D.G.

KHAN CEMENT COMPANY LIMITED

GROUP MEMEBERS

MUHAMMAD ALI MURTAZA
MUHAMMAD AHSAN HASHMI
MUHAMMAD TAHA RIAZ
MUHAMMAD ADEEL
INTRODUCTION
D.G. Khan Cement Company Limited (DGKCC), a unit of
Nishat group, is the largest cement-manufacturing unit in
Pakistan
with a production capacity of 14,000 tons per day.
DGKCC has three cement plants, two plants located at Dera
Ghazi Khan and one at Khairpur Distt. Chakwal.
All the plants are based on latest Dry Process Technology.
It is listed on all the Stock Exchanges 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.

VISION STATEMENT
To transform the Company into a modern and
dynamic cement manufacturing company
with qualified professionals and fully equipped to
play a meaningful role on sustainable basis in the
economy of Pakistan.

RATIO ANALYSIS
Liquidity Ratios
Leverage Ratio
Coverage Ratios
Activity Ratios
Profitability Ratios

LIQUIDITY RATIOS
CURRENT RATIO
YEARS FORMULA RUPEES IN
THOUSANDS
RATIOS
2010 CURRENT
ASSETS
CURRENT
LIABILTY
19,202,591
12,054,718
1.59
2011 CURRENT
ASSETS
CURRENT
LIABILTY

13,287,592
15,834,799
0.84
2012 CURRENT
ASSETS
CURRENT
LIABILTY

16,417,492
13,786,189
1.19
0
0.5
1
1.5
2
2010 2011 2012
The above ratio is showing an liquidate position of (D.G.KCC).
In 2010 company liquidity position was strong, as compared to 2011
and 2012. In 2011 current assets of company was decreased and
current liability increased.so position of liquidity position was not
good. But in 2012 company further improve in current assets and
liability decreased.
GRAPH & ANALYSIS
ACID TEST RATIO(QUICK)
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 C.A-INVEN
C.L
19,202,591 - 445,856
12,054,718

1.49
2011 C.A-INVEN
C.L

13,287,592 - 899,836
15,834,799


0.72
2012 C.A-INVEN
C.L

16,417,492 - 1,036,876
13,786,189

1.04
0
0.5
1
1.5
2
2010 2011 2012
GRAPH & ANALYSIS
In the 2010 quick ratio was good.in 2010 the current assets of the company
was in better position, thats why the ratio in well formed. But in 2011 the
due to decreasing of current assets impact a great effect on ratio. In 2012
company further improve the condition but due to increase in stock its not
satisfied.
LEVRAGE RATIO
DEBT-TO-EQUITY
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 TOTAL DEBTS
SHARE HOLDER
EQUITY
9,857,959
30,080,257
0.33
2011 TOTAL DEBTS
SHARE HOLDER
EQUITY

5,969,800
20,918,442
0.29
2012 TOTAL DEBTS
SHARE HOLDER
EQUITY

6,740,634
26,519,220
0.25
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2010 2011 2012
GRAPH & ANALYSIS
The ratio debt to equity tells that the company was in good position in 2012
as compared to 2011-10, because its show that in 2012 ratio is low and level
of firm financing was high, that is being provided by shareholders.
DEBT-TO-TOTAL-ASSETS
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 TOTAL DEBT
TOTAL ASSETS
9,857,959
51,992,934
18.96%
2011 TOTAL DEBT
TOTAL ASSETS
5,969,800
42,723,041

13.97%
2012 TOTAL DEBT
TOTAL ASSETS
6,740,634
47,046,043
14.33%
0
5
10
15
20
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows a similar purpose to the debt to equity
ratio. tells that the company was in good position in 2011
as compared to 2010-12, because in 2011 the ratio of risk is
low.
COVERAGE RATIO
INTREST COVERAGE
YEARS FORMULA RUPEES IN
THOUSANDS
(000)
RATIO
2010 EBIT
INTREST EXP
1,507,581
115,218
13.08 TIMES
2011 EBIT
INTREST EXP
3,383,258
222,159
15.23 TIMES
2012 EBIT
INTREST EXP
2,261,163
447,128
5.06 TIMES
0
5
10
15
20
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2011 as in 2011 we are earning 15
times more interest expense that we have to
pay. The higher the ratio the grater the
likelihood of the company.
ACITVITY RATIO
RECEIVABLE TURNOVER (RT)
YEARS FORMULA RUPEES IN
THOUSANDS
RATIOS
2010 NET SALES
RECEIVALBES
12,445,996
12,445,996
1.00 TIMES
2011 NET SALES
RECEVIABLES
18,038,209
15,417,272
1.17 TIMES
2012 NET SALES
RECEVIALES
16,275,354
21,993,721
0.74 TIMES

0
0.2
0.4
0.6
0.8
1
1.2
1.4
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong position in 2011. as in
2011 we are converting 1.17 times more receivable into cash. The
higher the ratio the grater the likelihood of the company.
RECEIVALBE TURNOVER
DAYS(ITD)
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 365
RT
365
1.00
365 DAYS
2011 365
RT
365
1.17
312 DAYS
2012 365
RT
365
0.74
493 DAYS
0
100
200
300
400
500
600
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong position in
2011. as in 2011 company receive cash in 312 day.
INVENTORY TURNOVER (IT)
YEARS FORMULS RUPEES IN
THOUSANDS

RATIO
2010 C.G.S
INVENTORY
10,530,723
445,856
23.62 TIMES
2011 C.G.S
INVENTORY

12,358,479
899,836
18.37 TIMES
2012 C.G.S
INVENTORY

13,569,994
1,036,876
14.01 TIMES
0
5
10
15
20
25
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong position in 2010 as
compared to 2011 and 2012, because company inventory turnover
is high so it is more efficient.
INVENTORY TURNOVER (ITD)
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 365
IT
365
23.62
15.45 DAYS
2011 365
IT
365
18.37
19.87 DAYS
2012 365
IT
365
14.01
26.05 DAYS
0
5
10
15
20
25
30
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2010 as compared to 2011 and
2012. Thus, in 2010 rate of turning the
inventory in days is faster then 2011 & 2012.
TOTAL ASSETS TURNOVER
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 NET SALES
TOTAL ASSETS
12,445,996
51,992,934
0.24 TIMES
2011 NET SALES
TOTAL ASSETS
18,038,209
42,723,041
0.42 TIMES
2012 NET SALES
TOTAL ASSETS
16,275,354
47,046,043
0.35 TIMES
0
0.1
0.2
0.3
0.4
0.5
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2011 as compared to 2010 and
2012. In 2011 the ratio tell us relative
efficiency with which a firms utilizes its total
assets to generate sales.
PROFITABILITY RATIOS
NET PROFIT MARGIN RATIO
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 Net profit
Net sales
53,230
12,445,996
0.43%
2011 Net profit
Net sales

525,581
18,038,209
2.91%
2012 Net profit
Net sales

233,022
16,275,354
1.43%
0
0.5
1
1.5
2
2.5
3
3.5
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2011 as compared to 2010 and
2012. In 2011 the profit of the company
increases.
RETURN ON INVESTMENT
YEARS FORMULA RUPEES IN
THOUSANDS
PERCENT AGE
2010 EAT
TOTAL ASSETS
53,230
51,992,934
0.10%
2011 EAT
TOTAL ASSETS

525,581
42,723,041
1.23%
2012 EAT
TOTAL ASSETS

233,022
47,046,043
0.50%
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2011 as compared to 2010 and
2012. Because in 2011 the return on investment
is high.
RETURN ON EQUITY
YEARS FORMULA RUPEES IN
THOUSANDS
RATIO
2010 EAT*100
TOTAL EQUITY
(53,230)*100
30,080,257


0.18%
2011 EAT*100
TOTAL EQUITY

525,581*100
20,918,442

2.51%
2012 EAT*100
TOTAL EQUITY

233,022*100
26,519,220

0.88%
0
0.5
1
1.5
2
2.5
3
2010 2011 2012
GRAPH & ANALYSIS
This ratio shows that a company is in strong
position in 2011 as compared to 2010 and
2012. Because in 2011 the return on equity is
high.