Financial Analysis

Business Finance Group Report

Cotton Industry

M.Adil Hussain 763

Amna Ameen Farooqui 703
Iqra Atta 716
Amna Aslam 704
 Final Analysis
Current Ratio
The current ratio of Suraj cotton mills company is highest ratio which is 2.89 in
2016 and cresent cotton mills current ratio is 0.83 and on third number Nagina
cotton mills company ratio is 0.44 and Babri cotton mills company current ratio is
very low which is 0.34.

Quick ratio
The highest quick ratio is of Babri cotton mills company is 2.74 and Suraj cotton
mills ratio is 2.2 and nagina cotton mills company ratio is 1.77 and the cresent
company is at lower rank and its ratio is 0.51.

Total debts ratio

The ratio of Nagina cotton mills company is highest ratio which is 0.44 in 2016
and Suraj cotton mills ratio is 0.29 and on third number Babri cotton mills
company ratio is 0.11 and Cresent cotton mills company ratio is very low which is
0.08.

Inventory turnover
The ratio of Suraj cotton mills company is highest ratio which is 677.10 in 2016
and Cresent cotton mills ratio is 28.62 and on third number Nagina cotton mills
company ratio is 5.89 and Babri cotton company ratio is very low which is 3.81.

Total assets turnover

The ratio of Suraj cotton mills and Nagina cotton mills is same is highest ratio
which is 18.15 in 2016 and Babri cotton mills is on third number its ratio is 8.98
and Cresent cotton mills company current ratio is very low which is 1.81.

Gross profit
Suraj cotton mills gross profit is 671724 which is highest among cotton industry
and on second rank is Cresent company which is 590768 and the Babri company
earn gross loss which is (31481) and Nagina company also earn gross loss of
(151480670).

Net Income
Suraj cotton mills has the highest net income in 2016 that is 425218 where as
Babri cotton mills is at loss with (81197)income and Nagina cotton mills has
highest loss of(87032024) income.
Return on Assets
Suraj Cotton Mills has highest return on investment 0.063.
Cresent Cotton mills return on investment is 0.10.
Babri Cotton mills company return on investment is -0.01
Nagina Cotton mills return is -0.03

Return on equity
Suraj Cotton Mills return on equity is 0.87.
Cresent cotton mills return on equity is 0.133.
Babri cotton mills return on equity is -0.01
Nagina cotton mills return on equity is -0.05.

Conclusion
The above ratios net income and sales shows that Suraj Cotton mills company is
better than other companies, its performance is best in 2016 as compared to other
cotton mills probably it will perform better in upcoming years.