engrofoodsratioanalysis-13243618971266-phpapp02-111220002142-phpapp02

7/27/2019 engrofoodsratioanalysis-13243618971266-phpapp02-111220002142-phpapp02

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RATIOS ANALYSIS

Presented by:TOUFEEQ AHMED

Registration # 55302

- arac ns u e o conom csTechnology

Introduction to Business FinanceCourse Facilitator: Sir Sikandar Taj


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Overview:

ENGRO FOODSLIMITED

Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in2004. Using dairy as a stepping stone to enter into the food business, the Companyhas established state-of-the-art processing units in Sukkur and Sahiwal, along with an

ice cream production facility in Sahiwal.

Top quality brands likeOlpers, Olwell, Tarang, Omore and Owsum have beensuccessfully launched under the helm of Companys dairy products. To support thesebrands and their highest standards of quality, Engro Foods has invested heavily inmilk processing and milk collection infrastructure.


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Ratio Analysis

ENGRO FOODS


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Ratio Analysis


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1. Liquidity the ability of the firm to pay its way

2. Investment/shareholders information to enable decisions to be made on the

extent of the risk and the earning potential of a business investment

3. Gearing information on the relationship between the exposure of the business toloans as opposed to share capital

4. Profitability how effective the firm is at generating profits given sales and or its

capital assets

5. Financial the rate at which the company sells its stock and the efficiency with

which it uses its assets

Ratio Analysis


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Ratio AnalysisFinancial Data Val ues in '000

Input Data 2008 2009 2010

Current assets 12,042,221 10,748,871 3,114,550Fixed assets 45,122,518 82,960,567 27,896,393Total assets 57,164,739 93,709,438 31,010,943Average total assets 28,582,370 46,854,719 15,505,472Cash and cash equivalents 1,687,038 3,955,342 808,584Inventory 4,680,896 422,607 2,551,752Average inventory 4,680,896 2,551,752 1,487,179Current liabilities 5,999,353 6,395,469 3,654,457Total liabilities 36,111,133 66,821,200 3,657,304Owners' equity 21,053,606 26,888,238 27,053,639

Number of common shares 212,816,117 297,942,563 327,736,819Average number of common shares 212,816,117 255,379,340 312,839,691Average owners' equity 21,053,606 23,970,922 26,970,939Market price per share 96.46 183.27 193.81

Devidend Paid 425,632 595,885 555,473Book Value per share 98.93 105.29 86.48 Total Sales 23,317,198 30,171,520 26,744,359Operating expenses 1,657,815 195,176 388,652Operating income 4,538,748 4,986,168 4,762,458Other expense 579,556 424,110 38,773Earnings before interest and taxes 6,713,522 6,535,525 1,904,106Interest expense 1,508,948 1,320,579 92,131

Net income 4,240,430 3,957,250 1,675,959


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1. Current Ratio :

Current AssetsCurrent Liabilities

Ratio Analysis

Comments:

1. Liquidity Ratio

12,042,221 2.01 10,748,871 1.68 3,114,550 0.85 5,999,353 6,395,469 3,654,457

2008 2009 2010

== =


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2. Quick Ratio::

Current Assets Inventory Current Liabilities

Ratio Analysis

Comments:

1. Liquidity Ratio

12,042,221 - 4,680,896 = 1.23 10,748,871 - 422,607 = 1.61 3,114,550 - 2,551,752 = 0.15

2008 2009 2010

5,999,353 6,395,469 3,654,457


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3. Net Working Capital Ratio:

Current Assets Current Liability Total Assets

Ratio Analysis

Comments:

1. Liquidity Ratio

12,042,221 - 5,999,353= 0.11 10,748,871 - 6,395,469= 0.05 3,114,550 - 3,654,457 = (0.02)57,164,739

2008

93,709,438 31,010,943

2009 2010


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4. Cash Ratio:

Cash & Cash Equivalent Current Liability

Ratio Analysis

Comments:

1. Liquidity Ratio

1,687,038 = 0.28 3,955,342 = 0.62 808,584 = 0.22 5,999,353 6,395,469 3,654,457

2008 2009 2010


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5. Operating Ratio:

Operating ExpensesOperating Income

Ratio Analysis

Comments:

1. Liquidity Ratio

1,657,815 = 0.37 195,176 = 0.04 388,652 = 0.08 4,538,748 4,986,168 4,762,458

2008 2009 2010


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6. Operating Expenses to Sales :

Operating ExpensesTotal Net Sales

Ratio Analysis

Comments:

1. Liquidity Ratio

1,657,815 = 7.11% 195,176 = 0.65% 388,652 = 1.45%23,317,198 30,171,520 26,744,359

2008 2009 2010


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8. Fixed Assets Turnover Ratio: :

Total SalesFixed Assets If

Ratio Analysis

Comments:

2. Assets Ratio

52% = 23,317,198 36% = 30,171,520 96% = 26,744,35945,122,518 82,960,567 27,896,393

20102008 2009


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9. Total Assets Turnover Ratio :

Total SalesTotal Assets

Ratio Analysis

Comments:

2. Assets Ratio

41% = 23,317,198 32% = 30,171,520 86% = 26,744,35957,164,739 93,709,438 31,010,943

20102008 2009


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10. Assets to Equity Ratio :

Total AssetsOwners Equity

Ratio Analysis

Comments:

2. Assets Ratio

2.72 = 57,164,739 3.49 = 93,709,438 1.15 = 31,010,94321,053,606 26,888,238 27,053,639

20102008 2009


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3 fi bili


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13. Profit Margin Ratio:

Net IncomeTotal Net Sales

Ratio Analysis

Comments:

3. Profitability Ratio

18% = 4,240,430 13% = 3,957,250 6% = 1,675,95923,317,198 30,171,520 26,744,359

2008 2009 2010


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4 D b R i


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15. Total Debt Ratio:

Total LiabilitiesTotal Assets

Ratio Analysis

Comments:

4. Debt Ratio

0.63 = 36,111,133 0.71 = 66,821,200 0.12 = 3,657,304 57,164,739 93,709,438 31,010,943

2008 2009 2010

4 D bt R ti


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16. Interest Coverage Ratio:

EBIT Interest Expense

Ratio Analysis

Comments:

4. Debt Ratio

4.45 = 6,713,522 4.95 = 6,535,525 20.67 = 1,904,106 1,508,948 1,320,579 92,131

2008 2009 2010

4 D bt R ti


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17. Debt/Equity Ratio:

Total Liability Owners Equity

Ratio Analysis

Comments:

4. Debt Ratio

1.72 = 36,111,133 2.49 = 66,821,200 0.14 = 3,657,304 21,053,606 26,888,238 27,053,639

2008 2009 2010

5 Market


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18. Earning Per Share (EPS) Ratio :

Net Income Average No. of Common Stock

Ratio Analysis

Comments:

5. Market Ratio

19.93 = 4,240,430,000 15.50 = 3,957,250,000 5.36 = 1,675,959,000 212,816,117 255,379,340 312,839,691

2008 2009 2010

5 Market


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19. Prince to Earning Ratio :

Market Price Per ShareEarning Per Share

Ratio Analysis

Comments:

5. Market Ratio

4.84 = 96.46 11.83 = 183.27 36.18 = 193.8119.93 15.50 5.36

2008 2009 2010

5 Market


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20. Dividend Payout Ratio:

Dividend Paid Net Income

Ratio Analysis

Comments:

5. Market Ratio

0.10 = 425,632 0.15 = 595,885 0.33 = 555,4734,240,430 3,957,250 1,675,959

2008 2009 2010


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Questions


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