Engro Foods   Ratio Analysis
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Engro Foods Ratio Analysis

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Ratio Analysis

Ratio Analysis

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  • Full Name Full Name Comment goes here.
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  • That is a great write-up of Total Liabilities. I also wrote a definition of total liabilities on my site:

    http://www.spireframe.com/docs/financial-statement-total-liabilities.aspx

    I agree that the value of assets versus sales depends on the company that is being analyzed.
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Engro Foods   Ratio Analysis Engro Foods Ratio Analysis Presentation Transcript

  • PAF-Karachi Institute of Economics & Technology RATIOS ANALYSISPresented by:TOUFEEQ AHMEDRegistration # 55302 Introduction to Business Finance Course Facilitator: Sir Sikandar Taj
  • ENGRO FOODS LIMITEDOverview:Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in2004. Using dairy as a stepping stone to enter into the food business, the Companyhas established state-of-the-art processing units in Sukkur and Sahiwal, along with anice cream production facility in Sahiwal.Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have beensuccessfully launched under the helm of Company’s dairy products. To support thesebrands and their highest standards of quality, Engro Foods has invested heavily inmilk processing and milk collection infrastructure.
  • ENGRO FOODS Ratio Analysis
  • Ratio Analysis
  • Ratio Analysis1. Liquidity – the ability of the firm to pay its way2. Investment/shareholders – information to enable decisions to be made on the extent of the risk and the earning potential of a business investment3. Gearing – information on the relationship between the exposure of the business to loans as opposed to share capital4. Profitability – how effective the firm is at generating profits given sales and or its capital assets5. Financial – the rate at which the company sells its stock and the efficiency with which it uses its assets
  • Ratio AnalysisFinancial Data Values in 000 Input Data 2008 2009 2010Current assets 12,042,221 10,748,871 3,114,550Fixed assets 45,122,518 82,960,567 27,896,393Total assets 57,164,739 93,709,438 31,010,943Average total assets 28,582,370 46,854,719 15,505,472Cash and cash equivalents 1,687,038 3,955,342 808,584Inventory 4,680,896 422,607 2,551,752Average inventory 4,680,896 2,551,752 1,487,179Current liabilities 5,999,353 6,395,469 3,654,457Total liabilities 36,111,133 66,821,200 3,657,304Owners equity 21,053,606 26,888,238 27,053,639Number of common shares 212,816,117 297,942,563 327,736,819Average number of common shares 212,816,117 255,379,340 312,839,691Average owners equity 21,053,606 23,970,922 26,970,939Market price per share 96.46 183.27 193.81Devidend Paid 425,632 595,885 555,473Book Value per share 98.93 105.29 86.48Total Sales 23,317,198 30,171,520 26,744,359Operating expenses 1,657,815 195,176 388,652Operating income 4,538,748 4,986,168 4,762,458Other expense 579,556 424,110 38,773Earnings before interest and taxes 6,713,522 6,535,525 1,904,106Interest expense 1,508,948 1,320,579 92,131Net income 4,240,430 3,957,250 1,675,959
  • 1. Liquidity Ratio Ratio Analysis1. Current Ratio: Current Assets Current Liabilities 2008 2009 2010 12,042,221 2.01 10,748,871 1.68 3,114,550 0.85 = = = 5,999,353 6,395,469 3,654,457 Comments:
  • 1. Liquidity Ratio Ratio Analysis2. Quick Ratio:: Current Assets – Inventory Current Liabilities 2008 2009 2010 12,042,221 - 4,680,896 = 1.23 10,748,871 - 422,607 = 1.61 3,114,550 - 2,551,752 = 0.15 5,999,353 6,395,469 3,654,457 Comments:
  • 1. Liquidity Ratio Ratio Analysis3. Net Working Capital Ratio: Current Assets – Current Liability Total Assets 2008 2009 2010 12,042,221 - 5,999,353 = 0.11 10,748,871 - 6,395,469 = 0.05 3,114,550 - 3,654,457 = (0.02) 57,164,739 93,709,438 31,010,943 Comments:
  • 1. Liquidity Ratio Ratio Analysis4. Cash Ratio: Cash & Cash Equivalent Current Liability 2008 2009 2010 1,687,038 = 0.28 3,955,342 = 0.62 808,584 = 0.22 5,999,353 6,395,469 3,654,457 Comments:
  • 1. Liquidity Ratio Ratio Analysis5. Operating Ratio: Operating Expenses Operating Income 2008 2009 2010 1,657,815 = 0.37 195,176 = 0.04 388,652 = 0.08 4,538,748 4,986,168 4,762,458 Comments:
  • 1. Liquidity Ratio Ratio Analysis6. Operating Expenses to Sales: Operating Expenses Total Net Sales 2008 2009 2010 1,657,815 = 7.11% 195,176 = 0.65% 388,652 = 1.45% 23,317,198 30,171,520 26,744,359 Comments:
  • 2. Assets Ratio Ratio Analysis7. Inventory Turnover Ratio: Total Sales Average Inventory Comments:
  • 2. Assets Ratio Ratio Analysis8. Fixed Assets Turnover Ratio:: Total Sales Fixed AssetsIf 2008 2009 2010 52% = 23,317,198 36% = 30,171,520 96% = 26,744,359 45,122,518 82,960,567 27,896,393 Comments:
  • 2. Assets Ratio Ratio Analysis9. Total Assets Turnover Ratio: Total Sales Total Assets 2008 2009 2010 41% = 23,317,198 32% = 30,171,520 86% = 26,744,359 57,164,739 93,709,438 31,010,943 Comments:
  • 2. Assets Ratio Ratio Analysis10. Assets to Equity Ratio: Total Assets Owner’s Equity 2008 2009 2010 2.72 = 57,164,739 3.49 = 93,709,438 1.15 = 31,010,943 21,053,606 26,888,238 27,053,639 Comments:
  • 3. Profitability Ratio Ratio Analysis11. Return on Assets Ratio: Net Income Average Total Assets 2008 2009 2010 15% = 4,240,430 8% = 3,957,250 11% = 1,675,959 28,582,370 46,854,719 15,505,472 Comments:
  • 3. Profitability Ratio Ratio Analysis12. Return on Equity Ratio: Net Income Average Owner’s Equity 2008 2009 2010 0.20 = 4,240,430 0.17 = 3,957,250 0.06 = 1,675,959 21,053,606 23,970,922 26,970,939 Comments:
  • 3. Profitability Ratio Ratio Analysis13. Profit Margin Ratio: Net Income Total Net Sales 2008 2009 2010 18% = 4,240,430 13% = 3,957,250 6% = 1,675,959 23,317,198 30,171,520 26,744,359 Comments:
  • 3. Profitability Ratio Ratio Analysis14. Basic Earning Ratio: Earning Before Interest & Taxes Total Assets 2008 2009 2010 12% = 6,713,522 7% = 6,535,525 6% = 1,904,106 57,164,739 93,709,438 31,010,943 Comments:
  • 4. Debt Ratio Ratio Analysis15. Total Debt Ratio: Total Liabilities Total Assets 2008 2009 2010 0.63 = 36,111,133 0.71 = 66,821,200 0.12 = 3,657,304 57,164,739 93,709,438 31,010,943 Comments:
  • 4. Debt Ratio Ratio Analysis16. Interest Coverage Ratio: EBIT Interest Expense 2008 2009 2010 4.45 = 6,713,522 4.95 = 6,535,525 20.67 = 1,904,106 1,508,948 1,320,579 92,131 Comments:
  • 4. Debt Ratio Ratio Analysis17. Debt/Equity Ratio: Total Liability Owner’s Equity 2008 2009 2010 1.72 = 36,111,133 2.49 = 66,821,200 0.14 = 3,657,304 21,053,606 26,888,238 27,053,639 Comments:
  • 5. Market Ratio Ratio Analysis18. Earning Per Share (EPS) Ratio: Net Income Average No. of Common Stock 2008 2009 2010 19.93 = 4,240,430,000 15.50 = 3,957,250,000 5.36 = 1,675,959,000 212,816,117 255,379,340 312,839,691 Comments:
  • 5. Market Ratio Ratio Analysis19. Prince to Earning Ratio: Market Price Per Share Earning Per Share 2008 2009 2010 4.84 = 96.46 11.83 = 183.27 36.18 = 193.81 19.93 15.50 5.36 Comments:
  • 5. Market Ratio Ratio Analysis20. Dividend Payout Ratio: Dividend Paid Net Income 2008 2009 2010 0.10 = 425,632 0.15 = 595,885 0.33 = 555,473 4,240,430 3,957,250 1,675,959 Comments:
  • Questions