The document analyzes various financial ratios of Fauji Cement Company Limited from 2021 to 2019. It calculates liquidity, activity, debt, and profitability ratios such as current ratio, quick ratio, inventory turnover, debt ratio, gross profit margin, return on assets, and earnings per share. The ratios indicate that in 2021 the company had higher liquidity and profitability compared to previous years.

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

2. pg. 2
Financial Ratios of Fauji Cement Company Limited
Analysing Liquidity
Net Working Capital (NWC)
NWC = Current Assets - Current Liabilities
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. pg. 3
Current Ratio (CR):
Current Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
year Current Assets Current Liabilities Current Ratio
2021 12438732 6146335 2.023
2020 7152550 5182458 1.38
2019 5675651 3751829 1.51
The calculation of current ratio shows that Fauji Cement Company is well
secured in this region. Its current ratio 2.023 in 2021 is more than previous year
ratio 1.38 which indicates that Fauji Cement Company has enough assets to pay
its short term debts
2.023
1.38
1.51
2 0 2 1 2 0 2 0 2 0 1 9
CURRENT RATIO

4. pg. 4
Quick Ratio
Quick Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
year Current Assets inventory Current
Liabilities
Quick Ratio
2021 12438732 1189198 6146335 1.83
2020 7152550 1187752 5182458 1.15
2019 5675651 944022 3751829 1.26
The calculation of the quick ratio shows that company is well secured in this
region Fauji Cement Company’s quick ratio in 2021 is 1.83 while in 2020 it is
1.15 which indicate that company can easily meet its short term liabilities even
its position with respect to the inventory turnover is also better so company is
secured in paying its short term debts
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. pg. 5
Analysing Activity
Inventory Turnover (IT)
Inventory Turnover =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
year Cost of Goods Sold Inventory IT
2021 18,206,880 1189198 15.31
2020 16,582,605 1187752 13.96
2019 15,474,771 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
IT

6. pg. 6
Average Collection Period (ACP) in days
ACP =
𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑒𝑠
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. pg. 7
Fixed Asset Turnover (FAT)
FAT =
𝑆𝑎𝑙𝑒𝑠
𝑁𝑒𝑡 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠
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. pg. 8
Total Asset Turnover
TAT =
𝑆𝑎𝑙𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
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. pg. 9
Measures of Debt
Debt Ratio
DR =
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
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. pg. 10
Debt-equity Ratio
DER =
𝐿𝑜𝑛𝑔−𝑡𝑒𝑟𝑚 𝐷𝑒𝑏𝑡
𝑆𝑡𝑜𝑐𝑘ℎ𝑜𝑙𝑑𝑒𝑟 𝐸𝑞𝑢𝑖𝑡𝑦
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. pg. 11
Times Interest Earned Ratio
TIE =
𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝑩𝒆𝒇𝒐𝒓𝒆 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 & 𝑻𝒂𝒙𝒆𝒔
𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕
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. pg. 12
Profitability Measures
Gross Profit Margin :
GPM =
𝑮𝒓𝒐𝒔𝒔 𝑷𝒓𝒐𝒇𝒊𝒕
𝑺𝒂𝒍𝒆𝒔
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 ProfitMargin

13. pg. 13
Operating Profit Margin:
OPM =
𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝑷𝒓𝒐𝒇𝒊𝒕𝒔 (𝑬𝑩𝑰𝑻)
𝑺𝒂𝒍𝒆𝒔
Year Operating
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 ProfitMargin

14. pg. 14
Net Profit Margin:
NPM =
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝑨𝒇𝒕𝒆𝒓 𝑻𝒂𝒙𝒆𝒔
𝑺𝒂𝒍𝒆𝒔
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 ProfitMargin

15. pg. 15
Return on Total Assets:
ROA =
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒂𝒇𝒕𝒆𝒓 𝑻𝒂𝒙𝒆𝒔
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

16. pg. 16
Return On Equity:
ROE =
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 𝒂𝒇𝒕𝒆𝒓 𝑻𝒂𝒙𝒆𝒔
𝑺𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔 𝑬𝒒𝒖𝒊𝒕𝒚
Year Net Profit
After Taxes
Stockholders
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

17. pg. 17
Earning Per Share:
EPS =
𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝑨𝒗𝒂𝒊𝒍𝒂𝒃𝒍𝒆 𝒇𝒐𝒓 𝑪𝒐𝒎𝒎𝒐𝒏 𝑺𝒕𝒐𝒄𝒌𝒉𝒐𝒍𝒅𝒆𝒓𝒔
𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒔𝒉𝒂𝒓𝒆𝒔 𝒐𝒇 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌𝒔 𝒐𝒖𝒕𝒔𝒕𝒂𝒏𝒅𝒊𝒏𝒈
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

18. pg. 18
Price/Earning Ratio:
P/E =
𝑴𝒂𝒓𝒌𝒆𝒕 𝑷𝒓𝒊𝒄𝒆 𝒑𝒆𝒓 𝑺𝒉𝒂𝒓𝒆 𝒐𝒇 𝑪𝒐𝒎𝒎𝒐𝒏 𝑺𝒕𝒐𝒄𝒌
𝑬𝒂𝒓𝒏𝒊𝒏𝒈 𝑷𝒆𝒓 𝑺𝒉𝒂𝒓𝒆
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