ammar ratios slide
TRANSCRIPT
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In the name of ALLAH whose most Gracious and Merciful
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Col. Aon Mehmood. MBE-10-63
M. Ammar Mazhar. MBE-10-15
Shahid Baloch. MBE-10-55 Ali irfan Gohar. MBE-10-31
Eram Zahid. MBE-10-56
Fakhara Sajid. MBE-10-19
Farah Manzoor. MBE-10-27
M. Sarfraz. MBE-10-64
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Bank reconciliation Statement.
Notes receivables.
Company Profile. Companys Financial analysis:
1. Companys Balance Sheet.
2. Companys Profit and Loss.
Conclusion.
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KAPCO was built by WAPDA in 1985 to 1996 atKot Addu.
On June 2005 it was privatized and 18% shares areheld by general public.
KAPCO comprises of 15 genrating plants.
The total capacity of the plant is 1600mw.
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To be a leading power generationcompany, driving to exceed our shareholders expectations and meet our
customers requirements.
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Chairman
Mr. Shakeel Durrani
CEOMr. Aftab MahmoodButt
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Director:
Mr. Malcolm Peter Clampin
Director:Mr. Anwar ul Haque
Director:
Mr. Khalid Rashid
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Director:Mr. Garry Anthony Elseworth
Director:
Mr. Saleem Akhtar
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Kapco is managed through a suite of agrementsbetween it and its customers (WAPDA), theseincludes.
i. Power Purchase Agreement (PPA)
ii. Gas Supply Agreement (GSA)
iii. Oil Supply Agreement (OSA)
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It is a financial report whichshows assets and liabilities of
an organization.
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Assets
OwnersEquityLiabilities
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Assets Amount
Liabilities Amount
Current Assets:
Fixed Assets:
Short term Liabilities:
Long Term Liabilities:
Owners equity.
Total Total
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Liquidity Ratios
Current ratio (working capital ratio) =Current assets
Current liabilities
Year 2:=
Year 1: =
$715,000
$695,000
$665,000
$700,000
=
1.03
= 0.95
(Industry average = 1.5)
The ratio, and therefore Gis ability to meet its short-term obligations, hasimproved, though it is low compared to the industrys average
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0
0.5
1
1.5
22.5
3
3.5
4
4.5
2004 2005 2006 2007 2008 2009
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Liquidity Ratios
Quick ratio =Cash equivalents + Market securities + Net receivables
Current liabilities
(Year 2) =
(Year 1) =
$50,000 + $75,000 + $300,000
$695,000
$35,000 + $65,000 + $290,000
$700,000
= 1.03
= 0.95
(Industry average = 0.80)
The industry average of .80 is higher than Gis ratio, which indicates thatGi may have trouble meeting short-term needs.
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0
0.5
1
1.5
2
2.5
3
2004 2005 2006 2007 2008 2009
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Inventory turnover in days =Average inventory
Cost of goods sold / 365
=
=
= 105.80 days
365 days
Inventory turnover
365 days
3.45
This ratio indicates the average number of days required to sell inventory.
Activity Ratios
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0
10
0
30
40
50
60
70
005 006 007 008 009
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Activity Ratios
Accounts receivable turnover in days =Gross receivables
Net credit sales / 365
=
= 60.83days
365 days
Receivable turnover
This ratio indicates the average number of days required to collect accountsreceivable.
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0
20
0
60
80
100
120
1 0
2005 2006 2007 2008 2009
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Activity Ratios
Total asset turnover =Net sales
Total assets
=
= 0.69 times
$1,800,000
$2,615,000
This ratio is an indicator of how Gi makes effective use of its assets. A highratio indicates effective asset use to generate sales.
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0
0.2
0.4
0.6
0.8
1
1.2
2005 2006 2007 2008 2009
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Muhammad Ammar Mazhar
Roll.No
MBE-10-15
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It is a financial report whichshows assets and liabilities of
an organization.
-
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Assets
OwnersEquityLiabilities
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Assets Amount
Liabilities Amount
Current Assets:
Fixed Assets:
Short term Liabilities:
Long Term Liabilities:
Owners equity.
Total Total
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Liquidity Ratios
Current ratio (working capital ratio) =Current assets
Current liabilities
Year 2: =
Year 1: =
$715,000
$695,000
$665,000
$700,000
= 1.03
= 0.95
(Industry average = 1.5)
The ratio, and therefore Gis ability to meet its short-term obligations, hasimproved, though it is low compared to the industrys average
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0
0.5
1
1.5
22.5
3
3.5
4
4.5
2004 2005 2006 2007 2008 2009
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Liquidity Ratios
Quick ratio =Cash equivalents + Market securities + Net receivables
Current liabilities
(Year 2) =
(Year 1) =
$50,000 + $75,000 + $300,000
$695,000
$35,000 + $65,000 + $290,000
$700,000
= 1.03
= 0.95
(Industry average = 0.80)
The industry average of .80 is higher than Gis ratio, which indicates thatGi may have trouble meeting short-term needs.
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0
0.5
1
1.5
2
2.5
3
2004 2005 2006 2007 2008 2009
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Inventory turnover in days =Average inventory
Cost of goods sold / 365
=
=
= 105.80 days
365 days
Inventory turnover
365 days
3.45
This ratio indicates the average number of days required to sell inventory.
Activity Ratios
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0
10
0
30
40
50
60
70
005 006 007 008 009
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Activity Ratios
Accounts receivable turnover in daysAccounts receivable turnover in days =Gross receivables
Net credit sales / 365
=
= 60.83days
365 days
Receivable turnover
This ratio indicates the average number of days required to collect accountsreceivable.
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0
20
0
60
80
100
120
1 0
2005 2006 2007 2008 2009
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Activity Ratios
Total asset turnover =Net sales
Total assets
=
= 0.69 times
$1,800,000
$2,615,000
This ratio is an indicator of how Gi makes effective use of its assets. A highratio indicates effective asset use to generate sales.
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0
0.2
0.4
0.6
0.8
1
1.2
2005 2006 2007 2008 2009