c



 


÷ c

 = Current Assets/Current Liability

4793612/3885809 = À


J


 A current ratio measures a firm͛s ability to meet its short term obligation and
also shows the relationship between current assets and current liabilities. In the Co. the current
for this year is 1.233 times which shows that how 1.233 times Current assets are more than
that of current liabilities.

If we compare the results of the company͛s current ratio with the industry͛s current ratio than
the company is showing better position because company͛s current ratio is more than that of
industry current ratio

÷ 0   = Current assets - inventoriesCurrent Liabilities

1844482/ 3885809 = 

J


 It is an indicator of a company's short-term liquidity. The quick ratio measures a
company's ability to meet its short-term obligations with its most liquid assets. The higher the
quick ratio, the better the position of the company. In this co. the quick ratio is 0.47 times
which means that its quick assets are 0.47 times more than that of its current liability.

If we compare the results of the company with the industry than the company is in worse
position because the company͛s quick ratio is less than that of industry ratio.

÷ c cash/ current liabilities

63263/ 3885809 = 
J


 It shows the relationship b/w cash and current liabilities. In this co. cash ratio is
used as a measure of company liquidity. It can therefore determine if, and how quickly, the
company can repay its short-term debt. In this co. the cash is 0.016 times more than that of the
current liability.
If we compare the results of the with the industry͛s results than company is showing worse
position because the company͛s cash ratio is less than that of industry͛s ratio.

÷ è
c
current assets ʹ current liability
4793612 ʹ 3885809 = {

J


 It shows the relationship b/w current assets and current liability. It͛s a measure
of both a company's efficiency and its short-term financial health. Positive working capital
means that the company is able to pay off its short-term liabilities. In this co. a working capital
is of 907803.
If we compare the results of the co. with the industry results than company is showing better
position because the company͛s working capital is less than that of industry͛s working capital.

÷ - Total debts / total assets

3967596 / 5743371 = {
J


 It shows the relationship b/w total debts and total assets. It measures a firm͛s
ability to meet it long term obligations. The measure of this ratio gives an idea to the leverage
of the company along with the potential risks the company faces in terms of its debt-load. In
this co. the debt ratio is 0.690 which means that total assets are 0.690 times more than that of
total liability.
If we compare the results of the company with the industry ratio than the industry is showing
better position than the company because company͛s debt ratio is less than that of industry
debt ratio.

÷ -   Total debts / Total share holder equity

3967596 / 1503979 = !!
J


  It shows the relationship b/w total debts and Total share holder equity. It
indicates what proportion of equity and debt the company is using to finance its assets. In this
company the ratio is 5.221 which means that in this co. the total debts 5.221 is more than that
of total share holder equity.
If we compare the results of the co. with the industry results than the co. is showing worse
position because the company debt to equity ratio is more than that of industry debt to equity
ratio.

÷ º"J

#D IT / Interest expense

130419 / 85363 = !"
J


 It shows the relationship between operating profit/ebit and interst expense. It
indicates how many times a company can cover its interest charges on a pretax basis. In this co.
the times interest earned is 2 times.

If we compare the results of the company with the industry than the co. is showing worse
position because industry ratio is more than that of company͛s one.

÷ ‰$#%º
 &
net sales / fixed assets

11127551 / 918593 =!"

J


 It shows the relationship b/w net sales and fixed asset. The fixed-asset turnover
ratio measures a company's ability to generate net sales from fixed-asset investments. In this
co. the fixed asset turnover is 12 times which shows that co. generates 12 times net sales from
fixed assets investments.

If we compare the results of the co. with the industry than the co. is showing better position
than industry because the fixed asset turnover is more than that of industry fixed asset turn
over.

÷ º º
 &
net sales / total assets

11271551 / 5743371 = !"

J


  It shows the relationship b/w net sales and total assets. Asset
turnover measures a firm's efficiency at using its assets in generating sales or revenue. In this
co. a total assets turnover is 2 times which means that this co. generates 2 times revenue from
its assets.

If we compare the results of the co. with the industry ratio than the co. is showing worse
position because industry ratio is more than that of co.͛s total asset turn over.

÷  
'
()
gross profit / net sales

389481 / 11127151 =  
 *

J


  It shows the relationship b/w gross profit and net sales. It assess a firm's
financial health by revealing the proportion of money left over from revenues after accounting
for the cost of goods sold. In this co. the gross profit margin is 3.5% which means that 3.5%
money is more than net sales.
If we compare the results of the company than the industry than the co. is showing worse
position because its gross profit margin is less tha that of industry one.

÷ å

'
()
operating profit / net sales
(130419) / 11127551 = +
+*

J


 It shows the relationship b/w operating margin and net sales. This ratio is used
to measure a company's pricing strategy and operating efficiency. Operating margin is a
measurement of what proportion of a company's revenue is left over after paying for variable
costs of production such as wages, raw materials, etc. It shows that in this co. operating profit
margin is (1.1)% which means that (1.1%) revenue is left.

If we compare the results of the company with the industry average than the co. is showing
worse position because its operating profit margin is less than that of industry ratio.

÷ *'
()
net profit / total assets

(148069)/11127551= -0.013 or (-1.3 %)

J


 It shows the relationship b/w net profit and total assets. It measures how much
amount of sales a company actually keeps in earnings. In this co. the net profit margin is (1.3%)
which means that (1.3%) amount of sales is kept by the company.

If we compare the results of the company with the industry than the co. is showing worse
position because its result is less than industry net profit margin.

÷ 
  : Net Profit/ total assets

(148069) / 5743371 = (! ,
-! *,

J


 It shows the relationship b/w net profit & total assets. ROA gives an idea as to
how efficient management is at using its assets to generate earnings. In this co. the ROA is
(2.5%) and (2.5%) are being used by the co. to generates its profit.

If we compare the results of the co. with the industry averages than the co. is showing worse
position because its ROA is more than that of industry ROA.

÷ 
  net profit / total shareholder equity

69923 / 1668055 = -{,
-{*,

J


  It shows the relationship b/w net profit and total share holder equity. The
amount of net income returned as a percentage of shareholders equity. Return on
equity measures a corporation's profitability by revealing how much profit a company
generates with the money shareholders have invested. In this co. the ROD is (9.84%) which
means a co. generates (9.84%) amount of money from shareholder͛s investment.

If we compare the results of the co. with industry results than the co. is showing worse position
because its return on equity is less than that of industry ROD.