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Maha Shah
Vu Askari Team www.vuaskari.com

NBP Ratio Analysis 100% Sure solved By Maha Shah Note: Please Do Not Copy and Paste and Try To understand first then solve..
Current Ratio Current Assets / Current Liabilities

2008 584,977,140 / 682,905,461 = 0.86 Times

2009 645064165 / 725,293,720 = 0.89 Times

2010 693463983 / 867,626,368 = 0.80 Times

Working 2008 Current Assets = Cash & Balances with treasury banks + Balances with other banks + Ledning To financial Institutions + Investments(Current Portion) + Advances(Current Portion) + Other Assets(Current Portion) Current Assets = Rs.106,503,756 + Rs.38,344,608 + Rs.17,128,032 + Rs.107571177 + Rs.289,717,810 + Rs.25711757 Current Assets=Rs.584,977,140 Current Liabilities = Bills Payable + Borrowings (Current Portion) + Deposits & other Accounts (Current Portion) + Other Liabilities (Current Portion) + Liabilities against assets subject to finance lease (Current Portion) Current Liabilities = Rs.10,219,061 + Rs.37,409,288 + Rs.614,538,859 + Rs.20721736 + Rs.16517 Current Liabilities= Rs.682,905,461 Working 2009 Current Assets = Cash & Balances with treasury banks + Balances with other banks + Ledning To financial Institutions + Investments(Current Portion) + Advances(Current Portion) + Other Assets(Current Portion) Current Assets = Current Assets= Rs.115,827,868 + Rs.28,403,964+ Rs.19,587,176+

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Rs.146,662,386 + Rs.310,524,676 + Rs.24,058,095 Current Assets= Rs.645,064,165 Current Liabilities = Bills Payable + Borrowings (Current Portion) + Deposits & other Accounts (Current Portion) + Other Liabilities (Current Portion) + Liabilities against assets subject to finance lease (Current Portion) Current Liabilities = Rs.10,621,169 + Rs.37,057,189+ Rs.655,031,896 + Rs.22,563,058 + Rs.20,408 Current Liabilities= Rs.725,293,720 Working 2010 Current Assets = Cash & Balances with treasury banks + Balances with other banks + Ledning To financial Institutions + Investments(Current Portion) + Advances(Current Portion) + Other Assets(Current Portion) Current Assets = Rs.115,442,360 + Rs.30,389,664 + Rs.23,025,156 + Rs.198,003,008 +
Rs.29,522,1811 + Rs.31,381,984 Current Assets= Rs.693,463,983

Current Liabilities = Bills Payable + Borrowings (Current Portion) + Deposits & other Accounts (Current Portion) + Other Liabilities (Current Portion) + Liabilities against assets subject to finance lease (Current Portion) Current Liabilities = Rs.8,006,629+ Rs.17,154,131+ Rs.816,172,863 + Rs.26,248,782 + Rs.43,963 Current Liabilities= Rs.867,626,368

Acid Test Ratio

Current Assets Inventories Prepaid Expense / Current Liabilities Working: Particulars Current Assets - Prepaid Expense/ Current Liabilities 2008 (584977140 2721269) / 682,905,461 2009 =(64506416515,023,537) / 725,293,720 2010 =(6934639832,303,510) / 867,626,368

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Acid test Ratio =582,255,871 / 682,905,461 = 630040628 / 725,293,720 =691160473/ 867,626,368

= 0.85

=0.87

=0.80

Note#13 Advances, deposits, advance rent and other prepayments

Working Capital
Current Assets Current Liabilities Working: Particulars Current Assets Less: Current Liabilities Working Capital

2008 584977140 682,905,461 (97928321)

2009 645064165 725,293,720 (80229555)

2010 693463983 867,626,368 (174162385)

Times Interest Earned

Earning before Income Tax (EBIT) / Interest Expense Working: 2008 EBIT = Profit before tax + interest expense EBIT = 23,000,998 + 23884768 EBIT= 468,857,66 (EBIT) / Interest Expense = 468,857,66 / 23884768 (EBIT) / Interest Expense = 1.96 Working: 2009 EBIT = Profit before tax + interest expense EBIT = 21300173 + 40489649 EBIT=61789822 (EBIT) / Interest Expense = =61789822 / 40489649 (EBIT) / Interest Expense = 1.53

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com

Working: 2010 EBIT = Profit before tax + interest expense EBIT = 24415119+45250476 EBIT=69665595 (EBIT) / Interest Expense = 69665595 / 45250476 (EBIT) / Interest Expense = 1.54

Debt Ratio
Total Liabilities / Total Assets Working: Particulars Total Liabilities / Total Assets

2008 715299108 / 817,758,326

2009 825,676,384 / 944,582,762

2010 906,528,852 / 1,035,024,680

Debt Ratio

0.875

0.874

0.876

Debt/Equity Ratio
Total Liabilities / Total Shareholder Equity Working: Particulars Total Liabilities / Total Shareholder Equity Debt/Equity Ratio 2008 715,299,108 / 81367002 2009 825,676,384 / 94141919 2010 906,528,852 / 103762310

=8.78

=8.77

=8.74

Total Assets, Total Liabilities & Total Shareholder Equity = Amount taken from UnConsolidated Balance Sheets Total Shareholder Equity = Share capital + Reserves + Unappropriated profit

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Composed & Solved

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Vu Askari Team www.vuaskari.com

Debt to Tangible Net worth Ratio

Total Debt / Tangible Net Worth Tangible Net Worth = Total Assets Intangible Assets Total Liabilities Working: Particulars Total Debt / Tangible Net Worth 20082009 715,299,108 / 825,676,384 / 102453293 Debt to Tangible Net worth Ratio 6.9817 118888848 2010 906,528,852 / 128487598

6.945

7.055

Working 2008 Tangible Net Worth = Total Assets Intangible Assets Total Liabilities Tangible Net Worth = 817,758,326 5925 - 715,299,108=102453293 Working 2009 Tangible Net Worth = Total Assets Intangible Assets Total Liabilities Tangible Net Worth = 944,582,762 17530 - 825,676,384=118888848 Working 2010 Tangible Net Worth = Total Assets Intangible Assets Total Liabilities Tangible Net Worth = 1,035,024,680 8230 - 906,528,852=128487598 Total Assets and Total Liabilities = Amount taken from Un-Consolidated Balance Sheets Intangible Assets = Amount Take from Operating Fixed Assets

Total Capitalization Ratio

Long Term Debt / (Long Term Debt + Shareholder Equity) Working: Particulars Long Term Debt / (Long Term Debt + Shareholder Equity) 2008 =32393647 / 2009 =100382664 / 2010 =38902484 /

(81367002+32393647) (94141919+100382664) (103762310+38902484)

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Composed & Solved

Maha Shah
Total=0.284 Capitalization Ratio

Vu Askari Team www.vuaskari.com =0.516

=0.272

Long Term Debt = Total Liabilities Current liabilities

Working 2008 Long Term Debt = 715,299,108 - 682,905,461=32393647 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 8,969,751+ 19,941,047+52,456,204 = 81367002

Working 2009 Long Term Debt = 825,676,384 - 725,293,720=100382664 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 10763702+22681707+60696510 = 94141919

Working 2010 Long Term Debt = 906,528,852 - 867,626,368=38902484 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 13454628+24450244+65857438= 103762310

a) Profitability Ratios Net Profit Margin Return on Assets DuPont Return on Assets Operating Income Margin Return on Operating Assets Return on Total Equity Gross Profit Margin

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Net Profit Margin (Net Profit after Taxation / Net Sales)*100 Working: 2010 Net profit margin = (17563214 / 88472134) *100 Net profit margin = 19.85% Working: 2009 Net profit margin = (17561846 / 77947697) *100 Net profit margin = 22.53% Working: 2008 Net profit margin = 15,458,590 / 60,942,798 *100 Net profit margin = 25.36% Return on Assets (EBIT / Total Assets) x 100 Working: 2010 EBIT = Profit before tax + interest expense EBIT = 24415119+45250476 EBIT=69665595 Return on Assets = 69665595 / 1,035,024,680 *100 Return on Assets = 6.73% Working: 2009 EBIT = Profit before tax + interest expense EBIT = 21300173 + 40489649 EBIT=61789822 Return on Assets = 61789822 / 944,582,762 *100 Return on Assets = 6.54% Working: 2008 EBIT = Profit before tax + interest expense EBIT = 23,000,998 + 23884768 EBIT= 468,857,66 Note: Solve these papers by yourself This VU Group is not responsible for any solved content www.vuaskari,com

Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Return on Assets = 468,857,66/ 817,758,326 *100 Return on Assets = 5.73% DuPont Return on Assets (Net Income / Sales) x (Sales / Total Assets) * 100 Working: 2010 DuPont Return on Assets = Net income / Sales x Sales / Total Assets DuPont Return on Assets = (17563214 / 88472134) x (88472134 / 1,035,024,680)* 100 DuPont Return on Assets = 1.683% Working: 2009 DuPont Return on Assets = Net income / Sales x Sales / Total Assets DuPont Return on Assets = (17561864 / 77,947,697) x (77,947,697 / 944,582,762)* 100 DuPont Return on Assets = 1.845% Working: 2008 DuPont Return on Assets = Net income / Sales x Sales / Total Assets DuPont Return on Assets = (15,458,590 / 60,942,798) x (60,942,798 / 817,758,326 )* 100 DuPont Return on Assets = 1.889% Operating Income Margin Earnings before Income Tax (EBIT) / Net Sales * 100 Working: 2010 EBIT = Profit before tax + interest expense EBIT = 24415119+45250476 EBIT=69665595 Operating Income Margin = 69665595 / 88,472,134 *100 Operating Income Margin = 78.74% Working: 2009 EBIT = Profit before tax + interest expense EBIT = 21300173 + 40489649 Note: Solve these papers by yourself This VU Group is not responsible for any solved content www.vuaskari,com

Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
EBIT=61789822 Operating Income Margin = 61789822 / 77,947,697 *100 Operating Income Margin = 79.27% Working: 2008 EBIT = Profit before tax + interest expense EBIT = 23,000,998 + 23884768 EBIT= 468,857,66 Operating Income Margin = 468,857,66/ 60,942,798 *100 Operating Income Margin = 76.93%

Return on Operating Assets Earnings before Income Tax (EBIT) / Operating Assets * 100 Working: 2010 EBIT = Profit before tax + interest expense EBIT = 24415119+45250476 EBIT=69665595 Operating Assets = Cash and balances with treasury banks + Advances + lending to financial institutions + operating fixed assets Operating Assets = 115,442,360+477,506,564+23,025,156+26,888,226 = 642,862,306 Return on Operating Assets = [69665595 / 642,862,306] *100 Return on Operating Assets = 10.84% Working: 2009 EBIT = Profit before tax + interest expense EBIT = 21300173 + 40489649 EBIT=61789822 Operating Assets = Cash and balances with treasury banks + Advances + lending to financial institutions + operating fixed assets Operating Assets = 115,827,868+475,243,431+19,587,176+25,147,192 = 635,805,667 Note: Solve these papers by yourself This VU Group is not responsible for any solved content www.vuaskari,com

Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com

Return on Operating Assets = [61789822/ 635,805,667 ] *100 Return on Operating Assets = 9.72% Working: 2008 EBIT = Profit before tax + interest expense EBIT = 23,000,998 + 23884768 EBIT= 468,857,66 Operating Assets = Cash and balances with treasury banks + Advances + lending to financial institutions + operating fixed assets Operating Assets = 106,503,756+412,986,865+ 17,128,032+24,217,655 = 560,836,308 Return on Operating Assets = =[468,857,66/ 560,836,308] *100 Return on Operating Assets = 8.36%

Return on Total Equity (Net Profit after Taxation / Total Equity) x 100 Working: 2010 Net Income = 17,563,214 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 13454628+24450244+65857438= 103762310 Return on Total Equity = 17,563,214 / 103762310 *100 Return on Total Equity = 16.19% Working: 2009 Net Income = 17,561,864 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 10763702+22681707+60696510 = 94141919 Return on Total Equity = 17,561,864 / 94141919 *100 Return on Total Equity = 18.63% Working: 2008

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Net Income = 15,458,590 Total Shareholder Equity = Share capital + Reserves + Unappropriated profit Total Shareholder Equity = 8,969,751+ 19,941,047+52,456,204 = 81367002 Return on Total Equity = 15,458,590 / 81367002*100 Return on Total Equity = 18.97% Gross Profit Margin (Gross Profit / Net Sales) x 100 Working: 2010 Gross Profit Margin = 43,221,658 / 88472134 *100 Gross Profit Margin = 48.85%

Working: 2009 Gross Profit Margin = 37,458,048 / 77947697 *100 Gross Profit Margin = 48.05%

Working: 2008 Gross Profit Margin = 37,058,030/ 60,942,798 *100 Gross Profit Margin = 60.81%

b) Activity Ratios Total Assets Turnover Fixed Assets Turnover

Total Assets Turnover Net Sales / Total Assets Working: 2010 Total Assets Turnover = Sales / Total Assets Total Assets Turnover = 88472134 / 1,035,024,680 Total Assets Turnover = 0.085 Times

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Working: 2009 Total Assets Turnover = Sales / Total Assets Total Assets Turnover = 77947697 / 944,582,762 Total Assets Turnover = 0.082 Times Working: 2008 Total Assets Turnover = Sales / Total Assets Total Assets Turnover = 60,942,798 / 817,758,326 Total Assets Turnover = 0.0745 Times Fixed Assets Turnover Net Sales / Fixed Assets Note:According to teacher instructions operating fixed assets as fixed assets Working: 2010 Fixed Assets Turnover = Sales / Total Assets Fixed Assets Turnover = 88,472,134 / 26,888,226 Fixed Assets Turnover = 3.29 Times Working: 2009 Fixed Assets Turnover = Sales / Total Assets Fixed Assets Turnover = 77,947,697 / 25,147,192 Fixed Assets Turnover = 3.10 Times Working: 2008 Fixed Assets Turnover = Sales / Total Assets Fixed Assets Turnover = 60,942,798 / 24,217,655 Fixed Assets Turnover = 2.52 Times c) Market Ratios Dividend Per Share Earning Per Share Price/Earning Ratio

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Dividend per Share Total Dividend / No No of outstanding shares Working 2010: Dividend per Share = 8,072,777 / 1345462.8 Dividend per Share = 6.00 Rs. Working 2009: Dividend per Share = 5,830,338 / 1076370.2 Dividend per Share = 5.42 Rs. Working 2008: Dividend per Share = 6,115,739 / 896975.1 Dividend per Share = 6.82 Rs. Earning per Share Net Income / Number of Share Outstanding Working: 2010 Earning per Share = 17563214 / 1345462.8 Earning per Share = 13.05 Rs Working: 2009 Earning per Share = 17561864 / 1076370.2 Earning per Share = 16.31 Rs Working: 2008 Earning per Share = 15,458,590 / 896975.1 Earning per Share = 17.23 Rs

Price/Earning Ratio Market Value per Share / Earning per Share Market value per share =(Share Information) Working: 2010

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Composed & Solved

Maha Shah
Vu Askari Team www.vuaskari.com
Price/Earning Ratio = 76.82 / 13.05 Price/Earning Ratio = 5.89 Rs. Working: 2009 Price/Earning Ratio = 74.37 / 16.31 Price/Earning Ratio = 4.56 Rs. Working: 2008 Price/Earning Ratio = 50.32 / 17.23 Price/Earning Ratio = 2.92 Rs.

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