lucky - Strategic Financial Analysis on Lucky Cement By Sundas Sheikh Johar Qazi Kisa Fatima Zaidi Sara Sultan Taha Chinoy Shahreyar Saleem RATIOS

lucky - Strategic Financial Analysis on Lucky Cement By...

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Strategic Financial Analysis on Lucky Cement By Sundas Sheikh Johar Qazi Kisa Fatima Zaidi Sara Sultan Taha Chinoy Shahreyar Saleem
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RATIOS ANALYSIS
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RATIOS ANALYSIS
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Lucky Cement Cherat Ghabriwal Industry Average Profitability Ratios 2013 2014 2013 2014 2013 2014 2013 2014 Gross Profit to Sales 44.32% 44.38% 37% 33% 27% 28% 0.363433 0.348233 Net Profit After Tax to Sales 25.78% 26.33% 20% 20% 17% 10% 0.2077 0.188867 EBITDA to Sales 37.81% 38.58% 31% 31% 29% 31% 0.325333 0.333667 Operating Leverage 280.31% 123.39% 6% 53% 54% 25% 1.133933 0.6724 Return on Equity After Tax 23.67% 22.78% 38% 31% 32% 17% 0.314733 0.2337 Return on Capital Employed 25.97% 24.94% 31% 26% 12% 8% 0.229633 0.197233 Lucky Cement: The gross profit to sales, Net Profit to Sales and EBITDA to sales margins remained almost the same Although the Sales turnover increased but so did the costs. Operating leverage reduced by a large percentage because of repayment of current portion of long term loan. Comparing it with the Industry: Apart from Return on Equity and Operating Leverage, Lucky has been performing at a rate well better than the industry. As far as operating leverage is concerned, the company repaid a very high percentage of its long term loan which shows that the company’s operating leverage would be in line with the industry’s real soon.
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Lucky Cement Cherat Ghabriwal Industry Average Liquidity Ratios 2013 2014 2013 2014 2013 2014 2013 2014 Current Ratio 3.38 4.32 1.96 3.3 0.39 0.5 1.91 2.706667 Quick/Acid Test Ratio 1.66 2.62 1.41 2.88 0.13 0.12 1.066667 1.873333 Cash to Current Liabilities 0.73 1.89 0.03 0.02 0.01 0.01 0.256667 0.64 Cash Flow from Operations to Sales 0.32 0.31 0.31 0.27 0.05 0.21 0.226667 0.263333 Lucky Cement: Current and quick ratios improved a lot in 2014 because the current assets increased by 6 Billion rupees. Although the current liabilities increased but the current assets improved a very large amount so the Cash to current liabilities ratio also improved in 2014. Comparing it with the Industry: Industry’s cash to current liabilities ratio is struggling to improve because of high current liabilities Lucky cement’s cash flow from operations is also higher than the average cash flow from operations of the industry.
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Lucky Cement Cherat Ghabriwal Industry Average Activity/Turnover Ratios 2013 2014 2013 2014 2013 2014 2013 2014 Inventory Turnover 3.17 3.4 11 11 32.49 11.75 15.55333 8.716667 No. of days in Inventory 115.14 107.35 33 34 11.24 31.06 53.12667 57.47 Debtor Turnover 27.81 23 - - 45.15 46.42 36.48 34.71 No. of days in Receivables 13.12 15.87 - - 8.08 7.86 10.6 11.865 Credit Turnover 6.09 6.36 22 19 12.19 7.25 13.42667 10.87 No. of days in Payables 59.93 57.39 17 19 29.93 50.38 35.62 42.25667 Operating Cycle 68.33 65.83 16 15 10.61 11.45 31.64667 30.76 Total Assets Turnover 0.75 0.72 1.24 1 0.48 0.56 0.823333 0.76 Fixed Assets Turnover 1.22 1.35 1.83 1.91 0.54 0.65 1.196667 1.303333 Lucky Cement: Mostly the activity ratios remained similar for Lucky in 2013 and 2014.
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  • Financial Ratio, Lucky Cement, industry¬†average

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