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Analyzing Financial Ratios

# Analyzing Financial Ratios

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11/08/2012

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Financial Performance Of Cherat Cement Company:
The performance of Cherat Cement Company is the best among different cement Companies of Pakistan. Recent Statistic has Show that their significant growth has seen in recent year thereasons are export to Afghanistan and construction of dams. With production rate is rising 79%each and export growth rate of 110% show a good future for the company management andthose who want to invest.
Analyzing Financial Performance by Using Relevant Financial Ratio:
1.Return on Capital Employed:
Formula:Return on Profit Employed= (Profit before Interest and Tax/Capital Employed) X 100Rs.000 (In Million)YearProfit before I & TCapital EmployedReturn on profit employed200457366814324184.025%2005684007174247139.25%2006718747211292634.01%
(
Figure-1)

2.Profit Margin:
Formula:Profit Margin=Operating profit/SalesYearOperating ProfitSalesProfit Margin200459278120849550.284200571803724005300.299200679911124345130.328
3.Goss Profit Ratio:
Formula:Gross Profit Ratio= (Gross profit/sales) x 100YearGross profitSalesX 100 = Gross Profit Ratio2004715170208495534.30%1

2005856408240053035.67%20069456324345133.88%
(
Figure-3)
4.Profitability Ratio:
Formula:Profitability ratio = (net sales – cost of good sold)/net sales x 100YearNet salesCost of goodsold/Net sale X 100 =Profitability ratio2004208495513697850.34%2005240053015441220.35%2006243451314888820.38%
5.Net-Profit Ratio:
Formula:Net Profit Ratio =Net Profit/Sales X 100YearNet ProfitSalesX 100 = Net ProfitRatio2004425696136978531.07%2005512300154412294.60%20065377814888823.61%
6.Liability Ratio:
Formula:Liability ratio = Total debts/Total assetsYearTotal debtsTotal assetsLiability ratio2004218207221820721