N

2011
National Food (Pvt) Limited

[FINANCIAL ANALYSIS ]

Financial Analysis of SSGC

Financial Ratios

Unit

2011

2010

Liquidity Current ratio Quick ratio Cash ratio Debt Ratio Debt Total assets Debt total equity Long term debt to Capitalization Coverage Ratios Interest coverage Ratio Activity Ratio Receivable turnover Inventory turnover Account Payable turnOver ACP AAI APP Days Days Days 28.89 149.57 17.88 20.49 135.45 21.45 time time time 20.42 2.44 12.63 17.02 2.69 17.81 time 1.83 0.871 % % % 87.37 66.3 66.22 26.65 68.7 68.10 time time time 1.23 0.20 0.43 1.01 0.19 0.64

Financial Ratios

Unit

2011

2010

Profitability Gross Profit Operating profit Margin Net profit margin Return on equity Return on Assets Earnings per share Operating cycle 2011 OC = AAI + ACP OC = 149.57 +28.89 = 178.46 days 2010 OC = 135.45 +20.49 = 155.94 days Cash Coverage Cycle 2011 CCC = OC APP CCC = 178.46 17.88 = 160.57 2010 CCC = 155.94 21.45 = 134.49 % % % rupee 4.18 27.70 8.08 5.56 1.93 12.39 3.24 2.09 % % 28.51 8.83 29.55 5.76

Liquidity Ratio
Current ratio: 2011
The company has 1.23 assets to cover 1 liability.

Current ratio:2010
The company has 1.01 assets to cover 1 liability The company has better position in 2011 than 2010

Quick acid test ratio: 2011 The company has 0.20 quick assets to fulfill the 1 current liability. Quick acid test ratio:2010 The company has 0.19 quick assets to fulfill the 1 current liability. The company is better in 2011 than 2010,the company has .01 more quick asset than 2010 Cash to current liability: 2011 The company has 0.43 cash to pay its liability Cash to current liability:2010 The company has 0.64 cash to pay its liability Debt Total assets:2011 The total debt asset 87.37% is fianc by owner equity. Debt total asset:2010 The 26.65% is fianc by owner equity. The company is in better position in 2011.

Activity Ratio
Receivable Turnover:2011 The company sales converted into A/R in 20.42 days. Receivable Turnover:2010 The company sales converted into A/R in 17.02 days.

Average Collection Period:2011 The A/R converts into cash in 17.88 days. Average Collection Period:2010 The A/R converts into cash in 21.45 days.
The company collection period in 2011 is 18 days but in 2010 the period is 22 days so in 2011 the company is in better position.

INVENTORY TURNOVER RATIO:2011 Ratio of 2.44 means that the company convert inventory into account receivable through sales 2.44 times in 1years. Inventory Turnover Ratio:2010 Ratio of 2.69 means that the company convert inventory into account receivable through sales 2.69 times in 1years. Average age of Inventory:2011 The company takes 149.57 days to converted inventories into sales. Average age of Inventory:2010 The company takes 135.54 days to converted inventories into sales. Account payable Turnover:2011 The company made purchases 12.63 times on credit basis. Account payable Turnover:2010 The company made purchases 17.81 times on credit basis. Average payment Period:2011 The A/P of the company converted into cash in 28.89 days. Average payment Period:2010 The A/P of the company converted into cash in 20.49 days.

PROFITABILITY RATIOS
Gross Profit:2011 Gross profit margin of 0.2851 means that for every rupee 1 of sales that firm makes 28.51% in G.P Gross Profit:2010 Gross profit margin of 0.2955 means that for every rupee 1 of sales that firm makes 29.55% in G.P Operating Profit:2011 Operating profit margin of 0.0883 means that for every rupee 1 of sales that firm makes 8.83% in O.P Operating Profit:2010 Operating profit margin of 0.0576 means that for every rupee 1 of sales that firm makes 5.76% in O.P Net Profit Margin:2011 Every rupee 1 of sales that firm makes 4.18% in N.P Net Profit Margin:2010 Every rupee 1 of sales that firm makes 1.93% in N.P Return on Equity:2011 Return on equity means that it uses every rupees of shareholders equity to generate 27.70% in profit. Return on Equity:2010 Return on equity means that it uses every rupees of shareholders equity to generate 12.39% in profit. Return on Asset:2011 The company return on asset is 8.08% Return on asset:2010 The company return on asset is 3.24%

Conclusion
After the ratio analysis of financial statement of NATIONAL FOODS it has been concluded that the company is earning good profit. But in the future company need to approved and get more profit .

Vision & Mission

Our vision is to be a Rs. 50 billion food company by the year 2020 in the convenience food segment by launching product and services in the domestic and international market that enhance life style and create value for our customers through management excellence at all levels.

Acknowledgement
The preparation of this report owes a great deal too many individual and organization. The main support for this report Sui Southern Gas Company Limited .We would also like to thank to Information Centre & reception management for their kindness. We are always thankful to HR department who prefer meeting with finance department. We wish to thank particularly Mr.Iftikhar for his own special commitment to this project.

Executive Summary
In this report the analysis of financial statement of Sui Southern Gas Company Limited. The SSGC is a big company to providing a Product and service for supply of Sui gas as well as home and industries use. The core values of this company, Keeping Companys interest above oneself .Practicing and promoting ethical business environment. Taking effective actions if there is deviation in behavior or situation. Being honest and living within means. Making positive contribution towards the achievement of SSGCs vision.

Subject:

Financial analysis of Sui Southern Gas Company

Dear Madam

This is the report of financial analysis of Sui Southern Gas Company. This report is effort of Mr.Adnan, & Mr. Ahmad Tallal. In this report we compare the balance sheet of 2011 with balance sheet 2010 & find out result. In this report: Liquidity Ratios Debt Ratios Activity Ratios OC & CCC Profitability Ratios

By this analysis we find out result compare with previous result. Interpret each ratio and its mean. We got a lot of information by this analysis about financial changes in organization its loss and profit margin.

Financial Management Project

Submitted To:

Mam Ammara

Submitted By:

Intkhab Alam Ahmad Raza Kyani