Panther Tires Limited is a name of value, unwavering quality and predominant norms for

producing Tires and Tubes for Motorcycle, Rickshaw, Tractor, Forklift, LTV, Scooter,Moped and Caravan. The
organization was established in 1983. Over 33 years of presence, organization has developed to get one of the biggest
and driving providers and producers of Tires and Tubes in Pakistan. Our cutthroat costs, prevalent quality and ensured
after-deal administrations have permitted us to build up and appreciate a brilliant standing among a wide client base.

We are pleased to be the market chiefs in cruiser tires in Pakistan for both the OEM and substitution market. We are
perhaps the biggest exporter of tires with solid tractions in Asian, Middle East, African and European nations. At Panther
Tires, with in excess of 5000 workers we are a group of individuals, joined together and cooperating to make and convey
our item with best expectations.The strengths of panther tyres are its high profits during this covid time.Competitive
pricing strategy is also one of the strengths.There are less choices available in Panther tyre and prices are fixed which
causes disloyalty of customers.It has some of opportunities that there are very less barriers to entry.However there are
many firms in the industry which causes these companies to have sales loss as huge companies become owners.

Income Statement 2018 2019 2020

Net Revenue $ 1,305,000.00 $ 1,435,500.00 $ 1,579,050.00
Total COGS $ 561,150.00 $ 617,265.00 $ 678,991.50
Gross Profit $ 743,850.00 $ 818,235.00 $ 900,058.50
Total OPEX $ 456,750.00 $ 502,425.00 $ 552,667.50
EBITDA $ 287,100.00 $ 315,810.00 $ 347,391.00
Depreciation $ (13,200.00) $ (19,200.00) $ (27,200.00)
EBIT $ 273,900.00 $ 296,610.00 $ 320,191.00
Interest Exp $ (192,000.00) $ (240,000.00) $ (168,000.00)
Net Income before Tax 81,900.00 56,610.00 152,191.00
Tax rate 17% (13,923.00) (9,623.70) (25,872.47)
NI 67,977.00 46,986.30 126,318.53
Net Income % 5% 3% 8%

Note: Extra work to identify capital expenditure and accumulated depreciation

Capex and Depriciation Useful Life(Years) 2018 2019 2020

Building 25 80,000.00
Machinery 5 50,000.00 30,000.00 30,000.00
Furniture 10 20,000.00
Total Capex 130,000.00 30,000.00 50,000.00

Depreciation
Building 3,200.00 3,200.00 3,200.00
Machinery 10,000.00 16,000.00 22,000.00
Furniture 2,000.00
Tota D&A 13,200.00 19,200.00 27,200.00

Panther Tyre Company          

Balance Sheet   43,100.00 2,018.00 2,019.00 2,020.00

Historical
Cost
Assets
Current Assets

Cash 4,350,227.00 3,638,577.00 4,286,073.30 3,502,989.3

Account Receivable 19,773.00 21,750.00 23,925.00 26,317.50

Total Current Assets 4,370,000.00 3,660,327.00 4,309,998.30 3,529,307.3

Fixed Assets 40,000.00 170,000.00 200,000.00 250,000.00

Accumulated
Depreciation (10,000.00) (23,200.00) (42,400.00) (69,600.00)

Net Fixed Assets 30,000.00 146,800.00 157,600.00 180,400.00

Total Assets 4,400,000.00 3,807,127.00 4,467,598.30 3,709,707.3

Liabilities
Account Payable 75,000.00 26,100.00 28,710.00 31,581.00

Deferred Revenue 25,000.00 13,050.00 23,925.00 36,844.50

Total Current Assets 100,000.00 39,150.00 52,635.00 68,425.50

Long Term Debt 3,000,000.00 2,400,000.00 3,000,000.00 2,100,000.0

Total Liabilities 3,100,000.00 2,439,150.00 3,052,635.00 2,168,425.0

Equity

Common Stock 100,000.00 100,000.00 100,000.00 100,000.00

Retain Earnings 1,200,000.00 1,267,977.00 1,314,963.30 1,441,281.3

1,300,000.00 1,367,977.00 1,414,963.30 1,541,281.3

Liabilities annd
shareholder Equity 4,400,000.00 3,807,127.00 4,467,598.30 3,709,707.3

Cashflow Statement 2018 2019 2020

Net Income 67,977.00 46,986.30 126,318.53

Add: NonCash Expense $ 13,200.00 $ 19,200.00 $ 27,200.00

81,177.00 66,186.30 153,518.53

Operating Activities

Change in A/R $ (1,977.00) $ (2,175.00) $ (2,392.50)

Change in A/P $ (48,900.00) $ 2,610.00 $ 2,871.00

Change in Deferred Payment $ (11,950.00) $ 10,875.00 $ 12,919.50

NetCash provided by operation $ (62,827.00) $ 11,310.00 $ 13,398.00

Investing Activites
 Capex(investing in fixed assets) $ (130,000.00) $ (30,000.00) $ (50,000.00)

Financing Activities

Borrowing $ 1,500,000.00

Debt Repayment $ (600,000.00) $ (900,000.00) $ (900,000.00)

Net Cashflow Finncing Activities $ (600,000.00) $ 600,000.00 $ (900,000.00)

Net Cashflow $ (711,650.00) $ 647,496.30 $ (783,083.47)

Implementation and the reason for changes in the ratio over the period of time.

Financial Statements are not understandable until it is not converted into ratios. To analyze the financial
health and identify how it might be improved is by looking closely at your financial ratios. Ratios are used to
make comparison between different aspects of a company’s performance or how the company stakes up
within a particular industry or region.

Financial statement analysis is the process of reviewing and analyzing a company’s financial statements to
make better economic decisions. It is a method or process involving specific techniques for evaluating risks,
performance, financial health, and future prospects of an organization.
The changes in the ratio of liquidity, profitability, and debt utilization depend upon the company performance
over the period of time. Ratios are analyzed to compare company’s performance with industry or self
evaluated by comparison of the current year performance with the last year performance.

If the ratios of the company’s liquidity, profitability, and debt utilization are below the average of the industry
then company focus and try to improve the business activities to come up at industry average ratios.

Interest of the shareholder in financial analysis is to know a business’s profitability and solvency. The actual
metrics tracked and methods applied vary from stakeholder to stakeholder, depending on his or her interests
and needs. 

Implementation and the reason for comparatively better or worst performance in the
specific areas.
Most financial ratios have no universal benchmarks, so meaningful analysis involves comparisons with
competitors and industry averages. Most financial ratios have no universal benchmarks, so meaningful
analysis involves comparisons with competitors and industry averages. Vertical analysis is used to
benchmark company’ performance with its competitor to know either it is better or worst.

Benchmarking with Competitors Company

Ratios Panther Co, Servis co, Better/Worst

Assumption
Current Ratio 51.5:1 8:1 More better
A/R turnover 5.8 days 25 days Better
Fixed Assets Turnover 8.8 times 5 Better
Total Assets turnover 0.43 times 2 Worst
Debt Ratio 58% 15% Worst (too risky)
TIE 1.91 3 Worst (too risky)
Profit margin 8% 15% Worst
 BEP 8.6% 18% Worst
ROA 3.4% 5 Worst
ROE 8% 14% Worst
P/E ratio 1 2 Better

Conclusion:
As per analysis, it is conclude following points:

 Panther Company has too much idle Cash, Panther cannot earn more with this cash.
 Panther Company is efficient to recover its payment from customer within less time comparative its
competitors.
 Panther Company has used its assets efficiently and effectively its fixed assets turnover is higher than
its competitors.
 Panther Company is inefficient and ineffective in better use of its total assets. The business condition is
worst.
 Panther Company is in highly leverage because ratio is too high comparative its competitor. It means
business is operated more over the external financing than owner’s capital.
 Panther Company’s TIE is unfavorable. It means company is on high risk to investor and creditor in
term of solvency.
 Panther Company is a less profitable than competitors. Its profit margin EBIT both are lower than its
competitors and lower as in general industry average.
 Panther Company is not performing well as per ROA ratio as far as finance and its operation concerned.
 Panther Company’ performance is too weak as per ROE concern. It means company does not earn
enough profit compared to its equity.
 Panther Company stock with a low P/E ratio comparative its competitor indicates either company may
currently be undervalued or Panther Company is doing exceptionally well relative to its past trend. P/E
ratio does not indicate better or worse condition.

Panther Company must utilize its liquidation so that it could improve company’s earning and return to
shareholders’ values. Most of the cash is idle and Panther Company is not enjoying its benefit.