Business Finance I

Financial Report
(Financial Ratio Analysis Only)
Company: Gul Ahmed Textile (Pvt) Limited.

Business Finance

Institute of Business & Technology

g Submitted By: Muhammad Tauqeer Ahmad

Submission Date: 2009

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Business Finance I

Company History
The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in textiles in the early 1900s. With all its know-how and experience, the group decided to enter the field of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private limited company, in the year 1953. In 1972 it was subsequently listed on the Karachi Stock Exchange. Since then the company has been making rapid progress and is one of the best composite textile houses in the world. The mill is presently a composite unit with an installed capacity of 130,296 spindles, 223 wide width air jet looms, and a state of the art processing and finishing unit.

List of Membership of Trade Bodies and Organization

The Karachi Stock Exchange (Guarantee) Limited. Lahore Stock Exchange (Guarantee) Limited. All Pakistan Textile Mills Association. Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association. All Pakistan Bed sheets & Upholstery Manufacturers Association. Karachi Cotton Association. Chamber of Commerce & Industry, Karachi. Employees Federation of Pakistan. All Pakistan Textile Processing Mills Association

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Business Finance I

Horizontal Analysis of Financial Statements,

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Vertical Analysis of Financial Statements,

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Profit And Loss Account, (For the Year Ended June 30, 2009)

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FINANCIAL RATIOS

2009 LIQUIDITY
Current Ratio Current Assets Current Liabilities 0.95

2008

0.9

Quick Ratio

Current Assets-Inventory Current Liabilities

0.39

0.42

ACTIVITY
Inventory Turnover (Days) Cost of Good Sold Inventory 107 95

Average Collection Period (Days)

Average Accounts Receivable Average Daily Sales

66

77

Average Payment Period (Days)

Accounts Payable Average Daily Purchasees

76

61

Total Asset Turnover

Sales Total Assets

1.07

1.05

DEBT.
Debt Ratio Total Liabilities Total Assets 0.77 0.78

Times Interest Earned Ratio

Earnings before Interest and Taxes Interest Expense

1.16

1.27

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Business Finance I

FINANCIAL RATIOS

2009 PROFITABILITY
Gross Profit Margin Gross Profits Sales 16.81

2008

15.14

Operating Profit Margin

Operating Profits Sales

13.7

12.5

Net Profit Margin

Earnings available for common stockholders Sales

0.58

0.88

Earning Per Share

Earnings available for common stockholders Number of shares of common stock outstanding

1.45

1.86

Return On Total Assets

Earnings available for common stockholders Total Assets

0.6

0.83

Return On common Equity

Earnings available for common stockholders Common stock equity

2.73

3.79

MARKET
Price/Earning Ratio Market price per share of common stock Earning per share 26.79 21.51

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Assessment 2009-2008
Good

Summary
2009 2008
Current Ratio Current Assets Current Liabilities 0.95 0.9

Liquidity

Quick Ratio

Current Assets-Inventory Current Liabilities

0.39

0.42

Poor

Inventory Turnover (Days)

Cost of Good Sold Inventory

107

95

Poor

Activity

Average Collection Period (Days)

Average Accounts Receivable Average Daily Sales

66

77

Good

Average Payment Period (Days)

Accounts Payable Average Daily Purchasees

76

61

Poor

Total Asset Turnover

Sales Total Assets

1.07

1.05

Poor

Debt Ratio

Total Liabilities Total Assets

0.77

0.78

Good

Debt.

Times Interest Earned Ratio

Earnings before Interest and Taxes Interest Expense

1.16

1.27

Poor

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2009 2008 Assessment 2009-2008
Good

Gross Profit Margin

Gross Profits Sales

16.81

15.14

Operating Profit Margin

Operating Profits Sales

13.7

12.5

Good

Profitability

Net Profit Margin

Earnings available for common stockholders Sales

0.58

0.88

Poor

Earning Per Share

Earnings available for common stockholders Number of shares of common stock outstanding Earnings available for common stockholders Total Assets

1.45

1.86

Poor

Return On Total Assets

0.6

0.83

Poor

Return On common Equity

Earnings available for common stockholders Common stock equity

2.73

3.79

Poor

Market

Price/Earning Ratio

Market price per share of common stock Earning per share

26.79

21.51

Good

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