Balance sheet and income statement analysis

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2. PRESENTERS
Muhammad Awais 15-Arid-1232
Ahmad Idress 15-Arid-1181
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3. Financial Analysis
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4. INTRODUCTION
 The journey of Attock Cement started from the year 1981 and the
company started its commercial production in 1988. in 25 years, company
has shown steady growth. ACPL has attained new peaks every year
through strong team work, continuous modernization of plant to improve
efficiency and with utmost hard work. ACPL has cemented its place not
only in the local market but also in the regional markets through selling
quality products.
VISION
 To be the leading organization continuously providing high quality
cement, excelling in every aspect of its business and to remain market
leader in cement industry.
MISSION
 To be a premier and reputable cement manufacturing company dedicated
to become an industry leader by producing quality products, providing
excellent services, enhancing customer satisfaction and maximizing
shareholders' value through professionalism and dedicated team work.
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5. Balance Sheet
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6. Balance Sheet
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8. Liquidity Ratios
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liquidity is defined as the ability of a company to meet its financial obligations as they
come due. The liquidity ratio, then, is a computation that is used to measure a
company's ability to pay its short-term debts.
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term and long-term obligations. the current ratio considers the current total assets
of a company (both liquid and illiquid) relative to that company’s current total
liabilities.

9. Liquidity Ratios
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Current Ratio (2K16)
Computation
Formula
Current assets 3171362
0.5327:1
Current liabilities 5953512
Current Ratio (2K17)
Computation
Formula
Current assets 7196874
2.62:1
Current liabilities 2740679

10. Liquidity Ratios
Computation
Formula Current assets -inventories 7196874-599753 2.40:1
Current liabilities 2740679
The quick ratio measures the dollar amount of liquid assets available for each
dollar of current liabilities. Thus, a quick ratio of 0.4559 means that a company
has $0.4559 of liquid assets available to cover each $1 of current liabilities.
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Computation
Formula Current assets -inventories 3171362-456601 0.4559:1
Current liabilities 5953512
Acid test Ratio / Quick Ratio (2K17)
Acid test Ratio / Quick Ratio (2K16)

11. Financial Leverage Ratio
 The financial leverage ratio is a measure of how much assets a company holds
relative to its equity. A high financial leverage ratio means that the company is
using debt and other liabilities to finance its assets -- and, every thing else being
equal, is more riskier than a company with lower leverage.
Debt to equity ratio(2k17)
Computation
Formula
Total Debt 8761745
0.54:1
Share holder Equity 11947635
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Debt to equity ratio (2k16)
Computation
Formula
Total Debt 3979557
0.38:1
Share holder Equity 10446843

12. Financial Leverage Ratio
Long term debt to total capitalization(2k17)
Computation
Formula
Long term Debt 1500000
0.11:1
Total capitalization 13447635
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Long term debt to total capitalization(2k16)
Computation
Formula
Long term Debt 0
0
Total capitalization 10446843

13. Financial Leverage Ratio
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Debt to assets ratio (2k16)
Computation
Formula
Total Debt 3979557
0.2758:1
Total assets 14426400
Debt to assets ratio(2k17)
Computation
Formula
Total Debt 8761745
0.4231:1
Total assets 20709380

14. Coverage Ratios
 The coverage ratio is a measure of a company's ability to meet its financial
obligations. In broad terms, the higher the coverage ratio, the better the ability of
the enterprise to fulfil its obligations to its lenders.
Interest coverage ratio (2k17)
Computation
Formula
Earning before interest and taxes 4472290
157.6:1
Interest expense 28369
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Interest coverage ratio (2k16)
Computation
Formula
Earning before interest and taxes 4257015
199.7 :1
Interest expense 21309

15. Activity Ratio (2k17)
 Activity ratios measure a firm's ability to convert different accounts within its
balance sheets into cash or sales.
Receivable turn over in days
Computation
Formula
Days in the year 365
7 days
Receivable turn over 51
Receivable turn over ratio
Computation
Formula
Net Credit Sales 14735172
51
Receivable 286277
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16. Activity Ratio (2k16)
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Receivable turn over in days
Computation
Formula
Days in the year 365
9 days
Receivable turn over 42
Receivable turn over ratio
Computation
Formula
Net Credit Sales 13918340
42
Receivable 325976

17. Activity Ratio
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Payable turn over in days (2k17)
Computation
Formula
Accounts payable * Days in the year 3823679 * 365
157 day
Annual credit purchases 8842960
Payable turn over in days (2k16)
Computation
Formula
Accounts payable * Days in the year 2680056 * 365
117 day
Annual credit purchases 8331840

18. Inventory Ratio(2017)
 Activity ratios measure the relative efficiency of a firm based on its use of its assets,
leverage or other such balance sheet items and are important in determining whether a
company's management is doing a good enough job of generating revenues and cash
from its resources.
Inventory turn over ratio
Computation
Formula
Cost of goods sold 8842960
19.37
Inventory 456601
Inventory turn over in days
Computation
Formula
Days in year 365
19
Inventory turn over 19
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19. Inventory Ratio (2016)
 Activity ratios measure the relative efficiency of a firm based on its use of its assets,
leverage or other such balance sheet items and are important in determining whether a
company's management is doing a good enough job of generating revenues and cash
from its resources.
Inventory turn over ratio
Computation
Formula
Cost of goods sold 8331840
13.89
Inventory 599753
Inventory turn over in days
Computation
Formula
Days in year 365
26 days
Inventory turn over 13.89
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20. Operating Cycle
2k17
Inventory turn over in days + Receivable turn over in days
7+19 =26 days
2k16
Inventory turn over in days + Receivable turn over in days
9+26 =35 days
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21. Profitability Ratio (2017)
 A profitability ratio is a measure of profitability, which is a way to measure a
company's performance. Profitability is simply the capacity to make a profit, and a
profit is what is left over from income earned after you have deducted all costs and
expenses related to earning the income.
Gross profit margin
Computation
Formula
Net sales - CGS 14735172-8842960
39.9%
Total assets 14735172
Return on investment
Computation
Formula
Net profit 3034057
14.65%
Total assets 20709380awaisnaseer124@gmail.com
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22. Profitability Ratio (2017)
Return on Equity
Computation
Formula
Net profit after taxes 3034057
25.39%
Share holder Equity 11947635
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23. Profitability Ratio (2016)
 A profitability ratio is a measure of profitability, which is a way to measure a
company's performance. Profitability is simply the capacity to make a profit, and a
profit is what is left over from income earned after you have deducted all costs and
expenses related to earning the income.
Gross profit margin
Computation
Formula
Net sales - CGS 5586500
38.72%
Total assets 14426400
Return on investment
Computation
Formula
Net profit 2890023
20.00%
Total assets 14426400
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24. Profitability Ratio (2016)
Return on Equity
Computation
Formula
Net profit after taxes 2890023
27%
Share holder Equity 10446843
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