financial ratio

1. Fauji Cement Company Limited
Group member
Muhib Ullah
Shahsawar Afridi
Sajjad Ahmad
Arsalan khan
BBA Section B 4th semester
Subject: Business Finance
1

2. Introduction
2

3. Analysing Liquidity
Net Working Capital (NWC)
year Current Assets Current
Liabilities
Net working
capital
2021 12438732 6146335 6292397
2020 7152550 5182458 1970092
2019 5675651 3751829 1923822
6292397
1970092 1923822
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2021 2020 2019
NWC
3

4. Current Ratio (CR):
year
Current Assets Current
Liabilities
Current Ratio
2021 12438732 6146335 2.023
2020 7152550 5182458 1.38
2019 5675651 3751829 1.51
2.023
1.38
1.51
0
0.5
1
1.5
2
2.5
2021 2020 2019
current ratio
4

5. Quick Ratio
year Current
Assets
inventory Current
Liabilities
Quick Ratio
2021 1243873
2
1189198
6146335 1.83
2020 7152550 1187752 5182458 1.15
2019 5675651 944022 3751829 1.26
1.83
1.15
1.26
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2021 2020 2019
Quick Ratio
5

6. Analysing Activity
Inventory Turnover (IT)
year Cost of Goods
Sold
Inventory IT
2021 18525000 1189198 15.31
2020 16618000 1187752 13.96
2019 15733000 944022 16.39
15.31
13.96
16.39
12.5
13
13.5
14
14.5
15
15.5
16
16.5
17
2021 2020 2019
Inventory Turnover
6

7. Average Collection Period (ACP) in
days
year Account
Receivable
Annual Sales ACP
2021 1542321 24271013 0.0635
2020 1073456 17232193 0.0622
2019 955012 20798135 0.0459
0.0635
0.0622
0.0459
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2021 2020 2019
ACP
7

8. Fixed Asset Turnover (FAT)
year Sales Net Fixed
Assets
FAT
2021 24271013 21512012 1.12
2020 17232193 22125321 0.77
2019 20798135 23203001 0.89
1.12
0.77
0.89
0
0.2
0.4
0.6
0.8
1
1.2
2021 2020 2019
FAT
8

9. Total Asset Turnover
year Sales Total Asset TAT
2021 24271013 34052231 0.71
2020 17232193 29377145 0.58
2019 20798135 28965182 0.72
0.71
0.58
0.72
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2021 2020 2019
TAT
9

10. Measures of Debt
year Total Liability Total Assets DR
2021 10776560 34052231 0.31
2020 9572825 29377145 0.32
2019 8066620 28965182 0.28
0.31
0.32
0.28
0.26
0.27
0.28
0.29
0.3
0.31
0.32
0.33
2021 2020 2019
DR
10

11. Debt-equity Ratio
Year Long-term
Debt
Stockholder
Equity
DER
2021 565000 23276000 0.024
2020 505000 19804000 0.025
2019 318000 20899000 0.015
0.024
0.025
0.015
0
0.005
0.01
0.015
0.02
0.025
0.03
2021 2020 2019
11

12. Times Interest Earned Ratio
Year EBIT Interest TIE
2021 141278000 48857000 2.9
2020 493442500 173267000 2.8
2019 436546700 55441000 7.8
2.9 2.8
7.8
0
1
2
3
4
5
6
7
8
9
2021 2020 2019
TIE
12

13. 2021 2020 2019
Gross Profits 6064000 649000 5323000
Sales
2427100
0
1723200
0
2079800
0
Operating Profits
(EBIT) 6814000 1789000 6039000
Net Profits After
Taxes 3471000 -59000 2824000
Total Assets 3405231
2937714
5
2896518
2
Stockholders Equity
2327600
0
1980400
0
2089900
0
Earning Ps / Loss Ps 2.52 -0.04 2.05
Market Price Ps 21.15 17.1 21.27
13

14. Gross Profit Margin 24% 3.76% 25.59%
Operatin Profit Margin 28.07% 10.38% 29.03%
Net Profit Margin 14.30% -0.34% 13.57%
Return on Total Assests 101.93% -0.20% 9.70%
Return On Equity 14.91% -0.29% 13.51%
Earning Ps / Loss Ps 2.52 -0.04 2.05
Price/Earning Ratio 8.39 Loss 10.37
14

15. Profitability Measures
Gross Profit Margin
Year Gross
Profit
Sales Gross
Profit
Margin
2021
6064000 24271000 24%
2020
649000 17232000 3.76%
2019
5323000 20798000 25.59%
0
0.05
0.1
0.15
0.2
0.25
0.3
2021 2020 2019
Gross Profit Margin
15

16. Operating Profit Margin:
Year Operati
ng
Profits
(EBIT)
Sales OPM
2021 6814000 24271000 28.07%
2020 1789000 17232000 10.38%
2019 6039000 20798000 29.03% 0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2021 2020 2019
Operating Profit Margin
16

17. Net Profit Margin:
Year Net Profit
After
Taxes
Sales NPM
2021 3471000 24271000 14.30%
2020 (59000) 17232000 -0.34%
2019 2824000 20798000 13.57%
-0.02
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2021 2020 2019
Net Profit Margin
17

18. Return on Total Assets:
Year Net Profit
After Taxes
Total Assets NPM
2021 3471000 3405231 101.93%
2020 (59000) 29377145 -0.20%
2019 2824000 28965182 9.70% -0.2
0
0.2
0.4
0.6
0.8
1
1.2
2021 2020 2019
Return On Total Assets
18

19. Return On Equity:
Year Net Profit
After
Taxes
Stockhold
ers Equity
NPM
2021 3471000 23276000 14.91%
2020 (59000) 19804000 -0.29%
2019 2824000 20899000 13.51%
-0.02
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
2021 2020 2019
Return On Equity
19

20. Earning Per Share:
Year Earning/Loss Per
Share
2021 2.52
2020 -0.04
2019 2.05
-0.5
0
0.5
1
1.5
2
2.5
3
2021 2020 2019
Earning Per Share
20

21. Price/Earning Ratio:
Year Market Price
Per Share
Earning Per
Share
P/E Ratio
2021 21.15 2.52 8.39
2020 17.1 17.1 Loss
2019 21.27 21.27 10.37
8.39
0
10.37
0
2
4
6
8
10
12
2021 2020 2019
Price/Earning Ratio
21