Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
P. 1
Financial Analysis of DG Khan Cement Factory, Ratio Analysis

Financial Analysis of DG Khan Cement Factory, Ratio Analysis

Ratings: (0)|Views: 9,765 |Likes:
Published by M Fahim Arshed
Industry analysis cement industry, ratio anlaysis , finanacial analysis
Industry analysis cement industry, ratio anlaysis , finanacial analysis

More info:

Published by: M Fahim Arshed on Jul 27, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

06/15/2013

pdf

text

original

 
Financial Analysis of DG Khan Cement Company Ltd.
Page
1
Preface
As the world is growing rapidly, the businesses are also moving tobecome the huge one. And by that result, more and more people want tobecome a master in these businesses. The main purpose in the financefield is to know how the financial analysis is done. We all know thatfinance is the blood of any business and without it no business can run.Financial analysis of a company is very difficult and the most importanttask and by doing this I am able to know the whole financial position andfinancial structure of the company.Simply by looking at how much cash a company has does not provideenough information. The financial statements need to be analyzed tomeasure a company’s performance and to compare it with other firm’s inthe same industry. The resulting information is intended to be useful toowners, potential investors, creditors, analysts, and others as theanalysis evaluates the past performance, future potential and financialposition of the firm.This report is an analysis of financial statements of D.G. Khan CementCompany Ltd.
 
This report has been prepared with an objective to developanalytical skills required to interpret the information (explicit as well asimplicit) provided by the financial statements and to measure thecompany’s performance during the past few years. The financialstatements are analyzed using traditional evaluation techniques such ashorizontal analysis, vertical analysis and trend analysis. Ratios are animportant tool in analyzing the financial statements & the company’sprofitability, solvency & liquidity. Sincere attempts have been made tomake this report error free but if any errors and omissions are found thenI apologize for that.
Rabia Chaudhary 
 
Financial Analysis of DG Khan Cement Company Ltd.
 
Page
2
Acknowledgement
In the name of “Allah”, the most beneficent and merciful who gave usstrength and knowledge to complete this report. This report is a part of our course “Financial Statement Analysis”. This has proved to be a greatexperience. I would like to express our gratitude to our Finance teacher Mr. Waseem Rabani who gave us this opportunity to fulfill this report. Wewould also like to thank our colleagues who participated in a focus groupsession. They gave us many helpful comments which helped us a lot inpreparing our report.
 
Financial Analysis of DG Khan Cement Company Ltd.
Table of Contents
........................................................................................................................................2Table of Contents ..................................................................................................................3Introduction ...........................................................................................................................5Mission Statement.............................................................................................................5Vision Statement...............................................................................................................5D.G. Khan Cement Company Limited ...............................................................................5NISHAT GROUP ............................................................................................................5D.G. Khan Cement Company ........................................................................................6Acquisition of DGKCC by Nishat Group .........................................................................6Capacity Addition ...........................................................................................................6Expansion -Khairpur Project..........................................................................................6Power Generation ..........................................................................................................7Environmental Management..........................................................................................7BOARD OF DIRECTORS ..............................................................................................7Why cement sector for our project.....................................................................................7INDUSTRY REVIEW ...........................................................................................................10Overview of income statement............................................................................................11Overview of Balance sheet..................................................................................................11Liquidity Position with Graphical Presentation .....................................................................12Liquidity Position .............................................................................................................12Activity Ratios ..................................................................................................................13Operating Cycle ...............................................................................................................14Debt Ratios .....................................................................................................................14Profitability Ratios ............................................................................................................15Profitability - Financial Year 2002 to Financial Year 2008 ............................................16Assets Utilization .............................................................................................................17Return on Investment......................................................................................................19Return on total equity ...................................................................................................19Investment Ratios ............................................................................................................19Investment Ratios ............................................................................................................21Univariate Model.................................................................................................................23Multivariate Model...............................................................................................................24DuPont Analysis .................................................................................................................26SWOT ANALYSIS ...............................................................................................................27Strengths .........................................................................................................................27Weaknesses ....................................................................................................................30Threats ............................................................................................................................32Opportunities ...................................................................................................................33Recommendations ..............................................................................................................37International Trend ..........................................................................................................38FUTURE OUTLOOK .......................................................................................................39Annexure ............................................................................................................................41Summarized Income Statement......................................................................................41Summarized Balance Sheet............................................................................................45Horizontal Analysis of Income Statements .......................................................................46Vertical Analysis of Income Statements ...........................................................................46Horizontal Analysis of Balance Sheet..............................................................................47
Page
3

Activity (164)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Samira Sahel liked this
Saad Kalia liked this
saleihasharif liked this
Anjum Baloch liked this
saleihasharif liked this
Adnan Tousif liked this

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->