Liquidity Ratios:

- Nishat Mills and Kohinoor, both the companies have current assets that are enough for their liabilities.
The current ratio, then, for both companies is above 1. The current ratio for Nishat Mills is higher than
Kohinoor. This seems to indicate that it might have a better liquidity position short-term.

- The quick ratio of a company indicates the ability to be able to achieve its short-term obligations and
not having to use inventory. As mentioned, Nishat Mill seems to have a slightly lower quick ratio than
Kohinoor. This means that when it comes to short-term obligations, they may be more reliant on
inventory than Nishat Mills.

Asset Management Ratios:

- When compared to Nishat Mills, Kohinoor seems to have a higher inventory turnover ratio. This means
that Kohinoor as a company is better when it comes to efficiency and is currently able to generate more
sales comparatively from its inventory investment.

- When it comes to total asset turnover ratios, both companies are neck to neck and seem to have lower
ratios. This indicates that they are not generating enough sales relative to their assets.

- The fixed asset turnover ratio for Nishat Mills is slightly higher than that of Kohinoor. This means that
Kohinoor is generating significant sales from fixed assets that they have invested in.

Debt Management Ratios:

- Debt ratios for both companies are lower and that means that they have a conservative level of debt
in their capital structure.

- Kohinoor can cover its interest expenses relatively better with its operating income because it has a
higher times interest earned ratio.

Profitability Ratios:

- When it comes to the net profit margin, return on total assets, operating margin, return on common
equity, basic earning power, and return on invested capital, Kohinoor seems to have a higher
profitability ratio compared to Nishat Mills. Therefore, it may be concluded that Kohinoor is much more
efficient when it comes to generating profits relative to its assets, equity, and sales.

- Despite having relatively low profitability ratios, Nishat Mills is still managing to show a satisfactory
level of profitability. This indicates that the company is operating in a way that enables it to generate
reasonable profits, despite its unfavorable ratios. Furthermore, this suggests that the management team
is making sound decisions and utilizing resources effectively in order to maintain a profitable business.

Market Value Ratios:

- Nishat Mills has a lower market-to-book ratio as well as a price-to-earnings ratio when compared to
Kohinoor. This seems to indicate that Kohinoor is valued more by the market when it comes to its book
value and earnings. This also suggests higher expectations for Kohinoor’s growth in the future as well as
its profitability from investors.
- Nishat Mills, on the other hand, maybe undervalued within the market because it has a low enterprise
value of sales compared to Kohinoor.

It should be noted that all of the above-mentioned ratios ought to be interpreted within the context of
market conditions, historical trends, and industries. Moreover, a more comprehensive analysis of the
two companies’ ratios would include comparing them to industry standards and ratios of other
competitors to gain an even better understanding of relative performances.