D.G.khan Final Project

D.G.KHAN CEMENT COMPANY LIMITED

GROUP MEMEBERS

MUHAMMAD ALI MURTAZA

MUHAMMAD AHSAN HASHMI

MUHAMMAD TAHA RIAZ

MUHAMMAD ADEEL

INTRODUCTION

D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat

group, is the largest cement-manufacturing unit in Pakistan

with a production capacity of 14,000 tons per day.

DGKCC has three cement plants, two plants located at Dera

Ghazi Khan and one at Khairpur Distt. Chakwal.

All the plants are based on latest Dry Process Technology.

It is listed on all the Stock Exchanges of Pakistan.

MISSION STATEMENT

To provide quality products to customers and explore

new markets to promote/expand sales of

the Company through good governance and foster a

sound and dynamic team, so as to achieve optimum

prices of products of the Company for sustainable

and equitable growth and prosperity of the Company.

VISION STATEMENT

To transform the Company into a modern and

dynamic cement manufacturing company

with qualified professionals and fully equipped to

play a meaningful role on sustainable basis in the

economy of Pakistan.

RATIO ANALYSIS

Liquidity Ratios

Leverage Ratio

Coverage Ratios

Activity Ratios

Profitability Ratios

LIQUIDITY RATIOS

CURRENT RATIO

YEARS FORMULA RUPEES IN THOUSANDS

RATIOS

2010 CURRENT ASSETS

CURRENT LIABILTY

19,202,591 12,054,718

1.59

2011 CURRENT ASSETS

CURRENT LIABILTY

13,287,592 15,834,799

0.84

2012 CURRENT ASSETS

CURRENT LIABILTY

16,417,492 13,786,189

1.19

2010 2011 20120

0.20.40.60.8

11.21.41.61.8

The above ratio is showing an liquidate position of (D.G.KCC).In 2010 company liquidity position was strong, as compared to 2011 and 2012. In 2011 current assets of company was decreased and current liability increased.so position of liquidity position was not good. But in 2012 company further improve in current assets and liability decreased.

GRAPH & ANALYSIS

ACID TEST RATIO(QUICK)


RATIO

2010 C.A-INVEN C.L

19,202,591 - 445,856 12,054,718

1.49

2011 C.A-INVEN C.L

13,287,592 - 899,836 15,834,799

0.72

2012 C.A-INVEN C.L

16,417,492 - 1,036,876 13,786,189

1.04

2010 2011 20120

0.20.40.60.8

11.21.41.6

GRAPH & ANALYSIS

In the 2010 quick ratio was good.in 2010 the current assets of the company was in better position, that’s why the ratio in well formed. But in 2011 the due to decreasing of current assets impact a great effect on ratio. In 2012 company further improve the condition but due to increase in stock its not satisfied.

LEVRAGE RATIO

DEBT-TO-EQUITY


RATIO

2010 TOTAL DEBTSSHARE HOLDER

EQUITY

9,857,95930,080,257

0.33


EQUITY

5,969,80020,918,442

0.29


EQUITY

6,740,63426,519,220

0.25

2010 2011 20120

0.050.1

0.150.2

0.250.3

0.35

GRAPH & ANALYSIS

The ratio debt to equity tells that the company was in good position in 2012 as compared to 2011-10, because its show that in 2012 ratio is low and level of firm financing was high, that is being provided by shareholders.

DEBT-TO-TOTAL-ASSETS


RATIO

2010 TOTAL DEBTTOTAL ASSETS

9,857,95951,992,934

18.96%


5,969,80042,723,041

13.97%


6,740,634 47,046,043

14.33%

2010 2011 20120

5

10

15

20

GRAPH & ANALYSIS

This ratio shows a similar purpose to the debt to equity ratio. tells that the company was in good position in 2011 as compared to 2010-12, because in 2011 the ratio of risk is low.

COVERAGE RATIO

INTREST COVERAGE


(000)

RATIO

2010 EBITINTREST EXP

1,507,581115,218

13.08 TIMES


3,383,258222,159

15.23 TIMES


2,261,163447,128

5.06 TIMES

2010 2011 201202468

10121416

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011 as in 2011 we are earning 15 times more interest expense that we have to pay. The higher the ratio the grater the likelihood of the company.

ACITVITY RATIO

RECEIVABLE TURNOVER (RT)


RATIOS

2010 NET SALESRECEIVALBES

12,445,99612,445,996

1.00 TIMES

2011 NET SALESRECEVIABLES

18,038,20915,417,272

1.17 TIMES

2012 NET SALESRECEVIALES

16,275,35421,993,721

0.74 TIMES

2010 2011 20120

0.20.40.60.8

11.21.4

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011. as in 2011 we are converting 1.17 times more receivable into cash. The higher the ratio the grater the likelihood of the company.

RECEIVALBE TURNOVER DAYS(ITD)


RATIO

2010 365RT

3651.00

365 DAYS

2011 365RT

3651.17

312 DAYS

2012 365RT

3650.74

493 DAYS

2010 2011 20120

100200300400500600

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011. as in 2011 company receive cash in 312 day.

INVENTORY TURNOVER (IT)

YEARS FORMULS RUPEES IN THOUSANDS

RATIO

2010 C.G.SINVENTORY

10,530,723445,856

23.62 TIMES

2011 C.G.SINVENTORY

12,358,479899,836

18.37 TIMES

2012 C.G.SINVENTORY

13,569,9941,036,876

14.01 TIMES

2010 2011 201205

10152025

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2010 as compared to 2011 and 2012, because company inventory turnover is high so it is more efficient.

INVENTORY TURNOVER (ITD)


RATIO

2010 365IT

36523.62

15.45 DAYS

2011 365IT

36518.37

19.87 DAYS

2012 365IT

36514.01

26.05 DAYS

2010 2011 201205

1015202530

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2010 as compared to 2011 and 2012. Thus, in 2010 rate of turning the inventory in days is faster then 2011 & 2012.

TOTAL ASSETS TURNOVERYEARS FORMULA RUPEES IN

THOUSANDSRATIO

2010 NET SALESTOTAL ASSETS

12,445,99651,992,934

0.24 TIMES


18,038,20942,723,041

0.42 TIMES


16,275,35447,046,043

0.35 TIMES

2010 2011 20120

0.10.20.30.40.5

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011 as compared to 2010 and 2012. In 2011 the ratio tell us relative efficiency with which a firms utilizes its total assets to generate sales.

PROFITABILITY RATIOS

NET PROFIT MARGIN RATIO


RATIO

2010 Net profit Net sales

53,23012,445,996

0.43%


525,58118,038,209

2.91%


233,02216,275,354

1.43%

2010 2011 20120

0.51

1.52

2.53

3.5

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011 as compared to 2010 and 2012. In 2011 the profit of the company increases.

RETURN ON INVESTMENT


PERCENT AGE

2010 EATTOTAL ASSETS

53,23051,992,934

0.10%


525,58142,723,041

1.23%


233,02247,046,043

0.50%

2010 2011 20120

0.20.40.60.8

11.21.4

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011 as compared to 2010 and 2012. Because in 2011 the return on investment is high.

RETURN ON EQUITY


RATIO

2010 EAT*100TOTAL EQUITY

(53,230)*10030,080,257

0.18%


525,581*10020,918,442

2.51%


233,022*10026,519,220

0.88%

2010 2011 20120

0.51

1.52

2.53

GRAPH & ANALYSIS

This ratio shows that a company is in strong position in 2011 as compared to 2010 and 2012. Because in 2011 the return on equity is high.

D.G.khan Final Project

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