Analyze and Benchmark the company

Industry : Industrials
Sector : Steel

City Steel Public Company Limited

CSP Steel Center Public Company Limited
Liquidity
• Current Ratio
• Quick Ratio
 Current Ratio
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
Current ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

Company 2016 2015

64157.71 51924.66
CITY = 3.48 15853.91
= 3.28
18428.59

1476.76 1736.52
CSP = 1.14 = 1.05
1288.67 1642.14
 Quick Ratio
(𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡−𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦)
• Quick ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦

Company 2016 2015

(64157.71 − 261.07) (51924.66 − 237.85)

CITY 18428.59 15853.91
= 3.47 = 3.26
(1476.76 − 843.59) (1736.52 − 1098.78)
CSP 1288.67 1642.14
= 0.4913 = 0.38
 Liquidity Ratio

CITY CSP
2016 2015 2016 2015
Current Ratio 3.48 3.28 1.14 1.05
Quick Ratio 3.47 3.26 0.4913 0.38
Asset Management
• Inventory Turnover
• DSO
• Fixed Asset Turnover
• Total Asset Turnover
• Account Payable turnover
• Days payable
• Average collection period
 Inventory Turnover
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑 𝑠𝑜𝑙𝑑
• Inventory Turnover =
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

Company 2016 2015

383.64 487.39
CITY = 57.52 % = 31.65 %
6.67 15.40

2452.65 2673.08
CSP = 2.90 = 2.43
843.59 1098.78
 DSO: Average number of days after
making a sale before receiving cash
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
• DSO =
(𝑎𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑒𝑠Τ365)

Company 2016 2015

56.55 64.46
CITY = 39.88 % = 35.04 %
517.60 671.54
( ) ( )
365 365
843.59 1098.78
CSP (2727/365) (2645.84/365)
= 112.91 = 151.57
 Fixed Asset Turnover
𝑆𝑎𝑙𝑒𝑠
• Fixed Asset Turnover =
𝑁𝑒𝑡 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡

company 2016 2015

517.60 671.54
CITY = 1.19 = 1.40
434.33 480.68

2727 2645.84
CSP = 4.93 = 5.02
552.94 526.61
 Total Asset Turnover
𝑆𝑎𝑙𝑒𝑠
• Total Asset Turnover =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡

Company 2016 2015

517.60 671.54
CITY = 0.39 = 0.51
1326.76 1314.38

2727 2645.84
CSP = 1.33 = 1.16
2040.43 2277.10
 Account Payable Turnover
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑 𝑠𝑜𝑙𝑑
• Account Payable Turnover =
𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑃𝑎𝑦𝑎𝑏𝑙𝑒

Company 2016 2015

383.64 487.39
CITY = 59.11 = 20.23
6.49 24.09

2452.65 2673.08
CSP = 15.71 = 36.92
156.04 72.40
 Average Collection Period
365
• Average Collection Period =
𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Company 2016 2015

365 365
CITY = 6.45 = 5.66
56.55 64.46

365 365
CSP = 0.58 = 0.33
623.73 1098.78
 Days Payable
365
• Days Payable =
𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑃𝑎𝑦𝑎𝑏𝑙𝑒 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Company 2016 2015

365 365
CITY = 6.17 = 17.95
59.11 20.33

365 365
CSP = 23.23 = 9.8
15.71 36.92
 Asset Management

CITY CSP
2016 2015 2016 2015
Inventory Turnover 57.52 31.65 2.90 2.43
DSO 39.88 35.04 112.91 151.57
Fixed Asset Turnover 1.19 1.40 4.93 5.02
Total Asset Turnover 0.39 0.51 1.33 1.16
Account Payable turnover 59.11 20.23 15.71 36.92
Days payable 6.17 17.95 23.23 9.8
Average collection period 6.45 5.66 0.58 0.33
Debt Management
• Debt Ratio
• Time interest Earned Ratio
• Debt to Equity
 Debt Ratio
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡
• Debt Ratio =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡

Company 2016 2015

14.13 32.68
CITY 1326.76 1314.28
= 0.01 or 1% = 0.02 or 2%
1313.34 1665.56
CSP 2040.43 2277.10
= 0.64 𝑜𝑟 64% = 0.73 𝑜𝑟 73%
 Time Interest Earned Ratio
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥
• Time Interest Earned Ratio =
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡

Company 2016 2015

68.38 139.32
CITY 457.40 541.40
= 0.15 or 15% = 0.26 𝑜𝑟 26%
−127.74
150.54
CSP 2778.36
2576.62 = −0.0459 𝑜𝑟
 Debt to Equity
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
• Debt to Equity =
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠 𝐸𝑞𝑢𝑖𝑡𝑦

Company 2016 2015

14.13 32.68
CITY 1312.63 1281.60
= 0.01 or 1% = 0.03 or 3%
1313.34 1665.56
CSP 727.09 611.54
= 1.80 𝑜𝑟 180% = 2.72 𝑜𝑟 272.35%
 Debt Management

CITY CSP

2016 2015 2016 2015

Debt Ratio 0.01 or 1% 0.02 or 2% 0.64 or 64% 0.73 or 73%

Time Interest Earned Ratio 0.15 or 15% 0.26 or 26% 0.058 or 5.84% -0.0459 or -
4.59%
Debt to Equity 0.01 or 1% 0.03 or 3% 1.80 or 180% 2.72 or
272.35%
Profitability
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Basic Earning Power
• ROE
• ROA
 Gross Profit Margin
𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
• Gross Profit Margin =
𝑆𝑎𝑙𝑒𝑠

Company 2016 2015

(517.60 − 383.64) (671.54 − 487.39)

CITY 517.60 671.54
= 0.26 = 0.27

(27272452.65) (2645.84−2673.08)
CSP = 0.10
2645.84
=-0.10
2727
 Operating Profit Margin
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡
• Operating Profit Margin =
𝑆𝑎𝑙𝑒𝑠

Company 2016 2015

68.38 139.32
CITY = 13.00 = 20.47
517.60 671.54

150.54 −127.74
CSP = 0.055 = −0.04
2727 2645.84
 Net Profit Margin
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥
• Net Profit Margin =
𝑆𝑎𝑙𝑒𝑠

company 2016 2015

CITY 66.71 136.05

= 12.89 = 20.28
517.60 671.54

CSP 115.55 −176.84

= 0.04 = −0.06
2727 2645.84
 ROE
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝐴𝑓𝑡𝑒𝑟 𝑇𝑎𝑥
• ROE =
𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑞𝑢𝑖𝑡𝑦

Company 2016 2015

68.65 143.15
CITY = 5.23 % = 11.17 %
1312.63 1281.60

115.55 −176.84
CSP = 15.8 % = −28.9%
727.09 611.54
 ROA
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝐴𝑓𝑡𝑒𝑟 𝑡𝑎𝑥
• ROA =
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡

company 2016 2015

68.65 143.15
CITY = 5.18 % = 10.88 %
1326.76 1314.28

115.55 −176.84
CSP = 5.66% = −7.7%
2040.43 2277.10
 Profitability

CITY CSP

2016 2015 2016 2015

Gross Profit Margin 0.26 0.27 0.10 -0.10
Operating Profit Margin 13.00 20.47 0.055 -0.04
Net Profit Margin 12.89 20.28 0.073 -0.056

ROE 5.23% 11.17% 15.8% −28.9%

ROA 5.18% 10.88% 5.66% −7.7%
Market Value
• Price to Earning
• Market to Book Value
 Price to Earning
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑜𝑓 𝐶𝑜𝑚𝑚𝑜𝑛 𝑆ℎ𝑎𝑟𝑒
• Price to Earning =
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒

Company 2016 2015

3.20 3.38
CITY = 13.60 = 7.35
0.23 0.46

2.24 1.71
CSP = 9.73 = −4.75
0.23 −0.36
 Market to Book Value
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
• Market to Book Value =
𝐵𝑜𝑜𝑘 𝑉𝑎𝑙𝑢𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒

Company 2016 2015

3.20 3.38
CITY = 0.74 = 0.69
4.35 4.90

2.24 1.71
CSP = 9.73 = −4.75
0.23 −0.36
 Market Value

CITY CSP
2016 2015 2016 2015
Price to Earning 13.60 7.35 9.73 -4.75

Market to Book Value 0.74 0.69 1.58 1.28

Analyze