Business Finance I 1
Institute of Business & Technology (BIZTEK) M.Tauqeer
FFiinnaanncciiaall RReeppoorrtt
((FFiinnaanncciiaall RRaattiioo AAnnaallyyssiiss OOnnllyy))
Company: Gul Ahmed Textile (Pvt) Limited.
BBuussiinneessss FFiinnaannccee
Institute of Business & Technology
Submitted By: Muhammad Tauqeer Ahmad
Submission Date: 2009
Business Finance I 2
Institute of Business & Technology (BIZTEK) M.Tauqeer
Company History
The story of textiles in the subcontinent is the story of Gul Ahmed. The group began trading in
textiles in the early 1900’s. With all it’s know-how and experience, the group decided to enter the
field of manufacturing and Gul Ahmed Textile Mills Ltd. was incorporated as a private limited
company, in the year 1953. In 1972 it was subsequently listed on the Karachi Stock Exchange.
Since then the company has been making rapid progress and is one of the best composite textile
houses in the world. The mill is presently a composite unit with an installed capacity of 130,296
spindles, 223 wide width air jet looms, and a state of the art processing and finishing unit.
List of Membership of Trade Bodies and Organization
The Karachi Stock Exchange (Guarantee) Limited. Lahore Stock Exchange (Guarantee) Limited. All Pakistan Textile Mills Association. Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association. All Pakistan Bed sheets & Upholstery Manufacturers Association. Karachi Cotton Association. Chamber of Commerce & Industry, Karachi. Employees Federation of Pakistan. All Pakistan Textile Processing Mills Association
Business Finance I 3
Institute of Business & Technology (BIZTEK) M.Tauqeer
Horizontal Analysis of Financial Statements,
Business Finance I 4
Institute of Business & Technology (BIZTEK) M.Tauqeer
Vertical Analysis of Financial Statements,
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Institute of Business & Technology (BIZTEK) M.Tauqeer
Business Finance I 6
Institute of Business & Technology (BIZTEK) M.Tauqeer
Profit And Loss Account, (For the Year Ended June 30, 2009)
Business Finance I 7
Institute of Business & Technology (BIZTEK) M.Tauqeer
FINANCIAL RATIOS 2009 2008
LIQUIDITY
0.95 0.9
0.39 0.42
ACTIVITY
107 95
66 77
76 61
1.07 1.05
DEBT.
0.77 0.78
1.16 1.27
Current Ratio Current Assets
Current Liabilities
Quick Ratio Current Assets-Inventory
Current Liabilities
Inventory Turnover (Days)
Cost of Good Sold
Inventory
Average Collection Period (Days)
Average Accounts Receivable
Average Daily Sales
Average Payment Period (Days)
Accounts Payable
Average Daily Purchasees
Total Asset Turnover Sales
Total Assets
Debt Ratio Total Liabilities
Total Assets
Times Interest Earned Ratio
Earnings before Interest and Taxes
Interest Expense
Business Finance I 8
Institute of Business & Technology (BIZTEK) M.Tauqeer
FINANCIAL RATIOS
2009 2008
PROFITABILITY
16.81 15.14
13.7 12.5
0.58 0.88
1.45 1.86
0.6 0.83
2.73 3.79
MARKET
26.79 21.51
Gross Profit Margin Gross Profits
Sales
Operating Profit Margin Operating Profits
Sales
Net Profit Margin Earnings available for common stockholders
Sales
Earning Per Share Earnings available for common stockholders
Number of shares of common stock outstanding
Return On Total Assets Earnings available for common stockholders
Total Assets
Return On common Equity
Earnings available for common stockholders
Common stock equity
Price/Earning Ratio Market price per share of common stock
Earning per share
Business Finance I 9
Institute of Business & Technology (BIZTEK) M.Tauqeer
Business Finance I 10
Institute of Business & Technology (BIZTEK) M.Tauqeer
Summary Assessment
2009 2008 2009-2008
Liq
uid
ity
Current Ratio Current Assets
0.95 0.9
Good Current Liabilities
Quick Ratio Current Assets-Inventory
0.39 0.42 Poor Current Liabilities
Acti
vit
y
Inventory Turnover (Days)
Cost of Good Sold 107 95
Poor Inventory
Average Collection Period (Days)
Average Accounts Receivable 66 77 Good
Average Daily Sales
Average Payment Period (Days)
Accounts Payable 76 61 Poor
Average Daily Purchasees
Total Asset Turnover
Sales 1.07 1.05 Poor
Total Assets
Deb
t.
Debt Ratio Total Liabilities
0.77 0.78
Good Total Assets
Times Interest Earned Ratio
Earnings before Interest and Taxes 1.16 1.27 Poor
Interest Expense
Business Finance I 11
Institute of Business & Technology (BIZTEK) M.Tauqeer
Assessment 2009 2008 2009-2008
Pro
fita
bilit
y
Gross Profit Margin
Gross Profits 16.81 15.14
Good Sales
Operating Profit Margin
Operating Profits 13.7 12.5 Good
Sales
Net Profit Margin Earnings available for common stockholders
0.58 0.88 Poor Sales
Earning Per Share
Earnings available for common stockholders 1.45 1.86 Poor
Number of shares of common stock outstanding
Return On Total Assets
Earnings available for common stockholders 0.6 0.83 Poor
Total Assets
Return On common Equity
Earnings available for common stockholders 2.73 3.79 Poor
Common stock equity
Ma
rke
t
Price/Earning Ratio
Market price per share of common stock 26.79 21.51
Good Earning per share
Business Finance I 12
Institute of Business & Technology (BIZTEK) M.Tauqeer
