Professional Documents
Culture Documents
ACTIVITY ANALYSIS OF
HALA ENTERPRISES LTD
SUBMITTED TO:
SIR HAFIZ IMRAN
SUBMITTED BY:
SHAKEEL AHMAD
MB09021 (MBA 4TH MORNING)
1. DEFINITION:
“It is the analysis of how much management is effective to generate sales”
It is divided into two parts:
• Turn over analysis that include following ratios
Asset turnover, Fixed asset turnover, Current asset turnover, Working
capital ratio, Receivables turnover, Inventory turnover
• Period analysis that include following
Collection period, Payment period, Age of inventory, operating cycle
2. YEARS INVOLVED:
• current year 2010
• base year 2009
3. ITEMS INVOLVED:
→ Sales
→total assets
→total fixed assets
→current assets
→working capital
→receivables
→inventory
→ purchases
→payables
4. COMPARITIVE ANALYSIS:
Company with which Hala Enterprises limited has been compared
is Saphhire textiles.
ANALYTICAL TABLE
OPERATING CYCLE
The operating cycle of the company is adding effectiveness of the management
to partial extent as collection period is favorable in this year but inventory turn
over has led the company towards inefficiency. In current period company has
reduced the number of days to complete its one operating cycle by decreasing
collection period. But due to inefficiency shown in inventory management leads
the company to higher carrying cost of inventory that is giving unfavorable point
to the company