Working capital                                       WORKING CAPITAL                       100%Dewan Cement limited      ...
Performance Compare to Industry’s RatioYear                    Company                 Industry                 Decision20...
Performance Compare by year to year2009          2010            2011           2012           Decision(3600460)     (4575...
Current ratio                         Current Ratio1.41.2 10.80.60.40.2 0       Company    industry2012    0.233       1.3...
Performance Compare to Industry’s RatioYear                Company             Industry           Decision2012            ...
Performance Compare by Year to Year2009        2010          2011         2012          Decision0.295       0.198         ...
Quick Ratio                    Quick Ratio0.60.50.40.30.20.1 0       Company                    Industry2012    0.092     ...
Performance Compare to Industry’s Ratio   Year               Company            Industry           Decision   2012        ...
Performance Compare by Year to Year   2009         2010         2011        2012         Decision   0.095        0.079    ...
Cash Ratio                   Cash Ratio0.25 0.20.15                                           2012 0.1                    ...
Performance Compare to Industry Ratio  Year            Company         Industry        Decision  2012            0.0194   ...
Performance Compare by Year to Year Ratio 2009           2010          2011          2012           Decision 0.0239       ...
Debt Ratio                   Debt Ratio 32.5 21.5 10.5 0       Company                  Industry2012     0.63             ...
Performance Compare to Industry Ratio  Year           Company         Industry        Decision  2012           0.63       ...
Performance Compare by Year to Year Ratio  2009         2010        2011        2012        Decision  0.618        0.632  ...
DEBT TO EQUITY RATIO            Debt to Equity Ratio 7 6 5 4 3 2 1 0       Company                     Industry2012     1....
Performance Compare to Industry Ratio  Year            Company         Industry       Decision  2012            1.67      ...
Performance Compare by Year to Year Ratio  2009         2010        2011         2012        Decision  1.62         1.71  ...
Equity Ratio                    Equity Ratio1.61.41.2 1                                              20120.8              ...
Performance Compare with Industry Ratio   Year             Company          Industry         Decision   2012             0...
Performance Compare by Year to Year  2009          2010         2011          2012          Decision  0.38 times 0.37 time...
RETURN ON ASSETS                   Return on Assets 0.16 0.14 0.12  0.1 0.08                                       2012 0....
Performance Compare to Industry Ratio  Year              Company           Industry         Decision  2012              1....
Performance Compare by Year to Year Ratio  2010            2011           2012            Decision  (2.93 %)        (1.75 ...
TOTAL ASSETS TURNOVER                   Total Assets Turnover141210 8                                             2012    ...
Performance Compare to Industry Ratio Year              Company           Industry          Decision 2012              0.3...
Performance Compare by Year to Year Ratio     2009            2010          2011        2012        Decision   0.26 times ...
FIXED ASSETS TURNOVER                 Fixed Assets Turnover2015                                            201210         ...
Performance Compare to Industry Ratio  Year             Company           Industry         Decision  2012             0.36...
Performance Compare by Year to Year Ratio       2009        2010          2011          2012        Decision    0.28 times...
RETURN ON SHAREHOLDER EQUITY                     Return on Shareholders Equity15.00%10.00% 5.00% 0.00%                    ...
Performance Compare to Industry Ratio  Year               Company            Industry            Decision  2012           ...
Performance Compare by Year to Year Ratio       2009           2010         2011          2012         Decision     (1.98 ...
EARNING PER SHARE                  Earning Per Share1210 8 6                                            2012 4            ...
Performance Compare with Industry   Year              Company           Industry          Decision   2012              0.9...
Performance Compare by Year to Year      2009         2010          2011          2012       Decision     (0.46)        (1...
PERCENTAGE OF EARNING RETAINED                   Percentage of Retained Earning100% 50%  0% -50%                          ...
Performance Compare with Industry   Year              Company            Industry          Decision   2012              10...
Performance Compare by Year to Year     2009         2010         2011        2012         Decision    (100 %)      (100 %...
DIVIDEND PAYOUT                 Dividend Payout0.35 0.30.25 0.2                                     2012                  ...
Performance Compare with Industry  Year            Company          Industry        Decision  2012            0%          ...
Performance Compare by Year to Year Ratio    2009        2010        2011        2012       Decision     0            0   ...
DIVIDEND YIELD                  Dividend Yield0.180.160.140.12                                      2012 0.1              ...
Performance Compare with Industry Ratio  Year           Company        Industry       Decision  2012           0%         ...
Performance Compare by Year to Year Ratio     2009       2010       2011       2012      Decision      0           0      ...
BOOK VALUE PER SHARE                    Book Value Per Share9080706050                                              201240...
Performance Compare with Industry Year              Company          Industry         Decision 2012              20.22    ...
Performance Compare by Year to Year      2009        2010         2011         2012       Decision      23.03       21.47 ...
GROSS PROFIT MARGIN                       Gross Profit Margin30.00%25.00%20.00%15.00%                                     ...
Performance Compare to Industry Ratio  Year              Company           Industry          Decision  2012              1...
Performance Compare by Year to Year Ratio    2009         2010           2011      2012       Decision   7.63%        (8.7...
OPERATING PROFIT MARGIN                     Operating Profit Margin20.00%15.00%10.00% 5.00% 0.00%                         ...
Performance Compare to Industry Ratio  Year            Company         Industry        Decision  2012            6.30 %   ...
Performance Compare by Year to Year Ratio    2009        2010        2011        2012    Decision    0.98%      (17.49 %) ...
NET PROFIT MARGIN                      Net Profit Margin15.00%10.00% 5.00% 0.00%                                          ...
Performance Compare to Industry Ratio Year             Company           Industry         Decision 2012             5.44 %...
Performance Compare by Year to Year Ratio     2009          2010          2011         2012       Decision    (2.87 %)    ...
ACCOUNT RECEIVABLE TURNOVER                 Account Receivable Turnover40353025                                           ...
Performance Compare to Industry Ratio Year           Company        Industry        Decision 2012           15.03 Times 28...
Performance Compare by Year to Year Ratio        2010             2011            2012           Decision     9.03 times  ...
ACCOUNT RECEIVABLE TURNOVER IN DAYS            Account Receivable Turnover in Days100 90 80 70 60                         ...
Performance Compare to Industry Ratio Year            Company         Industry       Decision 2012            24.28 Days  ...
Performance Compare by Year to Year Ratio        2010              2011               2012             Decision    40.44 d...
INVENTORY TURNOVER                  Inventory Turnover9080706050                                          2012            ...
Performance Compare to Industry Ratio  Year           Company        Industry       Decision  2012           31.69 Times  ...
Performance Compare by Year to Year Ratio       2010              2011           2012          Decision    15.07 times    ...
INVENTORY TURNOVER IN DAYS                 Inventory Turnover in Days5045403530                                           ...
Performance Compare to Industry Ratio Year            Company         Industry       Decision 2012            11.52 Days  ...
Performance Compare by Year to Year    2010              2011           2012       Decision    24.21   days   9.56    days...
OPERATING CYCLE                 Operating Cycle160140120100 80                                     2012 60                ...
Operating Cycle 2012 of a Dawan        Cement Limited             Operating Cycle 2012 is 35.8 Days                       ...
Performance Compare to Industry Ratio   Year            Company          Industry        Decision   2012            35.8 D...
Performance Compare by Year to Year      2010            2011           2012      Decision    64.65 days     40.68 days   ...
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Part 1

  1. 1. Working capital WORKING CAPITAL 100%Dewan Cement limited 50% 0% -50% -100% Company Industry 2012 -4955109 5088021 2011 -5137170 2010 -4575565 2009 -3600460
  2. 2. Performance Compare to Industry’s RatioYear Company Industry Decision2012 (4955109) 5088021 WORSE Working capital measures a firm’s ability to meet its short term obligations. It shows the difference between current assets and current liabilities.In this company working capital is Rs. (4955109). It means that the company’s working capital is Rs.(4955109) times less than that of its current liabilities.If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s working capital is less than industry’s working capital.
  3. 3. Performance Compare by year to year2009 2010 2011 2012 Decision(3600460) (4575565) (5137170) (4955109) WORSEIn year 2009 working capital was (3600460). It means working capital were(3600460) times less than that of its current liabilities. In year 2011 theworking capital was also decrease to (5137170) and in 2012 it is alsoremain (4955109).If we evaluate the performance of the firm over the period oftime, company’s results are showing WORSE position because companyscurrent ratio is showing Negative trend.
  4. 4. Current ratio Current Ratio1.41.2 10.80.60.40.2 0 Company industry2012 0.233 1.312011 0.1942010 0.1982009 0.295 2009 2010 2011 2012
  5. 5. Performance Compare to Industry’s RatioYear Company Industry Decision2012 0.233 1.31 WORSECurrent ratio measures a firm’s ability to meet its short term obligations. It shows the relationship between current assets and current liabilities. In this company current ratio is 0.233 times. It means that the company’s current assets are 0.233: 1 times that of its current liabilities. If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s current ratio is less than that of industry’s current ratio.
  6. 6. Performance Compare by Year to Year2009 2010 2011 2012 Decision0.295 0.198 0.194 0.233 WORSEIn year 2009 current ratio was 0.295 times. It means currentassets were 0.295:1 times that of its current liabilities , and in2012 it is decreased to 0.233 times.If we evaluate the performance of the firm over the period oftime, company’s results are showing WORSE position becausecompanys current ratio is showing decreasing trend.
  7. 7. Quick Ratio Quick Ratio0.60.50.40.30.20.1 0 Company Industry2012 0.092 0.522011 0.0832010 0.0792009 0.095
  8. 8. Performance Compare to Industry’s Ratio Year Company Industry Decision 2012 0.092 0.52 WORSE• Quick ratio measures a firm’s ability to meet its short term obligations. It shows the relationship between quick assets and current liabilities.• In this company quick ratio is 0.092 times. It means that the company’s quick assets are 0.092:1 that of its current liabilities.• If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s quick ratio is less than industry’s quick ratio.
  9. 9. Performance Compare by Year to Year 2009 2010 2011 2012 Decision 0.095 0.079 0.083 0.092 BETTER• In year 2009 quick ratio was 0.095 times. It means quick assets were 0.095:1times that of its current liabilities. In year 2010 the quick ratio was 0.079 times, and in 2011 it was 0.083 and in 2012 it is reached to 0.092 times (the result shows mixed trend).• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys current ratio is showing increasing trend.
  10. 10. Cash Ratio Cash Ratio0.25 0.20.15 2012 0.1 2011 20100.05 2009 0 Company Industry2012 0.0194 0.232011 0.01122010 0.01052009 0.0239
  11. 11. Performance Compare to Industry Ratio Year Company Industry Decision 2012 0.0194 0.23 WORSE• Cash ratio measures a firm’s ability to meet its short term obligations. It shows the relationship between cash and current liabilities.• In this company cash ratio is 0.0194 times. It means that the company’s cash ratio is 0.0194:1 times that of its current liabilities.• If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s cash ratio is less than industry’s cash ratio.
  12. 12. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0.0239 0.0105 0.0112 0.0194 BETTER• In year 2009 cash ratio was 0.0239 times. It means cash were 0.0239: 1 times that of its current liabilities. In year 2010 the cash was decrease to 0.0105 times, and in 2011 it is increase to 0.0112 times, and than in 2012 it is reached to 0.0194 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys current ratio is showing mixed trend (if we compare it with 2010 the result is showing increasing trend).
  13. 13. Debt Ratio Debt Ratio 32.5 21.5 10.5 0 Company Industry2012 0.63 0.272011 0.6322010 0.6322009 0.618
  14. 14. Performance Compare to Industry Ratio Year Company Industry Decision 2012 0.63 0.27 WORSE• Debt ratio measures a firm’s ability to meet its long term obligations. It shows the relationship between total debts and total assets.• In this company debt ratio is 0.63 times. It means that the company’s total debts are 0.63 times of its total assets.• If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s debt ratio is more than that of industry’s debt ratio.
  15. 15. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0.618 0.632 0.632 0.63 WORSE• In year 2009 debt ratio was 0.618 times. It means debts were 0.618 times more than that of its total assets. In year 2010 & 2011 the debt ratio was increase to 0.632 times, and in 2012 it was also to 0.27 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing WORSE position because companys debt ratio is showing increasing trend.
  16. 16. DEBT TO EQUITY RATIO Debt to Equity Ratio 7 6 5 4 3 2 1 0 Company Industry2012 1.67 0.272011 1.722010 1.712009 1.62
  17. 17. Performance Compare to Industry Ratio Year Company Industry Decision 2012 1.67 0.27 WORSE• Debt to equity ratio measures a firm’s ability to meet its long term obligations. It shows the relationship between total debts and total share holder’s equity.• In this company debt to equity ratio is 1.67 times. It means the company’s total liability is 1.67 of its total share holder equity.• If we compare the results of the company with the results of industry, company’s results are showing WORSE position than industry’s results, because company’s debt to equity ratio is more than that of industry’s debt to equity ratio.
  18. 18. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 1.62 1.71 1.72 1.67 WORSE• In year 2009 debt to equity ratio was 1.62 times. It means debts to equity were 1.62 times more than that of its total share holder’s equity. In year 2010 and 2011 the debt to equity ratio was increase to 1.71 and 1.72 times, and in 2012 it is also to 1.67 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing WORSE position because companys debt ratio is showing increasing trend.
  19. 19. Equity Ratio Equity Ratio1.61.41.2 1 20120.8 20110.6 2010 20090.40.2 0 Company Industry2012 0.37 0.732011 0.372010 0.372009 0.38
  20. 20. Performance Compare with Industry Ratio Year Company Industry Decision 2012 0.37 times 0.73 times WORSE• Equity Ratio indicates how much shareholders would receive in the event of a company-wide liquidation. Or a financial ratio that measures the level of leverage used by a company, the equity ratio quantifies the proportion of the total assets that are financed by stockholders, and not creditors (or debt).• In this company equity ratio is 0.63 times. It means that the company’s total shareholder equities are 0.37 times of its total assets.• If we compare the results of the company with the results of industry, company’s results are showing WORSE position, because company’s equity ratio is less than that of industry’s equity ratio.
  21. 21. Performance Compare by Year to Year 2009 2010 2011 2012 Decision 0.38 times 0.37 times 0.37 times 0.37 times BETTER• In 2009 the equity ratio is 0.38 times. It means that Shareholder investment in a firm is 0.38 times of its total assets. In 2010 the ratio is decrease to 0.37 times and in 2011 and 2012 the ratio is also 0.37.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys equity ratio is constant before three years.
  22. 22. RETURN ON ASSETS Return on Assets 0.16 0.14 0.12 0.1 0.08 2012 0.06 2011 0.04 2010 0.02 0-0.02-0.04-0.06 Company Industry 2012 1.84% 15.13% 2011 -1.75% 2010 -2.93%
  23. 23. Performance Compare to Industry Ratio Year Company Industry Decision 2012 1.84 % 15.13% WORSE• Return on assets shows the relationship between net profit and total assets. It is a percentage of net profit based on the value of total assets.• In this company return on assets is 1.84%. It means that a company generates net profit of 1.84% based on the value of total assets.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s return on assets is less than that of an industry return on assets.
  24. 24. Performance Compare by Year to Year Ratio 2010 2011 2012 Decision (2.93 %) (1.75 %) 1.84 % BETTER• In year 2010 return on asset ratio was (2.93%). It means the firm’s bear loss of (2.93%) based on the value of total assets. In year 2011 the return on asset ratio was (1.75%), and in 2012 the firm generate profit 1.8% based on the value of total assets.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys return on asset ratio is showing increase trend.
  25. 25. TOTAL ASSETS TURNOVER Total Assets Turnover141210 8 2012 2011 6 2010 2009 4 2 0 Company Industry2012 0.33 13.332011 0.252010 0.172009 0.26
  26. 26. Performance Compare to Industry Ratio Year Company Industry Decision 2012 0.33 Times 13.33 Times WORSE• Total assets turnover ratio indicates that how many times a company generated revenue from its total assets of its own worth.• In this company total assets turnover ratio is 0.33 times. It means that company total assets generate total revenue 0.33 times of its own worth.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s total assets turnover ratio is less than that of an industry total assets turnover ratio.
  27. 27. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0.26 times 0.17 times 0.25 times 0.33 times BETTER• Total assets turnover ratio indicates that how many times revenue can be generated by the total assets of its own worth.• In year 2009 total assets turnover ratio was 0.26 times. It means the firm’s total assets can generate total revenue 0.26 times. In year 2010 and 2011 the total assets turnover ratio was 0.17 and 0.25 times, and in 2012 it is increase to 0.33 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys total asset turnover ratio is showing increasing trend.
  28. 28. FIXED ASSETS TURNOVER Fixed Assets Turnover2015 201210 2011 5 2010 2009 0 Company Industry2012 0.36 16.722011 0.262010 0.182009 0.28
  29. 29. Performance Compare to Industry Ratio Year Company Industry Decision 2012 0.36 Times 16.72 Times WORSE• Fixed assets turnover ratio indicates that how many times a company generated revenue from its fixed assets of its own worth.• In this company fixed assets turnover ratio is 0.36 times. It means that a company fixed assets generate total revenue 0.36 times of its own worth.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s fixed assets turnover ratio is less than that of an industry fixed assets turnover ratio.
  30. 30. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0.28 times 0.18 times 0.26 times 0.36 times BETTER• Fixed assets turnover ratio indicates that how many times revenue can be generated by the fixed assets of its own worth.• In year 2009 fixed assets turnover ratio was 0.28 times. It means the firm’s fixed assets can generate total revenue 0.28 times. In year 2010 the fixed assets turnover ratio was decrease to 0.18 times, and in 2011 and 2012 it is increase to 0.0.26 and 0.36 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys fixed asset turnover ratio is showing increasing trend.
  31. 31. RETURN ON SHAREHOLDER EQUITY Return on Shareholders Equity15.00%10.00% 5.00% 0.00% 2012 2011 -5.00% 2010-10.00% 2009-15.00%-20.00% Company Industry 2012 4.87% 14.63% 2011 -4.97% 2010 -8.11% 2009 -1.98%
  32. 32. Performance Compare to Industry Ratio Year Company Industry Decision 2012 4.87 % 14.63 % WORSE• Return on equity shows the relationship between net profit and total shareholders’ equity. It is a percentage of net profit based on the value of total shareholders’ equity.• In this company return on equity is 4.87%. It means that a company generates net profit of 4.87% based on the value of total shareholders’ equity.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s return on equity is less than that of an industry return on equity
  33. 33. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision (1.98 %) (8.11 %) (4.97 %) 4.87 % BETTER• Return on equity ratio measures the overall record of management in producing profit on the value of total share holder’s equity. It shows the relationship between profit and total share holder’s equity.• In year 2009 return on equity ratio was (1.98%). It means the firm’s bear loss of (1.98%) based on the value of total share holder’s equity. In year 2010 and 2011the loss on based of the return on equity ratio was increase to (8.11%) and (4.97%), and in 2012 the firm generate profit base on shareholder equity is increase to 4.87%.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys return on equity ratio is showing increasing trend.
  34. 34. EARNING PER SHARE Earning Per Share1210 8 6 2012 4 2011 2 2010 2009 0 -2 -4 Company Category 22012 0.98 122011 -0.972010 -1.742009 -0.46
  35. 35. Performance Compare with Industry Year Company Industry Decision 2012 0.98 12 WORSE• Earnings per share are the earning of the company on each share. It shows relationship between net income and number of shares issued. It is generally more considerable by the shareholders.• In this Company earning per share is Rs 0.98 per share. It means company generate net income Rs 0.98 per share based on outstanding/issued common per share.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s earning per share is less than that of an industry earning per share
  36. 36. Performance Compare by Year to Year 2009 2010 2011 2012 Decision (0.46) (1.74) (0.97) 0.98 BETTER• In 2009 earnings per share was Rs.(0.46) per share. it means that company bear loss Rs.(0.46)per share in this year . And in 2010 and 2011 this ratio was increased to Rs.(1.74) and (0.97) per share. and in 2012 the firm earn profit Rs.0.98 per share.• If we evaluate the performance of the firm over the period of time company’s results are showing BETTER position because there is an increasing trend in company’s earnings per share.
  37. 37. PERCENTAGE OF EARNING RETAINED Percentage of Retained Earning100% 50% 0% -50% 2012-100% 2011-150% 2010 2009-200%-250%-300% Company Industry 2012 100% 67% 2011 -100% 2010 -100% 2009 -100%
  38. 38. Performance Compare with Industry Year Company Industry Decision 2012 100 % 67 % BETTER• Retained earnings indicate that net income retained by the firm for reinvestment in its operations; earnings / net income that are not paid out as dividends to shareholders.• In this company percentage of earning retained is 100%. It means that a firm retained 100% of overall net income for reinvestment in its operation. Company not paid out dividends to shareholders.• If we compare the results of the company with the results of the industry, company’s results are showing BETTER position because company’s earning retained is more than that of an industry earning retained.
  39. 39. Performance Compare by Year to Year 2009 2010 2011 2012 Decision (100 %) (100 %) (100 %) 100 % BETTER• In year 2009 the firm percentage of earning retained was (100%). It means firm fulfill 100% net loss from retained earning account. In year 2010 and 2011 this ratio was also (100%) and (100%). But in 2012 the percentage of earning retained is 100%, firm retained overall net income for reinvestment in its operation.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys earning retained ratio is showing increasing trend.
  40. 40. DIVIDEND PAYOUT Dividend Payout0.35 0.30.25 0.2 2012 20110.15 2010 0.1 20090.05 0 Company Industry2012 0% 33%2011 02010 02009 0
  41. 41. Performance Compare with Industry Year Company Industry Decision 2012 0% 33 % WORSE• Dividend payout ratio indicates how much of the company’s profits are being paid out to shareholders.• In this company dividend payout ratio is 0%. It means firm not paid dividend or profit to shareholders.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s dividend payout ratio is less than that of an industry ratio.
  42. 42. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0 0 0 0 WORSE• In year 2009 firm dividend payout ratio was 0%. It means firm not paid dividend or profit to shareholders. In 2010 and 2011 this ratio was also 0%. In 2012 this ratio is also 0%.• If we evaluate the performance of the firm over the period of time, company’s results are showing WORSE position because companys dividend payout ratio is 0%. This ratio is not change in four years.
  43. 43. DIVIDEND YIELD Dividend Yield0.180.160.140.12 2012 0.1 2011 20100.08 20090.060.040.02 0 Company Industry2012 0 17%2011 02010 02009 0
  44. 44. Performance Compare with Industry Ratio Year Company Industry Decision 2012 0% 17 % WORSE• Dividend yield indicates how much of an income return you receive for the money you spend on your investment.• In this company dividend yield ratio is 0%. It means dividend payout ratio is also 0%.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s dividend yield ratio is less than that of an industry ratio.
  45. 45. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0 0 0 0 WORSE• In year 2009, 2010 and 2011 the firm dividend yield ratio was 0%. Because firm not paid dividend or profit to shareholders of company. In 2012 this ratio is also 0%.• If we evaluate the performance of the firm over the period of time, company’s results are showing WORSE position because companys dividend yield ratio is 0%. This ratio is not change in four years.
  46. 46. BOOK VALUE PER SHARE Book Value Per Share9080706050 201240 201130 20102010 2009 0 Company Industry2012 20.22 632011 20.182010 21.472009 23.03
  47. 47. Performance Compare with Industry Year Company Industry Decision 2012 20.22 63 WORSE• A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly.• In this company the book value of per share is Rs.20.22. it means if a company is dissolve a shareholder get Rs.20.22 on the basis of per share.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s book value per share is less than that of an industry ratio.
  48. 48. Performance Compare by Year to Year 2009 2010 2011 2012 Decision 23.03 21.47 20.18 20.22 WORSE• In year 2009 the book value per share of firm was 23.03. it means if a company is dissolve a shareholder get Rs.23.03 per share, after paid all debts of firm’s. In 2010 and 2011 this value was decrease to Rs.21.47 and 20.18 per share, and in 2012 this value is also Rs.20.22 per share.• If we evaluate the performance of the firm over the period of time, company’s results are showing WORSE position because companys book value per share is showing decreasing trend.
  49. 49. GROSS PROFIT MARGIN Gross Profit Margin30.00%25.00%20.00%15.00% 201210.00% 2011 5.00% 2010 0.00% 2009 -5.00%-10.00% Company Industry 2012 12.38% 25.87% 2011 -1.11% 2010 -8.75% 2009 7.63%
  50. 50. Performance Compare to Industry Ratio Year Company Industry Decision 2012 12.38 % 25.87 % WORSE• Gross profit margin shows the relationship between gross profit and net sales. It is a percentage of gross profit based on the value of net sales.• In this company gross profit margin is 12.38%. It means that a company generates gross profit of 12.38% based on the value of net sales.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s gross profit margin is less than that of an industry gross profit margin.
  51. 51. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 7.63% (8.75 %) (1.11 %) 12.38 % BETTER• In year 2009 gross profit margin ratio was 7.63%. It means the firm’s generate gross profit of 7.63% based on the value of net sales. In year 2010 and 2011 the firm bear gross loss (8.75%) and (1.11%) based on the value of net sales, but in 2012 gross profit margin ratio increased to 12.38%.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys gross profit margin ratio is showing increasing trend.
  52. 52. OPERATING PROFIT MARGIN Operating Profit Margin20.00%15.00%10.00% 5.00% 0.00% 2012 2011 -5.00% 2010-10.00% 2009-15.00%-20.00%-25.00% Company Industry 2012 6.30% 17.87% 2011 -6.78% 2010 -17.49% 2009 0.98%
  53. 53. Performance Compare to Industry Ratio Year Company Industry Decision 2012 6.30 % 17.87 % WORSE• Operating profit margin shows the relationship between operating profit and net sales. It is a percentage of operating profit based on the value of net sales.• In this company operating profit margin is 6.30%. It means that a company generates operating profit of 6.30% based on the value of net sales.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s operating profit margin is less than that of an industry operating profit margin.
  54. 54. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision 0.98% (17.49 %) (6.78 %) 6.30 % BETTER• In year 2009 operating profit margin ratio was 0.98%. It means the firm’s generate operating profit of 0.98% based on the value of net sales. In year 2010 and 2011 the firm bear operating loss was (17.49%) and (6.78%) based on the value of net sales. But in 2012 the firm operating profit margin ratio is increase to 6.30%.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys operating profit margin ratio is showing increasing trend.
  55. 55. NET PROFIT MARGIN Net Profit Margin15.00%10.00% 5.00% 0.00% 2012 -5.00% 2011-10.00% 2010-15.00% 2009-20.00%-25.00%-30.00% Company Industry 2012 5.44% 10.65% 2011 -7.13% 2010 -17.81% 2009 -2.87%
  56. 56. Performance Compare to Industry Ratio Year Company Industry Decision 2012 5.44 % 10.65 % WORSE• Net profit margin shows the relationship between net profit and net sales. It is a percentage of net profit based on the value of net sales.• In this company net profit margin is 5.44%. It means that a company generates net profit of 5.44% based on the value of net sales.• If we compare the results of the company with the results of the industry, company’s results are showing WORRSE position because company’s net profit margin is less than that of an industry net profit margin.
  57. 57. Performance Compare by Year to Year Ratio 2009 2010 2011 2012 Decision (2.87 %) (17.81 %) (7.13 %) 5.44 % BETTER• NET profit margin ratio measures the overall record of management in producing profit. It shows the relationship between net profit and net sales.• In year 2009 net profit margin ratio was (2.87%). It means the firm’s bear net loss of (2.87%) based on the value of net sales. In year 2010 and 2011 this loss was increase to (17.81%) and (7.13%). In 2012 the net profit margin ratio increase to 5.44%.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys net profit margin ratio is showing increasing trend.
  58. 58. ACCOUNT RECEIVABLE TURNOVER Account Receivable Turnover40353025 201220 201115 201010 5 0 Company Industry2012 15.03 28.582011 11.732010 9.03
  59. 59. Performance Compare to Industry Ratio Year Company Industry Decision 2012 15.03 Times 28.58 Times WORSE• Account receivable turnover ratio indicates that how many times a company converts its receivable into cash during a year.• In this company account receivable turnover ratio is 15.03 times. It means that a company converts its receivables into cash 15.03 times during a year.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s account receivable turnover ratio is less than that of industry’s account receivable turnover ratio.
  60. 60. Performance Compare by Year to Year Ratio 2010 2011 2012 Decision 9.03 times 11.73 times 15.03 times BETTER• Account receivable turnover ratio indicates how efficiently management utilizes its assets in generating revenue by relating or comparing sales to different types of assets.• In year 2010 account receivable turnover ratio was 9.03 times. It means the firm can convert its account receivables into cash 9.03 times. In year 2011 the account receivable turnover ratio was 11.73 times, and in 2012 it is increase to 15.03 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys account receivable turnover ratio is showing increasing trend.
  61. 61. ACCOUNT RECEIVABLE TURNOVER IN DAYS Account Receivable Turnover in Days100 90 80 70 60 2012 50 2011 40 2010 30 20 10 0 Company Industry 2012 24.28 12.77 2011 31.32 2010 40.44
  62. 62. Performance Compare to Industry Ratio Year Company Industry Decision 2012 24.28 Days 12.77 Days WORSE• Account Receivable Turnover in days or Average collection period indicates that how many days a company converts it’s receivable into cash during a year.• In this company average collection period is 24.28 days. It means that a company converts its receivables into cash after every 24.28 days during a year.• If we compare the results of the company with the results of the industry, company’s results are showing WORSE position because company’s average collection period is more than that of industry average collection period.
  63. 63. Performance Compare by Year to Year Ratio 2010 2011 2012 Decision 40.44 days 31.32 days 24.28 days BETTER• Average collection period indicates how efficiently management utilizes its assets in generating revenue by relating or comparing sales to different types of assets.• It shows the relationship between days and account receivable turnover.• In year 2010 average collection period was 40.44 days. It means the firm can collect its account receivables within 40.44 days. In year 2011 the average collection period was 31.32 days, and in 2012 it is decrease to 24.28 days.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys account receivable turnover in days ratio is showing decreasing trend.
  64. 64. INVENTORY TURNOVER Inventory Turnover9080706050 2012 201140 2010302010 0 Company Industry2012 31.69 13.272011 38.182010 15.07
  65. 65. Performance Compare to Industry Ratio Year Company Industry Decision 2012 31.69 Times 13.27 Times BETTER• Inventory turnover ratio indicates that how many times a company converts its inventory into cash or sales during a year.• In this company inventory turnover ratio is 31.69 times. It means that a company converts its inventory into cash or sales 2.48 times during a year.• If we compare the results of the company with the results of the industry, company’s results are showing BETTER position because company’s inventory turnover ratio is more than that of industry inventory turnover ratio.
  66. 66. Performance Compare by Year to Year Ratio 2010 2011 2012 Decision 15.07 times 38.18 times 31.69 times BETTER• Inventory turnover ratio indicates how many times a company converts its inventory into cash or sales during a year.• It shows the relationship between costs of goods sold and average inventory.• In year 2010 inventory turnover ratio was 15.07times. It means the firm can convert its inventory into cash or sales 15.07 times during a year. In year 2011 the inventory turnover ratio was 38.18 times, and in 2012 it is increase to 31.69 times.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys inventory turnover ratio is showing increasing trend.
  67. 67. INVENTORY TURNOVER IN DAYS Inventory Turnover in Days5045403530 201225 201120 20101510 5 0 Company Industry2012 11.52 27.512011 9.562010 24.2
  68. 68. Performance Compare to Industry Ratio Year Company Industry Decision 2012 11.52 Days 27.51 Days BETTER• Inventory Turnover in days indicates that how many days a company converts its inventory into cash or sales during a year.• In this company the inventory turnover in days is 11.52 days. It means a company converts its inventory into cash or sales after every 11.52 days during a year.• If we compare the results of the company with the results of the industry, company’s results are showing BETTER position because company’s Inventory Turnover in days is less than that of industry.
  69. 69. Performance Compare by Year to Year 2010 2011 2012 Decision 24.21 days 9.56 days 11.52 days BETTER• In year 2010 the inventory turnover in days is 24.2 days. It means a company converts its inventory into cash or sales after every 24.2 days during a year. In year 2011 the result was decrease to 9.56 days and in 2012 it is reached to 11.52 days.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys inventory turnover in days ratio is showing decreasing trend as compare to 2010.
  70. 70. OPERATING CYCLE Operating Cycle160140120100 80 2012 60 2011 40 2010 20 0 Company Industry2012 35.8 42.282011 40.682010 64.65
  71. 71. Operating Cycle 2012 of a Dawan Cement Limited Operating Cycle 2012 is 35.8 Days 11.52 Inventory Turnover in Days Account Receivable Turnover in Days 24.28
  72. 72. Performance Compare to Industry Ratio Year Company Industry Decision 2012 35.8 Days 42.28 Days BETTER• Operating Cycle indicates that how many days a company converts its inventory into cash during a year or the average time between purchasing or acquiring inventory and receiving cash proceeds from its sale.• In this company the operating cycle is in 35.8 days. It means a company converts its inventory into cash after every 35.5 days during a year.• If we compare the results of the company with the results of the industry, company’s results are showing BETTER position because company’s operating cycle in days is less than that of industry.
  73. 73. Performance Compare by Year to Year 2010 2011 2012 Decision 64.65 days 40.68 days 35.8 days BETTER• In year 2010 the operating cycle is in 64.65 days. It means a company converts its inventory into cash after every 64.65 days during a year. In year 2011 the result was decrease to 40.68 days and in 2012 it is reached to 35.8 days.• If we evaluate the performance of the firm over the period of time, company’s results are showing BETTER position because companys operating cycle in days is showing decrease trend.
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