NAME M.

AMIR (MS120152071) (FSA ) (BBA7 TH DEP’T) (IBS KUST)

CHERAT CEMENT COMPANY LTD RATIO ANALYSIS REPORT FOR “2017 AND 2018 ”
Liquidity Ratios 2017 2017 2018 2018
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 𝟒, 𝟓𝟔𝟖, 𝟕𝟔𝟖 6,281,822
1.77670205 1.7198663
Current Ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝟐, 𝟓𝟕𝟏, 𝟒𝟖𝟖 3652506
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 3,594,181 5,339,912
1.397704753 1.4619858
Quick Ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 2571488 3652506

Activity Ratios
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐺𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑 6,432,281 11,249,153
Inventory 11times
𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 14Times
Turnover 974587 941910

𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑖𝑒𝑣𝑎𝑏𝑙𝑒𝑠 1022353 1709038

Average Collection 18days
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑠𝑎𝑙𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦 12days
period 26426 39420

𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑝𝑎𝑦𝑎𝑏𝑙𝑒𝑠 1,990,431 812,964

Average payment
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒 𝑝𝑒𝑟 𝑑𝑎𝑦 6,432,281/36 18days 11,249,153/36 31days
period
5 5
𝑆𝑎𝑙𝑒𝑠 9,645,399 14,388,349
Total Asset 0.51
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 0.47
Turnover 18,806,750 30519561

Debt Ratios
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 2,571,4888 3,652,506
Debt Ratio 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 18,806,7500 0.136732184 0.1196775
30,519,561

Time Interest 𝐸𝐵𝐼𝑇 2,147,367 2,509,791

14.33 times 7.02 times
Earned Ratio 𝑇𝑎𝑥𝑒𝑠 15,248 553,229
Profitability Ratios
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 3,213,118 3,139,196
Gross Profit 33.31%
𝑆𝑎𝑙𝑒𝑠 21.817625
margin 9,645,399 14,388,349

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡 2,698,006 2,503,952

Operating profit 27.97%
𝑆𝑎𝑙𝑒𝑠 14,388,349 17.402636
margin 9,645,399

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 1,956,562 2,132,119

20.28%
Net Profit Margin 𝑆𝑎𝑙𝑒𝑠 14.818371
9,645,399 14,388,349

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 1,956,562 2,132,119

Earnings Per share 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 11.08
176,631,853 12.07
Ratios 176,631,853

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 1,956,562 2132119

Return on Total
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡 10.40% 7%
Asset 18,806,750 30519561
𝑵𝒆𝒕 𝑷𝒓𝒐𝒇𝒊𝒕 1956562 2132119
Return on 𝒄𝒐𝒎𝒎𝒐𝒏 𝒔𝒕𝒐𝒄𝒌 𝒆𝒒𝒖𝒊𝒕𝒚 19.96%
19.71%
common equity 10,461,707 11,173,748

Market Ratios
𝑀𝑘𝑡 𝑃𝑟𝑖𝑐𝑒 𝑝. 𝑠. 𝑜𝑐 10 16.14 10 8.05
Price Earnings
𝐸𝑝𝑠
Ratio 12.05 11.08
𝐶𝑜𝑚𝑚𝑜𝑛 𝑠𝑡𝑜𝑐𝑘 𝑒𝑞𝑢𝑖𝑡𝑦 10,461,707 178.78 2132119 97.23
Market Book Ratio 𝑁𝑜 𝑜𝑓 𝑆ℎ𝑎𝑟𝑒 𝐶. 𝑂. 𝑆 1,766,318
1,766,318
 Liquidity Ratios Reasons for effects in Ratios
2017 2018 The liquidity of the Company has shown a steady trend due to
healthy profits and better management of working capital. Since
Current Ratio 1.77 1.71 the Company is in continuous expansion, the liquidity position
has been consistent to back up the needs of the Company.
Quick Ratio 1.40 1.47

Activity Ratios
Inventory The Company managed to substantiate its financial position by
6.60 Times 12 times enhanced inventory management and increased operating cycle
Turnover
due to increase in sales.
Average Collection
39 43.356
period

Average Payment
21 12
Period

Total Asset
0.51 0.47
Turnover

Debt Ratios
During the year, the Company increased its debt to cater the
Debt Ratio 14% 12% financing needs for expansion projects. Early repayments have also
been made owing to the healthy cash flows during the year. The
Company also managed its financing at competitive rates to finance
Debt to Equity 31.63 56.81 expansion projects, hence managed its gearing at desirable level

Time Interest
14.33 7.02
Earned Ratio

Profitability Ratios
Gross Profit Profitability ratios of the Company have declined due to decrease
33.31% 21.81% in
margin
retention, increase in fuel power cost and finance cost. However,
Operating profit
the Company has managed to increase its sales in quantitative
28% 17.40% terms Cost of sales also increased due to increase in fuel and
margin
power cost because of increase in international coal prices and
Net Profit Margin
20.28%
15% foreign currency fluctuations, and depreciation expense. Fixed
cost per ton has reduced due to higher quantity produced during
Earnings Per share 11.08 the year. In line with this, the Company has managed to sustain its
12.07
Ratios profitability and return of equity during the year 2018.

Return on Total 10.40350938

6.9860736
Asset

Return on common 18.70212959

19.081502
equity

Market Ratios
16.14 8.05 Unforeseen political issues of the country have affected the share
Price Earnings
Ratio
price during the year, however, the investor confidence has been
maintained due to stable and improved growth in the financial
3.04 1.54 position of the Company. Earnings per share (after tax) has
Market Book Ratio improved as compared to last year due to tax benefits availed by
the Company from expansion of Line