Human Resource Management

Financial Analysis

Liquidity Ratios:
  * Current Ratio:
Current Assets/ Current Liabilities
132872592/15834799
= 8.40
  * Quick Ratio:
(Current Assets-Inventories)/ Current Liabilities
(132872592-2935880)/ 15834799
= 8.21

Liquidity Positions | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 |
Current Ratio | 8.40 | 1.54 | 2.6 | 1.65 | 1.37 | 1.79 | 1.21 |
Quick Ratio | 8.21 | 1.22 | 2.33 | 1.44 | 0.96 | 1.35 | 0.64 |

The liquidity position of company deteriorated during the first nine months of FY’09. This was due to 40% decrease in current assets and 40% increase in current liabilities in the company. The current liabilities of the company increased due to 14% rise in trade payables, 61% increase in accrued markup & around 7 % increase in short term borrowing by the company. On the other hand, current assets of   the company declined due to decrease in investments from Rs 15 Billion at the end of FY’08 to Rs 7 Billion at the end of march FY’09. Also the cash & bank balance of the company decreased by 22 %. Thus, decrease in current assets & corresponding in current liabilities resulted in a less favorable liquidity position as compared to FY08.
Liquidity stance had been strengthening since FY04 & in FY07 its liquidity position was most favorable. There was 98 % increase in short term investments. In FY08, currents assets of company declined slightly but 63 % rise in current liabilities caused a decrease in the liquidity of the company. The investments decreased further from Rs 15 Billion in year-end FY08 to Rs 10.9 billion by the end if 1Q09.

  * Activity Ratio:
Inventory Turnover Ratio:
Cost of goods sold/ Inventory
12358479/ 2935880
= 4.21

Average Collection Period:
Acc. Receivables*365/ Annual Sales
908100*365/ 18038209
= 18.36 days

2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 |
18.36 | 13.57 | 8.2 | 3.4 | 5.27 | 4.95 | 5.56 |

Total Asset Turnover:
Sales/ Total assets
18038209/ 42723041
=0.42%...