Equity Ratio

Debt to equity ratio tells us the proportions of debt and equity in the total financing of
the company.
Equity Ratio= Stockholder's Equity / Total Assets

Lucky Cement

2013
2012
2011

Total Assets

Total Equity

Equity Ratio

50,196,175
40,631,241
41,209,855

41,035,443
33,261,745
27,772,829

0.82
0.82
0.67

In 2010-2011 the equity ratio for the company was 0.67, which shows that 67% of the
assets are financed by the equity of the companys shareholders while the remaining portion
of the assets are financed by the debt. But as next year companys reserves increased, it
increased the company equity ratio and it improved to 0.82, which means more than 80% of
the assets are financed by the equity of the common shareholders which again includes the
common stock as well as the reserves of the company. Next year though assets increased of
the company but equity portion is increased again which made the effect of both assets and
equity equal and the equity ratio remained same in year 2013, which is 0.82

Maple Leaf
2013
2012
2011

Total Assets

Total Equity

Equity Ratio

32,373,090
32,727,973
33,690,116

6,770,913
3,828,861
3,133,287

0.21
0.11
0.09

In 2011 it was 0.09, in 2012 it was 0.11, and in 2013 it was 0.21. It shows that companys
assets are more financed with the debt as compared to the equity and the portion of equity is so small
as compared to the net worth of the assets, which is very poor from the companys perspective .
Company should must improve its equity portion as if it fails to do so it can face the bankruptcy.

Accounts Payable Turnover

It tells us that how much time the credit purchases of the company are of its accounts
payable.
Accounts Payable Turnover = Purchases on Account / Average Accounts Payable

Lucky Cement
Average Creditors

Credit Purchases

Account Payable

2013

819,531

21,089,359

Turnover
19.9953722

2012

995,852

20,601,261

20.68707097

2011

1,054,712

17,306,400

21.117444

Account Payable turnover of the company is good too just liked other performance
indicators. In 2011 companys account payable was 21 times, which means company is
having credit purchases 21 times more of the creditors amount and quickly paying back the
amount of purchases to the creditor. It decreased in year 2012 to 20.68 times while it also
decreased in 2013. But it still is very good, as it shows that company quickly pay back the
amount to the creditors for the credit purchases, which is good for the companys creditors.

Maple Leaf
Average Creditors
2013
2012
2011

446848
539818
781837.5

Credit Purchases

Account Payable

6,770,913
3,828,861
3,133,287

Turnover
25.3159
21.2416
13.939

In 2011 it was 13.93, in 2012 it was 21.24, and in 2013 it was 25.31. Mainly due to the reason
that its credit purchases increased while its average creditors decreased as company is paying back its
creditors quickly and there was huge imprudent in the figure from the year 2011 to the 2012, almost
80% it improved while it also increased in 2013 too, which shows the improved in the payable
turnover.

Dividend Cover Ratio

The ratio was found out to see how much time the earnings of the company are
greater than the dividends of the company.

Lucky Cement:
2013
2012
2011

Dividend per Share

Earnings per Share

Dividend Cover

8.00
6.00
4.00

30.04
20.97
12.28

3.755
3.495
3.07

Companys dividend cover ratio is increasing as earning per share of the company are
increasing with greater proportion as compared to the dividend given to the common
shareholders. As it was 3.07 times in 2011, 3.495 times in 2012, and 3.755times in 2013. So it
is good for the capital investment point of view though the company in not increasing the
dividends as the earnings are increasing but still its good for the long term perspective. It
looks like company is planning for long term investments, and trying to grow, and thats why
its planning to invest in overseas markets, and this is the main reason due to which its holding
its earnings as reserve, because it uses its equity portion to make investments and financing.
So for long term growths perspective its good.

Maple Leaf
As maple leaf faced losses in 2011, it is appropriating the losses, and trying to
neutralize the net effect of losses, that is why company has not paid any common dividends in
last three years, which is not good from the investors point of view. Potential investors
would not like to invest as there is not even a single rupee which has been paid as dividend.