Common size analysis of Income Statement:-

BESTWAY CEMENT COMPANY LIMITED

Income Statement (Common Size Analysis)
Sales Cost of Sales Gross Profit Administrative Expenses Distribution Cost Other operating Expenses Finance Cost Other operating Income Profit/(loss) before taxation Taxation Profit for the Year 2009 14,814,797,196 10,044,450,173 4,770,347,023 140,138,550 1,395,877,311 71,506,461 2,286,086,256 -327,972,309 3,565,636,269 1,204,710,754 -230,686,768 974,023,986 2008 7,487,162,751 6,478,902,770 1,008,259,981 119,917,940 300,827,927 1,236,140,238 -229,490,785 1,427,395,320 -419,135,339 587,716,818 168,581,479 2009 100.000% 67.800% 32.200% 0.946% 9.422% 0.483% 15.431% -2.214% 8.132% -1.557% 2008 100.00% 86.53% 13.47% 1.60% 4.02% 16.51% -3.07% -5.60% 7.85%

In the balance sheet of best way cement company cash is 1.6% and current liability of company is 26.26% .by common size analysis it shows that company has to pay his liabilities which is greater than the present balance of cash it is risky position of the company. Company is not able to pay current liabilities at other side fixed assets is 82.9% and company. Noncurrent liabilities is 44.63% it mean that company source of profit is fixed assets that is favorable position for the company the company is able to pay long term liabilities after few year duration.

Common Size Analysis of Balance Sheet:-

BESTWAY CEMENT LIMITED

Balance Sheet(Common Size Analysis)
Liabilities
SHARE CAPITAL AND RESERVES Authorized share capital Issued, subscribed and paid up share capital Share premium Inappropriate profit Advance for issue of right shares NON CURRENT LIABILITIES Long term financing-secured Liability against assets subject to finance lease-secured Long term murabaha-secured Long term advances Deferred liabilities CURRENT LIABILITIES Trade and other payables Markup payable Short term borrowings secured Current portion of long term financing Current portion of liabilities against assets subject to finance lease Current portion of long term murabaha Total Current liabilities Total Liabilities 3,500,000,000 3,257,475,910 1,963,498,330 2,994,585,223 8,215,559,463 11,455,803,336 94,033,624 330,000,000 1,749,960 613,414,947 12,595,001,867 341,291,606 341,291,606 2,385,747,374 3,170,833,334 38,672,516 120,000,000 7,411,881,095 28,222,442,425 12.40% 11.54% 6.96% 10.61% 29.11% 40.59% 0.33% 1.17% 0.01% 2.17% 44.63% 1.21% 1.21% 8.45% 11.24% 0.14% 0.43% 26.26% 2009 % of 2009

Common Size Analysis of Balance Sheet:Assets

Fixed ASSETS Property, plant and equipment Investment property Long term investments Long term advances Long term deposits
Total Fixed Assets

2009 16,991,285,086 336,340,149 5,297,909,985 720,741,010 70,450,847 23,416,727,077 1,779,660,333 1,056,308,381 585,065,905 288,323,020 9,041,107 89,941 72,295,479 562,639,377 452,291,805 4,805,715,348

% of 2009 60.20% 1.19% 18.77% 2.55% 82.97% 82.97% 6.31% 3.74% 2.07% 1.02% 0.03% 0.0003% 0.26% 1.99% 1.60% 17.03%

CURRENT ASSETS Stores, spare parts and loose tools Stock in trade Trade debts- considered good Advances Deposits and prepayments Interest accrued Other receivables Due from Government agencies Cash and bank balances Total Current Assets

Total Assets

28,222,442,425

BESTWAY CEMENT LIMITED

Income Statement (TREND Analysis)
Sales Cost of Sales Gross Profit Administrative Expenses Distribution Cost Other operating Expenses Finance Cost Other operating Income Profit/(loss) before taxation Taxation Profit for the Year 2009 14,814,797,196 10,044,450,173 4,770,347,023 140,138,550 1,395,877,311 71,506,461 2,286,086,256 -327,972,309 3,565,636,269 1,204,710,754 -230,686,768 974,023,986 2008 7,487,162,751 6,478,902,770 1,008,259,981 119,917,940 300,827,927 1,236,140,238 -229,490,785 1,427,395,320 -419,135,339 587,716,818 168,581,479 Percentage 97.87% 55.03% 373.13% 16.86% 364.01% 84.94% 42.91% 149.80% -387.43% -139.25% 477.78%

Trend Analysis of Income Statement

The best way company total sales is 47% increased an d cost of sales is 55% increased gross profit increased 373% which is high then increase than sale administrative expense 16% increased the finance cost 84%increswed the other operating income is 42%of that year profit before taxation is -378% taxation of the company is -1394%increased tax is increased very high therefore profit of the company is 477% that is the total income of the company.

Ratios Analysis
Current Ratio

= 0.6

Current ratio of the company show that company has to pay 1 rupees of current liabilities company has to pay 0.6 of current asset. So this ratio is not good because it is less than 1 this is risky for company.
Quick/Asset Test Ratio

Quick/ asset test ratio In this method inventory is deducted from current asset, and divide it on current liabilities company has to pay 0.5 liabilities rupees 1 current asset so company has to pay liabilities without inventor. Company can pay easily pay his liabilities from other income operations.

=
Cash Ratio

= 0.5

Cash ratio is 0.5 we can interpret it that ratio is still satisfactory figure. Because here we consider only cash balance of the company if company includes account receivable and short term investment the ratio will increase and company will able to pay there liabilities.

= 0.06

Debt to asset ratio

This ratio show that company has invested 2% on debt and 98% on the owner equity

= 2%

Return on asset
Company invested on this investment 3.43% it is the gain for company so this is not bad for company

ROI =

= 3.43%s