ratio analysis- textile industry
TRANSCRIPT
RATIO ANALYSIS- TEXTILE INDUSTRY
Presented by:
Aleena Inayat
Hassan Hanif
Haseeb Abid Kiani
M. Naeem Riaz
Presentation layout
Introduction of textile sector Introduction of companies
Ahmad Hassan Textile Mills Bhanero Textile Mills Nishat Mills Limited
Ratio Analysis Comparison of the companies Conclusion
Textile sector of Pakistan
4th largest cotton producer in the world 8th largest exporter of textile products Contribution to GDP- 8.5% Employment to 15 million people- 30%
of the workforce Annual volume of world textile trade
growing at 2.5%- Pakistan's share less than one percent
Textile sector of Pakistan
Growth from 2005 to 2007 Decline in 2008- global financial and
economic meltdown Government’s vision for textile industry
2005-2010 Whole of textile sector is included in list of value
added industries 5% custom duty on imported machinery if not
manufactured locally Tax relief: Initial Depreciation allowance (IDA) at
50% of machinery & equipment cost
Textile sector of Pakistan
Export plan 2006-13 Increase exports to $24.36 billion
Introduction of companies- Ahmad Hassan Textile Mills
Mission statement To achieve & sustain good reputation in
international market by manufacturing quality products.
Management of timely deliveries & quality assurance.
Ensure a consistent quality & timely deliveries & shipments, by carrying all the time cotton yarn stock of 90-180 days production
Introduction of companies- Ahmad Hassan Textile Mills
Incorporated in 1989 Products
Cotton fabrics Cotton yarn Textile all sorts
Main business type- exporter Major importers of its yarn
America Hong Kong Sri Lanka
Introduction of companies- Bhanero Textile Mills
Vision statement A Premier Quality Company, Providing
Quality Products and Maintaining an Excellent Level of Ethical and Professional Standards
Mission statement To become a leading manufacturer of
textile products in the International & local markets and to explore new era to Achieve the highest level of success
Introduction of companies- Bhanero Textile Mills
Umar group of companies established in 1982 Bhanero textile mills Faisal spinning mills ltd Blessed textiles ltd
Products Cotton yarn High and medium end cotton products
Introduction of companies- Bhanero Textile Mills
State of the art equipment Diverse product range Weak R&D facilities Small international market share Weak brand name
Introduction of companies- Nishat Mills Limited
Vision statement To transform the Company into a modern and dynamic
yarn, cloth and processed cloth and finished product manufacturing Company that is fully equipped to play a meaningful role on sustainable basis in the economy of Pakistan
Mission statement To provide quality products to customers and explore
new markets to promote/expand sales of the Company through good governance and foster a sound and dynamic team, so as to achieve optimum prices of products of the Company for sustainable and equitable growth and prosperity of the Company
Introduction of companies- Nishat Mills Limited
Flagship Company established in 1951 At par with multinationals operating
locally Products
Cotton fabrics Cotton yarn Textile all sorts
Ahmad Hassan Textile Mills
2006 2007 2008 2009 2010
Days’ sales in receivables
20.20 19.51 23.20 31.79 21.72
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
Days’ sales in receivables
Days’ sales in re-ceivables
Days’ sales in receivables
Except for in 2009 where trade debts rose significantly as compared to increase in net sales the ratio has been fairly consistent.
Accounts Receivable turnover
2006 2007 2008 2009 2010
Accounts receivable turnover
17.63 19.08 18.18 13.654 15.41
2006 2007 2008 2009 20100
5
10
15
20
25
Accounts receivable turnover
Accounts receivable turnover
The ratio indicates a poor ability of the company to manage its receivable which improved only slightly after 2009.
Accounts Receivable turnover in days
2006 2007 2008 2009 2010
Accounts receivable turnover in days
20.69 19.15 20.07 26.73 23.68
2006 2007 2008 2009 20100
5
10
15
20
25
30 Accounts receivable turnover in days
Accounts receivable turnover in days
days’ sales in receivable the ratio is significantly higher in 2009 due to an increase in trade debts.
Days’ sales in inventory
2006 2007 2008 2009 2010
Days’ sales in inventory
86.07 78.99 90.50 104.53 75.70
2006 2007 2008 2009 20100
20
40
60
80
100
120
Days’ sales in inventory
Days’ sales in inventory
The ratio has been consistent until it started rising after 2008 and in 2009 because of increase in inventory the ratio was the highest after which the sales improved and the ratio started improving.
Inventory turnover
2006 2007 2008 2009 2010
Inventory turnover
4.55 4.59 4.66 3.78 4.56
2006 2007 2008 2009 20100
0.51
1.52
2.53
3.54
4.55
Inventory turnover
Inventory turnover
The ratio is fairly consistent except for in 2009 due to increase in the average inventory.
Inventory turnover in days
2006 2007 2008 2009 2010
Inventory turnover in days
80.26 79.57 78.33 96.50 80.03
2006 2007 2008 2009 20100
20
40
60
80
100
120
Inventory turnover in days
Inventory turnover in days
The ratio increased in 2009 due to disproportionate increase in inventory as compared to net sales.
Operating cycle
2006 2007 2008 2009 2010
Operating cycle
100.95 98.72 98.4 123.23 103.98
2006 2007 2008 2009 20100
20
40
60
80
100
120
140
Operating cycle
Operating cycle
The operating cycle increased in 2009 due to increase in inventory turnover in days.
Current ratio
The firm’s current ratio is already indicating that its current liabilities are greater than current assets and to make matter worst the ratio is deteriorating from 2006 to 2010.
Acid-test ratio
Uses current assets to indicate the short term debt paying ability. In 2009 due to increase in trade debts the company’s acid-test ratio increased.
2006 2007 2008 2009 2010
Current ratio
0.85 0.82 0.67 0.76 0.73
2006 2007 2008 2009 2010
Acid-test ratio
0.16 0.17 0.14 0.18 0.16
Cash ratio
The fluctuations in the cash ratio are due to changes in the short- term investments held for sale by the company.
Debt ratio
Debt ratio indicates the firm’s long-term debt paying ability. On average over 70% of the company’s assets are financed by its creditors indicating a poor debt paying ability.
2006 2007 2008 2009 2010
Cash ratio
0.011 0.026 0.0075 0.001 0.00087
2006 2007 2008 2009 2010
Debt ratio 0.78 0.80 0.71 0.74 0.703
Debt/Equity ratio
This ratio helps determine how well creditors are protected in case of insolvency. An increase in the ratio till 2009 indicates that the creditors are well protected.
Net income margin
The company was doing very poorly because of lower sales and higher administrative and other expenses but sales soared and the company gained profit to increase its net profit margin in 2010.
2006 2007 2008 2009 2010
Debt/equity ratio
3.5 4.02 7.19 8.49 6.73
2006 2007 2008 2009 2010
Net income margin
1.42% 0.13% -0.041% -1.93% 1.7%
Total Asset Turnover
2006 2007 2008 2009 2010
Total asset turnover
1.25 1.22 0.89 0.093 1.17
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
Total asset turnover
Total asset turnover
It indicates the activity of assets and the ability of the company to generate sales through the use of its assets. The drastic decrease in 2009 is a result of not enough sales for the company for the year and the company ending up in loss.
Return on Assets
2006 2007 2008 2009 2010
Return on assets
-0.40% 0.174% -3.02% -2.189% 2.03%
2006 2007 2008 2009 2010
-4
-3
-2
-1
0
1
2
3
Return on assets
Return on assets
Due to the fact the company reported losses in the year 2008 and 2009 the company’s return on assets was negative. After 2009 its sales increased and so did the return on assets.
Operating income margin
This ratio includes only the income from the main line of operations of the business. The company was not doing well in 2008 because of lower sales and greater expenses.
Operating asset turnover
The decrease in 2007 was due to increase in the operating
assets but a decrease in operating income for the year.
2006 2007 2008 2009 2010
Operating income margin
7.4% 6.205% 3.31% 8.913% 8.38
2006 2007 2008 2009 2010
Operating asset turnover
2.074 0.195 1.27 1.379 1.88
Return on operating assets
It is an indicative of how much return you are receiving on your operating assets. It shows and increase towards an end due to increase in sales and subsequently the operating income.
Return on total equity
Due to the fact that the company reported loss in 2008 and 2009 the return on total equity for the two year was negative after improving in 2010 when the company’s operations improved.
2006 2007 2008 2009 2010
Return on operating assets
15.34% 12.10% 12.19% 12.29% 15.7%
2006 2007 2008 2009 2010
Return on total equity
1.76% 0.84% -30.7% -23.61% 23.03%
Gross profit margin
Conforming to the industry standards because of changes in the process of textile products the gross profit margin increased after 2007. In 2007 the significant decrease was due to increase in cost of sales.
Earnings per Share
This reflects the company’s report of loss in the year 2008 and 2009.
2006 2007 2008 2009 2010
Gross profit margin
9.77 0.084 8.05% 12.14 12.39
2006 2007 2008 2009 2010
Earnings per Share
-0.48 0.21 -6.03 -4.43 4.07
Bhanero Textile Mills
Days’ sales in receivables
The ratio has increased from 2006 to 2009 after decreasing in 2010. This can be attributed to the increased number of sales on credit out of which a large portion could not be recovered.
Accounts Receivable turnover
The overall trend here is negative because the company’s position in 2006 was fairly stronger after which it started deteriorating because the company increased its credit sales to boost the overall sales and thus the accounts receivable turnover decreased till 2009.
2006 2007 2008 2009 2010
Days’ sales in receivables
24.76 39.26 44.39 43.34 30.17
2006 2007 2008 2009 2010
Accounts receivable turnover
15.59 12.58 8.67 8.67 11.27
Accounts Receivable turnover in days
Similar to days’ sales in receivables this ratio is deteriorating till 2008 after which it reaches stability in 2009 before it starts improving. This can be attributed to a better credit policy on behalf of the company that increases sales as well as improves receivable collectability
Days’ sales in inventory
It took a hit in 2008 but recovered strongly 2009 onwards.
2006 2007 2008 2009 2010
Accounts receivable turnover in days
23.40 29.01 42.07 42.08 32.38
2006 2007 2008 2009 2010
Days’ sales in inventory
96.38 100.54 114.44 88.85 89.09
Inventory turnover
The overall trend for this ratio is positive with a minor setback in 2008 which was overcome. Overall the company performed close to the market leader.
Inventory turnover in days
The company has been showing positive trends suggesting a better and effective way of managing its inventory.
2006 2007 2008 2009 2010
Inventory turnover
3.26 4.25 3.41 3.73 4.45
2006 2007 2008 2009 2010
Inventory turnover in days
111.91 85.88 107.10 97.86 81.98
Operating cycle
Except for the time period between 2007 and 2008 the operating cycle of the company is becoming shorter and conforming with the industry standards.
Current ratio
It is increasing from 2006 to 2010 indicating that the company is increasing its ability to pay its current liabilities using current assets.
2006 2007 2008 2009 2010
Operating cycle
135.31 114.89 149.17 139.94 114.36
2006 2007 2008 2009 2010
Current ratio
0.85 0.93 0.96 1.02 1.07
Acid-test ratio
The company is able to effectively manage its receivables and increase its cash equivalents. However, there is a slight decrease in the year 2010.
Cash ratio
The ratio is the highest in 2007 and lowest in 2008 where the firm’s cash reserves depleted after it started improving its position thereafter.
2006 2007 2008 2009 2010
Acid-test ratio
0.19 0.29 0.27 0.35 0.30
2006 2007 2008 2009 2010
Cash ratio 0.02 0.04 0.01 0.02 0.03
Debt ratio
The ratio shows an increase in 2007 which was due to increased short term borrowings secured after which the company developed its assets compared to its liabilities and the position started getting better.
Debt/Equity ratio
With the exception of 2007 the creditors of the company are fairly protected and the firm’s debt paying ability is strengthening.
2006 2007 2008 2009 2010
Debt ratio 0.38 0.72 0.71 0.66 0.53
2006 2007 2008 2009 2010
Debt/Equity
1.57 2.88 2.65 2.09 1.20
Net income margin
The company’s margin was decreasing till 2009 because of the increased finance costs after which in 2010 its sales soared and net income margin reached 9.02%.
Total Asset Turnover
The company has improved its ability to utilize its total asset to produce net income 2006 onwards with only a slight and insignificant decrease in 2008.
2006 2007 2008 2009 2010
Net income margin
6.49% 5.27% 2.87% 2.63% 9.02%
2006 2007 2008 2009 2010
Total asset turnover
0.98 1.08 1.02 1.16 1.50
Return on Assets
Return on assets was deteriorating until 2008 after which it increased slightly in 2009 and significantly in 2010 due to increased number of sales.
Operating income margin
The operating income margin is fairly stable but declining from 2006 to 2008 after which it started increasing.
2006 2007 2008 2009 2010
Return on assets
5.06% 3.81% 1.88% 2.48% 13.37%
2006 2007 2008 2009 2010
Operating income margin
13.39% 10.78% 9.23% 10.29% 13.91%
Operating asset turnover
The ratio has increased significantly from 2006 to 2010 indicating an increased ability of the company to utilizing its operating assets for its core line of business.
Return on operating assets
With the exception of 2008 where the net sales were comparatively lower the return on operating assets showed a positive trend.
2006 2007 2008 2009 2010
Operating asset turnover
0.77 1.71 1.81 2.12 2.87
2006 2007 2008 2009 2010
Return on operating assets
10.34% 18.75% 16.72% 21.84% 39.97%
• Return on total equity
It declined from 20% in 2006 to 7% in 2008 after which it increased slightly and then soared to 35% which was the highest of the three companies in consideration.
• Gross profit margin
The gross profit margin decreased but not as significantly as it rose after 2008. The changes were due to increase in the prices of the textile products.
2006 2007 2008 2009 2010
Return on total equity
20.3% 15.56% 7.25% 8.54% 35.37%
2006 2007 2008 2009 2010
Gross profit margin
15.8% 13.53% 11.78% 13.12% 17.69%
Earnings per Share
The most the earning per share the more attractive it becomes for the investor. As the company performed tremendously in 2010 the earnings per share also increased dramatically.
2006 2007 2008 2009 2010
Earnings per share
45.86 41.26 21.30 26.96 140.61
2006 2007 2008 2009 20100
20
40
60
80
100
120
140
160
Earnings per share
Earnings per share
Ratio analysis- Nishat Mills
Days’ sales in receivables2006 2007 2008 2009 2010
Days’ sales in receivables
31.882 days 24.53 days 32.186 days 24.82 days 32.01 days
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
Days’ sales in receivables
Days’ sales in re-ceivables
Accounts receivable turnover2006 2007 2008 2009 2010
Accounts receivable turnover
12.16 times 13.27 times 13.50 times 14.09 times 14.34 times
2006 2007 2008 2009 201011
11.5
12
12.5
13
13.5
14
14.5
15
Accounts receivable turnover
Accounts receivable turnover
Accounts receivable turnover in days2006 2007 2008 2009 2010
Accounts receivable turnover in days
30.01 days 27.49 days 27.03 days 25.90 days 25.40 days
2006 2007 2008 2009 201023
24
25
26
27
28
29
30
31
Accounts receivable turnover in days
Accounts receivable turnover in days
Days’ sales in inventory2006 2007 2008 2009 2010
Days’ sales in inventory
80 days 79.09 days 91.89 days 76.53 days 86.56 days
2006 2007 2008 2009 20100
102030405060708090
100
Days’ sales in inventory
Days’ sales in inven-tory
Inventory turnover2006 2007 2008 2009 2010
Inventory turnover
4.64 times 4.69 times 4.52 times 4.73 times 5.03 times
2006 2007 2008 2009 20104.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
5
5.1
Inventory turnover
Inventory turnover
Inventory turnover in days2006 2007 2008 2009 2010
Inventory turnover in days
78.59 days 77.78 days 80.732 days 77.19 days 72.51 days
2006 2007 2008 2009 201068
70
72
74
76
78
80
82
Inventory turnover in days
Inventory turnover in days
Operating cycle2006 2007 2008 2009 2010
Operating cycle
108.6 days 105.27 days 107.73 days 103.09 days 97.91 days
2006 2007 2008 2009 201092
94
96
98
100
102
104
106
108
110
Operating cycle
Operating cycle
Current ratio2006 2007 2008 2009 2010
Current ratio 1.38 1.74 1.19 0.86 1.11
2006 2007 2008 2009 20100
0.20.40.60.8
11.21.41.61.8
2
Current ratio
Current ratio
Acid-test ratio2006 2007 2008 2009 2010
Acid-test ratio 1.35 1.22 0.76 0.33 0.42
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Acid-test ratio
Acid-test ratio
Cash ratio2006 2007 2008 2009 2010
Cash ratio 0.624 1.07 0.61 0.16 0.16
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
Cash ratio
Cash ratio
Debt ratio2006 2007 2008 2009 2010
Debt ratio 0.32 0.24 0.51 0.39 0.32
2006 2007 2008 2009 20100
0.1
0.2
0.3
0.4
0.5
0.6
Debt ratio
Debt ratio
Debt/equity ratio2006 2007 2008 2009 2010
Debt/equity ratio
0.48 0.31 0.51 0.63 0.47
2006 2007 2008 2009 20100
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Debt/equity ratio
Debt/equity ratio
Net income margin2006 2007 2008 2009 2010
Net income margin
10.7% 10.59% 6.94% 6.54% 10.42%
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Net income margin
Net income margin
Total asset turnover2006 2007 2008 2009 2010
Total asset turnover
0.61 0.49 0.50 0.67 0.81
2006 2007 2008 2009 20100
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Total asset turnover
Total asset turnover
Return on assets2006 2007 2008 2009 2010
Return on assets
6.15% 4.78% 3.31% 3.53% 7.51%
2006 2007 2008 2009 20100.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Return on assets
Return on assets
Operating income margin2006 2007 2008 2009 2010
Operating income margin
12.1% 12.03% 11.65% 12.60% 13.99%
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Operating income margin
Operating income margin
Operating asset turnover2006 2007 2008 2009 2010
Operating asset turnover
1.67 1.62 1.82 2.10 2.74
2006 2007 2008 2009 20100
0.5
1
1.5
2
2.5
3
Operating asset turnover
Operating asset turnover
Return on operating assets2006 2007 2008 2009 2010
Return on operating assets
20.1% 19.50% 21.14% 26.54% 38.31%
2006 2007 2008 2009 20100.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Return on operating assets
Return on operating assets
Return on total equity2006 2007 2008 2009 2010
Return on total equity
9.63% 6.62% 4.64% 5.53% 11.50%
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Return on total equity
Return on total equity
Gross profit margin2006 2007 2008 2009 2010
Gross profit margin
16.54% 16.56% 15.41% 18.23% 18.96%
2006 2007 2008 2009 20100.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%16.00%18.00%20.00%
Gross profit margin
Gross profit margin
Earning per share2006 2007 2008 2009 2010
Earnings per share
10.22 7.58 36.86 6.23 10.50
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
40
Earning per share
Earning per share
Trends within industry
Days’ sales in receivables
2006 2007 2008 2009 2010
Days’ sales in receivables
Nishat 31.882 24.53 32.186 24.82 32.01
Ahmad Hassan
20.20 19.51 23.20 31.79 21.72
Bhanero 24.76 39.26 44.39 43.34 30.17
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
40
45
50
Days’ sales in re-ceivables NishatDays’ sales in re-ceivables Ahmad HassanDays’ sales in re-ceivables Bhanero
Accounts receivable turnover in days
2006 2007 2008 2009 2010
Accounts receivable turnover
Nishat 12.16 13.27 13.50 14.09 14.34
Ahmad Hassan
17.63 19.08 18.18 13.654 15.41
Bhanero 15.59 12.58 8.67 8.67 11.27
2006 2007 2008 2009 20100
5
10
15
20
25
Accounts receivable turnover NishatAccounts receivable turnover Ahmad HassanAccounts receivable turnover Bhanero
Accounts receivable turnover in days
2006 2007 2008 2009 2010
Accounts Receivable turnover in days
Nishat 30.01 27.49 27.03 25.90 25.40
Ahmad Hassan
20.69 19.15 20.07 26.73 23.68
Bhanero 23.40 29.01 42.07 42.08 32.38
2006 2007 2008 2009 20100
5
10
15
20
25
30
35
40
45
Accounts Receivable turnover in days NishatAccounts Receivable turnover in days Ahmad HassanAccounts Receivable turnover in days Bhanero
Days’ sales in inventory
2006 2007 2008 2009 2010
Days’ sales in inventory
Nishat 80.0 79.09 91.89 76.53 86.56
Ahmad Hassan
86.07 78.99 90.50 104.53 75.70
Bhanero 96.38 100.54 114.44 88.85 89.09
2006 2007 2008 2009 20100
20
40
60
80
100
120
140
Days’ sales in inven-tory NishatDays’ sales in inven-tory Ahmad HassanDays’ sales in inven-tory Bhanero
Inventory turnover
2006 2007 2008 2009 2010
Inventory turnover
Nishat 4.64 times 4.69 times 4.52 times 4.73 times 5.03 times
Ahmad Hassan
4.55 4.59 4.66 3.78 4.56
Bhanero 3.26 4.25 3.41 3.73 4.45
2006 2007 2008 2009 20100
1
2
3
4
5
6
Inventory turnover NishatInventory turnover Ahmad HassanInventory turnover Bhanero
Inventory turnover in days
2006 2007 2008 2009 2010
Inventory turnover in days
Nishat 78.59 77.78 80.732 77.19 72.51
Ahmad Hassan
80.26 79.57 78.33 96.50 80.03
Bhanero 111.91 85.88 107.10 97.86 81.98
2006 2007 2008 2009 20100
20
40
60
80
100
120
Inventory turnover in days NishatInventory turnover in days Ahmad HassanInventory turnover in days Bhanero
Operating cycle
2006 2007 2008 2009 2010
Operating cycle
Nishat 108.6 105.27 107.73 103.09 97.91
Ahmad Hassan
100.95 98.72 98.4 123.23 103.98
Bhanero 135.31 114.89 149.17 139.94 114.36
2006 2007 2008 2009 20100
20
40
60
80
100
120
140
160
Operating cycle NishatOperating cycle Ahmad HassanOperating cycle Bhanero
Current ratio
2006 2007 2008 2009 2010
Current ratio
Nishat 1.38 1.74 1.19 0.86 1.11
Ahmad Hassan
0.85 0.82 0.67 0.76 0.73
Bhanero 0.85 0.93 0.96 1.02 1.07
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
Current ratio NishatCurrent ratio Ahmad HassanCurrent ratio Bhanero
Acid-test ratio
2006 2007 2008 2009 2010
Acid-test ratio
Nishat 1.35 1.22 0.76 0.33 0.42
Ahmad Hassan
0.16 0.17 0.14 0.18 0.16
Bhanero 0.19 0.29 0.27 0.35 0.30
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Acid-test ratio NishatAcid-test ratio Ahmad HassanAcid-test ratio Bhanero
Cash ratio2006 2007 2008 2009 2010
Cash ratio Nishat 0.624 1.07 0.61 0.16 0.16
Ahmad Hassan
0.011 0.026 0.0075 0.001 0.00087
Bhanero 0.02 0.04 0.01 0.02 0.03
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
Cash ratio NishatCash ratio Ahmad HassanCash ratio Bhanero
Debt ratio2006 2007 2008 2009 2010
Debt ratio Nishat 0.32 0.24 0.51 0.39 0.32
Ahmad Hassan
0.78 0.80 0.71 0.74 0.703
Bhanero 0.38 0.72 0.71 0.66 0.53
2006 2007 2008 2009 20100
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Debt ratio NishatDebt ratio Ahmad HassanDebt ratio Bhanero
debt/equity ratio
2006 2007 2008 2009 2010
Debt/Equity ratio
Nishat 0.48 0.31 0.51 0.63 0.47
Ahmad Hassan
3.5 4.02 7.19 8.49 6.73
Bhanero 1.57 2.88 2.65 2.09 1.20
2006 2007 2008 2009 20100
1
2
3
4
5
6
7
8
9
Debt/Equity ratio NishatDebt/Equity ratio Ahmad HassanDebt/Equity ratio Bhanero
Net income margin
2006 2007 2008 2009 2010
Net income margin
Nishat 10.7% 10.59% 6.94% 6.54% 10.42%
Ahmad Hassan
1.42% 0.13% -0.041% -1.93% 1.7%
Bhanero 6.49% 5.27% 2.87% 2.63% 9.02%
2006 2007 2008 2009 2010
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Net income margin NishatNet income margin Ahmad HassanNet income margin Bhanero
Total asset turnover
2006 2007 2008 2009 2010
Total Asset Turnover
Nishat 0.61 0.49 0.50 0.67 0.81
Ahmad Hassan
1.25 1.22 0.89 0.093 1.17
Bhanero 0.98 1.08 1.02 1.16 1.50
2006 2007 2008 2009 20100
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Total Asset Turnover NishatTotal Asset Turnover Ahmad HassanTotal Asset Turnover Bhanero
Return on assets
2006 2007 2008 2009 2010
Return on Assets
Nishat 6.15% 4.78% 3.31% 3.53% 7.51%
Ahmad Hassan
-0.40% 0.174% -3.02% -2.189% 2.03%
Bhanero 5.06% 3.81% 1.88% 2.48% 13.37%
2006 2007 2008 2009 2010
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Return on Assets NishatReturn on Assets Ahmad HassanReturn on Assets Bhanero
Operating income margin
2006 2007 2008 2009 2010
Operating income margin
Nishat 12.1% 12.03% 11.65% 12.60% 13.99%
Ahmad Hassan
7.4% 6.205% 3.31% 8.913% 8.38%
Bhanero 13.39% 10.78% 9.23% 10.29% 13.91%
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Operating income margin NishatOperating income margin Ahmad HassanOperating income margin Bhanero
Operating asset turnover
2006 2007 2008 2009 2010
Operating asset turnover
Nishat 1.67 1.62 1.82 2.10 2.74
Ahmad Hassan
2.074 0.195 1.27 1.379 1.88
Bhanero 0.77 1.71 1.81 2.12 2.87
2006 2007 2008 2009 20100
0.5
1
1.5
2
2.5
3
3.5
Operating asset turnover NishatOperating asset turnover Ahmad HassanOperating asset turnover Bhanero
Return on operating assets
2006 2007 2008 2009 2010
Return on operating assets
Nishat 20.1% 19.50% 21.14% 26.54% 38.31%
Ahmad Hassan
15.34% 12.10% 12.19% 12.29% 15.7%
Bhanero 10.34% 18.75% 16.72% 21.84% 39.97%
2006 2007 2008 2009 20100.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Return on operating assets NishatReturn on operating assets Ahmad Has-sanReturn on operating assets Bhanero
Return on total equity
2006 2007 2008 2009 2010
Return on total equity
Nishat 9.63% 6.62% 4.64% 5.53% 11.50%
Ahmad Hassan
1.76% 0.84% -30.7% -23.61% 23.03%
Bhanero 20.3% 15.56% 7.25% 8.54% 35.37%
2006 2007 2008 2009 2010
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
Return on total equity NishatReturn on total equity Ahmad HassanReturn on total equity Bhanero
Gross profit margin
2006 2007 2008 2009 2010
Gross profit margin
Nishat 16.54% 16.56% 15.41% 18.23% 18.96%
Ahmad Hassan
9.77 0.084 8.05% 12.14 12.39
Bhanero 15.8% 13.53% 11.78% 13.12% 17.69%
2006 2007 2008 2009 20100.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Gross profit margin NishatGross profit margin Ahmad HassanGross profit margin Bhanero
Earnings per share
2006 2007 2008 2009 2010
Earnings per Share
Nishat 10.22 7.58 36.86 6.23 10.50
Ahmad Hassan
-0.48 0.21 -6.03 -4.43 4.07
Bhanero 45.86 41.26 21.30 26.96 140.61
2006 2007 2008 2009 2010-20
0
20
40
60
80
100
120
140
160
Earnings per Share NishatEarnings per Share Ahmad HassanEarnings per Share Bhanero
conclusion
Set backs for textile sector Government abolished R&D programs Implementation of 18% Value Added Tax Decline in machinery imports due to
enhanced interests on loans Global financial and economic crisis-
2008 Increased competition in international
market Depreciation of rupee Short fall of power supply