Analysis.docx - Assignment no 2 Financial Accounting Submitted to Sir Ahmed Saeed Kirmani ANALYSIS OF FAUJI CEMENT Group 1 Sania Hussain 2 Noor Us Sabah

Analysis.docx - Assignment no 2 Financial Accounting...

This preview shows page 1 - 2 out of 2 pages.

Assignment no. 2 Financial Accounting Submitted to: Sir Ahmed Saeed Kirmani ANALYSIS OF FAUJI CEMENT Group: 1) Sania Hussain 2) Noor Us Sabah Gilani We will start off with the analyzation by first looking at the two liquidity ratios. Over the course of the five years the current ratio has increased from 1.14 to 2.12 times which means that the Fauji Cement’s ability to pay back its liabilities using its current assets is increasing. The quick ratio also increased from 1.08 to 1.66 times which shows that the firm’s current assets that can immediately be converted into cash are sufficient to pay off liabilities as earlier on. Current assets have been over all increasing due to higher trade debts and increasing inventory but we see that Fauji Cement’s current liabilities have taken a sharp decline over the last year mainly because over the last three years the trade payables have been continuously decreasing which is why we see an increasing trend for the two liquidity ratios. Moving on we will now focus on the asset management ratios. By looking at the fixed asset ratio, we notice that it is increasing over the course of the past few years. By looking at the reducing figures of fixed assets, it can be confirmed that property, plant and equipment were not the reason which contributed to the generation of net sales, rather it is the increase in intangible assets. However, because
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read both pages?

  • Fall '19
  • Tauseef

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors