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Ratio Analysis - Current

Aug 23, 2014

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Table of ContentsInternal Variance Analysis of Fauji fertilizer ....................................................................................................1 Internal Variance Analysis of Fatima fertilizer .................................................................................................4 External Variance Analysis for 2010.................................................................................................................7 External Varience Analysis for 2009.................................................................................................................8 Working Capital.................................................................................................................................................9 Current Ratio....................................................................................................................................................10 Quick Ratio (Acid Test Ratio) .........................................................................................................................11 Cash Ratio........................................................................................................................................................12 Gross Profit Margin .........................................................................................................................................13 Operating Profit Margin (return on sales)........................................................................................................14 Net profit margin (net return on sale) ..............................................................................................................15 Return on Total Assets.....................................................................................................................................16 Return on Stockholders Equity.......................................................................................................................17 Debt to Assets Ratio.........................................................................................................................................18 Debt to Equity Ratio ........................................................................................................................................19 Long term Debt to Equity ratio........................................................................................................................20 Times interest earned (coverage ratio).............................................................................................................21 Days of Inventory ............................................................................................................................................22 Inventory turnover ...........................................................................................................................................23 Average collection period ................................................................................................................................24 Conclusion .......................................................................................................................................................25

Variance Analysis Fauji Fertilizer Company Balance Sheet for the year ended December 31, 2010

Benchmark Year 2010EQUITY AND LIABILITIES EQUITY Share capital Capital reserves Revenue reserves NON CURRENT LIABILITIES Long term borrowings Deferred taxation CURRENT LIABILITIES Trade and other payables Interest and mark up accrued Short term borrowings Current portion of long term borrowings Taxation 9,614,026 137,968 5,640,420 1,759,405 3,426,264 20,578,083 43,060,856 8,002,897 147,329 6,088,348 1,799,405 1,816,595 17,854,574 38,551,582 1,611,129 (9,361) (447,928) (40,000) 1,609,669 2,723,509 4,509,274 3,819,405 3,215,821 7,035,226 4,578,809 3,035,757 7,614,566 (759,404) 180,064 (579,340) 6,785,271 160,000 8,502,276 15,447,547 6,785,271 160,000 6,137,171 13,082,442 0 0 2,365,105 2,365,105 2010 2009 Variance

(Rupees 000)Variance %

27.817 15.311

(19.883) 5.599 (8.235)

16.758 (6.785) (7.941) (2.273) 46.980 13.235 10.472

Financial Analysis

Page 1

Fauji fertilizer vs Fatima fertilizer

Variance Analysis Fauji Fertilizer Company Balance Sheet for the year ended December 31, 2010

Benchmark Year 2010ASSETS NON CURRENT ASSETS Property, plant and equipment Goodwill Long term investments Long term loans and advances Long term deposits and prepayments 15,933,588 1,569,234 7,870,027 455,328 9,037 25,837,214 13,993,518 1,569,234 7,727,528 337,541 6,305 23,634,126 1,940,070 0 142,499 117,787 2,732 2,203,088 2010 2009 Variance

(Rupees 000)Variance %

12.176 1.811 25.869 30.231 8.527

CURRENT ASSETS Stores, spares and loose tools Stock in trade Trade debts Loans and advances Deposits and prepayments Other receivables Short term investments Cash and bank balances 2,440,201 211,720 357,956 336,269 50,188 617,664 12,020,581 1,189,063 17,223,642 43,060,856 2,996,633 144,087 256,886 130,219 37,653 734,062 6,768,568 3,849,348 14,917,456 38,551,582 (556,432) 67,633 101,070 206,050 12,535 (116,398) 5,252,013 (2,660,285) 2,306,186 4,509,274 (22.803) 31.945 28.235 61.275 24.976 (18.845) 43.692 (223.730) 13.390 10.472

Financial Analysis

Page 2

Fauji fertilizer vs Fatima fertilizer

Variance Analysis Fauji Fertilizer Company Income Statement for the year ended December 31, 2010

Benchmark Year 20102010 2009 36,163,174 20,515,044 15,648,130 3,174,505 12,473,625 944,947 1,272,448 10,256,230 2,800,987 13,057,217 4,234,111 8,823,106 13 Variance 8,711,185 4,795,362 3,915,823 769,968 3,145,855 141,794 103,552 2,900,509 352,123 3,252,632 1,046,889 2,205,743 3.25

(Rupees 000)Variance %

Sales Cost of sales GROSS PROFIT Distribution cost Finance cost Other expenses Other income NET PROFIT BEFORE TAXATION Provision for taxation NET PROFIT AFTER TAXATIONEarnings per share basic and diluted (Rs)

44,874,359 25,310,406 19,563,953 3,944,473 15,619,480 1,086,741 1,376,000 13,156,739 3,153,110 16,309,849 5,281,000 11,028,84916.25

19.412 18.946 20.015 19.520 20.141 13.048 7.526 22.046 11.167 19.943 19.824 20.000 20.000

Financial Analysis

Page 3

Fauji fertilizer vs Fatima fertilizer

Variance Analysis Fatima Fertilizer Company Balance Sheet for the year ended December 31, 2010Benchmark Year 2010EQUITY AND LIABILITIES SHARE CAPITAL AND RESERVES Authorized 2,100,000,000 (2009: 2,100,000,000) ordinary shares of Rs 10 each 400,000,000 (2009: 400,000,000) preference shares of Rs 10 each Issued, subscribed and paid up 2,000,000,000 (2009: 1,800,000,000) ordinary shares of Rs 10 each 400,000,000 (2009: Nil) preference shares of Rs 10 each Share premium Accumulated loss 2,010 2009

(Rupees 000)Variance Variance

21,000,000 4,000,000

21,000,000 4,000,000

-

-

20,000,000 4,000,000 790,000 (531,220) 24,258,780

18,000,000 (257,212) 17,742,788

2,000,000 4,000,000 790,000 (274,008) 6,515,992

10.000 100.000 100.000 51.581 26.860

NON CURRENT LIABILITIES Advance against preference shares Long term finance Dividend payable on preference shares Employee retirement benefits 37,446,530 603,672 73,796 38,123,998 3,898,250 30,846,063 54,493 34,798,806 (3,898,250) 6,600,467 603,672 19,303 3,325,192 17.626 100.000 26.157 8.722

CURRENT LIABILITIES Current portion of long term finance Short term finance secured Trade and other payables Accrued finance cost Provision for taxation 316,208 3,704,173 2,989,396 64,483 7,074,260 402,796 1,662,141 2,596,001 4,660,938 (402,796) 316,208 2,042,032 393,395 64,483 2,413,322 100.000 55.128 13.160 100.000 34.114

CONTINGENCIES & COMMITMENTS 69,457,038 57,202,532 12,254,506 17.643

Financial Analysis

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Fauji fertilizer vs Fatima fertilizer

Variance Analysis Fatima Fertilizer Company Balance Sheet for the year ended December 31, 2010Benchmark Year 2010ASSETS NON CURRENT ASSETS Property, plant and equipment Capital work in progress Deferred tax asset Long term loans and deposits 2010 2009 Variance

(Rupees 000)% Variance

875,984 64,258,204 21,914 16,330 65,172,432

684,940 54,292,989 8,150 54,986,079

191,044 9,965,215 21,914 8,180 10,186,353

21.809 15.508 100.000 50.092 15.630

CURRENT ASSETS Stores and spares Stock in trade Trade debts Loans, advances, deposits, prepayments and other receivables Cash and bank balances

2,269,080 535,825 256,548 939,864 283,289 4,284,606 69,457,038

1,142,798 849,238 224,417 2,216,453 57,202,532

1,126,282 535,825 256,548 90,626 58,872 2,068,153 12,254,506

49.636 100.000 100.000 9.642 20.782 48.269 17.643

Financial Analysis

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Fauji fertilizer vs Fatima fertilizer

Variance Analysis Fatima Fertilizer Company Profit and Loss Account for the year ended December 31, 2010Benchmark Year 20102010 2009 (96,205) (7,494) 6,578 (97,121) (97,121) (0.08) (0.08) Variance (17,661) (1,456) (4,832) (23,949) (42,569) (66,518) 0.01

(Rupees 000)% Variance 15.510 16.268 (276.747) 19.781 100.000 40.649 (14.286)

Administrative expenses Finance cost Other income Loss before taxation Taxation Loss for the year Loss per share basic (rupees) diluted (rupees)

(113,866) (8,950) 1,746 (121,070) (42,569) (163,639) (0.08) (0.07)

Financial Analysis

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Fauji fertilizer vs Fatima fertilizer

EXTERNAL VARIANCE ANALYSIS OF FAUJI FERTILIZER VS FATIMA FERTILIZER FOR THE YEAR ENDED DECEMBER 31, 2010

BALANCE SHEET EQUITY AND LIABILITIES EQUITY Issued, subscribed and paid up share capital NON CURRENT LIABILITIES