Kohat Textile Mill (2019)
1-Liquiditity Ratio:
Current Ratio: 1159022/1225597 = 0.94
Acid Test Ratio: 1159022-668237/1225597 = 0.40
2-Financial Leverage Ratio:
Debt to Equity: 1806290/1707895 = 1.05
Debt to Total Asset: 1806290/3514185 = 0.51
Total Capitalization: 1806290/2288588 = 0.78
3- Coverage Ratio:
Interest Coverage: No interest is given in the statement.
4-Activity Ratio:
Receivable Turnover: 2966457/17086 = 173.6
Average Collection Period: 365/173.6 = 2.1
Payable Turnover: 2656307/394290 = 6.7
Payable Turnover in Days: 365/6.7 = 54.4
Inventory Turnover: 2656307/36061 = 73.6
Total Asset Turnover: 2966457/3514185 = 0.84
5-Profitability Ratio:
Gross Profit Margin: 310150/2966457*100 = 10.4
Net Profit Margin: 66965/2966457*100 = 2.2
Return on Investment: 66965/3514185*100 = 1.9
Return on Equity: 66965/1707895*100 = 3.92
Kohinoor Textile Mills (2019)
1-Liquidity Ratio:
Current Ratio: 7034046/6450732 = 1.09
Acid Test Ratio: 7034046-565437/6450732 = 1.01
2-Financial Leverage Ratio:
Debt to Equity: 8579763/16966815 = 0.5
Debt to Total Assets: 8579763/25546578 = 0.33
Total Capitalization: 8579763/19095846 = 0.44
3-Coverage Ratio:
Interest Coverage: No interest is given in the statement.
4-Activity Ratio:
Receivable Turnover: 21220135/536987 = 39.5
Average Collection Period: 365/39.5 = 9.2
Payable Turnover: 17659063/2133377 = 8.2
Payable Turnover in Days: 365/8.2 = 44.5
Inventory Turnover: 17659063/565437 = 31.2
Total Asset Turnover: 21220135/25546578 = 0.8
5-Profitability Ratio:
Gross Profit Margin: 3561072/21220135*100 = 16.7
Net Profit Margin: 1750644/21220135*100 = 8.2
Return on Investment: 1750644/25546578*100 = 6.8
Return on Equity: 1750644/16966815*100 = 10.3
Crescent Textile Mills:
1-Liquiduty Ratio:
Current Ratio: 6712671/8343855 = 0.80
Acid Test Ratio: 6712671-265357/8343855 = 0.77
2-Financial Leverage Ratio:
Debt to Equity: 9464068/7906735 = 1.19
Debt to Total Asset: 9464068/17370803 = 0.54
Total Capitalization: 9464068/9026948 = 1.04
3-Coverage Ratio:
Interest Coverage: No interest is given in the statement.
4-Activity Ratio:
Receivable Turnover: 13946144/290591 = 47.9
Average Collection Period: 365/47.9 = 7.6
Payable Turnover: 12308973/1865597 = 6.5
Payable Turnover in Days: 365/6.5 = 56.1
Inventory Turnover: 12308973/265357 = 46.3
Total Asset Turnover: 13946144/17370803 = 0.8
5-Profitability Ratio:
Gross Profit Margin: 1637171/13946144*100 = 11.7
Net Profit Margin: 238589/13946144*100 = 1.71
Return on Investment: 238589/17370803*100 = 1.37
Return on Equity: 238589/7906735*100 = 3.01
Method of Analysis: Common Size Statement:
Profit Margin
Fy2019 Raw Financial Numbers Common Size
Total Revenue Income after tax Profit Margin%
Kohinoor 21220135 1750644 8.2
Crescent 13946144 238589 1.7
Kohot 2966457 66965 2.2
Return on Equity:
Kohinoor Crescent Kohat
Total Assets 25546578 17370803 3514185
Sales 21220135 13946144 2966457
Net Income 1750644 238589 66965
Net Income/Stockholder Equity
Kohinoor: 1750644/16966815 = 10.3
Kohat: 66965/1707895 = 3.92
Crescent: 238589/7906735 = 3.01
Not Good 10% Very Good 20%
Kohat 3.92% Kohinoor 10.3%
Crescent 3.01%
Fiscal Year 2019 Net Income Equity Return on Equity
Kohinoor 1750644 16966815 10.3
Kohat 66965 1707895 3.92
Crescent 238589 7906735 3.01
Dupont Framework:
Leverage Ratio: Total Assets/Equity
Efficiency Ratio: Total Sales/Total Assets
Profitability Ratio: Net Income/Sales
Overall Profitability Efficiency Leverage
ROE
1750644 21220135 25546578
21220135 25546578 16966815
Kohinoor 10.3 = 8.2% x 0.8% X 1.5%
66965 2966457 3514185
29664457 3514185 1707895
Kohat 3.92 = 2.2% x 0.84% X 2.0%
238589 13946144 17370803
13946144 17370803 7906735
Crescent 1.7% x 0.8% x 2.1%
As shown above in the DuPont framework only in profitability ratio the Kohinoor Textile has a higher
%,but in efficiency Kohat has a higher % and leverage ratio Crescent Textile have a higher %. Number
does not show the exact facts we are looking for heree the dupont framework show how even in low
amount company can have a higher % in comparison.
Common Size Income Statement:
Kohinoor Kohat Crescent
Revenue 100% 100% 100%
COGS 83.2% 89.5% 88.2%
Distribution Expense 2.6% 7.6% 4.8%
Administration Expense 2.6% 2.4% 2.4%
Other Expenses 1.7% 0.43% 0.29%
Net Income 8.2% 2.2% 1.7%
COGS of Kohat is much higher than the Kohinoor, so this show that Kohat textile cost are higher than
Kohinoor during the manufacturing of the products. So by controlling it there can increase their net
profit just by having less expense. Even in distribution expense KOhat has a higher % due to spending
much more on distribution. Kohinoor have more other expenses than the two other Mills.
Common Size Balance Sheet:
Kohinoor Kohat Crescent
Cash 1.01% 0.24% 0.03%
Receivable 2.5% 0.57% 2.08%
Inventory 2.6% 1.2% 1.9%
Property, Plant & 41.9% 79.1% 48.2%
Equipment
Total Assets 48.01% 81.11% 52.21%
Just by looking at the above sheet the net % of the total assets of Kohat are much higher than of
Kohinoor, and after that Crescent Mills. Kohat Mills has the higher % in property, plant and equipment
column.
Operating Cycle:
Kohat:
Inventory Turnover: 2656307/36061 = 73.6
Average Collection Period: 365/73.6 = 4.9
Operating Cycle: 78.5
Kohinoor:
Inventory Turnover: 17659063/565437 = 31.2
Average Collection period: 365/31.2 = 11.6
Operating Cycle: 42.8
Crescent:
Inventory Turnover: 12308973/265357 = 46.3
Average Collection Period: 365/46.3 = 7.8
Operating Cycle: 54.1
