Pak Suzuki

2011 2010 2009

1. Liquidity Ratio

Current Current
Ratio = Assets = 18,584,994 = 2.3208 14,313,132 = 3.0117 12,427,633 = 3.7375
Current
Liabilities 8,008,085 4,752,449 3,325,134

In year 2009 Pak Suzuki Motor company Limited is in very strong position if you compare this to the other years you can
easily to reach the decision that 2009 is the best year and 2011 year is not satisfactory.

Quick Ratio C.A -

= Inventory = 18,584,994 - 12,922,396 14,313,132 - 8,748,031 12,427,633 - 6,879,729
Current
Liabilities 8,008,085 4,752,449 3,325,134
= 5,662,598 = 5,565,101 = 5,547,904
8,008,085 4,752,449 3,325,134
= 0.7071101 = 1.1709965 = 1.6684753

The quick ration is 1:1 and you can see in 2009 the company has over quick assets which goes idol but in 2010 it is good
because it is very close to an ideal ratio.

Net working C.A - C.L = 18,584,994 - 8,008,085 14313132 - 4752449 12,427,633 - 3,325,134
capital Total
Ratio = Assets 23,301,117 = 19,250,364 = 17,655,734
= 10,57,909 9,560,683 9,102,499
23,301,117 19,250,364 17,655,734
= 0..045 = 0.4966495 = 0.5155548

If the working capital ratio is less it is benefited for the company its means the company is spending less and getting more
products.

Cash &
Cash Ratio cash
= equiv = 1,139,480 = 0.1423 2,917,186 = 0.6138 3,545,621 = 1.0663
Current
liabilities 8,008,085 4,752,449 3,325,134
 Cash ratio measures the immediate amount of cash available to satisfy short-term liabilities. A cash ratio of 0.5:1 or
higher is preferred. So in this position 2010 is the most stable year for the company

Operating Operating
Ratio = Expense = 107,072 = 0.1726 55,808 = 0.097 38,714 = 0.0625
Operating
Income 620,390 575,078 619,572

A high or increasing operating margin is preferred because if the operating margin is increasing, the company is earning
more per dollar of sales. And in this situation operating ratio is incresing in 2011.

Opeating Operating
Exp Expense = 107,072 = 0.0021 55,808 = 0.0013 38,714 = 0.0015
Total Net
to Sales = Sales 50,849,153 41,638,975 25,664,762

The operating expenses to sales ratio give an indication of the efficiency of the cost structure of the business. And
according to this 2011 is the most efficient year for the company.

2. Asset Ratio

Total
Inventory Sales = 50,849,153 = 4.693 41,638,975 = 5.3288 25,664,762 = 3.5128
Turnover Average
ratio= Inventory 10,835,214 7,813,880 7,306,124

In all the years the company has high turnover which is a good sign for company it means company earning a lot of profit
and that has overcome its expenses.

Total
Fixed Asset Sales = 50,849,153 = 11.29 41,638,975 = 8.7988 25,664,762 = 5.0999
Turnover Fixed
Ratio= Assets 4,504,094 4,732,342 5,032,403

The ratio is growing year by year which is a good sign it means if company want to take some extra debts that can take
because company has very good ratio.
 Total
Total Asset Sales = 50,849,153 = 2.1823 41,638,975 = 2.163 25,664,762 = 1.4536
Turnover Total
Ratio= Assets 23,301,117 19,250,364 17,655,734

The company’s total asset turnover ratio is very good it has minimum ratio in 2009 and maximum ratio in 2011 it means
the company ratio is growing up steady which is a good sign. It means the company utilizing its fewer resources and
getting high profit.

Total
Assets To Assets = 23,301,117 = 1.5236 19,250,364 = 1.3278 17,655,734 = 1.2325
Equity Owners’
Ratio = Equity 15,293,032 14,497,915 14,325,600

This ratio provides a good picture of a company’s strength. Investors, and those considering lending money to a
company, look at the asset/equity ratio to help determine if a company is a good investment or is over-extended with
credit.

3. Profitability Ratio

Net
Return on Income = 794,421 = 0.0373 211,143 = 0.0114 255,219 = 0.0147
Asset Average
Ratio= Assets 21,275,740 18,453,049 17,305,938

Return on Equity varies substantially across different industries. Therefore, it is recommended to compare return on
equity against company's previous values or return of a similar company.

Net
Return on Income = 794,421 = 0.0533 211,143 = 0.0147 255,219 = 0.0179
Equity Average
Assets= Owners' 14,895,474 14,411,758 14,239,141

Profit Net
Margin Income = 794,421 = 0.0156 211,143 = 0.0051 255,219 = 0.0099
Total Net
Ratio= Sales 50,849,153 41,638,975 25,664,762

The company’s profit marging ratio result is very proficient because in 2010 the company’s ratio was very low but with
passing of year it gain very good result and in 2011 it got very good result.
 Basic
earning EBiT = 1,365,297 = 0.0586 668,015 = 0.0347 427,843 = 0.0242
Total
Ratio= Assets 23,301,117 19,250,364 17,655,734

The basic earnings ratio compares earnings apart from the influence of taxes or financial leverage, to the assets of the
company.

4. Debt Ratio
Total
Total Debt Liabilities = 8,008,085 = 0.3437 4,752,449 = 0.2469 3,330,134 = 0.1886
Total
Ratio= Assets 23,301,117 19,250,364 17,655,734

In all years the company has very satisfactory debt ratio but in 2009 it is not good it means that company has more self-
proportion in the investment that should take more money as a loan and in other years company has good ration that can
take ratio without any hesitation.

Interest EBiT = 1,365,297 = 1.8552 668,015 = 1.0498 427,843 = 0.864

Coverage Interest
Ratio= Expense 735,935 636,332 495,200

The lower the ratio, the more the company is burdened by debt expense. So the ideal yeat in this ratio is 2009.

Debt/ Total
Equity Liabilities = 8,008,085 = 0.5236 4,752,449 = 0.3278 3,330,134 = 0.2325
Owners'
Ratio= Equity 15,293,032 14,497,915 14,325,600

5. Market Ratio

Net
EPS Ratio = Income = 794,421 = 0.0097 211,143 = 0.0026 255,219 = 0.0031
Avg No.
of Stocks 82,299,851 82,299,851 82,299,851

Earnings per share are generally considered to be the single most important variable in determining a share's price.
 Book
value/
Price to share = 0..185 = 0..0192 0..176 = 0.0688 0..174 = 0.0561
Market
Earnings value/
Ratio= share 9..65 2..56 3..10

Companies with high P/E ratios are more likely to be considered risky investments than those with low P/E ratios because
a high P/E ratio means high expectations for a company’s potential earnings growth. Since P/E ratio varies from
industries to industries, it is more valuable to comparing P/E ratios of companies within the same industry or against a
company’s historical P/E ratios.

Dividend
Dividend Paid = 41,350 = 0.0521 41,060 = 0.1945 81,757 = 0.3203
Payout Net
Ratio= Income 794,421 211,143 255,219

Large slow-growth companies, or companies like utility companies, are likely to pay out larger dividends to shareholders.
These companies will have a higher payout ratio. And in this situation company is paying dividends according to their
growth.