RATIOS ANALYSIS

Presented to
Mr.Harris
Presented by

Syed Abdul Moied Ahmed

Syed Muhammad Asim
Abdul Jawwad

30-08-2008 Source : Internet

• Honda Atlas Cars (Pakistan) Limited engages in the
assembly, manufacture, and sale of Honda vehicles and
spare parts in Pakistan.
• The company was incorporated on November --, 1992
and joint venture agreement was signed on August ---,
1993.
• Car bookings started at six dealerships in Karachi,
Lahore, and Islamabad. Since then the Dealerships
Network has expanded and now the company has
sixteen dealerships Pit stops network in all major cities of
Pakistan.
 LIQUIDITY RATIO
DAYS SALES IN  
RECEIVABLES

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0.00 4.36
2006 0.00 5.86
2005 0.00 2.30

ACCOUNT
RECVBLE T/O
 

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0.00 85.40
2006 0.00 87.20
2005 0.00 147.25
ACCOUNT
RECVBLE T/O
IN DAYS

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0 4.27
2006 0 4.19
2005 0 2.48

DAYS SALES IN
INVENTORY

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 14.47 14.02
2006 1.02 23.43
2005 15.31 29.21
INVENTORY
TURN OVER

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 4.88 7.27
2006 6.631 6.63
2005 0.664 7.41

INVENTORY T/O
IN DAYS

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 74.85 50.18
2006 55.04 55.04
2005 54.96 49.23
OPERATING
CYCLE

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 74.85 54.46
2006 55.04 59.22
2005 54.96 51.71

WORKING
CAPITAL

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 (224,902.00) 15,014,706.00
2006 472,946.00 12,081,243.00
2005 588,118.00 8,457,938.00
CURRENT
RATIO

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0.94 1.81
2006 1.08 1.44
2005 1.06 1.3

ACID TEST
RATIO

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0.24 1.01
2006 0.36 0.78
2005 1.05 0.89
CASH RATIO

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 0.06 0.78
2006 0.17 0.64

2005 0.00 0.8

SALES TO
WORKING
CAPITAL

YEAR ATLAS HONDA INDUSTRY AVERAGE

2007 137.52 7.89
2006 48.33 10.62
2005 16.35 10.01
 LONG TERM DEPT RATIO
TIME INTREST EARNED

ATLAS INDUSTRY
YEAR HONDA AVERAGE
2007 -0.86 14.58
2006 19.35 19.15

2005 14.03 24.72

FIXED CHARGE COVERAGE

ATLAS INDUSTRY
YEAR HONDA AVERAGE
2007 -0.86 14.58
2006 19.35 19.15
2005 14.03 24.72
DEBT RATIO

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 70.62% 45.85%
2006 70.51% 58.25%
2005 82.24% 66.31%

DEBT EQUITY RATIO

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 240.28% 84.66%
2006 239.13% 102.76%
2005 463.06% 196.85%
DEBT TO TANGIBLE NET WORTH

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 246.95% 86.27%
2006 242.11% 104.17%
2005 466.61% 198.92%
 PROFITABLITY RATIO
NET PROFIT MARGIN

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -1.55 4.91
2006 2.75 6.15
2005 0.98 4.88

TOTAL ASSETS T/O

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 1.95 2.2893
2006 2.45 2.4073
2005 1.77 2.1262
RETURN ON ASSETS

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -0.03 0.11
2006 0.07 0.15
2005 0.02 0.10

DUPONT RETURN ON ASSETS

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -0.03 0.11
2006 0.07 0.15
2005 0.02 0.10
OPERATING INCOME MARGIN

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -1.54% 6.98%
2006 3.50% 8.30%
2005 0.50% 6.73%

OPERATING ASSETS T/O

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 6.42 12.55
2006 28.44 19.05
2005 26.89 18.00
RETURN ON OPERATING ASSETS

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -0.10 0.88
2006 1.00 1.58
2005 0.14 1.21

DUPONT RETURN ON OPERATING ASSETS

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -0.10 0.88
2006 1.00 1.58
2005 0.14 1.21
SALES TO FIXED ASSETS

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 6.42 12.94
2006 29.30 18.72
2005 27.85 18.58

RETURN ON INVESTMENT

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 2.00% 23.31%
2006 26.88% 40.15%
2005 10.60% 22.61%
RETURN ON TOTAL EQUITY

ATLAS INDUSTRY
YEAR HONDA AVERAGE
2007 -7.00% 22.02%
2006 25.78% 37.68%
2005 7.71% 29.76%

RETURN ON COMMON EQUITY

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 -10.28% 23.56%
2006 29.39% 38.83%
2005 1.71% 30.04%
GROSS PROFIT MARGIN

INDUSTRY
YEAR ATLAS HONDA AVERAGE
2007 0.59% 8.70%
2006 4.55% 5.94%
2005 1.71% 8.25%