Analysis of Financial Statement Gul Ahmad Textile Company of Pakistan

Presented To,
Sir. Tahir Mahmood

Presented By..
Mr. Zafar Qurashi
Mr. Awais Khalid
Mr. Muhammad Kamaran
Mr. Abdur Rauf
Mr. Jahanzeb Ishaq

Gul Ahmad Textile Mills Ltd.

10/9/2013

Common-Size Income Statement

For the Year 2011-2012
Table

2012

2011

100%

100%

85.8602

81.80853

14.1398

18.19147

8.657836

7.831728

5.481966

10.35974

5.485956

4.316886

-0.00399

6.042854

0.953559

1.340672

-0.95755

4.702182

Sale
C.O.G.S
Gross Profit
Expenses

Operating Profit
Interest
Profit Before Tax
Taxes
Profit After Tax

Gul Ahmad Textile Mills Ltd.

10/9/2013

Current Assets
Common-Size Balance Sheet
For the year (2011-2012)

2012

2011

Total Account Receivable

22.68041

17.9038

Total Inventory

74.35341

79.94975

Cash and Bank Balance

1.266052

0.624551

Other Current Asset

1.700127

1.529074

Total Current Asset

100%

100%

Gul Ahmad Textile Mills Ltd.

10/9/2013

Current Libilities
Common-Size Balance Sheet
For the year (2011-2012)

2012

2011

Account Payable and short term Borrowing

16.01466

14.62151

Accrued expenses

6.733852

5.572244

Notes payable/short-term debt

67.33852

73.73085

Current portion long-term debt/capital leases

6.092533

4.74617

100%

100%

Total Current Libilities

Gul Ahmad Textile Mills Ltd.

10/9/2013

Profitability Ratio
Formulas:
2012 = Gross Profit = G.P/Sale = 3544/25064*100 = 14.14%
2011 = Gross Profit = G.P/Sale = 4627/25435*100 = 18.19%
EBITDA to Sale = EBITDA/Sale
2012= EBITDA to Sale = (1,417)/ 25,063,924 = 0.653 = 6.5%
2011 = EBITDA to Sale = 1,537,454/ 25,435,465 = 0.060 = 6%
Net Profit Margin = Net Profit/Sale
2012 = NP/Sale = 240364/25063924 *100 = 0.96%
2011 = NP/Sale = 1196457/25435465*100 = 4.7%

Gul Ahmad Textile Mills Ltd.

10/9/2013

Profitability Ratio
Return on Equity = Net income/shareholders Equity
2012 = Return on Equity = (240,364)/ 4,472,509 = -5.37%
2011 = Return on Equity = 1,196,457/ 4,712,873 = 25.3%
Return of Capital Employed = EBIT/Capital Employed
2012 = Return of Capital Employed = (1,417)/ 17,718,758 = 0.008%
2011 = Return on Capital Employed = 1,537,454/ 20,404,679 = 7.54%
Capital Employed = Average Debt Liabilities + Average Shareholder
Equity

Gul Ahmad Textile Mills Ltd.

10/9/2013

Liquidity Ratio
Formulas:
Current Ratio = Current Assets / Current Liabilities
2012 = Current Ratio = 10754152/10851954 = 0.99
2011 = Current Ratio = 13616576/13194546 = 1.03
Quick Ratio = Current Assets Inventory/Current
Liabilities
2012 = Quick Ratio = 10754152-7415451/10851954 = 0.30
2011 = Quick Ratio = 13616576-10334360/13194546 = 0.24
Cash to Current Liabilities = Cash/ Current Liabilities
2012 = Cash to Current Liabilities = 120,013/10851954 =
0.1
2011 = Cash to Current Liabilities = 83,355/13194546 =
0.0063
Gul Ahmad Textile Mills Ltd.

10/9/2013

INTERPRETATION OF LEVERAGE RATIO

Formulas:
Financial Leverage Ratio = Total Assets/ share holder
equity
2012= T.A/T.E = 17,718,758 / 4,472,509 = 3.97
2011 = T.A / T.E = 20,404,679 / 4,712,873 = 4.33
Debt to equity ratio = Total Debt / Total Equity
2012 = T.D/TE = 13,246,249 / 4,472,509 = 2.96
2011 = T.D / T.E = 15,691,806 / 4,712,873 = 3.32
Interest Cover Ratio = EBITD / Interest
2012 = EBITDA / Interest = -1417/118,984 = -0.011
2011 = EBITDA / Interest = 1,537,454/101,850 = 15.09

Gul Ahmad Textile Mills Ltd.

10/9/2013

INTERPRETATION OF TURNOVER RATIO

Formulas:
Inventory turnover days = 365 days / Inventory turnover
2012 = Inventory turnover days = 365/2.902079 = 126
2011 = Inventory turnover days = 365/2.013559 = 181
Inventory turnover ratio = C.G.S/Inventory
2012 = Inventory turnover ratio = 21,520,222/7,415,451 = 2.902079
2011 = Inventory turnover ratio = 20,808,843/10,334,360 =2.013559
Debtor turnover Days = 365/Receivable turnover
2012 = Debtor turnover Days = 365/12.0839 = 30
2011 = Debtor turnover Days = 365/12.52532 = 29

Gul Ahmad Textile Mills Ltd.

10/9/2013

Debtor turnover Ratio = sale / Account Receivables

2012 = Debtor turnover ratio = 25,063,924 / 2,074,159 = 12.0839
2011 = Debtor turnover ratio = 25,435,465/2,030,723 = 12.52532
Creditors turnover days = 365 / Payable turnover
2012 = Creditors turnover days = 365/0.76168 = 479
2011 = Creditors turnover days = 365/2.2436 = 162

Creditor turnover ratio = Purchase/ Account Payables

2012 = Creditor Turnover ratio = 2,058,598 /2,702,707 = 0.76168

Gul Ahmad Textile Mills Ltd.

10/9/2013

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