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    Accounts Project

    Uploaded by

    Muhammad Awais
    The document analyzes various financial ratios for Ayesha Steel Mill Limited. Key ratios include a current ratio of 0.66, indicating current assets are not sufficient to cover current liabilities. The quick ratio is even lower at 0.23. Return on assets is 4.44% and return on equity is 2.92%, indicating modest profitability. Total debts represent 73.28% of total assets, showing a high debt ratio. The document also examines inventory turnover, assets turnover, accounts receivable turnover, and other metrics for evaluating the company's performance and financial position.

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    Accounts Project

    Uploaded by

    Muhammad Awais
    25 views5 pages
    The document analyzes various financial ratios for Ayesha Steel Mill Limited. Key ratios include a current ratio of 0.66, indicating current assets are not sufficient to cover current liabilities. The quick ratio is even lower at 0.23. Return on assets is 4.44% and return on equity is 2.92%, indicating modest profitability. Total debts represent 73.28% of total assets, showing a high debt ratio. The document also examines inventory turnover, assets turnover, accounts receivable turnover, and other metrics for evaluating the company's performance and financial position.

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    Accounts Project

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    Accounts Project (Autosaved)

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    The document analyzes various financial ratios for Ayesha Steel Mill Limited. Key ratios include a current ratio of 0.66, indicating current assets are not sufficient to cover current liabilities. The quick ratio is even lower at 0.23. Return on assets is 4.44% and return on equity is 2.92%, indicating modest profitability. Total debts represent 73.28% of total assets, showing a high debt ratio. The document also examines inventory turnover, assets turnover, accounts receivable turnover, and other metrics for evaluating the company's performance and financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views5 pages

    Accounts Project

    Uploaded by

    Muhammad Awais
    The document analyzes various financial ratios for Ayesha Steel Mill Limited. Key ratios include a current ratio of 0.66, indicating current assets are not sufficient to cover current liabilities. The quick ratio is even lower at 0.23. Return on assets is 4.44% and return on equity is 2.92%, indicating modest profitability. Total debts represent 73.28% of total assets, showing a high debt ratio. The document also examines inventory turnover, assets turnover, accounts receivable turnover, and other metrics for evaluating the company's performance and financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Ayesha Steel Mill Limited

    Ratio Analysis

    Current Ratio:
    Current Assets 11,164,196 =
    Current Liabilities 16,711,096 0.668071

    Quick Ratio:
    Current Assets-Inventory 11164196 - 7299544 = 3864652 = 0.231263
    Currect Liabilities 16711096 16711096

    Working Capital:
    Current Assets-Current Liabilities 11164196 - 16711096 = -5,546,900

    Net Operating (Working Capital)


    Current Assets-Account Payable 11164196 - 1233907 = 9,930,289

    PROFITABILITY

    Return on Assets:
    Operating Income 1452877 = 0.044389 4.44%
    Total Assets 32,730,909

    Return on Equity:
    Net Income 255722 = 0.029236 2.92%
    Total Equity 8746828

    Earning Per Share:


    Net Income 255722 = 0.26
    No Of Shares 983546

    Net Profit Margin:


    Net Income 255722 = 0.01264 1.26%
    Sales 20,230,797

    Assets Management (Turnover)


    Inventory Trunover:
    Cost of Good Sold 18,552,531 18,552,531 3.164932 times
    Total Inventory or Average Inventory (379,561+6,919,983)/(112,006+4,312,261) 5861905.5

    Assets Turnover:
    Cost of Good Sold 18552531 0.6980317
    Total Average Assets 26578348.5

    Account Receivable Trunover:


    Net Sales 20,230,797 20230797 40.70116
    Average A/C Receivable (198537+144500)(105243+145834)/2 497057

    Days Sales Outstanding:


    365 365 8.968059
    A/C Receivable Turnover 40.7

    Debt Managements/ Financial Leverage

    Debts Ratio:
    Total Debts (Total Liabilities) 23,984,081 0.732766 73.28%
    Total Assets 32,730,909

    Debts to Equity Ratio:


    Total Equity 8,746,828 0.364693 36.47%
    Total Debts (Total Liabilities) 23,984,081

    TIE (Times Interest-Earned) Ratio:


    Interest Expense 1,865,306 Will Discuss with Samad
    Net Income 255,722

    Financial Statement Analysis

    Market Capitalization:
    Market Value of Share*No of Shares 10.35*983546 10179701
    Market Value Added:
    Market Capitalization-Book value of Shares 10179701-9835460 344241

    Economic Value Added:


    Operating Income-(Market Capitalization*interest expense%)
    7299544
    4424267
    11723811
    5861906

    32,730,909
    20,425,788

    598,537 105,243
    144,500 145,834

    994114

    983546

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