INTRODUCTION TO

BUSINESS FINANCE
SUBMITTED TO: MISBAH IQBAL
SUBMITTED BY: SARAH GHULAM

12

CONTENTS
PAKISTANS ECONOMY .......................................................................................................................... 5
RATIO ANALYSIS...................................................................................................................................... 7
LIQUIDITY ANALYSIS ......................................................................................................................... 7
CURRENT RATIO:.............................................................................................................................. 7
QUICK RATIO/ ACID TEST RATIO: ................................................................................................ 7
NET WORKING CAPITAL ................................................................................................................. 7
LEVERAGE RATIOS .............................................................................................................................. 8
DEBT RATIO: ...................................................................................................................................... 8
EQUITY RATIO: ................................................................................................................................. 8
DEBT TO EQUITY RATIO: ................................................................................................................ 8
TIMES INTEREST EARNED.............................................................................................................. 8
FUNDED DEBT TO NET WORKING CAPITAL: ............................................................................. 9
EFFICIENCY RATIOS/TURNOVER RATIOS ...................................................................................... 9
AVERAGE COLLECTION PERIOD: ................................................................................................. 9
INVENTORY TURNOVER: ............................................................................................................... 9
TOTAL ASSETS TURNOVER: .......................................................................................................... 9
NET WORTH TURNOVER: ............................................................................................................. 10
NET WORKING CAPITAL TURNOVER: ....................................................................................... 10
PROFITIBILITY RATIOS ..................................................................................................................... 11
GROSS PROFIT MARGIN: ............................................................................................................... 11
OPERATING PROFIT MARGIN: ..................................................................................................... 11
NET PROFIT MARGIN: .................................................................................................................... 11
RETURN ON ASSETS: ..................................................................................................................... 12
RETURN ON NET WORTH: ............................................................................................................ 12
EQUITY RATIO .................................................................................................................................... 12
EARNING PER SHARE: ................................................................................................................... 12
PRICE TO EARNING RATIO ........................................................................................................... 12
APPENDIX .................................................................................................................................................... 13
I: INCOME STATEMENT ........................................................................................................................... 13
II: BALANCE SHEET .................................................................................................................................. 14
III. COMMON SIZE STATEMENT .............................................................................................................. 15
3

INCOME STATEMENT .......................................................................................................................... 15

BALANCE SHEET .................................................................................................................................. 16
IV: RATIOS ............................................................................................................................................... 17
CONCLUSION............................................................................................................................................... 19

PAKISTANS ECONOMY
Pakistan economic survey is an overview of the countrys economy provided by the countrys
ministry of finance. According to the survey the economy is showing signs of modest recovery.
The commodity producing sectors and especially the agriculture sector are doing better. Some
improvement is also witnessed in the Large Scale Manufacturing (LSM) sector. The Service
sector also gained from healthy trade activities and the improvements in the commodity
producing sectors. The smooth functioning of the supply chains is playing a key role in
improving the economic situation and ensuring the availability of essential items. Pakistan has
the potential to grow at 6 to 7 percent in the next couple of years.
The GDP growth for 2011-12 was projected at 4.2 percent. However, the torrential rains in Sindh
province during August 2011 compelled the government to revise its GDP growth target to 3.6
percent.
According to the survey the commodity producing sector grew 3.28 percent which included
the growth of the agricultural sector by 3.13 percent and manufacturing sector by 3.56 percent.
The services sector grew by 4.02 percent which included the growth of transport sector by 1.25
percent and wholesale/retail trade by 3.58 percent.
THE MANUFACTURING SECTOR has remained under stress for the last several years due
to energy shortages and poor law and order situation. The heavy floods also depressed the supply
chain and affected market demand. The share of the manufacturing sector in GDP was 17.7
percent in 2001-02 which has increased in 2011-12 to 18.6 percent of GDP. The sector has been
hard hit by international and domestic factors, which caused the slowing down of its output. The
growth was 3.56 percent compared to the growth of 3.06 percent last year.
Manufacturing has three main sub-components; namely the Large-Scale Manufacturing (LSM),
Small Scale Manufacturing and Slaughtering. Small scale manufacturing maintained its growth
of last year at 7.51 percent and slaughtering growth is estimated at 4.46 percent against 4.38
percent last year. Large Scale Manufacturing (LSM) has also witnessed a slight improvement. It
has shown a growth of 1.78 percent against the growth of 1.15 percent last year. The major LSM
industries which registered notable growth include; refrigerators 7.56 percent, sugar 27.09
percent, beverages 10.60 percent, liquid/syrup 15.93 percent, injection 6.53 percent, soaps and
detergents 8.15 percent, buses 25.0 percent, electric bulbs 15.02 percent, electric transformers
27.72 percent etc. On the whole 38 major industries group recorded positive growth. The
industries which reported negative growth include; cooking oil -1.61 percent, motor tyres -25.73
percent, T.V. sets -22.19 percent and deep freezers -49.47 percent etc.
Wholesale and Retail Trade Sector: In 2011-12, this sector grew at 3.58 percent as compared
to 3.53 percent in the last year.

Contribution to Real GDP Growth

Pakistani society has a high marginal propensity to consume which is why consumption is the
major sub-component of aggregate demand. Private consumption expenditure has increased to 75
percent of GDP, whereas public consumption expenditures are 13 percent of GDP. Total
consumption has reached 88.35 percent of GDP in fiscal year 2011-12 compared to 83 percent in
the last fiscal year. Private consumption has increased because of increase in remittances and
rural income due to elevated production.
The share of investment in GDP growth remained negative. A number of factors responsible for
this decline include: decreased foreign direct investment, the decline in the external demand of
the domestic production, serious energy shortages, unstable law and order situation and higher
interest rates in the recent years. The contribution of net exports has also been negative. The
balance between investment and consumption has been disturbed from 2008-09 onwards due to
domestic and external shocks. Contribution of fixed investment to economic growth has become
negative since 2008-09 whereas domestic demand continued to be the most significant driving
force for economic growth, with private consumption being the major driver for sustaining
aggregate demand.
Prospects of Economic Growth: Pakistans economy is resilient. This resilience comes from
the potential as well as the growth in remittances and in the informal economy. Despite positive
developments including the easing of inflation and reduction in fiscal deficit, Pakistans
economy remains in an unsteady state with slow growth, fragile macroeconomic fundamentals,
and heightened vulnerability to balance of payments shock. Key problems affecting the economy
include energy shortages and a host of structural impediments that have held back investment
and growth. Reinitiating the privatization process will attract foreign investment for Pakistan.
Investment may also be attracted from the Middle East in agriculture and livestock sectors. Many
of these countries need an assured supply of items like wheat, rice, milk, poultry meat, edible oil,
flowers, fruit and vegetables and are ready to invest on the basis of long-term supply contracts.
Pakistans middle class has expanded and is currently estimated at 35 percent of the population.
A vibrant middle class not only generates demand of goods and services but also the savings
required to fund productive investments. Moreover, the middle class households provide a
breeding ground for the professional and skilled labour force. Such human capital is essential for
growth in the long run.
The rising trend of youth entrepreneurship in Pakistan has produced a strong demonstration
effect for others to follow. These young entrepreneurs have the potential to cause a paradigm
shift in the economic fortunes of Pakistan. The opening up of trade with India is another major
initiative that can boost economic growth by providing greater market access as well as easy and
cheaper availability of raw materials for domestic producers

RATIO ANALYSIS
LIQUIDITY ANALYSIS
CURRENT RATIO:

FY 12: The current ratio of Quice foods industries limited for the year 2012 is 52.36:1. This is
very high, as it shows that for every Rs. 1 of liability Quice foods have 52.36 of assets.
FY 11: The current ration for Quice foods in this year is 4.27:1. Although 2-3:1 is the desirable
ration but as Quice is a FMCG, so 4.27 is a good ratio, as this kind of firms require high
liquidity.
INDUSTRY COMPARISION: The industry average is 19.18:1. This shows that as compared to
the industry the company is being too conservative. This will negatively affect the long term
growth of the company.
QUICK RATIO/ ACID TEST RATIO:

FY 12: In this year the quick ratio of Quice foods was 43.92:1. The difference in the current ratio
and acid test ratio shows that the company is keeping a lot of its assets as inventory. As Quice
foods deal in perishable products keeping high levels of inventory is risky.
FY 11: The quick ratio for the financial year 2011 was 3.21:1. It shows a more realistic picture,
as inventory is the least liquid of all the current assets, and is not easily convertible into cash. So
this shows that for every Rs. 1 of liability the company has Rs. 3.21 of assets.
INDUSTRY COMPARISION: The industry average is 15.51, which is lower than FY12s quick
ratio. This shows that the company is keeping more than required current assets. The difference
in the current and quick acid average also shows the industry does not require high levels of
inventory.
NET WORKING CAPITAL

FY 12: the net working capital shows how much capital we use for the day to day business. The
net working capital for the financial year 12 is Rs. 157,414,182.
FY 11: the net working capital for the previous year was Rs. 59,663,476. This shows that the
companys current assets increased in the FY 12 and current liabilities decreased in FY 12.
INDUSTRY COMPARISION: On average the firms in the industry has a net working capital of
Rs. 53,190,281 that is very low as compared to Quice. This shows that is Quice is not thinking of
its long run development.

LEVERAGE RATIOS
DEBT RATIO:

FY 12: the debt ratio for FY12 is 32.47%. It means 32.47% of the company is financed to debt.
Most of the companys assets are financed by equity. This reduces the fixed cost of interest.
FY 11: The debt ratio for FY12 is 110.53% which means that only the companys assets are
totally financed by debt, the company is totally running on debt.
INDUSTRY COMPARISION: on average the firms in the food industry have a debt ratio of 47.6
%. According to this the company did very bad in FY11 but recovered in FY12 by bringing
down its liability and increasing the equity.
EQUITY RATIO:

FY 12: In FY12 the firm is financed through equity as it consist of 67.53% of the total capital.
This is good for the company as now both the fixed costs and risk will reduce.
FY11: the equity ratio of the firm in FY11 is -10.53%. This is extremely bad as this show that
the equity is creating a further debt on the firm.
INDUSTRY COMPARISION: When we compare FY12s equity ratio to the industry average of
76.7%, we see that the company is not being risk averse and only taking the acceptable amount
of debt.
DEBT TO EQUITY RATIO:

FY 12: the debt to equity ratio of FY12, .48:1, shows that the debt is almost half time the
companys equity.
FY11: the debt to equity ratio of FY11 is -10.49:1. It is in negative as the equity for this year is
negative due to the losses carried forward from the previous years.
INDUSTRY COMPARISION: the industry average is 0.32:1. This shows most of the firms in
the industry have a low level to debt as compared to equity, and that in FY12 the firm is playing
safe by only taking the necessary amount of debt.
TIMES INTEREST EARNED

FY 12: the times interest earned for FY12 is 538.74 times. This means that with the given profit
(EBIT) you can pay 538.74 times the interest you are paying right now.
FY11: the times interest earned in FY11, 164.14 times, is lower as compared to FY12 because
previously the company was completely financed by debt and the financial costs were high.
INDUSTRY COMPARISION: the industrys average is 754, which is again very high. This
means the most of the firms in the industry are not going for interest bearing liabilities. As they
do not want their profits to go into the payment of high interests.
8

FUNDED DEBT TO NET WORKING CAPITAL:

FY12: this ratio shows the comparison between the working capital and the long term liabilities
of the company. The FY12 ratio of .44:1 is very good as it shows that for every 44 paisa there is
Rs. 1 of net current asset.
FY11: the ratio for FY11 is 1.58:1, which is not good as there are not enough current assets to
pay the long term debt.
INDUSTRY COMPARISION: the industry average is .30:1 which shows that most of the firms
in the industry have double the amount of net working capital to pay off the long term liabilities.

EFFICIENCY RATIOS/TURNOVER RATIOS

AVERAGE COLLECTION PERIOD:

FY 12: In FY12 the company collects its receivables in 234 days. This shows that the debtors are
given enough time to repay their loan.
FY11: In FY11 the company collection period was 153 days, previously the debtors had less
time to pay back their liabilities.
INDUSTRY COMPARISION: on average the industry the firm in the food industry gives 84
days to debtors. A higher payback ACP than the industry would increase the credit sales of the
company and also increase the profits. However the firm might face liquidity issue as now the
cash in hand would be low.
INVENTORY TURNOVER:

FY 12: This shows that how many times in a year your inventory is converted into the cost of
goods sold. In FY 12 Quice foods convert its inventory into COGS 4.73 times a years.
FY11: the inventory turnover for FY11 was 5.80 times. It shows that the inventory was selling
more quickly than now
INDUSTRY COMPARISION: the industry average is also high, it is 4.01times. This is mainly
because food is a fast moving good so the sales are frequent and inventory is easily converted
into sales.
TOTAL ASSETS TURNOVER:

FY 12: The total assets turnover shows how many times a companys assets are converted into
sales. Quice total assets turnover for FY12 is .83 times. This means not even once all the assets
are converted into sales which is not good for the company.
FY11: Quice foods total assets turnover for FY11 was 1.12 times which was better than latest
financial year, as it was higher.

INDUSTRY COMPARISION: The industry average is 1.30 times, which is way higher than
Quice foods total assets turnover for the financial year 2012. The company should try to increase
its sales and invest more of its assets into inventory, in order to improve its assets turnover ratio.
NET WORTH TURNOVER:

FY12: The net worth turnover is very important from the shareholders perspective as it tells that
every Rs. 1 invested in the business is generation how much revenue. The net worth ratio for
Quice foods is 1.217% which is good as it is high.
FY11: The net worth turnover of Quice foods for FY11 was negative as the equity was negative.
This means that the equity is negatively affecting the sales revenue.
INDUSTRY COMPARISION: The industrys average is .203 times. This mean the industry is
not generating enough return on investment. It is good for Quice to have a higher ratio than the
industry as it will attract the investors to invest in Quice foods.
NET WORKING CAPITAL TURNOVER:

FY 12: The net working capital shows whether the investment in Current assets and current
liability give us any return or not. A ratio of 1.16 times is very good as it show that our current
assets are converted into revenue more frequently.
FY 11: In FY11 Quice had a turnover of 1.90 which shows the companys currents assets and
liabilities converted almost twice in that year,
INDUSTRY COMPARISION: The industrys net working capital turnover is 4.813 times, which
is very high as compared to Quice. This shows that the firms in the industry are generating a lot
of revenue through current assets and liabilities, so Quice should try to make its net current
assets more efficient and productive.

10

PROFITIBILITY RATIOS
GROSS PROFIT MARGIN:

FY 12: The GP margin for this year is 34.54%. This shows that around 65% of the sales went
into sales, which is very high. A company should have a higher GP margin so that it is left with
high retained earnings after deducting other expenses, taxes and dividends.
FY 11: The GP margin for the FY11 is 6.64% which is extremely low. It rings the bells and tells
the company that they need to get more profits out of the goods produced/purchased.
INDUSTRY COMPARISION: On average the firms in the food industry are earning 38.23%
gross profit which is a good amount of profit. So Quice foods should try to increase its profit as
there is a potential in the industry to get high profits.
OPERATING PROFIT MARGIN:

FY 12: The operating profit shows us whether the company is putting more of its revenue from
sales in cost of goods sold or operating expense. The operating profit margin for FY12 is
18.76%. By comparing it with cost of goods sold we see that around half of the revenue from
gross profit is eaten up by operating expenses.
FY 11: The operating profit ratio for the financial year 2011 was 4.13%. This is low however
when we compare it with GP margin, we get to know that the operating expense for the previous
year were low
INDUSTRY COMPARISION: The operating profit margin for the industry is 24.6% which is
much higher than Quice margin for FY 12. This again shows that the profit potential in the
industry is hug and that Quice should increase its profits. Moreover it shows that the industry is
not spending a lot on its operating expenses unlike Quice.
NET PROFIT MARGIN:

FY 12: The net profit shows the earnings available to common stock holder it is thus the most
important for share holders. The NP margin for FY 12 is 18.76%. It is same as operating profit
because there is no tax, and even the interest was minimal.
FY 11: The net profit margin for financial year 2011 was 1.59% which is almost nothing. An
increase in NP profit margin from 1.59% to 18.76% is incredible.
INDUSTRY COMPARISION: The industry average for net profit margin is 14.7%. This shows
the firm is earning higher profit than the industry as right now the firm does not have to pay any
taxes due to the losses in the previous year. However it might create problem in the future when
the firm will have to pay the taxes.

11

RETURN ON ASSETS:

FY 12: This gives us a more realistic measure of return on investment as compared to the
turnover. The ROA for the FY 12 is 15.42% which is very good. But as the turnover is low this
mean the total return is less.
FY 11: Last year in financial year 2011 the firm had a very low return on assets of just 1.78%.
This was due to low profits in that year. The company recovered from it in FY 12.
INDUSTRY COMPARISION: The industry average for ROA is 12.1% which is lower than that
of Quice foods. Quice foods, is earning more return on its fixed assets as compared to other firms
in the industry.
RETURN ON NET WORTH:

FY 12: The return on net working capital is 22.84% which is good as it shows that we are
utilizing our current assets and liabilities well. Moreover both high turnover and high return
shows that the overall return is high.
FY 11: The return on net working capital for FY11 was -16.89%. It is negative as the equity in
FY11 was negative.
INDUSTRY COMPARISION: On average a firm in this industry has a return of 16.5 %. This
shows that Quice food return is much higher and the share holders would be interested in
investing into this company.

EQUITY RATIO
EARNING PER SHARE:

FY 12: The earning per share for this year is Rs. 1.09 per share. This shows how much of the
EACS is return of each share
FY 11: The earning per share for financial year 2011 was Rs. 0.17 per share which is extremely
low. This was due to the low amount of Net profit.
INDUSTRY COMPARISION: The Industry average is Rs. 12.98 per share which is way higher
than that of Quice foods. The reason behind this could be the comparatively low profits. Quice
foods need to increase its earnings per share to attract more investors.
PRICE TO EARNING RATIO

FY 12: It tells the overall desirability of the firm. The P/E ratio for FY12 is Rs. 9.2 per share.
The higher the P/E ratio the better
FY11: The P/E ratio for the financial year 2011 was Rs.15.29 per share. It was higher previously
because the earning per share was low in financial year 2011.
INDUSTRY COMPARISION: 6.4
12

APPENDIX
I: INCOME STATEMENT
INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE 2012
2012
2012
Rs.
Rs.
INCOME FROM CONTINUED OPERATIONS
SALES
182,381,665.00
113,632,066.00
LESS: COST OF SALES
(119,385,506.00)
(106,085,042.00)
GROSSPROFIT
62,996,159.00
7,547,024.00
LESS: OPERATING EXPENSES
DISTRIBUTION COST
(8,472,190.00)
(6,134,504.00)
ADMINISTRATION EXPENSE
(10,905,924.00)
(11,535,493.00)
OTHER OPERATING EXPENSE
(91,980.00)
(340,233.00)
TOTAL OPERATING EXPENSES
(19,470,094.00)
(18,010,230.00)
ADD: OTHER INCOME
ADJUSTEMENT OF LONG TERM FINANCING
(9,674,962.00)
15,151,669.00
GAIN ON CURRENCY REVALUATION
68,420.00
OTHER INCOME
361,492.00
771.00
TOTAL INCOME
(9,245,050.00)
15,152,440.00
EARNINGS BEFORE INTEREST AND TAX
34,281,015.00
4,689,234.00
LESS INTEREST
(63,505.00)
(28,568.00)
EARNINGS BEFORE TAX
34,217,510.00
4,660,666.00
LESS TAX
EARNINGS FROM CONTINUED OPERATIONS
34,217,510.00
4,660,666.00
LESS: LOSS ON DISCONTINUED OPERATIONS
(2,853,129.00)
EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS
34,217,510.00
1,807,537.00
LESS DIVIDENDS
ADDITION TO RETAINED EARNINGS
34,217,510.00
1,807,537.00

13

II: BALANCE SHEET

2012

2011

Rs.

Rs.

61,406,026.00

23,689,568.00

Rs.

Rs.

ISSUED SHARE CAPITAL

326,735,000.00

106,875,000.00

RESERVES

(176,889,206)

(117,578,435.00)

149,845,794.00

(10,703,435.00)

3,064,705.00

2,167,653.00

CURRENT ASSETS
STORES AND SPARES

662,900.00

662,900.00

CURRENT LIABILITY

STOCK IN TRADE

25,222,475.00

18,292,799.00

PAYABLES

TRADE DEBTS
LOANS AND
ADVANCES

118,700,546.00

48,216,103.00

10,950,755.00

7,108,280.00

PREPAID TAX

20,185.00

20,185.00

CASH AND BANK

4,922,026.00

3,630,862.00

LONG TERM LIABILITY

160,478,887.00

77,931,129.00

LON TERM FINANCING

STAFF RETIREMENT
BENEFITS

TOTAL ASSETS

2011

EQUITY

FIXED ASSETS
PROPERTY PLANT AND EQUIPMENT

2012

221,884,913.00

101,620,697.00

CURRENT PORION LONG

TERM LIABILITY

TOTAL EQUITY AND

LIABILITY

16,100,000.00

3,064,705.00

18,267,653.00

67,736,998.00

93,306,036.00

1,237,416.00

750,443.00

68,974,414.00

94,056,479.00

221,884,913.00

101,620,697.00

14

III. COMMON SIZE STATEMENT

INCOME STATEMENT
INCOME STATEMENT FOR THE YEAR ENDED 30TH JUNE 2012
2012
%
%
INCOME FROM CONTINUED OPERATIONS
SALES
100.00000
LESS: COST OF SALES
(65.45916)
GROSSPROFIT
34.54084
LESS: OPERATING EXPENSES
DISTRIBUTION COST
(4.64531)
ADMINISTRATION EXPENSE
(5.97973)
OTHER OPERATING EXPENSE
(0.05043)
TOTAL OPERATING EXPENSES
(10.67547)
ADD: OTHER INCOME
ADJUSTEMENT OF LONG TERM FINANCING
(5.30479)
GAIN ON CURRENCY REVALUATION
0.03751
OTHER INCOME
0.19821
TOTAL INCOME
(5.06907)
EARNINGS BEFORE INTEREST AND TAX
18.79631
LESS INTEREST
(0.03482)
EARNINGS BEFORE TAX
18.76149
LESS TAX
EARNINGS FROM CONTINUED OPERATIONS
18.76149
LESS: LOSS ON DISCONTINUED OPERATIONS
EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS
18.76149
LESS DIVIDENDS
ADDITION TO RETAINED EARNINGS
18.76

2012

100.0000
(93.3584)
6.6416
(5.3986)
(10.1516)
(0.2994)
(15.8496)
13.3340
0.0007
13.3347
4.1267
(0.0251)
4.1015
4.1015
(2.5108)
1.5907
1.5907

15

FIXED ASSETS
PROPERTY PLANT AND
EQUIPMENT

BALANCE SHEET
BALANCE SHEET AS AT 3O JUNE 2012/11
2012

2011

2012

2011

Rs.

Rs.

Rs.

Rs.

EQUITY
27.67

23.31

ISSUED SHARE CAPITAL

RESERVES

CURRENT ASSETS

147.25

105.17

(80)

(115.70)

67.53

(10.53)

STORES AND SPARES

0.30

0.65

CURRENT LIABILITY

STOCK IN TRADE

11.37

18.00

PAYABLES

1.38

2.13

TRADE DEBTS

53.50

47.45

LOANS AND ADVANCES

4.94

6.99

CURRENT PORION
LONG TERM LIABILITY

15.84

PREPAID TAX

0.01

0.02

1.38

17.98

CASH AND BANK

2.22

3.57

LONG TERM LIABILITY

72.33

76.69

30.53

91.82

100.00

100.00

LON TERM FINANCING

STAFF RETIREMENT
BENEFITS

0.56

0.74

31.09

92.56

TOTAL ASSETS

TOTAL EQUITY AND

LIABILITY

100.00

100.00

16

IV: RATIOS
Title & Formula

Industry Average

FY12

FY11

52.36:1

4.27:1

19.18:1

43.92:1

3.21:1

15.51:1

157,414,182

59663476

32.47%

110.53%

0.476

Equity Ratio
Total Equity
Total Asset

67.53%

-10.53%

0.767

Debt to Equity Ratio

Total Debt
Total Equity

.48:1

(10.49) :1

0.321

538.74
times

164.14
times

754 times

.44:1

1.58:1

0.304

Liquidity Ratios

Current Ratio
Current Asset
Current liabilities
Quick Ratio
Current Asset - Inventory
Current Liabilities
Net Working Capital
Current Asset - Current liabilities

53190281

Leverage Ratios
Total Debt to Total Asset Ratio
Total Debt
Total Assets

Times Interest Earned

Earning Before Interest and Tax
Interest Expense
Funded Debt to Net Working Capital
Funded Debt
Net Working Capital

17

Efficiency Ratios
Average Collection Period
Receviables * 360
Net sales

234days

153days

84 days

4.73 times

5.80 times

4.01times

.82 times

1.12 times

1.3times

1.22%

-10.62%

0.203

1.16:1

1.90:1

4.813

Gross Profit Margin

Gross Profit *100
Net Sales

34.54%

6.64%

38.23%

Operating Profit Margin

Operating Profit *100
Net Sales

18.76%

4.13%

24.60%

Net Profit Margin

Net Profit *100
Net Sales

18.76%

1.59%

Inventory Turnover
Cost of Sales
Inventory
Total Asset Turnover
Net Sales
Total Assets
Net Worth Turnover
Net Sales
Net Worth
Net Working Capital Turnover
Net Sales
Net Working Capital
Profitability Ratios

14.70%

18

Return on Assets
Net Profit
Inventory
Return on Net working
capital

15.42%

1.78%
12.10%

22.84%

-16.89%

16.50%

1.09

0.17

1.09

9.2

15.29

6.4

Equity Ratios
Earning Per Share (EPS)
Net Profit
No of Common Shares Outstanding
Price to Earning Ratio
Market Price per Share
Earning Per Share

CONCLUSION
Quice have a negative equity because of the negative reserves in the previous year, this is the
reason Quice does not have to pay tax. Quice financial position is good right now but Quice will
have to give dividends to attract more investors as it is the only direct return that the share
holders get.

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