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Financial Analysis of Al Ghazi Tractors LTD.

Abdul WahabYasir IqbalSaba Akram

PRESENTED BY:

BRIEFLY INTRO OF AL GHAZI TRACTOR LTD

Al Ghazi tractors LTD was incorporate in 1983. They first plant in DERA GHAZI KHAN In 1984 & after that they make their own their main plant in 1985 DERA GHAZI KHA. Now 370 employees work in AL GHAZI company & they are able to 30,000 tractors are made per annum in single shift. AL tough their good performance AL FUTTAIM take over in 1991. His head office in Karachi & meeting center Lahore, Multan & Islamabad.

RATIO ANALYSIS1. LIQUIDITY RATIO

2. ASSETS MANAGEMENT RATIO

3. DEBT MANAGEMENT RATIO

4. PROFITABLE RATIO

5. MARKET VALUE RATIO

1.LIQUIDITY RATIOA. CURRENT RATIO B. QUICK OR ACID TEST RATIO

A. CURRENT RATIO 2013 2012 Current Assets = 93,67,867 Current Assets = 90,19,772

Current liabilities = 15,37,894 Current liabilities = 14.74.583

CURRENT RATIO

B. QUICK OR ACID TEST RATIO 2013 2012

Current Assets = 93,67,867 Current Assets = 90,19,772

Current liabilities = 15,37,894 Current liabilities = 14,74,583

Inventory = 17,08,898 Inventory = 15,64,270

A/C receivable = 11,457 A/C receivable = 13,734

QUICK RATIO

2.ASSETS MANAGEMENT RATIOA. INVENTORY TURNOVER RATIOB. DAYS SALES OUTSTANDINGC. FIXED ASSETS TURNOVER RATIOD. TOTAL ASSETS TURNOVER RATIO

A. INVENTORY TURNOVER RATIO 2013 2012

SALES = 92,62,626 SALES = 1,47,79,564

INVENTORY = 17,08,898 INVENTORY= 15,64,270

INVENTORY TURNOVER RATIO(ITR)

B. DAYS SALES OUTSTANDING

2O13 2012 RECIVEABLE 11,457 RECIVEABLE 13,734 SALES 92,62.626 SALES 1,47.79,564

DSO

C. FIXED ASSETS TURNOVER RATIO

2013 2012SALES = 92,62,626 SALES = 1,47,79,564

NET FIXED ASSETS = 4,04,433 NET FIXED ASSETS = 3,73,481

FIXED ASSETS TURNOVER RATIO = SALES/NET FIXED ASSETS

D. TOTAL ASSETS TURNOVER RATIO 2013 2012

TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70281

SALES 92,62,626 SALES 1,47,79,564

TOTAL ASSETS TURNOVER RATIO

3.DEBT MANAGEMENT RATIO

A. TOTAL DEBT TO TOTAL ASSETS

B. TIME INTEREST EARN RATIO

A. TOATAL DEBT TO TOTAL ASSETS

2013 2012 TOTAL DEBT = 1,66,306 TOTAL DEBT = 3,86,558

TOTAL ASSETS = 98,26,433 TOTAL ASSETS = 94,70,281

TOTAL DEBT TO TOTAL ASSETS

B. TIME INTEREST EARNED RATIO

2013 2012 INTEREST CHARGES =9333+73,393 INTEREST CHARGES =21228+75,894

EBIT = 20,23,294 EBIT = 28,78,795

TIME INTEREST EARNED CHARGES

4. PROFITABILITY RATIOA.OPERATING MARGIN

B.PROFIT MARGIN

C.RETURN ON TOTAL ASSETS (ROA)

D.BASIC EARNING POWER (BEP)

E.RETURN ON COMMON EQUITY (ROE)

A. OPERATING MARGIN 2013 2012

EBIT = 20,23,294 EBIT = 28,78,795

SALES = 92,62,626 SALES = 1,47,79,564

OPERATING MARGIN

%

B. PROFIT MARGIN 2013 2012 NET INCOME 13,66,057 NET INCOME 19,11,426

SALES 92,62,626 SALES 1,47,79,564

PROFIT MARGIN

C. RETURN ON TOTAL ASSETS (ROA) 2013 2012

NET INCOME 13,66,057 NET INCOME 19,11,426

TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70,281

ROA

D. BASIC EARNING POWER (BEP) 2013 2012 EBIT 20,23,294 EBIT 28,78,795

TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70,281

BEP

E. RETURN ON COMMON EQUITY (ROE)

2013 2012COMMON EQUITY = 82,18,959 COMMON EQUITY = 79,26,313 NET INCOME = 13,66,057 NET INCOME = 19,11,426

ROE

5.MARKET VALUE RATIOA.PRICE/EARNING RATIOB.MARKET/BOOK RATIO

A. PRICE/EARNING RATIO 2013 2012

PRICE PER SHARE 10 Rs PRICE PER SHARE 10 Rs

EARNING PER SHARE 31.94Rs EARNING PER SHARE 44.62 Rs

PRICE/EARNING RATIO

B. MARKET/BOOK RATIOCOMMON EQUITY 82,18,959 COMMON EQUITY 79,26,313

SHARES OUTSTANDING 20000000 SHARES OUTSTANDING 20000000

BOOK VALUE 0.42 BOOK VALUE 0.34319

PER SHARE PER SHARE

MARKET PRICE 10 MARKET PRICE 10

PER SHARE PER SHARE

MARKET/BOOK