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Strategic Finance (Analysis)

VERTICAL ANALYSIS
MIRZA SUGAR MILL 2009 2010 2011 1. Sales increased in every year. Cost of goods sold increased (-85.63% to -92.87%) from 2009 to 2001 2. Because of increased in cgs the gross profit in 2011 decreased from (14.37% in 2009 but in 2011 7.53%) the gross profit ratio in 2010 16.46%. 3. All operating expenceses increased 2011 but in 2010 the operating expenses was average. 4. Due to increase in CGS operating profit decreased (13.27%to 3.48%) and net profit ( 24.6% t0 1.68%) 5. Fixed assets decreased due to flood in badeen region. Company suffered more loss because of flood. 6. Closing stock increased this not good sine and cash in hand is increased because not investment opportunity because of flood. 7. Noncurrent liabilities decreased its also not good. 8. The condition of Mirza sugar mill with the respect of vertical analysis in 2009, 2010, 2011 is good but in 2011 due to Flood Company would not be survived. J.D.W. SUGAR MILL 2009 2010 2011 1. 2. 3. 4. 5. Sales increased (74.86% to 93.30%) but in 2011 sales decreased with the respect of 2010 Due to increase in sale CGS (-25.12 to 77.51%) also increased in both years. Gross profit increased from (-2.35%to15.93%) Operating profit and net profit also decreased (6.63% to 5.07%). Noncurrent assets decreased in property company sale some land for cash requirement and investment. 6. Closing stock increased its not good sine cash in hand increased and receivable decreased. 7. With the vertical analysis we analysis both companies run in good way but the performance of j.d.w sugar mill very good instead of mirza sugar mill.

HORIZONTAL ANALYSIS
MIRZA SUGAR MILL 2009 2010 2011 1. Horizontal analysis shows the position of the company with the respect of pervious year. Mirza sugar mill show in sale position in 2011 is much lowers then the 2010. And in 2010 show a very big increased in sale but in 2009 sale position is very low.
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Strategic Finance (Analysis)


2. Because of increased in sale in 2011 2010 cost of goods sold increased but in 2010 very big change in sale therefore, in 2011 CGS small amount. 3. In 2011 gross profit show negative sign because in 2010 company show high profit, and in 2009 company show very profit. On reason to decrease in profit in 2011 was flood in badeen. 4. Other incomes increased in 2011 but in 2010 and 2009 show negative sign. 5. And net profit show negative position in 2011, 2010 but in 2009 show very good profit. The reason is in 2011 and 2010 company pay a large amount of tax finance cost. 6. Noncurrent assets show negative position in every year. 7. Cash in hand in 2011 show bad condition but in 2010 show very good position and then in 2009 is not in good condition. 8. Noncurrent liabilities increased in every year. 9. With the respect of horizontal analysis company show very good position in 2010 but in 2011 and 2009 gone averagely.

J.D.W. SUGAR MILL 2009 2010 2009 1. 2. 3. 4. 5. 6. 7. J.d.w sugar mill not show the gross sale in 2009. Net sale show that in 2011 company not in good position instead of 2010. And in 2009 show the negative position. In 2010 company show very high sale. CGS normal condition in 2011 and 2009 but as sale increased in 2010 CGS Also increased (21.65%in 2011 and 195.5% in 2010) Operating profit and net profit show very good amount in 2010 but in 2011 is Average and in 2009 was week ( 2009 is14.38% and 2010 148.25% 2011 7.48%)

8. Non current assets position is (-54.5% to 149.20%) assets increased but in 2011 decrease in assets. 9. Cash in hand also increased its not good (664.24% to 957.24%) 10. Reserves decrease from(106.25% to 44.29%) 11. With the respect of horizontal analysis j.d.w company show batter position 12. In 2010 and but in 2011 is average.

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Strategic Finance (Analysis)

RATIO ANALYSIS
J.D.W SUGAR MILL:
LIQUIDITY ANALYSIS 1: CURRENT RATIO: 1. 2. J.d.w. Sugar mill 0.7818 of current assets to meets 1.00 of its current liability in 2011. j.d.w. Sugar mill 0.7610 of current assets to meets 1.00 of its current liability in 2010.

QUICK RATIO: 3. J.d.w. Sugar mill 0.3825 of quick ratio to meets 1.00 of its current liability in 2011 4. J.d.w. Sugar mill 0.6241 of quick ratio to meets 1.00 of its current liability in 2010. CASH FLOW RATIO: 5. J.d.w. Sugar mill 0.0139 of cash ratio to meets 1.00 of its current liability in 2011. 6. J.d.w. Sugar mill 0.0025 of cash ratio to meets 1.00 of its current liability in 2010. 2: PROFITABILITY ANALYSIS: GROSS PROFIT RATIO: 7. J.d.w. Sugar mill makes gross profit of 0.1593 on every Rs. 1.00 of sales in 2011. 8. J.d.w. Sugar mill makes gross profit of 0.1700 on every Rs. 1.00 of sales in 2010. OPRATING PROFIT RATIO: 9. J.d.w. Sugar mill makes operating profit of 0.0824 on every Rs. 1.00 of sales in 2011. 10. J.d.w. Sugar mill makes operating profit of 0.0915 on every Rs. 1.00 of sales in 2010. NET PROFIT RATIO: 11. J.d.w. Sugar mill makes net profit of 0.0507 on every Rs. 1.00 of sales in 2011. 12. J.d.w. Sugar mill makes net profit of 0.0513 on every Rs. 1.00 of sales in 2010.

3: LONG TERM ANALYSIS: RETURN ON EQUITY: 13. J.D.W generates a 27.88% percent return on the capital invested by the owners equity of the company in 2011. 14. J.D.W generates a 36.46% percent return on the capital invested by the owners equity of the Company in 2010.

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Strategic Finance (Analysis)


RETURN ON ASSETS: 15. J.D.W. generates 2.14% return on the Assets that it employs in its operations in 2011. 16. J.D.W. generates 1.98% return on the Assets that it employs in its operations in2010. FIXED ASSETS TURANOVER RATIO: 17. J.D.W. generates 90.59% from fixed assets that it employs in its operations in2011. 18. J.D.W. generates 73.29% from fixed assets that it employs in its operations in2010. TOTAL ASSETS TURANOVER RATIO: 19. J.D.W. generates 42.11% from average total assets that it employs in its operations in2011. 20. J.D.W. generates 34.03% from average total assets that it employs in its operations in2010.

MIRZA SUGAR MILL


LIQUIDITY ANALYSIS 1: CURRENT RATIO: 1. Mirza sugar mill 0.5131 of current assets to meets 1.00 of its current liability in 2011. 2. Mirza sugar mill 0.4031 of current assets to meets 1.00 of its current liability in 2010. QUICK RATIO: 3. Mirza sugar mill 0.1419 of quick ratio to meets 1.00 of its current liability in 2011 4. Mirza sugar mill 0.1610 of quick ratio to meets 1.00 of its current liability in 2010. CASH FLOW RATIO: 5. Mirza sugar mill 0.0257 of cash ratio to meets 1.00 of its current liability in 2011. 6. Mirza sugar mill 0.0429 of cash ratio to meets 1.00 of its current liability in 2010. 2: PROFITABILITY ANALYSIS: GROSS PROFIT RATIO: 7. Mirza sugar mill makes gross profit of 0.0753 on every Rs. 1.00 of sales in 2011. 8. Mirza sugar mill makes gross profit of 0.1664 on every Rs. 1.00 of sales in 2010. OPRATING PROFIT RATIO: 9. Mirza sugar mill makes operating profit of 0.0268 on every rs 1.00 of sales in 2011. 10. Mirza sugar mill makes operating profit of 0.1148 on every rs 1.00 of sales in 2010. NET PROFIT RATIO: 11. Mirza sugar mill makes net profit of 0.0168 on every Rs. 1.00 of sales in 2011. 12. Mirza sugar mill makes net profit of 0.1048 on every Rs. 1.00 of sales in 2010.

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Strategic Finance (Analysis)


3: LONG TERM ANALYSIS: RETURN ON ASSETS: 13. MIRZA generates 5.74% return on the Assets that it employs in its operations in 2011. 14. MIRZA generates 32.45% return on the Assets that it employs in its operations in2010. FIXED ASSETS TURANOVER RATIO: 15. MIRZA generates 728.27% from fixed assets that it employs in its operations in2011. 16. MIRZA generates 660.26% from fixed assets that it employs in its operations in2010. TOTAL ASSETS TURANOVER RATIO: 17. MIRZA generates 341.68% from average total assets that it employs in its operations in2011. 18. MIRZA generates 309.97% from average total assets that it employs in its operations in2010.

DU PONT ANALYSIS
RETURN ON EQUITY: 1. J.D.W generates a 27.88% percent return on the capital invested by the owners equity of the company in 2011. 2. J.D.W generates a 36.46% percent return on the capital invested by the owners equity of the Company in 2010. RETURN ON ASSETS: 3. J.D.W. generates 2.14% return on the Assets that it employs in its operations in 2011. 4. J.D.W. generates 1.98% return on the Assets that it employs in its operations in2010.

MIRZA SUGAR MILL:


RETURN ON ASSETS: 1. MIRZA generates 5.74% return on the Assets that it employs in its operations in 2011. 2. MIRZA generates 32.45% return on the Assets that it employs in its operations in2010. RETURN ON EQUITY: 1. Mirza sugar mill generates a 16.41% percent return on the capital invested by the owners equity of the company in 2011. 2. J.D.W generates a 92.80% percent return on the capital invested by the owners equity of the Company in 2010.

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Strategic Finance (Analysis)

INDUSTRAY ANALYSIS 1. In current ratio analysis the whole sector position is 83.15% so J.D.W sugar mills and Mirza sugar mills are lower then the sector position but Al-abbas, Al-Noor and Sanghar sugar mills are in strong position. 2. In quick ratio analysis sector position is 11.33% so J.D.W and Mirza Sugar mills are in good position rather than the other three sugar mills are in lower position. 3. Cash ratio analysis the sector position is 1.36% so only three companies are strong enough to good position which are J.D.W, Al-Noor and Mirza sugar mills on other hand Sangher & al-abbas sugar mills are not in good position. 4. Profitability analysis show mirza sugar mill al-abbas and j.d.w sugar mill in good profit other is average or week. 5. Long term analysis show mirza sugar mill al-abbas and j.d.w sugar in good but others average or week.

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