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For the Year 2011

&

2012

Group Members
Syed Irfan Haider
Muhammad Amin

Faisal Azeem
Bs BA 5th - C Financial Management BUITEMS

Lucky Cement
Colgate-Palmolive Company is an American

multinational consumer products company focused on the production, distribution and provision of household, health care and personal products, such as: Soaps Detergents, and Oral hygiene products (including toothpaste and toothbrushes). Etc.

Why Ratio Analysis


Ratio Analysis is the basic tool of financial analysis and Financial analysis itself is an important part of any business planning process as SWOT, being the basic tool of the strategic analysis plays a vital role in a business planning

process and no SWOT analysis would be complete without


an analysis of companies financial position. In this way Ratio Analysis is very important part of whole business strategic planning.

Ratio Analysis
Cross Sectional Analysis or Time Series Analysis

Liquidity Ratios Activity Ratios Debt Ratios Analyzing Profitability

1. LIQUIDITY RATIOS:
Ratio Net Working Capital Formula Current Asset Current Liabilities Current Asset Current Liabilities 2012 12,202,814 3,578,330 = 8,624,484 12,202,814 3,578,330 =2.636 2011 9,330,128 10,305,510 = -975,382 9,330,128 2,815,056 =0.905

Current Ratio

Quick (Acid Test) Ratio

(Current Asset Inventory) Current Liabilities

(12,202,8145,364,008) 3,578,330 = 1.911

(9,330,128 5,695,714) 10,305,510 =0.352

2. ACTIVITY RATIOS:
Ratio Inventory Turnover Formula Cost of Sale (CGS) Inventory 2012 4,979,044 5,364,008 = 0.928 times 2011 4,581,287 5,695,714 = 0.804 times

Average Age of Inventory Fixed asset Turnover

360 Inventory Turnover Sales Net Fixed Assets

360 0.928 =387.9 days 10,194,616 30,779,981 = 0.331 times 10,194,616 43,041,343 = 0.236 times

360 0.804 = 447.7 days 8,707,521 31,775,363 = 0.274 times 8,707,521 41,105,491 =0.211 times

Total Asset Turnover

Sales Total Assets

3. DEBT RATIOS:
Ratio Formula Total Liability Total Assets 2012 7,765,312 43,041,343 = 0.180 2011 13,120,566 41,105,491 = 0.319 Debt Ratio

Debt-Equity Ratio

Long Term Debt Stock Holder Equity

4,186,982 35,276,031 = 0.118

2,815,056 27,984,925 = 0.100

4. Analyzing Profitability:
Ratio Gross Profit Margin Formula Gross profit Sales 2012 3,872,761 10,194,616 =0.379 2011 2,914,802 8,707,521 =0.334

Operating Profit Margin

Operating Profit Sales

2,559,778 10,194,616 =0.251 2,014,286 10,194,616 =0.197

1,702,752 8,707,521 =0.195 1,505,596 8,707,521 =0.172

Net Profit Margin

Net Profit Sales

4. Analyzing Profitability:
Ratio Return on Total Asset Formula Net Profit after Tax Total Asset Net Profit Equity 2012 2,014,286 43,041,343 =0.046 2,014,286 2011 1,505,596
41,105,491

=0.036 1,505,596
27,984,925

Return on Equity

35,276,031
=0.057

=0.053

Earnings per Share

Earnings Available for Common Stock Common Stock Outstanding

Rs. 6.23/ share

Rs. 4.66/ share

THANKYOU!

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