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Group Members:
Javeria Iqbal
Taniya Haseeb
Abul Hassan
Shaharyar Babar
Introduction:
Packages limited is a public limited company and it is listed in three
main stock exchanges of the country.
It is mainly engaged to produce packages, paper, paperboards, and
tissue products according to growing packing demand of industry.
Their main clients are Unilever Pakistan and Pakistan Tobacco
Company; they are serving them since 50 years. Currently it is the
market leader in terms of total capacity installed.
The business partners of packages limited are Nestle limited, TriPack films limited, Packages Lanka private limited, First international
bank limited, DIC limited, IGI Pakistan and Coca-Cola beverages
Pakistan limited. It also have a strong investment portfolio.
VISSION STATEMENT
To become a business and production model by providing
quality products to the consumers and industry.
To keep introducing latest machines and technology.
Develop strong position of the company to face
challenges.
Develop ethical culture in the organization.
MISSION STATEMENT
To provide quality products and services to our
customers.
To be a company that continuously enhances its
technologies and competes the market.
To be a company that promotes innovative culture and
attracts customers.
To achieve a profitable growth by providing fair returns
to the investors.
To set the highest standard in corporate ethics in serving
the society.
Product Line:
FOLDING CARTONS:
Note books
Registers
Electronics
Confectionary
Shoe
Match Boxes
Tobacco
Paper Cups
CORRUGATED BOXES:
CONSUMER PRODUCTS:
Facial Tissues
Rubber
Tissue Roll
Kitchen Roll
Shampoo Bottles
Interpretation of Assets:
Cash and cash equivalents decreased from 105.68M to
-34.81M which shows that company has not enough
cash and it needs to collect receivables from the
customers as the receivables has been significantly
increased during 2013.
Marketable securities and the inventory have increased
as a percentage of total assets.
Long term investments increased. It is also a reason for
decrease in companys cash. Property, plant and
equipment have increased and a decrease is noticed in
intangible assets of the company.
Interpretation:
Cash and cash equivalents has been decreased as total
percentage of assets which is corresponding to an
increase in the investments of the company which have
significantly increased from 45% to 77%. This increase
in investments is also related to the increase in current
liabilities of the company which shows a slight increase
in Accounts payable and secured loans. Accumulated
profits have increased as a percentage of total assets.
Ratio Analysis:
Liquidity Ratios: It is used to determine a company's
ability to pay off its short-terms debts obligations.
Sr No.
1
2
3
4
Ratios
Current
Ratio
Quick
Ratio
Cash Ratio
Cash
Conversio
n Cycle
2013
1.57
2012
1.57
1.17
0.96
0.43
15.8
0.51
9.47
The higher the value, the safer it is for the company to pay its
obligations.
Current ratio = 1.57 which means it is quite capable of paying its
obligations easily.
Quick ratio = 1.17 which indicates that the business can meet its
current financial obligations with the available quick funds on hand.
Cash Ratio = 0.45
It measures the ability of a business to repay its current liabilities by
only using its cash and cash equivalents and nothing else. We have our
cash ratio of 0.45 which is good becausebusinesses usually do not plan
to keep their cash and cash equivalent at level with their current
liabilities because they can use a portion of idle cash to generate profits.
Cash Conversion Cycle = 15.8 days
It shows how long cash is tied up in inventory before the inventory is
sold and cash is collected from customers. It takes 15.8 days from
paying for companys inventory to receive the cash from its sale.
Activity Ratio:
Ratios
Inventory Turnover
25.2
70.6
52.17
5.2
69.2
5.3
67.9
5.3
3.1
Days of Sales
outstanding
Payables Turnover
Number of days of
Payables
Working Capital
Turnover
Fixed Asset Turnover
0.43
0.41
0.30
0.26
3
4
5
6
7
2013
25
2012
14.3
6.9
Solvency Ratio:
Sr No.
Ratios
2013
2012
Debt to Asset
Ratio
Debt to Capital
Ratio
Debt to Equity
Ratio
Financial
Leverage Ratio
0.21
0.21
0.21
0.21
0.27
0.32
1.37
1.5
2
3
4
Coverage Ratio:
A measure of a company's
ability to meet its financial obligations.
Sr No.
Ratios
2013
2012
Interest
Coverage
1.18
1.91
Fixed
Charge
Coverage
1.17
1.91
Sr No.
Ratios
0.13
Pretax
Margin
Net Profit
Margin
0.15
0.20
0.10
(0.21)
3
4
2013
2012
0.09
Return on Investments:
Sr No.
Ratios
2013
2012
Operating
ROA
0.02
0.023
ROA
0.031
(0.05)
ROE
0.042
(0.082)
Operating ROA = 2%
Operating ROA focuses only on those assets which are used to
generate revenue. The value of operating ROA in this company
shows that only 2% of revenues are generated through assets.
ROA = 3.1%
ROA gives an idea as to how efficient management is at using its
assets to generate earnings. This lower percentage is showing that
this company is asset insensitive which means that it needs
expensive plant and equipment to generate its income, as a result
operating ROA will be less. ROA has increased in 2013 as compared
to 2012 which is good.
ROE = 0.042
ROE is an indicator of company's profitability by measuring how
much profit the company generates with the money invested by
common stock owners. It has improved from the last year.