Analytical Table

Name of Ratio Total Assets Turnover Current Year 2010 2.32 Base year 2009 2.40 Results Un Favorable Reasons For Change Total Assets 55.16 Current Assets 64.49 Sales 49.54 Sales 49.54 Receivables

Current Assets Turnover Fixed Assets Turnover Receivable Turnover

5.69

6.26

Unfavorable

3.92 44.45

3.91 24.01

Favorable Favorable

Inventory Turnover

13.43

14.48

Un Favorable

13.47 CGS 68.80

Inventory

54.16
Collection Period 8 Days 15 Days Favorable Sales 49.54 Receivables

13.47
Payment Period Age of Inventory 69 Days 27 Days 79 Days 25 Days Favorable Un Favorable Purchases CGS 68.80 Inventory

54.16
Operating Cycle 35 Days 40 Days Favorable Collection Period

Age of inventory

Critical Analysis
The effectiveness of management toward the utilization of resources to generate profit is very effective current year 2010 as compared to base year 2009 as most of the ratios shows favorable impact for Sugar Mill current year. The most important reason of this effectiveness of management is the much increase in current period sales which is 49.54% from base year.

The turnover analysis of the Sugar Mills indicate that the both inventory and receivables along with total working capital are very effectively utilize by the management because inventory management and credit policy is properly working or implement this year. However management still need s to took further steps in order to improve its total assets turnover and current assets turnover ratio, The payment turnover analysis of Sugar Mills also shows favorable result current year as compared to the base year because management had delayed its payment period which is also a good positive sign for the company

The results of operating cycle also shows favorable result for the sugar mill this year that shows management is taking less days to complete operating cycle which is a very good positive sign for company this year. The increase in the operating cycle is because of decrease in collection period and also increase in sales.