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GUL AHMED TEXTILE MILLS LTD. & FAZAL TEXTILE MILLS LTD. EXPLANATIONS OF RATIOS FOR THE YEAR 2008 1. Cu rr en t Ra ti o: Current Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because total current asset and total current liabilities of Fazal Textile Mills are less than total current asset and total current liabilities of Gul Ahmed Textile Mills. 2. Quick Ratio: Quick Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more cash and Government security receivable as compare to Fazal Textile Mills. 3. Laverage Ratio: Laverage Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because total liabilities and net worth of Fazal Textile Mills is less than Gul Ahmed Textile Mills. 4. Gross Margin Ratio: Gross Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more gross profit and net sales as compare to Fazal Textile Mills. 5. Net Profit Margin Ratio:  Net Profit Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and net sales as compare to Fazal Textile Mills. 6. Inventory Turn Over Ratio: Inventory Turn Over Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because Fazal Textile Mills has more cost of good sold and less inventory as co mpare to Gul Ahmed Textile Mills. 7. Account Receivable Turn O ver Ratio: Account Receivable Turn Ov er Ratio of Fazal Textile Mills is les s as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net credit sales as compare to Fa zal Textile Mills. 8. Return On Investment Ratio: Return on Investment Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because Fazal Textile Mills has less net worth and net profit as compare to Gu l Ahmed Textile Mills. 9. Return On Assets Ratio: Return On Assets Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textil e Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and total asset as compare to Fazal Textile Mills.

Gul Ahmed Textile Mills Ltd2008

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8/3/2019 Gul Ahmed Textile Mills Ltd2008

http://slidepdf.com/reader/full/gul-ahmed-textile-mills-ltd2008 1/2

GUL AHMED TEXTILE MILLS LTD. & FAZAL TEXTILE MILLS LTD.

EXPLANATIONS OF RATIOS FOR THE YEAR 2008

1. Current Ratio:Current Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the

year 2008 because total current asset and total current liabilities of Fazal Textile Mills are

less than total current asset and total current liabilities of Gul Ahmed Textile Mills.

2. Quick Ratio:Quick Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the

year 2008 because Gul Ahmed Textile Mills has more cash and Government security

receivable as compare to Fazal Textile Mills.

3. Laverage Ratio:Laverage Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for 

the year 2008 because total liabilities and net worth of Fazal Textile Mills is less than Gul

Ahmed Textile Mills.

4. Gross Margin Ratio:Gross Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills

for the year 2008 because Gul Ahmed Textile Mills has more gross profit and net sales as

compare to Fazal Textile Mills.

5. Net Profit Margin Ratio: Net Profit Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile

Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and net sales as

compare to Fazal Textile Mills.

6. Inventory Turn Over Ratio:

Inventory Turn Over Ratio of Fazal Textile Mills is more as compared to Gul Ahmed TextileMills for the year 2008 because Fazal Textile Mills has more cost of good sold and less

inventory as compare to Gul Ahmed Textile Mills.

7. Account Receivable Turn Over Ratio:Account Receivable Turn Over Ratio of Fazal Textile Mills is less as compared to Gul

Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net creditsales as compare to Fazal Textile Mills.

8. Return On Investment Ratio:Return on Investment Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile

Mills for the year 2008 because Fazal Textile Mills has less net worth and net profit as

compare to Gul Ahmed Textile Mills.

9. Return On Assets Ratio:Return On Assets Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile

Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and total asset

as compare to Fazal Textile Mills.

8/3/2019 Gul Ahmed Textile Mills Ltd2008

http://slidepdf.com/reader/full/gul-ahmed-textile-mills-ltd2008 2/2

GUL AHMED TEXTILE MILLS LTD. & FAZAL TEXTILE MILLS LTD.

EXPLANATIONS OF RATIOS FOR THE YEAR 2009

1. Current Ratio:Current Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the

year 2009 because total current asset and total current liabilities of Fazal Textile Mills are

less than total current asset and total current liabilities of Gul Ahmed Textile Mills.

2. Quick Ratio:Quick Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the

year 2009 because Gul Ahmed Textile Mills has more cash and Government security

receivable as compare to Fazal Textile Mills.

3. Laverage Ratio:Laverage Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for theyear 2009 because total liabilities and net worth of Fazal Textile Mills is less than Gul

Ahmed Textile Mills.

4. Gross Margin Ratio:Gross Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills

for the year 2009 because Gul Ahmed Textile Mills has more gross profit and net sales as

compare to Fazal Textile Mills.

5. Net Profit Margin Ratio: Net Profit Margin Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile

Mills for the year 2009 because Gul Ahmed Textile Mills has more net profit and net sales as

compare to Fazal Textile Mills.

6. Inventory Turn Over Ratio:

Inventory Turn Over Ratio of Fazal Textile Mills is more as compared to Gul Ahmed TextileMills for the year 2009 because Gul Ahmed Textile Mills has more cost of good sold and

inventory as compare to Fazal Textile Mills.

7. Account Receivable Turn Over Ratio:Account Receivable Turn Over Ratio of Fazal Textile Mills is less as compared to Gul

Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more net credit

sales as compare to Fazal Textile Mills.

8. Return On Investment Ratio:Return on Investment Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile

Mills for the year 2009 because Fazal Textile Mills has less net worth and net profit ascompare to Gul Ahmed Textile Mills.

9. Return On Assets Ratio:Return On Assets Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile

Mills for the year 2009 because Gul Ahmed Textile Mills has more net profit and total asset

as compare to Fazal Textile Mills.