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Project presentation

  1. 1. PROJECT: FIANANCIAL ANALYSIS.INTRODUCTION TO BUSINESS FINANCE – FALLS 2013COLGATE PALMOLIVEPROCTOR & GAMBLEZULFIQAR INDUSTRIES LIMITED
  2. 2. COLGATGE PAMOLIVEPROCTOR & GAMBLEZULFIQAR INDUSTRIES LTD.
  3. 3. DuPONT IDENTITYPROFIT MARGIN x TOTAL ASSETS TURNOVER x EQUITY MULTIPLIERSALESDIVIDED BYTOTAL ASSETSxTOTAL ASSETSDIVIDED BYCOMMONEQUITY=NET INCOMEDIVIDED BYSALESxRETURN ONEQUITY - ROEDuPont identity is ROE calculated by the breakup of threecomponents,.ROE essentially indicates how well the company usedreinvested earnings to generate additional earnings.In the nutshell, ROE represents how much profit acompany is able to generate given the resourcesprovided by its stockholders…
  4. 4. ROE 2008 – 2012P&G’sAVERAGEROE18.6%20.8%C-PAVERAGEROEZILAVERAGE 8.9%BETTERGOODLOW
  5. 5. CURRENT RATIOCURRENT RATIOCURRENT ASSETS / CURRENTLIABILITIESAn indication of a company’sability to pay its short termobligations.If the current assets ofthe company are morethan twice its currentliabilities, that companyis considered to have agood short termfinancial strength…
  6. 6. P&G’sAVERAGECURRENTRATIOCURRENT RATIO 2008 – 2012C-PAVERAGECURRENTRATIOZILAVERAGECURRENTRATIO0.8 X2.56 X1.53 XGOODWEAK!OK
  7. 7. QUICK 0R ACID TEST RATIOA measure of a company’sliquidity and the ability to meetits obligations.It shows the perdollar relation ofeasily convertibleassets available topay off currentliabilities…CURRENT ASSETS INVENTORIES-CURRENTLIABILITES
  8. 8. P&G’sAVERAGEQUICKRATIOC-PAVERAGEQUICKRATIOZILAVERAGEQUICKRATIOQUICK RATIO 2008 – 20120.52 X1.22 X0.64 XWEAKERSTRONGWEAK
  9. 9. INVENTORY TURNOVERCOST OFGOODSSOLDINVENTORIES=INVENTORYTURNOVERRATIOSHOWS thenumber of timesthe company ‘sstock is sold andre-stocked.Determines thesales of acompany and itsability to restock.
  10. 10. P&G’sAVERAGEINVENTORYTURNOVERC-PAVERAGEINVENTORYTURNOVERZILAVERAGEINVENTORYTURNOVERINVENTORY TURNOVER 2008 – 20128.292 X5.56 X2.77 XGREATOK WEAK
  11. 11. PROFIT MARGIN ON SALESNET PROFITSALES=PROFITMARGIN ONSALESThis ratio indicates howmuch profit thecompany generates perdollar sales…Higher profitmargincompaniesare preferredover lowerones.
  12. 12. P&G’sAVERAGEPROFITMARGINC-PAVERAGEPROFITMARGINZILAVERAGEMARGINPROFIT MARGIN ON SALES 2008 – 201215 %8.8 %2.76 %MORE PREFERREDPREFERRED NOTPREFERRED
  13. 13. PnG ZIL Colgate Ind. AverageCurrent RatioQuick RatioCURRENT AND QUICK RATIO COMPARISION2008 - 2012
  14. 14. PnG ZIL Colgate Ind. AverageDebt RatioPnGZILColgateInd. AverageDEBT RATIO COMPARISION2008 - 2012
  15. 15. ASSET TURNOVER RATIO2008 - 2012Asset TurnoverPnGZILColgateInd. AverageAsset TurnoverPnGZILColgateInd. Average
  16. 16. Time Interest RatioPnGZILColgateInd. AverageTime Interest RatioPnGZILColgateInd. AverageTIMES INTEREST EARNED RATIO2008 - 2012
  17. 17. PROFIT MARGINS2008 - 2012PnG ZIL Colgate Ind. AverageProfit margin on SalesPnGZILColgateInd. Average
  18. 18. DuPont Analysis2008 - 2012ROA (%)ROE (%)0510152025PnGZILColgateInd. AverageROA (%)ROE (%)
  19. 19. HORIZONTAL & VERTICAL ANALYSISCOLGATE PALMOLIVE2008 - 2012-10%0%10%20%30%40%50%60%70%1 2 3 4TOTALSHAREHOLDERSEQUITY TRENDASSETS TRENDLIABILITIES TREND051015202530354045502008 2009 2010 2011 2012C.S - ASSETSC.S - LIAB.010203040506070802008 2009 2010 2011 2012C.S - INCOMEC.S - COGSC.S - G.P0%10%20%30%40%50%60%1 2 3 4SALES TRENDINCOME TREND
  20. 20. HORIZONTAL & VERTICAL ANALYSISZULFIQAR INDUSTRIES LIMITED2008 - 2012050,000100,000150,000200,000250,000300,000350,000400,0002011 2010 2009 2008 2007Gross ProfitSelling, Dist. & AdminExpOperating ExpProfit for the year0100,000200,000300,000400,000500,000600,0002011 2010 2009 2008 2007Non-Current AssetsCurrent AssetsNon-Current LiabilitiesCurrent Liabilities0200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,0002011 2010 2009 2008 2007Net SalesCost of SalesGross Profit
  21. 21. HORIZONTAL & VERTICAL ANALYSISP&G2008 - 20120%20%40%60%80%100%120%2012 2011 2010 2009 2008Net SalesCost of Goods SoldGross ProfitOperating Expenses0%20%40%60%80%100%120%2012 2011 2010 2009 2008Net SalesCost of Goods SoldGross ProfitOperating Expenses

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