financial analysis

1. Ratio Analysis
CHERAT CEMENT LIMITED
GROUP MEMBERS:
Shahrukh Afridi, Shahood Khan, Musa Nazir, Mian Shwal
Business Finance | BBA ‘B’ 4th
Semester |May 30, 2022

2. PAGE 1
Liquidity: ( M.Shahrukh Afridi)
NET WORKING CAPITAL = Current Assets – Current Laibilities
Current Assets Current Liabilities Net Working Capital
2021 7,846,233 7,273,010 573,223
2020 6,684,679 5,888,431 769,248
2019 8,093,339 6,196,128 1,897,211
CREDIT RATIO =
Current Assets
Current Liabilities
Current Assets Current Liabilities Ratio
2021 7,846,233 7,273,010 1.08
2020 6,684,679 5,888,431 1.14
2019 8,093,339 6,196,128 1.31
400,000
800,000
1,200,000
1,600,000
2,000,000
2019 2020 2021
Net Working Capital
0
0.5
1
1.5
2019 2020 2021
Current Ratio

3. PAGE 2
QUICK RATIO =
Current Assets−Inventory
Current Liabilities
Current Assets Inventory Current Liabilities Ratio
2021 7,846,233 1,005,590 7,273,010 0.94
2020 6,684,679 962,470 5,888,431 0.97
2019 8,093,339 1,268,194 6,196,128 1.10
Activity: (Shahood Khan)
INVENTORY TURNOVER
Years Cost of goods sold Inventory IT
2021 18,478,508 1,005,590 18.37
2020 16,703,668 962,470 15
2019 12,979,533 1,268,194 10.22
0.75
1
1.25
2019 2020 2021
Quick Ratio
10
12
14
16
18
20
2019 2020 2021
Inventory Turnover

4. PAGE 3
FIXED ASSET TURNOVER
YEAR SALES NET FIXED ASSETS FAT
2021 25,206,811 25,607,052 0.98
2020 17,090,155 25,324,205 0.67
2019 15,862,647 26,909,425 0.59
TOTAL ASSET TURNOVER =
YEARS SALES TOTAL ASSETS TAT
2021 25,206,811 34,193,522 0.74
2020 17,090, 155 32,921,845 0.52
2019 15,862,647 35,279,827 0.45
0
0.2
0.4
0.6
0.8
1
1.2
2019 2020 2021
fix asset turnover
0
0.2
0.4
0.6
0.8
1
1.2
2019 2020 2021
fix asset turnover

5. PAGE 4
AVERAGE COLLECTION PERIOD
YEARS ACCOUNT RECIEVABLES ANNUAL
SALES
360 ACP
2021 795,507 25,206,811 360 11.36
2020 357,879 17,090,155 360 7.53
2019 2,006,658 15,862,647 360 45.5
AVERAGE PAYMENT PERIOD
YEARS ACCOUNT PAYABLE ANNUAL PURCHASES 360 APP
2021 2,264,938 3,696,684 360 221
2020 1,953,972 3,335,993 360 232
2019 1,863,434 2,576,666 360 260
0
10
20
30
40
50
2019 2020 2021
Annual Collection Period
0
10
20
30
40
50
2019 2020 2021
Annual Collection Period

6. PAGE 5
DEBT: (Musa Nazir)
DEBT RATIO = Total liability/Total Assets
Year Total Liability Total Assets Debt ratio
2019 23,523,658 35,279,827 0.67
2020 22,868,278 32,279,827 0.7
2021 20,603,970 34,193,522 0.62
DEBT EQUITY RATIO = Non-current assetsStockholderEquity
Year Non-current assets Stockholder equity Debt equity ratio
2019 27,186,488 11,756,169 2.31
2020 26,237,166 9,411,549 2.78
2021 26,347,289 13,589,552 1.93
0.55
0.6
0.65
0.7
0.75
2019 2020 2021
Debt Ratio
Debt Ratio
0
0.5
1
1.5
2
2019 2020 2021
Debt Equity Ratio

7. PAGE 6
TIME INTEREST COVER = Earnings before Interest Tax/Interest Expense
Year EBIT Interest Expense Time interest cover
2019 1,047,768 1,132,162 3.83
2020 (2,722,727) 829,619 (0.88)
2021 4,337,218 714,995 1.47
Profitability:(Main Shawal)
GROSS PROFIT MARGIN = Gross Profit/Sales
Year GP Sales GPM
2019 2,883,114 15,862,647 26.96%
2020 386,487 17,090,155 2.26%
2021 6,728,303 25,206,811 18.18%
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
4
2019 2020 2021
Times Interest Cover
0
5
10
15
20
25
30
2021 2020 2019
Gross Profit Margin

8. PAGE 7
OPERATING PROFIT MARGIN = Operating Profit/Sales
Year OP Sales OPM
2019 1,047,768 15,862,647 17.21%
2020 (2,722,727) 17,090,155 15.93%
2021 4,337,218 25,206,811 6.61%
NET PROFIT MARGIN = Net Profit After Tax/Sales
Year NPAT Sales NPM
2019 1,047,768 15,862,647 12.72%
2020 (2,722,727) 17,090,155 (11.08%)
2021 4,337,218 25,206,811 11.11%
RUTURN ON ASSET = Net Profit After Tax/Total Assets
Year NPAT TA ROA
2019 1,047,768 35,279,827 9.93%
2020 (2,722,727) 32,921,845 (5.76%)
2021 4,337,218 34,193,522 5%
-20
-10
0
10
20
2021 2020 2019
Operating Profit Margin
-15
-10
-5
0
5
10
15
2021 2020 2019
Net Profit Margin

9. PAGE 8
RUTURN ON EQUITY = Net Profit After Tax/Stockholders Equity
Year NPAT SE ROE
2019 1,047,768 11,756,169 27.4%
2020 (2,722,727) 10,053,558 (17.36%)
2021 4,337,218 13,589,552 15.38%
EARNING PER SHARE =
Year EPS
2019 16.50
2020 (9.74)
2021 9.07
-10
-5
0
5
10
2021 2020 2019
Return On Asset
-20
-10
0
10
20
30
2021 2020 2019
Return On Equity

10. PAGE 9
PRICE EARNING RATIO =
Year PER
2019 10.75
2020 (8.95)
2021 3.41
----- The End -----
-10
-5
0
5
10
15
20
2021 2020 2019
Earning Per Share
-10
-5
0
5
10
15
2021 2020 2019
Price Per Share

11. PAGE 10

12. PAGE 11

13. PAGE 12

14. PAGE 13

15. PAGE 14

16. PAGE 15

17. PAGE 16

18. PAGE 17