FINANCIAL STATEMENT RATIO ANALYSIS
MBA EXEC-IV
2018-ag-2958
Description Formula Calculation Ratio
Current (Working Capital) Ratio
1 Current Ratio current Current Assets / Current Liabilities 18,575,241 / 16,366,077 1.135 : 1
2 Acid-Test (Quick) Ratio Quick Assets / Current Liabilities 10,826,157 / 16,336,077 0.66 : 1
3 Accounts Receivable Turnover Sales on Account / Average Accounts Receivable 58,328,849 / 2,388,029 24.43 Times
4 Days’ Sales in Accounts Receivables 365 Days / Accounts Receivable Turnover 365 / 24.43 14.94 Days
5 Inventory Turnover Cost of Goods Sold / Average Inventory 48,877,125 / 9,841,165 4.97 Times
Equity, or Long–Term Solvency Ratios
6 Equity Ratio Stockholders’ Equity / Total Assets 19,207,043 / 44,222,667 43.43%
7 Net Income to Net Sales Net Income / Net Sales 2,304,912 / 58,328,849 3.95%
8 Return on Stockholders’ Equity Net Income / Average Common Stockholders’ Equity 2,304,912 / [{19207403+18081434}/2] 12.36%
9 Earnings per Share 2,304,912 / 1,500,000 1.54
10 Price-Earnings Ratio Market Price Per Share / EPS 580 / 1.54 51.95 : 1
Some other ratios
11 Cash ratio Cash and Cash equivalents / Current Liabilities 237,374 / 16,336,077 0.01
12 Debt ratio Total liabilities / Total assets 25,015,264 / 44,222,667 0.57
13 Debt to equity ratio Total liabilities / Shareholder’s equity 25,015,264 / 19,207,043 1.30
14 Interest coverage ratio Operating income / Interest expenses 4,636,253 / 1,455,747 3.18
15 Debt service coverage ratio Operating income / Total debt service 4,636,253 / 6,763,257 0.69
16 Gross margin ratio Gross profit / Net sales 9,451,724 / 58,328,849 0.16
17 Operating margin ratio Operating income / Net sales 4,636,253 / 58,328,849 0.08
18 Return on assets ratio Net income / Total assets 2,304,912 / 44,222,667 0.05
19 Return on equity ratio Net income / Shareholder’s equity 2,304,912 / 19,207,043 0.12
COMPANY: ICI PAKISTAN LIMITED Submitted to: Prof. Yasin Zia Sb
Year ended on: 30th June, 2019 Submitted by: Abubakar Arif
Earnings Available to Common Stockholders /
Weighted-Average Number of Common Shares
Outstanding
