International Islamic University Islamabad : Faculty of Management Sciences

Ratio Analysis
on Pak Suzuki
Motors
Ratio Analysis on Pak Suzuki Motors
International Islamic
University Islamabad
(Faculty of Management Sciences)
SUBMITTED TO:
Mazhar Hussain
GROUP MEMBERS:
NO:
Prof. Ch.
REGISTRATION
Muhammad Badar-ud-Duja
FMS/MBA/F13
6230-
Muhammad Wasim
FMS/MBA/F13
6256-
Sehree Mumtaz
FMS/MBA/F13
Pak Suzuki Motors
6253-
Wasim Aslam
FMS/MBA/F13
6248-
Ishfaq Ali
FMS/MBA/F13
6259-
ACKNOWLEDGEMENT:
First of all, we thanks to Allah, the almighty, for giving us

the strength and will to do work on this project.
We take this opportunity to express our profound
gratitude and deep regards to our respectable teacher
Sir Ch. Mazhar Hussain for his exemplary guidance,
monitoring and constant encouragement throughout
the course of semester . The encouragement and
guidance given by him will help us in future life of study.
We also like to pay gratitude to our group members (M.
Badar-ud-Duja,
Muhammad Wasim, Wasim Aslam,
Pak Suzuki Motors
ishfaq Ali & Sehree Mumtaz) for their constant

encouragement and participation without which this
project would not be possible.
.
Contents
INTRODUCTION:..................................................................................................... 1
VISION................................................................................................................... 1
MISSION.............................................................................................................. 1
PRODUCT CATEGORIES....................................................................................... 2
Year of Listing:....................................................................................................... 2
Statement of Corporate Governance:....................................................................2
Ratio Analysis:....................................................................................................... 3
Liquidity Ratio..................................................................................................... 3
Leverage Ratios.................................................................................................. 5
Coverage Ratios................................................................................................. 7
Activity Ratios..................................................................................................... 8
Profitability Ratios............................................................................................. 13
COMMON SIZE ANALYSIS OF BALANCE SHEET.....................................................17
ASSET SIDE....................................................................................................... 17
COMMON SIZE ANALYSIS OF PROFIT AND LOSS ACCOUNT...............................19
INDEX ANALYSIS OF BALANCE SHEET..................................................................20
INDEX ANALYSIS OF PROFIT AND LOSS ACCOUNT............................................22
TREND ANALYSIS.................................................................................................. 23
Explanation of Trend Analysis...........................................................................23
Conclusion:.......................................................................................................... 25
References:.......................................................................................................... 25
Pak Suzuki Motors
INTRODUCTION:
Pak Suzuki Motor Company Limited (PSMCL) is public limited company
with its shares quoted on Stock Exchanges in Pakistan. The Company was
formed in August 1983 in accordance with the terms of a joint venture
agreement between Pakistan Automobile Corporation Limited
(representing Government of Pakistan) and Suzuki Motor Corporation
(SMC) - Japan.
The Company started commercial production in January 1984 with the
primary objective of progressive manufacturing, assembling and
marketing of Cars, Pickups, Vans and 4 x 4 vehicles in Pakistan. The
Companys long term plans inter-alia includes tapping of export markets.
The foundation stone laying ceremony of the Companys existing plant
located at Bin Qasim was performed in early 1989 by the Prime Minister
then in office.
This Plant has total area of 259000 m2 and the cost for building it
accounted up to Rs. 11.096 billion. This plant has production capacity of
150000 units / annum and works in double shifts.
Pak Suzuki Motors has largest distribution network in Pakistan. There are
currently 74 dealers of Pak Suzuki which are spread all over the cities of
Pakistan
VISION
To be recognized as a leading organization that values Customers
needs and provides motoring solutions with strong customer care.
MISSION
Strive to market value packed vehicle that meet customers

expectations.
Provide a platform where over stake holders passionately contribute,
invest and excel.
Make value able contribution to social development of Pakistan.
Suzuki motors
Page 1
PRODUCT CATEGORIES
AUTOMOBILES
Swift
Liana
Cultus
Mehran
Bolan
Cargo van
Ravi pickup
MOTORCYCLES
GS 150
GD 110
Raider
Sprinter Eco
HEAVY BIKES
Hayabusa
Intruder
Inazuma
Year of Listing:
Pak Suzuki Motor Company Limited (PSMCL) was incorporated as a public
limited company in August 1983.
Statement of Corporate Governance:

o Statement of corporate governance has been developed and written
by the Board of the Directors of the company. This statement is
prepared to comply with the regulation of Karachi Stock Exchange
for the purpose of establishing a frame work of good governance.
The company encourages representation of independent nonexecutive directors. The company also make sure that none of them
is working in more than seven listed companies and also checked by
the company that none of their spouse and family members are
engaged in the business of brokerage and shareholder of that
company where he is appointed as a director.
o The board of directors also fill the casual vacancies in the company
and the code of conduct is also being prepared by the board. Vision
and mission of the company, overall corporate strategy and
significant policies of the company are developed by the board.
o The power of the board have been duly exercised and decision on
material transactions, appointment, remuneration, terms and
conditions, employment of CEO have been taken by the Board.
o Board also held annual and interim meetings, appointment of CFO,
Company Secretary, and Head of Internal Audit including their
remuneration, terms and conditions of the employment.
Suzuki motors
Page 2
o All of the rules and regulations are briefly given in the corporate of
governance, which are compulsory for the running of business of the
company. Audit reports, statutory meetings are issued with approval
of the CFO and CEO.
o The Directors, CEO and Executives do not hold any interest in the
shares of the company other than that disclosed in the pattern of
shareholding.
Ratio Analysis:
We analysed the data of Suzuki motors of three years from 2009 to 2011.
The sources of data are given at the end of this report.
Liquidity Ratio
Current Ratio
Definition:
Current ratio means that to know about the company liquidity current
position, which can be calculate through total current assets over the total
current liabilities.
Formula:
Current ratio = Total current assets / Total current liabilities
Table:
Company
Suzuki Motors
2009
3.70
2010
3.01
Graph:
Suzuki motors
Page 3
2011
2.30
Current Ratio
4
3.5
3
2.5
2
1.5
1
0.5
0
2009
2010
2011
CR
Quick Ratio
Definition:
Quick ratio are those which can easily be converted it into any financial
institution, which are cash and marketable securities add account
receivable over the total current liabilities.
Formula:
Quick ratio = cash+ marketable securities+ account receivable / total

current liabilities
Table:
Company
Suzuki Motors
2009
1.66
2010
1.16
Graph:
Suzuki motors
Page 4
2011
0.70
Quick Ratio
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2009
2010
2011
Leverage Ratios
Debt to Equity Ratio
Definition:
Debt to equity ratio is that how much ratio is available in debt and equity,
which can be calculated total debts to total common stock equity.
Formula:
Debt to Equity ratio = total debts / total common stock equity
Table:
Company
Suzuki Motors
2009
0.23
2010
0.71
Graph:
Suzuki motors
Page 5
2011
0.54
Debt Equity Ratio

0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2009
2010
2011
Debt Ratio
Definition:
Debt ratio is that ratio where financing side of liabilities are been
performed in operation to know about their liabilities ratios, which can be
done through total debts to the total assets.
Formula:
Debt ratio = total debts / total assets
Table:
Company
Suzuki Motors
Suzuki motors
2009
0.19
2010
0.25
Page 6
2011
0.34
Graph:
Debt Ratio
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
2009
2010
2011
Coverage Ratios
Interest Coverage Ratio

Definition:
A ratio used to determine how easily a company can pay interest on

outstanding debt
Formula:
ICV = Earnings before income tax / Financial charges
Table:
Company
Suzuki
Motors
Suzuki motors
2009
2010
2011
34.05
31.3
76.5
Page 7
Graph:
Interest Coverage Ratio

90
80
70
60
50
40
30
20
10
0
2009
2010
2011
Activity Ratios
Account Receivable turnover
Definition:
Account receivable turnover tells how much we have utilized thee cash in
the business that can be known with the total credit sales over the
average account receivable.
Formula:
Account Receivable Turnover Ratio = Net Credit Sales / Average Account

Receivable
Suzuki motors
Page 8
Table:
Company
Suzuki Motors
2009
73.00
2010
101.00
2011
107.00
Graph:
Activity Ratio
120
100
80
60
40
20
0
2009
2010
2011
Average Collection Period
Definition:
Average collection period is known that how much account receivable

turnover are been done in one year, which is been done through 365 days
divided by account receivable turnover.
Formula:
Average collection period = 365 / Account Receivable Turnover

Table:
Company
Suzuki motors
2009
2010
Page 9
2011
Suzuki Motors
5.00
3.60
3.40
Graph:
Average Collection Period

6
5
4
3
2
1
0
2009
2010
2011
Inventory Turnover Ratio
Definition:
A ratio showing how many times a companys inventory is sale out

Formula:
Inventory Turnover Ratio= Cost Of Goods Sold/ Average Inventory

Table:
Company
Suzuki
Motors
Suzuki motors
2009
2010
2011
2.7
4.37
5.34
Page 10
Graph:
Inventory Rurnover Ratio

6
5
4
3
2
1
0
2009
2010
2011
Inventory in Days
Definition:
It shows how many days a company inventory into sales

Formula:
Inventory in Days= Days in Year / Inventory Turnover Ratio

Table:
Company
Suzuki
Motors
Suzuki motors
2009
2010
2011
135.18
83.52
68.35
Page 11
Graph:
Inventory In Days
160
140
120
100
80
60
40
20
0
2009
2010
2011
Total Assets Turnover
Definition:
Total assets turnover known that more we are utilizing assets turnover
then we are more contributing to generate in revenue, that can be done
when average total sales over the average total assets.
Formula:
Total assets turnover = Net Sales / Total Assets

Table:
Company
Suzuki Motors
Suzuki motors
2009
1.50
2010
2.20
Page 12
2011
2.26
Graph:
Total Assests Turnover

2.5
2
1.5
1
0.5
0
2009
2010
2011
Profitability Ratios
Gross Profit Ratio
Definition:
Gross profit ratio mean that how much we have get the profit in operation
in the form of ratio, that can be calculate through gross profit over the
average total sales.
Formula:
Gross Profit Ratio = Gross profit / Net Sales

Suzuki motors
Page 13
Table:
Company
Suzuki Motors
2009
0.02
2010
0.02
2011
0.04
Graph:
Gross Profit Ratio

0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0
2009
2010
2011
Net Profit Ratio
Definition:
Net profit ratio is known that how much net profit ratio has been
calculated in operation with the net income over the average total sales.
Formula:
Net profit ratio = Net Income/Total sales

Table:
Company
Suzuki motors
2009
2010
Page 14
2011
Suzuki Motors
0.1
0.05
0.02
Graph:
Net Profit Ratio

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Category 1
Category 2
Category 3
Return On Assets
Definition:
Return on assets mean that in operation how much we get return of assets
in business, that can done through net income over the average total
assets.
Formula:
Return on assets = Net Income / Total assets

Table:
Suzuki motors
Page 15
Company
Suzuki Motors
2009
0.01
2010
0.01
2011
0.03
Graph:
Return On Assets
0.04
0.03
0.03
0.02
0.02
0.01
0.01
0
2009
2010
2011
Return On Equity
Definition:
Return on equity means that in business how you are getting the return of
equity by performing operation, which can be calculate through net
income over the average total shareholder equity.
Formula:
Return on Equity = Net Income / Total shareholder equity

Suzuki motors
Page 16
Table:
Company
Suzuki Motors
2009
0.02
2010
0.75
2011
0.05
Graph:
Return On Equity
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2009
2010
20
COMMON SIZE ANALYSIS OF BALANCE SHEET

ASSET SIDE
Assets
2009
2010
2011
Property
26.5%
21.9%
18%
Intangible
Assets
1.9%
2.62%
1.3%
28.5%
24.5%
19.32%
0.02%
0.02%
0.01%
L.T
Suzuki motors
Page 17

Investment
L.T Loans
0.01%
0.005%
0.006%
L.T Deposits
0.1%
0.14%
0.08%
L.T sales
receivables
Deferred
Taxes
0.8%
0.88%
0.79%
29.6%
25.6%
20.2%
Stores
0.23%
0.33%
0.27%
Stock in
Trade-Trade
Debts
Sales
Receivables
Loans
38.9%
45.4%
55.45%
2.1%
1.2%
1.38%
1.16%
1.3%
1.3%
1.2%
0.7%
0.9%
Trade
Deposits
Accrued
Mark-up
Income
Other
Receivables
Sales Tax
0.17%
0.22%
0.35%
0.04%
0.04%
0.02%
0.43%
0.55%
0.6%
1.4%
2.02%
4.3%
Income Tax
Refundable
Bank
Balances
4.4%
7.3%
10.13%
20.0%
15.15%
4.8%
70.3%
74%
79.76%
100%
100%
100%
TOTAL
ASSETS
LIABILITIES & OWNERS EQUITY SIDE

Liabilities
&
Owners
Equity
Authorize
d
Capital
Paid up
Capital
Reserves
Suzuki motors
2009
2010
2011
8.4%
7.7%
6.4%
4.6%
4.27%
3.5%
76%
71%
62%
Page 18
81%
75.3%
65.6%
Trade &
other
Payables
Advances
10.4%
16.00%
13.7%
2.5%
1.6%
13%
Accrued
Mark-up
Short
term
Borrowing
Deposits
against
display of
vehicles
Security
Deposits
Provision
for Sales
Tax
0.008%
0.45%
0.25%
0.32%
4%
5.5%
6%
0.49%
0.46%
0.3%
0.78%
0.71%
0.5%
18.8%
24.6%
34%
100%
100%
100%
TOTAL
EQUITY &
LIABILITIE
S
Explanation:
Common size analysis of balance sheet of Suzuki motors is improving year
by year like as in 2010 it has larger amount then 2009 and as compare to
2010 it also increases in2011. There is improvement in the company year
by year.
COMMON SIZE ANALYSIS OF PROFIT AND LOSS ACCOUNT
Suzuki motors
Page 19
ITEMS
2009
2010
2011
Turnover
net
Cost of
sales
Gross
profit
Distributio
n
Cost
Administra
tive
expenses
Other
Operating
Income
Finance
cost
Other
operating
Expenses
100%
100%
100%
(97.5%)
(97.64%)
(96%)
2%
2.3%
3.5%
(0.81%)
(0.46%)
(0.5%)
(1.8%)
(1.4%)
(1.3%)
2.3%
1.3%
1.17%
(0.04%)
(0.05%)
(0.03%)
(0.14%)
(0.13%)
(0.20%)
(0.53%)
1.63%
(0.78%)
1.5%
(0.95%)
2.5%
0.65%
0.97%
1.07%
0.49%
1.08%
1.5%
3.10
2.57
9.65
Profit
Before
Taxation
Taxation
Profit
After
Taxation
Earnings
Per
Shares
Suzuki motors
Page 20
INDEX ANALYSIS OF BALANCE SHEET

INDEX ANALYSIS OF BALANCE SHEET (BASE YEAR
2009)
ASSET SIDE
Assets
2009
4684671
2010
Increase
or
Decrease
(458089)
-9.7%
2011
Increase
or
Decrease
(484354)
Property
Intangibl
e Assets
347732
158028
45.44%
(43955)
-12.6%
5032403
(300061)
-5.96%
(528309)
-10.49%
L.T
Investme
nt
L.T Loans
4449
964
21.66%
(259)
-5.82%
3162
(2052)
(1639)
-51.8%
L.T
Deposits
L.T sales
receivabl
es
Deferred
Taxes
34609
(6110)
(14122)
-40.80%
153478
16386
64.89%
17.65%
10.6%
32351
21.07%
-10.3%
5228101
(290869)
-5.5%
(511978)
-9.79
Stores
41749
22167
53.09%
22718
54.4%
Stock in
Trade
Trade
Debts
Sales
Receivabl
es
Loans
6879729
1868302
27%
6042667
87.8%
376508
(135789)
(53831)
-14.29%
205680
45574
36.06%
22.15%
98271
47.77%
226388
(91425)
(9802)
-4.32%
Trade
31738
11728
40.38%
36.95%
51533
162.37%
Suzuki motors
Page 21
Deposits
Accrued
Mark-up
Income
Other
Receivabl
es
Sales Tax
Income
Tax
Refundab
le
Bank
Balances
TOTAL
ASSETS
7837
815
10.39%
(1692)
-21.58%
76685
31094
40.54%
63263
82.49%
255609
133844
52.36%
767790
300.3%
780089
627624
80.45%
1582585
202.8%
3545621
(628435)
(2406141)
-67.86%
1242763
3
1765573
4
1885499
17.72%
15.17%
6157361
49.54%
1594630
9.03%
5645383
31.97%
LIABILITIES & OWNERS EQUITY SIDE

Liabilities &
Owners
Equity
2009
2011
Increase
or
Decrease
-
Authorised
Capital
Paid up
Capital
Reserves
13502601
14325600
172315
172315
1.2%
1.2%
967432
967432
7.16%
7.16%
Trade &
other
Payables
Advances
1853034
1227317
66.23%
1358140
73.2%
441781
(114750)
-25.97%
2623625
593.8%
Accrued
Mark-up
Short term
Borrowing
Deposits
against
display of
1512
(1512)
-100%
(1512)
-100%
80000
(30000)
-37.5%
(5000)
-6.25%
723554
344285
47.58%
713279
98.5%
Suzuki motors
1500000
2010
Increase
or
Decrease
-
822999
Page 22
vehicles
Security
Deposits
Provision
for Sales
Tax
TOTAL
EQUITY &
LIABILITIES
86778
1975
2.27%
5581
6.43%
138475
3325134
1427315
42.92%
4682951
140.8%
17655734
1594630
9.0%
5645383
31.9%
Explanation:
Suzuki motor is improving their business year by year as in 2010 there
was larger amount the in 2009 and as in 2011 it also increases, By their
effective operation in the business. Suzuki motors maintain their good will
in the market.
INDEX ANALYSIS OF PROFIT AND LOSS ACCOUNT

BASE YEAR 2009
ITEMS
Turnover
net
Cost of
sales
Gross profit
Distributio
n
Cost
Administrat
ive
expenses
Suzuki motors
2009
2010
Increase
or
Decreas
e
26234061 16408701
62.5%
2011
Increase
or
Decreas
e
26484502
(2566476
2)
569299
(214550)
15974213
62.2%
25184391
98.1%
434488
(17189)
76.3%
-8.0%
1300111
49101
228.3%
22.8%
(495200)
141132
28.5%
240735
48.6%
Page 23
100.9%
Other
Operating
Income
Finance
cost
Other
operating
expenses
Profit
Before
Taxation
Taxation
Profit After
Taxation
Earnings
Per
Shares
619572
(44494)
-7%
818
0.13%
(12564)
8785
69.9%
5281
42%
(38714)
17094
44.1%
68358
176%
(141456)
427843
194316
240172
137%
56.13%
362657
937454
256%
219.1%
172624
255219
284248
(44076)
164%
-17.2%
398252
539202
230%
211%
3.10
(0.53)
-17%
6.55%
211%
Explanation:
index analysis of Income statement of Suzuki motors in 2010 is decreasing
as compared to 2009 but in 2011 the operation was performed very well
by the organization so they increased their net income.
TREND ANALYSIS
Name of Ratio
Current Ratio
Quick Ratio
Debt Equity
Debt Ratio
Interest Coverage
Ratio
Suzuki motors
2009
2010
2011
3.7
3.01
2.3
1.66
0.23
0.19
1.16
0.71
0.25
0.7
0.54
0.34
34.05
31.3
76.5
Page 24

Account Receivable
Turnover
Average Collection
Period
Inventory Turnover
Inventory In Days
Total Asset Turnover
Gross Profit Ratio
Net Profit Ratio
Return On Asset
Return On Equity
73
101
107
5
2.7
135
1.5
0.02
0.1
0.01
0.02
3.6
4.37
84
2.2
0.02
0.05
0.01
0.75
3.4
5.34
68
2.26
0.04
0.02
0.03
0.05
Explanation of Trend Analysis

Current Ratio:
Current ratio of Suzuki motors in 2009 was working well but in 2010 and
2011 it was been decreased. The rate of increase in current liability is
more than rate of increase in current asset.
Quick Ratio:
Quick ratio of Suzuki motors is increasing in 2009 but it decreases in 2010
and 2011.unsold stock increase due to that reason quick ratio increases.
Debt to Equity Ratio:
Debt to equity ratio of Suzuki motors is increasing in 2010 and then
decreasing in 2011. The rate of increase in total debt is more than the
rate of increase in total equity due to this debt equity ratio increases.
Debt Ratio:
Debt ratio of Suzuki motors is increasing year by year in 2009, 2010,
2011. Debt portion in total asset has been increasing due to which debt
ratio increase.
Interest Coverage Ratio:

The rate of increase in financial cost is more than rate of increase in
earnings before taxes that is why interest coverage ratio decrease.
Account Receivable turnover:
Suzuki motors
Page 25
The credit collection mechanism of Suzuki Motors is strong, that is why

Account receivable increases every year.
Average Collection Period:
Average collection period of Suzuki motors in 2009 is working well but it
decreases in 2010 and 2011. Due to high Account Receivable Turnover
ratio the average collection period decreases at every year.
Inventory Turnover Ratio:
Account receivable turnover of activity ratio of Suzuki motor is increasing
in2009, 2010 and 2011. Inventory turnover ratio increases shows that
overall performance of company is improving &their unsold stock
decreases time to time.
Inventory in Days:
Inventory in days decrease due to high inventory turnover ratio
Total Assets Turnover:
Total assets turnover of Suzuki motors is improving their performance in
2010 and 2011.The rate of increase in net sales is higher than rate of
increase in total assets because of this portion of revenue obtain from
total asset is increased.
Gross Profit Ratio:
Gross profit ratio of Suzuki motors is not generating the profit to much in
2009, 2010 and 2011. In 2009&2010 gross profit ratio remain same in
2011, Gross profit ratio is increase because rate of gross profit more than
rate increase in net sales.
Net Profit Ratio:
Net profit margin of Suzuki motors is working at average level in 2009,
2010 and 2011. The net profit ratio is increasing because the rate of
increase in net profit is higher than the rate of net sales.
Return on Assets:
Return on assets of Suzuki motors in 2009, 2010 and 2011 is working in
average. Due to high performance of company return assets is increase in
2011.
Return on Equity:
Suzuki motors
Page 26
Return on equity of Suzuki motors is positively working in 2009, 2010 and

2011. Return on equity is increase from 2009 to 2010 it indicates the
stakeholder profitability increasing & it decreases from 2010 to 2011 that
indicate the profitability of shareholder decreases.
Conclusion:
Suzuki motors maintain a good relationship in the market.

In 2011 they maintain business and make the effective operation, so
for that they increased their business and get benefits from that
year.
Index analysis of income statement of Suzuki motors in 2009 had
get the profit in their business but in 2010 they get less amount of
profit as compare to 2009.
In 2011 they get highly amount of profit as compare to 2009.
Common size analysis of balance sheet of Suzuki motors has been
increased year by year in 2009, 2010 and 2011.
Common size analysis of income statement increased the profit in
2011 but it was been decreased in last year of 2010.
In 2009 the liquidity ratio analysis has showing the positive relation.
Suzuki motors of liquidity ratio analysis had the positive relation
such as in 2009 has fewer amount then 2010 and in 2011 it has
higher amount then 2010.
Suzuki motors of activity ratio analysis had the greater ratio year by
year in 2009, 2010 and 2011.
Suzuki motors of profitability ratio in 2010 maintain their position
but in 2011 it were been decreased.
Suzuki motors of marketable ratio in 2009, 2010 and 2011 are
increasing year by year.
References:
Reference of the Website
PAK SUZUKI MOTORS
http://www.paksuzuki.com.pk/Automobile/PDF%20file/Financial/Suzuki
%20Annual%20Report%202011.pdf
PRODUCT CATEGORIES
http://www.paksuzuki.com.pk/Automobile/Pages/Home.aspx
introduction
Suzuki motors
Page 27

http://www.paksuzuki.com.pk/Automobile/PDF%20file/Financial/Suzuki
%20Annual%20Report%202011.pdf
Suzuki motors
Page 28

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Ratio Analysis

Ratio Analysis on Pak Suzuki Motors

Pak Suzuki Motors

Ratio Analysis on Pak Suzuki Motors

First of all, we thanks to Allah, the almighty, for giving us

Ratio Analysis on Pak Suzuki Motors

ishfaq Ali & Sehree Mumtaz) for their constant

Pak Suzuki Motors

Ratio Analysis on Pak Suzuki Motors

Strive to market value packed vehicle that meet customers

Ratio Analysis on Pak Suzuki Motors

Statement of Corporate Governance:

Ratio Analysis on Pak Suzuki Motors

Current ratio = Total current assets / Total current liabilities

Ratio Analysis on Pak Suzuki Motors

Quick ratio = cash+ marketable securities+ account receivable / total

Ratio Analysis on Pak Suzuki Motors

Debt to Equity Ratio

Debt to Equity ratio = total debts / total common stock equity

Ratio Analysis on Pak Suzuki Motors

Debt Equity Ratio

Debt ratio = total debts / total assets

Ratio Analysis on Pak Suzuki Motors

Interest Coverage Ratio

A ratio used to determine how easily a company can pay interest on

ICV = Earnings before income tax / Financial charges

Ratio Analysis on Pak Suzuki Motors

Interest Coverage Ratio

Account Receivable turnover

Account Receivable Turnover Ratio = Net Credit Sales / Average Account

Ratio Analysis on Pak Suzuki Motors

Average Collection Period

Average collection period is known that how much account receivable

Average collection period = 365 / Account Receivable Turnover

Ratio Analysis on Pak Suzuki Motors

Average Collection Period

Inventory Turnover Ratio

A ratio showing how many times a companys inventory is sale out

Inventory Turnover Ratio= Cost Of Goods Sold/ Average Inventory

Ratio Analysis on Pak Suzuki Motors

Inventory Rurnover Ratio

It shows how many days a company inventory into sales

Inventory in Days= Days in Year / Inventory Turnover Ratio

Ratio Analysis on Pak Suzuki Motors

Total Assets Turnover

Total assets turnover = Net Sales / Total Assets

Ratio Analysis on Pak Suzuki Motors

Total Assests Turnover

Gross Profit Ratio

Gross Profit Ratio = Gross profit / Net Sales

Ratio Analysis on Pak Suzuki Motors

Gross Profit Ratio

Net Profit Ratio

Net profit ratio = Net Income/Total sales

Ratio Analysis on Pak Suzuki Motors

Net Profit Ratio

Return on assets = Net Income / Total assets

Ratio Analysis on Pak Suzuki Motors

Return on Equity = Net Income / Total shareholder equity

Ratio Analysis on Pak Suzuki Motors

COMMON SIZE ANALYSIS OF BALANCE SHEET

Ratio Analysis on Pak Suzuki Motors