RATIO ANALYSIS

PROFITABILITY RATIO:

1) Gross Profit Ratio:

Gross Profit Ratio=(Gross Profit / Net Sales) ×100

For 2023: Gross Profit Ratio=(39,872,372 / 119,200,293)×100=33.46%

For 2022: Gross Profit Ratio=(26,066,169 / 90,894,049)×100=28.65%

For 2021: Gross Profit Ratio=(14,212,280 / 54,962,265)×100=25.87%

2) Operating Profit Margin:

Operating Profit Margin=

(EBIT / Net Sales)×100

For 2023: Operating Profit Margin=(27,111,391 / 119,200,293)×100=22.76%

For 2022: Operating Profit Margin=(15,916,418 / 90,894,049)×100=17.50%

For 2021: Operating Profit Margin=(8,019,901 / 54,962,265)×100=14.61%

3) Pre-tax Margin (Financial Cost Ratio):

Pre-tax Margin=(EBT/ Net Sales)×100

For 2023: Pre-tax Margin=(21,583,855 / 119,200,293)×100=18.13%

For 2022: Pre-tax Margin=(13,423,468 / 90,894,049)×100=14.77%

For 2021: Pre-tax Margin=(6,872,863 / 54,962,265)×100=12.51%

4) Net Profit Margin (EAT):

Net Profit Margin=(NET PROFIT / Net Sales)×100

For 2023: Net Profit Margin=(20,171,846 / 119,200,293)×100=16.93%

For 2022: Net Profit Margin=(12,359,496 / 90,894,049)×100=13.58%

For 2021: Net Profit Margin=(6,291,571 / 54,962,265)×100=11.45%

ROE=(Net Profit / Average Equity)×100

Average Equity=Equity for the Current Year+Equity for the Previous Year/2

For 2023 : AVG EQ = 43,806,406+29,940,270 / 2= 36,873,338

For 2022 : AVG EQ = 29,940,270+20,514,612 / 2 = 25,227,441

For 2021 : AVG EQ = 20,514,612+ 17,279,692 / 2= 18,897,152

For 2023: ROE=(20,171,846 / 36,873,338 ) ×100≈ 54.63%

For 2022: ROE=(12,359,496 / 25,227,441 )×100=49.02%

For 2021: ROE=(6,291,571 / 18,897,152)×100=33.27%

6) Return on Assets (ROA):

ROA=(Net Profit / Average Total Assets)×100

Average Total Assets=Total Assets for the Current Year+Total Assets for the Previous Year / 2

For 2023: AVG TOTAL ASSETS= 125,244,720+96,315,5302 /2= 110,780,125

For 2022: AVG TOTAL ASSETS= 96,315,530+60,694,8392 / 2= 78,505,184.5

For 2021: AVG TOTAL ASSETS= 60,694,839+45,367,3292 / 2 = 53,031,084

For 2023: ROA=(20,171,846 / 110,780,125 )×100= 18.20%

For 2022: ROA=(12,359,496 / 78,505,184.5 )×100= 15.75%

For 2021: ROA=(6,291,571 / 53,031,084 )×100= 11.85%

7) EARNING PER SHARE (EPS):

EPS=Net Profit / Number of Outstanding Shares

For 2022: EPS=12,359,496,000 / 8,983,635≈8.82 RUPEES

For 2021: EPS=6,291,571,000 / 8,721,975≈7.00 RUPEES

LIQUIDITY RATIO

1) Current Ratio:

Current Ratio=Current Assets / Current Liabilities

For 2023: Current Ratio=65,969,690 / 58,033,198=1.14 Times

For 2022: Current Ratio=61,091,110 / 46,836,517≈1.31 Times

For 2021: Current Ratio=34,087,036 / 27,997,279=1.22 Times

2) Quick Ratio (Acid-Test Ratio):

Quick Ratio=Current Assets - Inventory - Prepayment / Current Liabilities

For 2023: Quick Ratio=65,969,690−19,728,810−671,874 =45,569,006 / 58,033,198=0.75 Times

For 2022: Quick Ratio=61,091,110−23,142,048−998,491=36,950,571 / 46,836,517=0.77 Times

For 2021: Quick Ratio=34,087,036−11,276,308−318,708=22,492,020 / 27,997,279=0.77Times

ACTIVITY RATIO

1) Inventory Turnover (ITO):

ITO=Cost of Sales / Average Inventory

Average Inventory=Stock in Trade for the Current Year+Stock in Trade for the Previous Year / 2

For 2023: Average Inventory=19,728,810+23,142,0482 / 2 =21,435,429

ITO=64,827,880 / 21,435,429≈3.02 Times /120.86 Days

For 2022: Average Inventory=23,142,048+11,276,308 / 2=17,209,178

ITO=64,827,880 / 17,209,178≈3.77 Times / 96.85 Days

ITO=40,749,985 / 10,043,466.5 =4.05 Times / 90.12 Days

2) Receivable Turnover (RTO):

RTO=Net Sales / Average Trade Debtors

For 2023: Average Trade Debtors=34,138,665+28,603,965 / 2=31,371,315

RTO=119,200,293 / 31,371,315=3.80 Times / 96.05 Days

For 2022: Average Trade Debtors=28,603,965+15,052,940 / 2=21,828,453

RTO=90,894,049 / 21,828,453≈4.16 Times / 87.74 Days

For 2021: Average Trade Debtors=15,052,940+ 7,207,391 / 2= 11,130,165.5

RTO=54,962,265 / 11,130,165.5 =4.93 Times / 74.04 Days

3) Payable/Creditor Turnover:

Payable Turnover=Cost of Sales / Average Trade Creditors

Average Trade Creditors=Trade and Other Payables for the Current Year+Trade and Other
Payables for the Previous Year / 2

For 2023: Average Trade Creditors=12,003,908+9,084,790 / 2=10,544,349

Payable Turnover=64,827,880 / 10,544,349≈6.15 Times / 59.35 Days

For 2022: Average Trade Creditors=9,084,790+5,551,641 / 2=7,318,215

Payable Turnover=64,827,880 / 7,318,215≈8.85 Times / 41.24 Days

For 2021: Average Trade Creditors=5,551,641+ 3,031,231 / 2= 4,291,436

Payable Turnover=40,749,985 / 4,291,436 =9.48 Times / 38.50 Days

Operating Cycle=ITO+RTO−PT0

For 2023: Operating Cycle=120.86+96.05−59.35 = 156.20 Days

For 2022: Operating Cycle=96.85+87.74− 41.24 = 151.97 Days

For 2021: Operating Cycle=90.12+74.04− 38.50 = 135.56 Days

Assets Efficiency Ratio:

1) Total Assets Turnover:

Assets Turnover=Net Sales / Average Total Assets

Average Total Assets=Total Assets for the Current Year+Total Assets for the Previous Year / 2

For 2023: Average Total Assets=125,244,720+96,315,530 / 2=110,780,125

Assets Turnover=119,200,293 / 110,780,125≈1.08 Times

For 2022: Average Total Assets=96,315,530+60,694,839 / 2=78,505,184

Assets Turnover=90,894,049 / 78,505,184≈1.16 Times

For 2021: Average Total Assets=60,694,839+45,367,329 / 2=53,031,084

Assets Turnover=54,962,265 / 53,031,084≈1.04 Times

2) Total Fixed Assets Turnover:

Fixed Assets Turnover=Net Sales / Average Total fixed Assets

Average Total Fixed Assets=Total Fixed Assets for the Current Year+Total Fixed Assets for the
Previous Year / 2

For 2023: Average Total Fixed Assets=59,275,030 + 35,224,420/2= 47,249,725

Fixed Assets Turnover=119,200,293 / 47,249,725≈2.52 Times

For 2022: Average Tota fixed Assets= 35,224,420 + 26,607,803 / 2= 30,916,112

Fixed Assets Turnover=90,894,049 /30,916,112≈2.94 Times

For 2021: Average Total fixed Assets= 26,607,803 + 24,921,593 / 2= 25,764,698

SOLVENCY RATIO

1) Debt to Assets Ratio:

Debt to Assets Ratio=Total Non-Current Liabilities / Total Assets

For 2023: Debt to Assets Ratio=23,405,116 / 125,244,720≈0.187x100=18.7%

For 2022: Debt to Assets Ratio=19,538,743 / 96,315,530≈0.203x100=20.3%

For 2021: Debt to Assets Ratio=12,182,948 / 60,694,839≈0.200x100=20%

2) Debt to Equity Ratio:

Debt to Equity Ratio=Total Non-Current Liabilities / Total Equity

For 2023: Debt to Equity Ratio=23,405,116/ 43,806,406≈0.534 x 100=53.4%

For 2022: Debt to Equity Ratio=19,538,743 / 29,940,270≈0.652 x 100=65.2%

For 2021: Debt to Equity Ratio=12,182,948 / 20,514,612≈0.593 x 100=59.3%

3) Financial Leverage Ratio:

Financial Leverage Ratio= Total Assets / Total Equity

For 2023: Financial Leverage Ratio=125,244,720 / 43,806,406≈2.86 Times

For 2022: Financial Leverage Ratio=96,315,530 / 29,940,270≈3.21 Times

For 2021:Financial Leverage Ratio=60,694,839 / 20,514,612≈2.95 Times

4) Interest Coverage Ratio:

Interest Coverage Ratio=EBIT / Finance Cost

For 2023: Interest Coverage Ratio=27,111,391 / 5,527,536≈4.90 Times

For 2022: Interest Coverage Ratio=15,916,418 / 2,492,950≈6.39 Times

For 2021: Interest Coverage Ratio=8,019,901 / 1,147,038≈7.00 Times

PROFITABILITY RATIO

Gross Profit Ratio=14.90%

Operating Profit Margin=10.08%

Pre-tax Margin=5.31%

Net Profit to Sales=3.56%

ROE= 10.47%

ROA=3.30%

Liquidity Ratios

Current Ratio: (2023)

1.11 times

Quick/Acid Test Ratio: (2023)

0.47 times

ACTIVITY RATIO

Inventory Turnover Ratio: (2023)

Debtor Turnover Ratio: (2023)

4.57 times

Creditors Turnover Ratio: (2023)

2.68 times

Operating Cycle Days: (2023)

100 days

Assets Efficiency Ratio

Fixed Assets Turnover Ratio: (2023)

2.23 times

Total Assets Turnover Ratio: (2023)

0.91 times

Solvency Ratio

Debt to equity ratio (2023)

51.99%

Debt to Assets ratio : (2023)

16.86%

Financial leverage ratio (2023)

1.33 times
Interest cover ratio: (2023)

2.11 times

EPS (2023)

5.39 rupees