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FINANCIAL ANALYSIS OF

NATIONAL FOOD

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Submitted to

Sir Bilal Sarwar

Submitted byM.Ali Naqvi (G.L) [L1F11MCOM0164]

Arslan Nawaz (D.M.D) [L1F11MCOM2165]

Usman Shahzad [L1F11MCOM2175]

Aqsa Muzaffar [L1F11MCOM2169]

Hina Razzaq [L1F11MCOM2137]

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Introduction of National Food

Founded in 1970 started out as aSpice company.

In 1988, National Foods became the

certified vendor of McCormick, USA.

In 1998, National Foods convertedinto a Public Limited, listed in all the

three stock exchanges of Pakistan.

Only food company in Pakistan to

have ISO 9001 and HACCPcertifications along with SAP.

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Overall Analysis of Financial Ratios

Ratio 2011 2010

Current ratio 1.23 Times 1.01 Times

Quick ratio 0.18 Times 0.15 Times

Operation cash flow ratio 0.21% (0.20)

Asset turnover Ratio 1.93 Times 1.68 Times

Debt ratio 0.68% 0.72%

Debt to equity ratio 2.09% 2.60%

Gross Margin 28.51% 29.55%

Net Profit Margin 4.18% 1.93%

Return On Assets 12.67% 5.95%

Earnings per share 5.56 Rs. 2.09 Rs.

P/E ratio 13.48 Times 21.03 Times

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Analysis of Financial Ratios(A) Liquidity ratios

1.23

1.01

0

0.5

1

1.5

2011 2010

Current Ratio

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Analysis of Financial Ratios(A) Liquidity ratios

0.18

0.15

0.13

0.14

0.15

0.16

0.17

0.18

0.19

2011 2010

Quick Ratio

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Analysis of Financial Ratios(A) Liquidity ratios

0.21

-0.2

-0.3

-0.2

-0.1

0

0.1

0.2

0.3

2011 2010

Operation cash flow Ratio

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Analysis of Financial Ratios(B) Activity ratios

1.93

1.68

1.5

1.6

1.7

1.8

1.9

2

2011 2010

Asset Turnover Ratio

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Analysis of Financial Ratios(B) Activity ratios

0.68

0.72

0.66

0.68

0.7

0.72

0.74

2011 2010

Debt Ratio

Ratio

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Analysis of Financial Ratios(C) Leveraging ratios

0.68

0.72

0.66

0.68

0.7

0.72

0.74

2011 2010

Debt Ratio

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Analysis of Financial Ratios(C) Leveraging ratios

2.09

2.6

0

0.5

1

1.5

2

2.5

3

2011 2010

Debt to equity Ratio

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Analysis of Financial Ratios(D) Profitability Ratios

28.51

29.55

27.5

28

28.5

29

29.5

30

2011 2010

Gross Margin

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Analysis of Financial Ratios(D) Profitability Ratios

4.18

1.93

0

1

23

4

5

2011 2010

Profit Margin

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Analysis of Financial Ratios(D) Profitability Ratios

12.67

5.95

0

5

10

15

2011 2010

ROA

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Analysis of Financial Ratios(E) Market ratios

5.56

2.09

0

1

2

3

4

5

6

2011 2010

EPS

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Analysis of Financial Ratios(E) Market ratios

13.48

21.03

0

5

10

15

20

25

2011 2010

P/E

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Horizontal Analysis

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Horizontal Analysis

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Vertical Analysis

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Vertical Analysis

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Share Market Price of NFL

Share price of

National Food

Limited on lasttrading date of

every June from

1998 to 2012.

17.8516.527.129.25 33

58

111.9125

111.15

208

366.55

73.21

43.92

75

192.14

1998 1999 2000 2001 2002 2003 2004 20052006 2007 2008 2009 2010 2011 2012

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