Assignment: 4

Case Study (Balanced Score Card)

Subject:
Business Studies in Finance

Submitted by: Syed Baqir Hassan

Reg No# 2210-6033

Submitted To:
Sir Farooq Baloch

SIR SYED CASE INSTITUTE OF TECHNONLGY

Balanced Score Card Analysis – Case Study

Financial Perspective:

1. Sales Growth:

• Metric: Percentage increase in sales from 2019 to 2020.

• Calculation: (70−50)/50×100
• Result: 40%

2. Gross Profit Margin Ratios:

• Metric: Gross profit divided by total sales, expressed as a percentage.

• Calculation: 38.5/70×100
• Result: Approximately 55%

3. Operating Profit Margin:

• Metric: Operating profit divided by total sales, expressed as a percentage.

• Calculation: 22.5/70×100
• Result: Approximately 32.14%

4. Net Profit Margin:

• Metric: Net profit divided by total sales, expressed as a percentage.

• Calculation: 18/70×100
• Result: Approximately 25.71%
5. Return on Assets (ROA):
• Metric: Net profit divided by average total assets.
• Calculation: 18/(36+20)/2×100
• Result: Approximately 60%
6. Asset Turnover Ratio:
• Metric: Total sales divided by average total assets.
• Calculation: 70/(36+20)/2
• Result: Approximately 2.33
Customer Perspective:
1. Customer Purchase to Call Ratio:
• Metric: Number of new customers ordered divided by the number of calls.
• Calculation: 60,000/200,000
• Result: 0.3
2. Customer Retention Ratio:
• Metric: Percentage of existing customers retained.
• Calculation: 120,000−24,000/120,000×100
• Result: 80%
3. Customer Lost Ratio:
• Metric: Percentage of customers lost.
• Calculation: 24,000/120,000×100
• Result: 20%
4. Customer Satisfaction:
• Metric: Customer satisfaction score.
• Result: 80%
Internal Process Perspective:
1. Orders Defective Returned Ratio:
• Metric: Percentage of orders returned due to defects.
• Calculation: 18/1000×100
• Result: 1.8%
2. On-Time Delivery Ratio:
• Metric: Percentage of on-time deliveries.
• Calculation: 750/1000×100
• Result: 75%
3. Efficiency Ratio (Pizza Baked in an Hour):
• Metric: Pizzas baked per hour.
• Result: 100
Learning & Growth Perspective:
1. Salary Competitiveness Ratio:
• Metric: Average salary per employee compared to the industry average.
• Calculation: 88,000/76,800
• Result: Approximately 1.15
2. Employee Productivity Rate:
• Metric: Pizzas baked per hour per employee.
• Calculation: 100/63
• Result: Approximately 1.59
3. Internal Promotion Rate:
• Metric: Percentage of internal promotions.
• Calculation: 14/63×100
• Result: Approximately 22.22%
4. Average Time to Hire:
• Metric: Average time taken to hire new employees.
• Result: 15 days