatioMarket price per share of common stock

Earning per share


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SummaryAssessment

2009 2008 2009-2008

Liquidity

Current RatioCurrent Assets

0.95 0.9 GoodCurrent Liabilities

Quick RatioCurrent Assets-Inventory

0.39 0.42 PoorCurrent Liabilities

Activity

Inventory Turnover(Days)

Cost of Good Sold107 95 Poor

Inventory

Average CollectionPeriod (Days)

Average Accounts Receivable66 77 Good

Average Daily Sales

Average PaymentPeriod (Days)

Accounts Payable76 61 Poor

Average Daily Purchasees

Total AssetTurnover

Sales1.07 1.05 Poor

Total Assets

Debt.

Debt RatioTotal Liabilities

0.77 0.78 GoodTotal Assets

Times InterestEarned Ratio

Earnings before Interest and Taxes1.16 1.27 Poor

Interest Expense


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Assessment2009 2008 2009-2008

Profitability

Gross ProfitMargin

Gross Profits16.81 15.14 Good

Sales

Operating ProfitMargin

Operating Profits13.7 12.5 Good

Sales

Net Profit MarginEarnings available for common stockholders

0.58 0.88 PoorSales

Earning PerShare

Earnings available for common stockholders1.45 1.86 Poor

Number of shares of common stockoutstanding

Return On TotalAssets


Total Assets

Return Oncommon Equity


Common stock equity

Market

Price/EarningRatio

Market price per share of common stock26.79 21.51 Good

Earning per share


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55542475 business finance report financial ratio m tauqeer

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