1. Financial Analysis of
Al Ghazi Tractors LTD.

2. Abdul Wahab
Yasir Iqbal
Saba Akram
PRESENTED BY:

3. BRIEFLY INTRO OF AL GHAZI TRACTOR LTD
Al Ghazi tractors LTD was incorporate in 1983.
They first plant in DERA GHAZI KHAN In 1984 &
after that they make their own their main plant in
1985 DERA GHAZI KHA. Now 370 employees
work in AL GHAZI company & they are able to
30,000 tractors are made per annum in single shift.
AL tough their good performance AL FUTTAIM
take over in 1991. His head office in Karachi &
meeting center Lahore, Multan & Islamabad.

7. RATIO ANALYSIS
1. LIQUIDITY RATIO
2. ASSETS MANAGEMENT RATIO
3. DEBT MANAGEMENT RATIO
4. PROFITABLE RATIO
5. MARKET VALUE RATIO

8. 1.LIQUIDITY RATIO
A. CURRENT RATIO
B. QUICK OR ACID TEST RATIO

9. A. CURRENT RATIO
2013 2012
Current Assets = 93,67,867 Current Assets = 90,19,772
Current liabilities = 15,37,894 Current liabilities = 14.74.583
CURRENT RATIO=
CURRENT ASSETS
CURRENT LIABILITES
CURRENT
RATIO (2013)
= 6.09
CURRENT
RATIO (2012)
= 6.12

10. B. QUICK OR ACID TEST RATIO
2013 2012
Current Assets = 93,67,867 Current Assets = 90,19,772
Current liabilities = 15,37,894 Current liabilities = 14,74,583
Inventory = 17,08,898 Inventory = 15,64,270
A/C receivable = 11,457 A/C receivable = 13,734
QUICK RATIO=
𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝐴𝑆𝑆𝐸𝑇𝑆−𝐼𝑁𝑉𝐸𝑁𝑇𝑂𝑅𝑌−𝐴/𝐶 𝑅𝐸𝐶𝐼𝑉𝐸𝐴𝐵𝐿𝐸
𝐶𝑈𝑅𝑅𝐸𝑁𝑇 𝐿𝐼𝐴𝐵𝐼𝐿𝐼𝑇𝐸𝑆
𝑄𝑈𝐼𝐶𝐾
𝑅𝐴𝑇𝐼𝑂 (2013)
= 4.99
𝑄𝑈𝐼𝐶𝐾
𝑅𝐴𝑇𝐼𝑂 (2012)
= 5.07

11. 2.ASSETS MANAGEMENT RATIO
A. INVENTORY TURNOVER RATIO
B. DAYS SALES OUTSTANDING
C. FIXED ASSETS TURNOVER RATIO
D. TOTAL ASSETS TURNOVER RATIO

12. A. INVENTORY TURNOVER RATIO
2013 2012
SALES = 92,62,626 SALES = 1,47,79,564
INVENTORY = 17,08,898 INVENTORY= 15,64,270
INVENTORY TURNOVER RATIO(ITR) =
𝑺𝑨𝑳𝑬𝑺
𝑰𝑵𝑽𝑬𝑵𝑻𝑶𝑹𝒀
𝐼𝑇𝑅(2013) = 5.420 𝐼𝑇𝑅(2012)= 9.448

13. B. DAYS SALES OUTSTANDING
2O13 2012
RECIVEABLE 11,457 RECIVEABLE 13,734
SALES 92,62.626 SALES 1,47.79,564
DSO=
𝑹𝑬𝑪𝑰𝑽𝑬𝑨𝑩𝑳𝑬
𝑨𝑵𝑵𝑼𝑨𝑳 𝑺𝑨𝑳𝑬𝑺/𝟑𝟔𝟓
𝐷𝑆𝑂(2013) = 3.3887 𝐃𝐚𝐲𝐬 𝐷𝑆𝑂(2012)= 9.2925 𝐃𝐚𝐲𝐬

14. C. FIXED ASSETS TURNOVER RATIO
2013 2012
SALES = 92,62,626 SALES = 1,47,79,564
NET FIXED ASSETS = 4,04,433 NET FIXED ASSETS = 3,73,481
FIXED ASSETS TURNOVER RATIO = SALES/NET FIXED ASSETS
𝐹𝐼𝑋𝐸𝐷 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑈𝑅𝑁𝑂𝑉𝐸𝑅 (2013)
= 22.902
𝐹𝐼𝑋𝐸𝐷 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑈𝑅𝑁𝑂𝑉𝐸𝑅 (2012)
= 39.578

15. D. TOTAL ASSETS TURNOVER RATIO
2013 2012
TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70281
SALES 92,62,626 SALES 1,47,79,564
TOTAL ASSETS TURNOVER RATIO=
𝑆𝐴𝐿𝐸𝑆
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑈𝑅𝑁𝑂𝑉𝐸𝑅 𝑅𝐴𝑇𝐼𝑂(2013)
= 0.942
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑈𝑅𝑁𝑂𝑉𝐸𝑅 𝑅𝐴𝑇𝐼𝑂(2012)
= 1.567

16. 3.DEBT MANAGEMENT RATIO
A. TOTAL DEBT TO TOTAL ASSETS
B. TIME INTEREST EARN RATIO

17. A. TOATAL DEBT TO TOTAL ASSETS
2013 2012
TOTAL DEBT = 1,66,306 TOTAL DEBT = 3,86,558
TOTAL ASSETS = 98,26,433 TOTAL ASSETS = 94,70,281
TOTAL DEBT TO TOTAL ASSETS =
𝑇𝑂𝑇𝐴𝐿 𝐷𝐸𝐵𝑇
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
𝑇𝑂𝑇𝐴𝐿 𝐷𝐸𝐵𝑇
𝑇𝑂 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆(2013)
= 0.0169%
𝑇𝑂𝑇𝐴𝐿 𝐷𝐸𝐵𝑇
𝑇𝑂 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆(2012)
= 0.0408%

18. B. TIME INTEREST EARNED RATIO
2013 2012
INTEREST CHARGES =9333+73,393 INTEREST CHARGES =21228+75,894
EBIT = 20,23,294 EBIT = 28,78,795
TIME INTEREST EARNED CHARGES =
EBIT
INTEREST CHARGES
TIME INTTEREST
EARNED RATIO (2013)
= 24.4577
TIME INTEREST
EARNED RATIO (2012)
= 29.6410

19. 4. PROFITABILITY RATIO
A.OPERATING MARGIN
B.PROFIT MARGIN
C.RETURN ON TOTAL ASSETS (ROA)
D.BASIC EARNING POWER (BEP)
E.RETURN ON COMMON EQUITY (ROE)

20. A. OPERATING MARGIN
2013 2012
EBIT = 20,23,294 EBIT = 28,78,795
SALES = 92,62,626 SALES = 1,47,79,564
OPERATING MARGIN =
EBIT
SALES
OPM(2013) = 0.2184% OPM(2012)= 0.1947%

21. B. PROFIT MARGIN
2013 2012
NET INCOME 13,66,057 NET INCOME 19,11,426
SALES 92,62,626 SALES 1,47,79,564
PROFIT MARGIN =
NET INCOME
SALES
PM(2013) = 0.1474 PM(2012)= 0.1293

22. C. RETURN ON TOTAL ASSETS (ROA)
2013 2012
NET INCOME 13,66,057 NET INCOME 19,11,426
TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70,281
ROA =
NET INCOME
TOTAL ASSETS
ROA(2013)= 0.139 ROA(2012)= 0.201

23. D. BASIC EARNING POWER (BEP)
2013 2012
EBIT 20,23,294 EBIT 28,78,795
TOTAL ASSETS 98,26,433 TOTAL ASSETS 94,70,281
BEP =
EBIT
TOTAL ASSETS
BEP(2013)= 0.2059 BEP(2012)= 0.3039

24. E. RETURN ON COMMON EQUITY (ROE)
2013 2012
COMMON EQUITY = 82,18,959 COMMON EQUITY = 79,26,313
NET INCOME = 13,66,057 NET INCOME = 19,11,426
ROE =
𝑵𝑬𝑻 𝑰𝑵𝑪𝑶𝑴𝑬
𝑪𝑶𝑴𝑴𝑶𝑵 𝑬𝑸𝑼𝑰𝑻𝒀
ROE(2013) = 0.33023 ROE(2012)= 0.2972

25. 5.MARKET VALUE RATIO
A.PRICE/EARNING RATIO
B.MARKET/BOOK RATIO

26. A. PRICE/EARNING RATIO
2013 2012
PRICE PER SHARE 10 Rs PRICE PER SHARE 10 Rs
EARNING PER SHARE 31.94Rs EARNING PER SHARE 44.62 Rs
PRICE/EARNING RATIO =
PRICE PER SHARE
EARNING PER SHARE
𝑃𝑅𝐼𝐶𝐸/𝐸𝐴𝑅𝑁𝐼𝑁𝐺 𝑅𝐴𝑇𝐼𝑂(2013) = 0.3130%
𝑃𝑅𝐼𝐶𝐸/𝐸𝐴𝑅𝑁𝐼𝑁𝐺 𝑅𝐴𝑇𝐼𝑂(2012) = 0.2241%

27. B. MARKET/BOOK RATIO
COMMON EQUITY 82,18,959 COMMON EQUITY 79,26,313
SHARES OUTSTANDING 20000000 SHARES OUTSTANDING 20000000
BOOK VALUE 0.42 BOOK VALUE 0.34319
PER SHARE PER SHARE
MARKET PRICE 10 MARKET PRICE 10
PER SHARE PER SHARE
MARKET/BOOK =
𝑴𝑨𝑹𝑲𝑬𝑻 𝑷𝑹𝑰𝑪𝑬 𝑷𝑬𝑹 𝑺𝑯𝑨𝑹𝑬
𝑩𝑶𝑶𝑲 𝑽𝑨𝑳𝑼𝑬 𝑷𝑬𝑹 𝑺𝑯𝑨𝑹𝑬
MARKET/BOOK(2013) = 23.80 MARKET/BOOK(2012)= 29.13