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this is the ratio analysis of 2006,7,8,9
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Financial Ratio analysis of Indus motors
Submitted by:
Ali Husnaen
&
Wajih-ul-Hassan
Submitted to:
Ms. Faiza Saleem
This company was incorporated in Pakistan in December 1989
Indus Motor Company (IMC) is a joint venture between the House of Habib, Toyota Motor Corporation Japan (TMC), and Toyota Tsusho Corporation Japan (TTC
INTRODUCTION
PRODUCTS
Corolla
Variants Ex-Plant Price
1.3 XLI 1289000
1.3 GLI 1414000
1.8 ALTIS M/T 1699000
1.8 ALTIS M/T SR 1784000
1.8 ALTIS A/T 1784000
1.8 ALTIS A/T SR 1869000
2.0 D 1347000
2.0 D SALOON 1699000
2.0 D SALOON SR 1784000
COURE
CX 665000
CX-ECO 709000
CX-AUTO 694000
CX-ECOMATIC 749000
HILUX
3.0 HILUX 4X2 S/C (STANDARD) 1419000
3.0 HILUX 4X2 S/C (UP SPECS) 1459000
LAND CRUISER PRADO
LANDCRUISER PRADO 4.0 L VX A/T (GASOLINE) 13500000
LANDCRUISER PRADO 3.0 L VX A/T TURBO (DIESEL) 13500000
LANDCRUISER PRADO 2.7 L TX M/T (GASOLINE) 9700000
LANDCRUISER PRADO 3.0 L TX M/T TURBO (DIESEL) 9700000
RATIO ANALYSIS
Current Ratio = C.A/C.L
2006 2007 2008 2009
14,095,657/9,444,554
13,560,329/7,410,926
9,664,784/3,779,631
16,715,319/9,884,850
1.49 1.82 2.56 1.69
2006 2007 2008 20090
0.51
1.52
2.53
Quick Ratio= Quick Assets / Current Liabilities
2006 2007 2008 2009
14,095,657-3,959,316/9,444,
554
13,560,329-2,859,951/7,410,
926
16,715,319 -4088858/9,884,8
50
9664784-2637629/3,779,6
31
1.07 1.44 3.34 1.85
2007 2008 2009 20100
0.51
1.52
2.53
3.54
Debt to Equity Ratio=Total Liabilities / Total Stockholder's Equity
2006 2007 2008 2009
9,444,554/6,257,879
7,410,926/8,043,975
1,736,631/ 10,296,973
1,332,832 /9,436,340
1.51 0.92 0.17 0.14
2006 2007 2008 20090
0.5
1
1.5
2
Debt to asset=total debt/ total assets
2006 2007 2008 2009
9,444,554/15,822,468
7,410,926/15,665,050
4,311,769/13,748,109
10,388,550/20,685,523
0.59 0.47 0 1
2006 2007 2008 20090
0.20.40.60.8
11.2
Receivable Turnover Ratio= Sales / Average Account Receivables
2006 2007 2008 2009
35,236,535/1988498
39,061,226/1271372
41,423,843/1,442,204
37,864,604/1,855,477
17.72 30.72 28.722 20.406
2006 2007 2008 200905
101520253035
Receivable Turnover in Days= 365/ Receivable Turnover
2006 2007 2008 2009
365/17.72 365/30.72 365/28.72 365/20.40
20.5 11.88 12.71 17.85
2006 2007 2008 20090
5
10
15
20
25
Inventory Turnover Ratio= COGS/INVENTORY
2006 2007 2008 2009
31,088,906/3,959,316 34,620,632/2,859,951 37,575,356/2,637,629 35,540,418/4,088,858
7.85 12.10 14.24 8.69
2006 2007 2008 20090
4
8
12
16
Inventory Turnover in days=365/inventory turnover
2006 2007 2008 2009
365/7.85 365/12.10 365/14.24 365/8.69
46.49 30.16 25.63 42
2006 2007 2008 20090
10
20
30
40
50
Total Asset Turnover Ratio= Sales / Total Assets
2006 2007 2008 2009
35,236,535/ 15,822,468
39,061,226/ 15,665,050
41,423,843/13,748,109 37,864,604/20,68
5,523
2.22 2.493.01 1.83
2006 2007 2008 20090
1
2
3
4
Total Asset (or Capital) Turnover in Days= 365/ Total Asset Turnover
2006 2007 2008 2009
365/2.22 365/2.49 365/3.01 365/1.83
164.41 146.58 121.26 199.45
2006 2007 2008 20090
50100150200250
Gross Profit Margin Ratio= GP/Sales
2006 2007 2008 2009
4,147,629/ 35,236,535
4,440,594/ 39,061,226
3,848,487/41,423,843
2,324,186/37,864,604
0.11 0.11 0.092 0.061
2006 2007 2008 20090
0.04
0.08
0.12
Net Profit Margin Ratio= Net Income / Sales
2006 2007 2008 2009
2,648,464/35,236,535
2,745,701/39,061,226
2,290,845/41,423,843
1,385,102/37,864,604
0.07 0.07 0.055 0.036
2006 2007 2008 20090
0.02
0.04
0.06
0.08
Return on Assets Ratio= Net Income / Average Total Assets
2006 2007 2008 2009
2,648,464/15,822,468
2,745,701/15,665,050
2290845/13748109
1385102/20685523
0.16 0.17 0.16 0.06
2006 2007 2008 20090
0.05
0.1
0.15
0.2
Return on Equity= Net Income/Stockholder's Equity
2006 2007 2008 2009
2,648,464/6,257,879
2,745,701/8,043,975
2,290,845/9,436,340
1,385,102/10,296,973
0.42 0.34 0.24 0.13
2006 2007 2008 20090
0.1
0.2
0.3
0.4
0.5
Horizontal & vertical analysis
HORIZONTAL ANALYSISOf
BALANCE SHEET of 2006&07EQUITIES AND LIABILITIES 2007 2006 2007 2006
Share capital and reserves
Authorized capital100000000 ordinary shares of Rs.10 each 1,000,000 1,000,000 1,000,000 1,000,000Issued, subscribed & paid up capital 786,000 786,000 5.01 4.96Capital reserve 7,257,975 5,471,879 46.3 34.5
Total equity 8,043,975 6,257,879 51.3 39.5Non-current liabilitiesLiabilities against assets subject to finance lease 0 3,871 0 0.02
deferred taxation 210,149 116,164 1.34 0.73
Total non current liabilities 210,149 120,035 1.34 0.75Current liabilities
Trade and other payables 2,892,017 2,599,911 18.46 16.43advance from customers &dealers 4,514,480 6,620,869 28.81 41.84
Short term running finances- secured 0 0 0 0taxation net 0 195,789 0 1.23accurate mark up 715 22,250 0.004 0.14
Total current liabilities 7,410,926 9,444,554 47.3 59.6
Total equity and liabilities 15,665,050 15,822,468 100.00% 100.00%
Assets 2007 2006 2007 2006
Non-current assetsfixed assets 2,093,852 1,716,590 13.36 10.84
long term loans and advances 4,240 1,019 0.02 0.006
Long term deposits 6,629 5,181 0.04 0.03
Total non current assets 2,104,721 1,726,811 13.43 10.91Current assetsStore and spare 227,191 226,169 1.45 1.42Stock-in-trade 2,859,951 3,959,316 18.25 25.02
Trade debts 665,647 738,281 4.24 4.66
short term prepayments 47,523 9,134 0.30 0.05
accrued return on bank deposit 132,634 76,211 0.84 0.48
Other receivables 605,725 1,250,217 3.86 7.90
Loans and advances 426,165 414,338 2.72 2.61
Taxation-net 48,520 0 0.30 0
Cash and bank balance 8,543,263 7,416,180 54.5 46.87
Total current assets 13,560,329 14,095,657 86.5 89.0
Total Assets 15,665,050 15,822,468 100.00% 100.00%
HORIZONTAL ANALYSISOf
Income statement of 2006&7Profit and loss account 2007 2006 2007 2006
Net sales 39,061,226 35,236,535 100 100
Cost of goods sold 34,620,632 31,088,906 88.6 88.2Gross profit 4,440,594 4,147,629 11.3 11.7
Distribution cost 509,986 404,917 1.3 0.19Administrative expenses 265,302 242,456 0.6 0.6
775,288 647,373 1.98 1.833,665,306 3,500,256 9.38 9.93
Other operating expenses 348,430 321,746 0.89 0.913,316,876 3,178,510 8.49 9.02
Other operating income 935,290 1,021,212 2.39 2.894,252,166 4,199,722 10.88 11.91
Finance cost 22,685 126,945 0.05 0.36
Profit before taxation 4,229,481 4,072,777 10.82 11.55
Taxation 1,483,780 1,424,313 3.79 4.04Profit after taxation 2,745,701 2,648,464 7.02 7.51
Earnings per share 34.93 33.70 0.00009 0.00010
Vertical Analysis of
Balance Sheet of 2007
EQUITIES AND LIABILITIES2007 2006 2007 2006
(Rupees in '000) (Rupees in '000)
Share capital and reserves
Authorized capital100000000(2008.100000000 ordinary shares of Rs.10 each 1,000,000 1,000,000 1,000,000 1,000,000Issued, subscribed & paid up capital 786,000 786,000 100% 100.00%Capital reserve 7,257,975 5,471,879 132% 100.00%Total equity 8,043,975 6,257,879 128% 100.00%Non-current liabilitiesDeferred taxation 210,149 116,164 180% 100.00%
Total non current liabilities 210,149 120,035 175% 100.00%Current liabilities
Trade and other payables 2,892,017 2,599,911 111% 100.00%advance from customers &dealers 4,514,480 6,620,869 68%Short term running finances- secured 0 0 0% 100.00%taxation net 0 195,789 0% 100.00%accurate mark up 715 22,250 3.2% 100%
Total current liabilities 7,410,926 9,444,554 78% 100.00%
Total equity and liabilities 15,665,050 15,822,468 0.99% 100.00%
Vertical ANALYSISOf
Income statement 2006&7
Profit and loss account 2007 2006 2007 2006
Net sales 39,061,226 35,236,535 110 100
Cost of goods sold 34,620,632 31,088,906 111 100Gross profit 4,440,594 4,147,629 107 100
Distribution cost 509,986 404,917 125 100Administrative expenses 265,302 242,456 109.4 100
Other operating expenses 348,430 321,746 108.2 100
Other operating income 935,290 1,021,212 91.2 100
Finance cost 22,685 126,945 17.8 100
Profit before taxation 4,229,481 4,072,777 103 100
Taxation 1,483,780 1,424,313 104 100
Profit after taxation 2,745,701 2,648,464 103.6 100
Earning per share 34.93 33.70 103.65 100
Horizontal analysis of Balance sheet of 2008&9
EQUITIES AND LIABILITIES 2009 2008 2009 2008(Rupees in '000)
Share capital and reservesAuthorized capital100000000(2008.100000000 ordinary shares of Rs.10 each 1,000,000 1,000,000 1,000,000 1,000,000Issued, subscribed & paid up capital 786,000 786,000 3.80% 5.72%Capital reserve 9,510,973 8,650,340 45.98% 62.92%
Total equity 10,296,973 9,436,340 49.78% 68.64%Non-current liabilitiesdeferred taxation 503,700 532,138 2.44% 3.87%
Total non current liabilities 503,700 532,138 2.44% 3.87%Current liabilitiesTrade and other payables 3,942,988 2,837,084 19.06% 20.64%advance from customers &dealers 5,926,529 942,442 28.65% 6.86%Short term running finances- secured 0 0 0.00% 0.00%taxation net 14,660 0 0.07% 0.00%accurate mark up 673 105 0.00% 0.00%
Total current liabilities 9,884,850 3,779,631 47.79% 27.49%Total equity and liabilities 20,685,523 13,748,109 100.00% 100.00%
Assets 2009 2008 2009 2008
Non-current assetsfixed assets 3,934,473 4033762 19.02% 29.34%long term loans and advances 28,509 42,341 0.14% 0.31%Long term deposits 7,222 7,222 0.03% 0.05%
Total non current assets 3,970,204 4,083,325 19.19% 29.70%
Current assets
Store and spare 128,483 232,142 0.62% 1.69%Stock-in-trade 4,088,858 2,637,629 19.77% 19.19%Trade debts 1,736,631 1,332,832 8.40% 9.69%short term prepayments 16,876 23,148 0.08% 0.17%accrued return on bank deposit 50,944 35,012 0.25% 0.25%Other receivables 67,902 74,360 0.33% 0.54%investments at fair value through profit &loss 0 54,171 0.00% 0.39%
Taxation-net 0 209,533 0.00% 1.52%Cash and bank balance 9,731,166 9,664,784 47.04% 70.30%
Total current assets 16,715,319 9,664,784 80.81% 70.30%
Total Assets 20,685,523 13,748,109 100.00% 100.00%
2009 2008 2009 2008(Rupees in '000) (Rupees in '000)
Sales 37,864,604 41,423,843 100.00% 100.00%
Net sales 37,864,604 41,423,843 100.00% 100.00%
Cost of sale(c.g.s) -35540418 -37,575,356 -93.86% -90.71%
Gross profit 2,324,186 3,848,487 6.14% 9.29%
Operating expense Marketing, selling and distribution cost -469,985 -487,373 -1.24% -1.18%
Administrative expense -352,249 -297,284 -0.93% -0.72%other operating expense -156,479 -306,193 -0.41% -0.74%Total operating exp -978,713 -1,123,718 -2.58% -2.71%
Profit from operation before finance costs 1,345,473 2,757,637 3.55% 6.66%
Finance costs -26,540 -2,760 -0.07% -0.01%Profit from operation after finance costs 1,318,933 2,754,877 3.48% 6.65%
Other income 727,080 786,834 1.92% 1.90%Profit before taxation 2,046,013 3,541,711 5.40% 8.55%
Taxation -660,911 -1,250,866 -1.75% -3.02%
Profit after taxation 1,385,102 2,290,845 3.66% 5.53%
Horizontal analysis OfIncome statement of 2008&09
Vertical AnalysisBalance Sheet
For the year ended 2008&9
EQUITIES AND LIABILITIES2009 2008 2009 2008
(Rupees in '000) (Rupees in '000)Share capital and reserves
Authorized capital100000000(2008.100000000 ordinary shares of Rs.10 each 1,000,000 1,000,000 1,000,000 1,000,000
Issued, subscribed & paid up capital 786,000 786,000 100.00% 100.00%Capital reserve 9,510,973 8,650,340 109.95% 100.00%Total equity 10,296,973 9,436,340 109.12% 100.00%Non-current liabilitiesDeferred taxation 503,700 532,138 94.66% 100.00%
Total non current liabilities 503,700 532,138 94.66% 100.00%Current liabilities
Trade and other payables 3,942,988 2,837,084 138.98% 100.00%
(Mark up accused on short term runningFinances and long term loans 673 105 640.95% 100.00%advance form customers & dealers 5,926,529 942,442 628.85% 100.00%taxation net 14,660 0 100.00% 100.00%
Total current liabilities 9,884,850 3,779,631 261.53% 100.00%
Total equity and liabilities 20,685,523 13,748,109 150.46% 100.00%
Vertical analysis of Income statement
for 2008&92009 2008 2009 2008
(Rupees in '000) (Rupees in '000)Sales 37,864,604 41,423,843 91.41% 100.00%Net sales 37,864,604 41,423,843 91.41% 100.00%
Cost of sale(c.g.s) -35,540,418 -37,575,356 94.58% 100.00%
Gross profit 2,324,186 3,848,487 60.39% 100.00%
Operating expense Marketing, selling and distribution cost -469,985 -487,373 96.43% 100.00%Administrative expense -352,249 -297,284 118.49% 100.00%
other operating expense -156,479 -306,193 51.10% 100.00%Total operating exp -978,713 -1,123,718 87.10% 100.00%
Profit from operation before finance costs 1,345,473 2,757,637 48.79% 100.00%
Finance costs -26,540 -2,760 961.59% 100.00%
profit from operation after finance costs 1,318,933 2,754,877 47.88% 100.00%
Other income 727,080 786,834 92.41% 100.00%
Profit before taxation 2,046,013 3,541,711 57.77% 100.00%
Taxation -660,911 -1,250,866 52.84% 100.00%
Profit after taxation 1,385,102 2,290,845 60.46% 100.00%
We have done the following things in this project;
Company introduction. Abstract Historical Background of the
Company. Mission, Vision.
Conclusion
The Company Products/Services. Financial Statement (ratio) Analysis
for the last 4 Years. Trend analysis and Plot Line graph of
each Ratio Common Size and Index Analysis.
www.toyota-indus.com www.motormania.com www.pakmotors.com www.pakwheels.com www.indus_cars.com
REFERENCES
