Engro Foods Complete Ratio Analysis

ENGRO FOODS |

FINAL PROJECT COMPLETE RATIO ANALYSIS OF ANGRO FOODS |

GROUP MEMBERS |

AYMAN MUZZAMIL: 12046005-015HAFIZ FAISAL AFZAL:12046005-042SHAHROZE SARWAR:12046005-013 |

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FINAL PROJECT COMPLETE RATIO ANALYSIS OF ANGRO FOODS

Table of Contents

RATIO ANALYSIS 3

CURRENT RATIO: 3

QUICK RATIO 3

INVENTORY TURNOVER 4

DSO 4

FIXED ASSETS TURNOVER 5

TOTAL ASSET TURNOVER 5

DEBT RATIO 6

TIE 6

PROFIT MARGIN RATIO 7

ROA 7

BEP 8

ROE 8

COVERAGE 9

EPS 9

P/E 10

PHASE 2 11

RATIO ANALYSISCURRENT RATIO: 2011 | 2012 | 2013 |

1.8296 | 2.141 | 1.721 |

Engro Foods intends to keep its current ratio higher than one, short term investments were made for the coming years which impacted this ratio in 2011, while in 2012 it was the time to earn that money made from the short investments in the previous years. it was significantly a high ratio than previous 3 years which means that the company has improved to pay its short term obligations. In 2013 this ratio was impacted due to the utilization of short term investments to finance capital commitments. |

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QUICK RATIO |

2011 | 2012 | 2013 |

0.9 | 1.2 | 0.9 |

The quick ratio provides a more precise assessment of a company's ability to pay its current liabilities As a best practice Engro foods intends to keep its currentratio higher than one. Engro foods has gradually increased their quick ration since 2009 from 0.6 to 1.2 in 2012. In 2013 this ratio was impacted due to the utilization of short term investments to finance capital commitments. |

INVENTORY TURNOVER |

2011 | 2012 | 2013 |

9.2268 | 9.6038 | 9.9100 |

It measures how many times a company sold its total average inventory while Engro food maintains its inventory on monthly basis. The major component of this ratio is the sale so due to less sales in the previous year's this ratio gradually increased from 2011 and onwards. |

DSO |

2011 | 2012 | 2013 |

0.0141 | 0.0130 | 0.0226 |

A measure of the...