Embed Size (px)
Citation preview
QUAID-E-
AZAMA K B A R , A R F A N , F A R H A T , G O H A R , Z E S H A N , N A V E E D , S H A H I D
Group Name:Quaid-e-Azam
Members:Akbar Butt BC-11038Arfan Afzal BC-11043Farhat Abbas BC-11045M.Gohar Iqbal BC-11050Zeshan Atique BC-11061M. NaveedBC-11010M. Shahid BC-11123
M. NAVEED
Sitara Chemical Industry Ltd.
CONTENTS Introduction History Vision, Mission and Ethics Objective Ratio’s
LiquidityActivityProfitabilitySolvency
SWOT Analysis Suggestion and Conclusion
Introduction
Its product line includes Caustic Soda solid, sodium hypochlorite, caustic soda liquid, hydrochloric acid, liquid chlorine, Specialty Chemical, Fertilizer polyester Cotton.
Head Quarter in Faisalabad
343 Employs
Private Ltd. Company
Chemical Division
Textile Division
Manufactured Company
History
╚ Sitara Group of Industries is one of the well-known industrial groups of Pakistan╚ This group started its industrial activity with textile weaving sector in 1956 under
leadership of two brothers, Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed.╚ By Haji Bashir Ahmed╚ SCIL was incorporated in 1981╚ Began producing caustic soda in 1985╚ Its specialty chemicals and export division was established in 2001 and agri
chemicals division in 2003.
VISION
Strive to develop and employ innovative technological solutions to add value to business with progressive and positive approach.
MISSION
Continuing growth and diversification for bottom line results with risks well contained.
BUSINESSES Sitara Chemical Industries Ltd. Sitara Chemical Industries Ltd. (Textile Division) Sitara Textile Industries Ltd. Sitara Spinning Mills Ltd. Sitara Energy Ltd. Aziz Fatima Trust Hospital Ghafoor Bashir Children Hospital Sitara Developers Ptv. Ltd. Sitara Hamza Pvt. Ltd.
OBJECTIVES
Safety
Quality
Integrity
Respect
Excellence
Innovation
M. SHAHID MUNIR
Ratio’s
Activity
Profitability
Solvency
Liquidity
LIQUIDITY RATIO
LIQUIDITY RATIO“ Liquidity ratios measure the company's ability to meet its short-term obligations.”
Liquidity Ratios:Current Ratio
Quick Ratio
Absolute Ratio
CURRENT RATIO
Definition:Total current assets to total current
liabilities.
Known as:Working Capital Ratio
Bench-Mark Rate:2:1
Formula =
Current Assets/ Current Liabilities
Year 2011 2012
Calculation =
2,293,235,870/3,940,419,539 2,715,289,032/4,279,702,977
Output = 0.58 : 1 0.63 : 1
CURRENT RATIO
Current Assets
Current Liabilities
LIQUID RATIO
Relationship between liquid assets and total current liabilities.
Bench mark rate:
1:1
Acid test ratio, Quick ratio.
Benefit:
Exact test of liquidity.
Also Known as:
LIQUID RATIO
Formula =
Liquid Assets/ Current Liabilities
Year 2011 2012
Calculation =
1,401,115,714 1,805,887,700
3,940,419,539 4,279,702,977Output =
0.36:1 0.42:1
ABSOLUTE LIQUID RATIO
Relates cash , bank and marketable securities to
current liabilities.
Very strict and exacting standard of liquidity.Bench Mark rate:
0.5:1
ABSOLUTE LIQUID RATIO
Formula =
[Cash + Bank+ Marketable Securities]
Current LiabilitiesYears 2011 2012
Calculation =
140,776,990 79,861,6684,27,97,02,977 3,94,04,19,539
Output =
0.04:1 0.02:1
FARHAT ABBAS
ACTIVITY RATIO
ACTIVITY RATIO
“Activity or efficiency ratio reflects the intensity of a company’s resource utilization or how efficient management team uses its assets or capital to generate sales.’’ in other words ‘measure the efficiency of Business’
ACTIVITY RATIO
Fixed assets turnover ratioWorking capital turnover ratio
Creditor conversion periodCreditor turnover ratio
Debtors conversion periodDebtors turnover ratio
Stock conversion periodStock turnover ratio
Years 2011 2012Formula =
CGS / Average Inventory
Calculation =
4,663,238,913 5,393,939,325885,083,340 902,720,830
Output = 5.27 Times 5.98 Times
STOCK TURNOVER RATIO
Years 2011 2012
Formula =
Days in a year
stock turnover ratioCalculation = 365/5.27 365/5.98Output = 69 Days 61 Days
Inventory Conversion Period
Years 2011 2012
Formula =
net credit salesAvg. account receivables
Calculation =
4,663,238,913 5,393,939,325512,397,911 893902085
Output = 12.13 Times 11.41 Times
Debtors Turnover Ratio
Years 2011 2012
Formula =
Days in a yeardebtor’s turnover ratio
Calculation = 365 /12.13 365 / 11.41
Result = 30 Days 32 Days
Debtors/ Receivables Conversion Period
Creditors/Payables Turnover Ratio
Years 2012 2011
Formula =
Net Credit purchasesAvg. payable
Calculation =
4,663,238,913 5,393,939,325
1,439,419,941 1,356,248,460
Output = 3.74 times 3.44 times
Years 2011 2012
Formula =
Days in a yearCreditor’s turnover ratio
Calculation = 365/3.44 365/3.74Output = 106 Days 97 Days
Creditor/Payable Conversion Period
Formula =
C.G.S/Fixed Assets
Year 2011 2012
Calculation =
4,663,238,913 5,393,939,325
8,001,028,528 10,165,371,942
Out Put =
0.58 Times 0.53 Times
Fixed Assets Turnover Ratio
WORKING CAPITAL TURNOVER RATIOHow efficiently working capital is being used for the generation of revenues
WORKING CAPITAL TURNOVER RATIO
Formula =
C.G.S/ Average Working Capital
Years 2011 2012
Calculation =
4,663,238,913 5,393,939,325
-1,647,183,669 -1,564,413,945
Output =
-2.83 Times -3.45 Times
GOHAR IQBAL
Profitability Ratio’s
PROFITABILITY RATIO
Gross profit ratio Operating profit
ratio Net profit ratio Operating ratio Expenses ratio
Types of Profitability Ratio
Formula =(Gross Profit/ Net Sale)*100
Year 2011 2012
Calculation =
(1,553,641,041 (2,069,987,192
6,216,879,954)*1007,463,926,517)*100
Output =
24.99 % 27.73 %
GROSS PROFIT RATIO
Formula =(Net Profit Ratio/Net Sale) * 100
Year 2011 2012
Calculation =
(427,991,321 (688,481,947 *100
6,216,879,954)*100 7,463,926,517)
Output =
6.88 % 9.22 %
NET PROFIT RATIO
Formula =
(Operating Profit/ Net Sale) * 100
Year 2011 2012
Calculation =
(1,078,065,020 (1,124,322,2276,216,879,954)*1
007,463,226,517)*100
Output =
17.34 % 15.06 %
Operating Profit Ratio
Formula =
(C.G.S+ Operating Expenses) *100
Net Sales
Years 2011 2012
Calculation =
(5,046,378,387 (5,832,847,717 *100
6,216,879,954)*100 7,463,926,517)
Output =
81.17 % 78.15 %
Operating Ratio
Formula =
(Expenses/Net Sale)*100
Year 2011 2012
Calculation =
(1,078,065,020 (1,124,322,2276,216,879,954)*100 7,463,926,517)*100
Output =
17.34 % 12.06 %
EXPENSE RATIO
ZEESHAN ATTIQUE
SOLVENCY RATIO
The ratio’s are used to determine the long term debt paying capacity of any organization & measure the efficiency of firm regarding interest payment.
SOLVENCY RATIO
In which including…..
SOLVENCY RATIO
1. Debt to equity ratio2. Fixed asset ratio3. Proprietary ratio4. Interest coverage
ratio
DEBT EQUITY RATIO“A solvency ratio calculated as total debt divided by total shareholders equity”
Three Types of Formulas:1. Debt to equity Ratio =
Long term debt
Equity2. Debt to equity Ratio =
Total debt
Equity3. Debt to equity Ratio =
Long term debt
Long term funds
1. DEBT TO EQUITY RATIO
Year 2011 2012
Formula =
Long term debt/equity
Calculation =
1,810,242,786 1,334,775,746
3,786,411,020 4,402,885,955Output =
0.48:1 0.30:1
2. DEBT TO EQUITY RATIO
Year 2011 2012
Formula =
Total debt/equity
Calculation =
6,765,231,754 7,011,708,546
3,786,411,020 4,402,885,955
Output =
1.79:1 1.59:1
3. DEBT TO EQUITY RATIO
Year 2011 2012
Formula =
Long term debt/Long term funds
Calculation =
1,810,242,786 1,334,775,746
5,596,653,806 5,737,661,701Output =
0.32:1 0.23:1
This ratio establishes the relationship between proprietor's fund to total resources of the unit.
PROPRIETARY RATIO
Formula:EquityTotal
Funds
FORMULA =(Equity/Total Funds)*100Years 2011 2012
Calculation =
(3,786,411,020 (4,402,885,9558,001,028,528)*1
0012,880,660,974)*10
0
Output = 36.78 % 34.18 %
PROPRIETARY RATIO
In 2011 is contributed by the proprietor was 36.78%But in 2012 this contributed was decreased and the figure was 34.18% remaining
This ratio measures the relationship between the long term funds and the fixed assets
FIXED ASSETS RATIO
Formula:Fixed AssetsLong term Funds
Formula =
Fixed Assets/Long Term Funds
Years 2011 2012
Calculation =
8,001,028,528 10,165,371,942
6,611,223,235 7,134,891,524
Output =
1.21% 1.42%
FIXED ASSETS RATIO
FORMULA =
EBIT/Interest
Years 2011 2012
Calculation =
1,213,154,939 1,669,465,200
703,493,583 682,871,270
Output = 2.44 Times 1.72 Times
INTEREST COVERAGE RATIO
Akbar Butt
Earning Per Share
EPS:EPS is the most important term for the investors of stock exchange
Definition:“This ratio tells us about how much earning on “1” share”.
Formula =
Profit After Tax/Number Of Shares Outstanding
Year 2011 2012
Calculation=427,991,321 688,481,94721,429,407 21,429,407
Output = Rs. 19.97 Rs. 32.13
EARNING PER SHARE
RETURN ON INVESTMENT RATIO
Return On Investment Ratio
Return on investment is the primary ratio to measure the overall profitability and efficiency of business.
2 TYPES
Return On Investment
Ratio
Return on Equity
Return on capital
employed
FORMULA =(EBIT/Capital Employed)*100Year 2011 2012
Calculation =
(1,213,154,939 (1,669,465,200
6,353,844,859)*100 8,600,957,997)*100
Output 19.09 % 19.41 %
Return On Capital Employed
FORMULA =(Profit After Tax/Equity)*100
Year 2011 2012
Calculation =
(427,991,321 (688,481,947
3,786,411,020)*100 4,402,885,955)*100
Output = 11.30 % 15.64 %
Return On Equity / Share Holder Funds
ARFAN M. AFZAL
SWOT ANALYSIS
Strength Largest manufacture caustic soda Largest Shareholder Advance Technology Plant Infrastructure Strong Management Strong Brand name Financially Sound
SWOT ANALYSIS
Weaknesses Need Considerable Market to Sustain Lack of Operations in Abroad Relying on Permanent Customers
Opportunities Increase Production Capacity Increase Product Line Taking Advantage of Geographic
position Provide Online Customer
Service Ordering System
SWOT ANALYSIS
ThreatsCompetitorsEconomic EnvironmentEnergy CrisesThreat of StakeholdersUnstable Law & Order Situation
SWOT ANALYSIS
POSITIVE POINTS
We did not found much difference in the SWOT Analysis of SCIL. They are performing pretty well and have strong strategic direction.
When we Comparison with other Chemical industries like NIMIR the SCIL worked in well Condition.
SUGGESTIONS For the Market Development, it is opportunity for them to export their
product in new markets. Sitara Chemical Industry must involve employees in decision making. Increase the Basic salary of its employees to increases their motivations. Avoid more credit Purchases. Control the Cost of product with the use of Advance Technology.
Another they have to make segment in their website through which they can provide online customer services in which customer can place order and provide Feedback as well, this will help them to capture more customers throughout the world
CONCLUSION After the completion of ratio analysis ,we have
concluded that the Industry has good will in market but this year some profitability ratios decreased & some increased as compare to previous year plus E P S. It’s means that the company has to take measures to maintain its position
But still there is some room for improvement in compensation system, and employment Planning.
THANKS
