TOYOTA INDUS MOTOR

Current Ratio Current Ratio = Current Assets Current Liabilities

= 16,715,319
9,884,850 = 1.69:1 Toyota Indus motor Company has Rs. 1.49 of current assets for every Re. 1 of current liabilities, which is good for the company.

Quick ratio / acid test

Quick Ratio = Current Assets Inventory Current Liabilities = 22,587,737 - 5,690,052 12,260,958 = 1.3:1 In this ratio the quick assets amounts to pay off the short term loan of the company which is good its more than one so its favorable for the company.

Debt- equity ratio

Debt-Equity Ratio =Total Debt Total Equity

= 947,345

13,333,648 = 0.07:1

The Toyota has Rs. 0.07 in debt for every Re. 1 in equity, this means equity is more than its debt its good, favorable for the company.

Debt to total assets Debt to Total Assets = Total Debt Total Assets = 947,345 26,834,618 = 0.02:1 The Toyota has Rs. 0.02 in debt for every Re. 1 in assets; the amount of assets is higher than the total liabilities which is good for the company in case of liquidation of the company total debts amount cover by the total asset.

Debt to total capitalization ratio

Long-Term Debt Ratio = _____Long-Term Debt_______ Long-Term Debt + Total Equity

= =

947,345 14,280,993 0.066

Toyotas accounts payable may be more of a reflection of trade practice than debt management policy. It is sometimes also called as the Toyotas total capitalization and the financial manager will frequently focus on this quantity rather than on total assets.

Interest coverage ratio

Times Interest Earned Ratio = ____EBIT____ Interest Charges =

4,011,455 24,443

= 164 Times Interest should be cover 164 times from the earning which is favorable for the company.

Receivables turnover Receivables Turnover = ______Sales_______ Accounts Receivables = 61,702,677 149,533

= 412.7 Times

This ratio is favorable for the company because receivable is good on the behalf of the company and in this ratio company received the a/c receivable 412.7 times as this ratio increased it is good for the company.

Debtor collection period Debtor Collection Period= _____365 Days_____ Receivables Turnover = 412.7 365 = 0.8 Days Toyota has collected on its credit sales in 0.88 days, which is good for the company and its favorable for
the company.

PAYABLE TURNOVER RATIO Inventory Turnover = Net Credit Purchases Accounts Payable
=

50,744,050 5,740,869
= 8.83 Times

In this ratio company account payable has high amount but it is favorable for the company to slow down such type of payable.

Average payment period Debtor Collection Period = _____365 Days_____ Receivables Turnover = 365 8.83 = 41 Days

In this ratio its shows the average period in which company receive its receivables its 41 days means that after 41 days of credit sales company receive its account receivables.

Inventory turnover Inventory Turnover = _Cost of Goods Sold_ Inventory

=

57,613,542 5,690,052

10.125 Times

The Toyota has sold off or turned over the entire inventory10.125 times, its favorable for the
company that company sold its inventory very quickly.

Total asset turnover Total Asset Turnover = ___Sales___ Total Assets

=

61,702,677 26,834,618

2.29 Times

This ratio shows that for every rupee in assets, the Toyota generated Rs. 2.29 in sales.

Gross profit margin Profit Margin = ____Gross Profit___ Sales = 4,089135 61,702,677 = 6.63%

The amount of sales is higher than the gross profit which means that amount of cost of sale is more which is not good for the company.

Net profit margin Profit Margin = __Net Income__ Sales = 2,743,384 61,702,677 = 4.45%

The amount of sales is higher than the net profit which means more expenses and taxes decreased that profit amount which is not favorable.

Return on investment Return on Investment (ROI) = _Net Income after Tax_ Total Assets = 2,743,384 26,834,618 = The Toyota has 0.10% profit per rupee of assets 0.10%

Return on equity: Return on Equity (ROE) = Net Income_ Total Equity = 2,743,384 14,119,648 = 42.98%

The Toyota generated 42.98% rupees in profit, for every rupee in equity

Earnings per share Earnings per Share = _____Earnings After Tax _____ Number of Shares Outstanding = 2,743,384 786,000 = 34.90

This ratio shows the earning per share is 34.90 against every 1 share.

Dividend per share Divided per share= __Dividend __ No of outstanding Share = 1,179,000 786,000
=

15.00

The Toyotas shares sell for Rs15.00 per earnings.

Dividend Payout Ratio Book Value per Share = Dividend per Share x 100 Earnings per Share = 15.00 x 100 34.90 = 42.98 %

SHELL PAKISTAN
Current ratio = Current Assets Current liabilities = 25,489,760 30,407,710 0.83 times

In this ratio current liabilities of company are more than its current assets which is not favorable for the company.

Quick ratio =

Current asset (Inventories + prepaid expenses) Current Liabilities = 25,489,760-12,668,324 30,407,710 0.42 times

In this ratio the quick assets amounts to pay off the short term loan of the company which is not good on the behalf of the company.

Cash ratio

Cash + Cash equivalent Current Liabilities 8,941,413 30,407,710 0.30 times

In this ratio company cash and cash equivalent amounts also less than the company liabilities in case of liquidation of company the amounts of cash and cash equivalent is not so much to cover the debts and shareholders investment. Which is also not favorable for the company?

Debt to equity ratio

total liabilities Shareholders equity = 9,986,438 7,900,035 1.26 times

In these ratio total debts is more than the shareholders equity which means that shareholders contribution is less than the creditors and lenders.

Debt to asset ratio

total liabilities/total debts Total assets 9,986,438 38,497,511 0.26 times

Total asset amount is higher than the total liabilities which is good for the company in case of liquidation of the company total debts amount cover by the total asset. Interest coverage ratio = Earning before interest & tax Interest expenses = 3,712,754 86,350 42.99 times

Interest should be cover 42.99 times from the earning which is favorable for the company.

Debt-service coverage ratio =

Earnings before interest & tax Interest + principal 1-(tax rate) 3,712,754 86,350+9,986,438 1-35% 0.24 times

Receivable turnover ratio =

Credit sales Average Account Receivable 223,813,592 9,395,541 23.82 times

This ratio is favorable for the company because receivable is good on the behalf of the company and in this ratio company received the a/c receivable 23.82 times as this ratio increased it is good for the company.

Receivable turnover (in days)

360 Receivable turnover ratio 360 23.82 15.11

Company received the amounts from the debtors after 15.11 days if the company

Inventory turnover ratio

= Cost of goods sold Average inventory = 185,403,153

12,727,689 = 14.56 times This ratio favorable for the company because as early as possible goods sold inventory should be placed. If goods replaced as goods sold than there is no chance of shortage of inventory.

Inventory turnover (in days)

360 14.56 24.72

This is favorable for the company to sell the inventory in no time. Holding period should be minimum. Because as early as possible goods sold company generates the revenues.

Payable turnover ratio

Credit purchases Average account payable 6,117,414 17,953,773 0.34 times

In this ratio company account payable has high amount but it is favorable for the company to slow down such type of payable. Payable turnover ratio (in days) = 360 Payable turnover ratio = 360 0.3407 1057

It is beneficial for the company to pay his payable not as early as required because this is option to company to invest that amount in other business and earns the profit.

Net profit margin

Net profit Sales

1,615,582 223,813,592 7.2%

The amount of sales is higher than the net profit which means more expenses and taxes decreased that profit amount which is not favorable.

Gross profit margin

Gross profit Sales = 12,127,758 223,813,592 5.41%

The amount of sales is higher than the gross profit which means that amount of cost of sale is more which is not good for the company.

Return of equity

Profit after tax Shareholders equity 1,615,582 7,900,045 20.45%

Return on investment

Profit after tax Total investment 1,615,582 38,497,511 4.20%

Earning per shares

Profit after tax No. of outstanding shares

1,615,582 68,487,913 2.40%

Dividend per shares

Dividend declared No. of outstanding shares 821,859,956 68,487,913 12.00

Dividend payout

Dividend per share Earning per share 12.00 23.59 50.86%

Retention ratio

= = =

1- Dividend payout 1-50.86% 49.14%

Price-earnings ratio

Market price per share Earning per share = 142 23.59 6.02

Earning yield

Earning per share Market price per share 23.59 142 16.61%

Dividend yield

Dividend per share Market price 12 142 8.5%

Market price to book value

Market price Book value 142 11.53% 1231.56

Book value

Shareholders equity No. of outstanding shares = 7,900,035 68,487,913 11.53%