04/06/2023 1

Financial Reports
Agha Steel Industries Ltd
 04/06/2023 2

Financial Statement Analysis of

Agha Steel Industries Ltd

Presented to
SIR WASEEM SUBHANI
Presented by
EMAN SHAFIQUE
Roll No
BBA2021-018
04/06/2023 3
 04/06/2023 4

Table of Content
 Company Introduction
 Mission and Statement
 Strategic Goals and Key Values
 Ratios and Trend Analysis
 Conclusion
 04/06/2023 5

Company Introduction
 Agha Steel Industries Limited (ASIL) is a fully automatic
Steel Manufacturing Company in Pakistan with an annual
melting capacity of 450,000 MT and rolling capacity of
250,000 Metric Ton per annum.

 ASIL represents one of the largest private sector

investments in the steel industry of Pakistan.
 04/06/2023 6

Company Introduction
 ASIL is Pakistan’s first completely automatic Rolling Mill.

 ASIL is the fastest growing steel manufacturer in

Pakistan, which prides in continuously improving the quality
of its products

 Hussain Agha is the CEO of the company

 04/06/2023 7

Vision
 Be the leading steel manufacturing company of the region by
continuously updating the technology and business
processes.
 04/06/2023 8

Mission
 Be focused on achieving corporate objectives
 Leverage the latest environment-friendly green
technology.
 Leverage entrepreneurial approach.
 Set industry benchmarks in HSE compliance.
 Be the employer of choice.
 Give back to our society through effective CSR
Activities.
 04/06/2023 9

Strategic Goals
 Maintain our # 1 position in quality.
 Set industry benchmarks of efficient resource utilization.
 Be the first choice of customers on the basis of quality and
value for money.
 04/06/2023 10

Key Values
 No compromise on ethics.
 Reward result-oriented performance.
 Value loyalty
 Equal opportunity employer
 Earn the trust of all stakeholders.
04/06/2023 11
 04/06/2023 12

Types of Financial Statement

Balance Sheet

Income Statement

Cash Flow Statement

 04/06/2023 13

Agha Steel Industries ltd

Profitability Ratio

Net
Gross Profit
Operating
Ratio
Ratio

Net Income Return on

Ratio Assets

Earning Per
Share
 04/06/2023 14

Profitability Ratios

Gross Profit Ratios

 Gross Profit Ratio
Gross Profit Ratio is an indicator of company’s financial health

Gross Profit Ratio =Gross Profit / Net Sales*100

Trend Analysis: The company has mixed trend

Year Calculation Percentage

2022 5490289/25647947*100 21%

2021 45025191/19858243*100 23%
2020 3269075/13426584*100 25%
2019 2031125/10482191*100 19%
 04/06/2023 15

Profitability Ratios

Net Operating Ratio

 Net Operating Profit
Net Operating Income ratio indicates how much profit a
company makes after operating expenses.

Net Operating Ratio =Operating Profit /Net Sales×100

Trend Analysis: The company has mixed Trend

Year Calculation Percentage

2022 2666177/25647947*100 10%

2021 2511373/19858243*100 13%
2020 1211139/13426584*100 9%
2019 564948/10482191*100 5%
 04/06/2023 16

Profitability Ratios

Net Income Ratio

 Net Income ratio indicates how much income a
company makes

Net Income Ratio =Net Income /Net Sales *100:

Trend Analysis: The company has mixed Trend
Year Calculation Percentage

2022 1854770/25647947*100 7%
2021 2035997/29858243*100 10%
2020 1235592/13426584*100 9%
2019 10482191/768733*100 4%
 04/06/2023 17

Profitability Ratios

Return On Assets
 Return on Assets Ratio indicates ability of the company to earn
profit from its assets .

Return on Assets :Operating Income /Average Total Assets

Trend Analysis: The company has upward trend

Year Calculation Results

2022  2666177/38444000.5 0.069 :1
2021  2511373/38444000.5  0.065:1
2020  1211139/27232656  0.044:1
2019 594948/27232656   0.020:1
 04/06/2023 18

Profitability Ratios

Earning Per Share

 Earning Per Share (EPS) is calculated as a company’s profit
divided by the outstanding shares of its common stock.
Earning Per Share =Net Income /No of common shares
outstanding
Trend Analysis: The company has mixed Trend

Year Calculation Results

2022 1854770/604879100 3.07:1
2021 2035997/562073578 3.62:1
2020 1235592/417274473 2.96:1
2019 768733/361401293 2.13:1
 04/06/2023 19

Short Term Financial Position

Current Ratios

Quick Ratios

Working Capital
 04/06/2023 20

Short Term Financial Ratios

Current Ratios
 Current Ratio
Current ratio is the ability of a company to pay
short-term obligations or those due within a year.
 
Current Ratio =
 Trend Analysis: The company has Mixed Trend

Year Calculation Times

2022 21802217/19241193 1.133:1

2021 17781649/13888862 1.280:1
2020 15531277/14320172 1.084:1
2019 1346623/11223755 1.200:1
 04/06/2023 21

Short Term Financial Position

Quick Ratios
 Liquidity ratio is the ability of a company to pay
debt obligations.
 Liquidity Ratio =
 Trend Analysis: The company has Mixed Trend

Year Calculation Times

2022 7447709/19241193 0.56:1
2021 655002/13888862 0.47:1
2020 5057356/14320172 0.35:1
2019 4465716/11223755 0.40:1
 04/06/2023 22

Short Term Financial Position

Working Capital
 Working capital refers to the amount the company requires
to finance the day-to-day operation.

Working Capital =Current Assets – Current Liabilities

Trend Analysis: The Company has Mixed Trend

Year Calculation Results

2022 21802217-19241193 2561024
2021 17781649-13888862 3892787
2020 15531277-14320172 1211105
2019 13468623-11223755 2244868
 04/06/2023 23

Long Term Financial Position

Debt Ratio

Interest Coverage
Ratio
 04/06/2023 24

Long Term Financial Position

Debt Ratio
 Debt ratio measures the amount that a company borrows
from outside.
Debt Ratio =
Trend Analysis: The Company has Mixed Trend

Year Calculation Results

2022 25811732/41477286 0.6223:1
2021 21599931/35410715 0.6099:1
2020 1797986/29958048 0.7276:1
2019 8325132/24507264 0.7477:1
 04/06/2023 25

Long Term Financial Position

Interest Coverage Ratio

 Interest Coverage ratio indicates how a company can pay
interest on its outstanding debt
 Interest Coverage Ratio =Operating Income /Annual Interest
Expense
 Trend Analysis: The company has mixed trend

Year Calculation Times

2022  4802006/2135829  2.27:1
2021  3920353/1408980 2.99:1
2020  2913659/1702520 1.81:1
2019  1699523/1134575 1.80:1
 04/06/2023 26

Activities
Inventory Turnover Ratio

Receivable Turnover Ratio

Payable Turnover Ratio

 04/06/2023 27

Activities

Inventory Turnover Ratio

 Inventory turnover ratio measures how many times the
inventory is sold and replaced over a given period.
 Inventory turnover ratio =
 Trend Analysis: The company has mixed Trend

Year Calculation Times Days

2022 25647947/10902506 2.352 155
2021 19858243/10902506 1.82 203
2020 10157509/8191994 1.22 298.12
2019 8451066/8191994 1.31 278.63
 04/06/2023 28

Activities

Receivable Turnover Ratio

 Receivable turnover ratio measures efficiency with which company
collects on its receivables.
 Receivable turnover ratio =
 Trend Analysis : The company has mixed trend

Year Calculation Times Days

2022  30008098/4264872.5  6.36 57
2021  23234144/3391329 7  53
2020  15710054/3126491.5 2.24  163.02
2019  10482191/3126491.5 3.34  109.28
 04/06/2023 29

Activities

Payable Turnover Ratio

 Payable turnover ratio indicates to creditors the short term liquidity
and, to that extent, creditworthiness of the company.
 Payable turnover ratio =
 Trend Analysis: The company has Mixed Trend

Year Calculation Times Days

2022 1582257/25528.5 61.980 5.88
2021 1439857/25528.5 56.401 6.47
2020 154788/108951.5 1.420 257.0
2019 714246/108951.5  6.555 55.68
04/06/2023 30
 04/06/2023 31

Conclusion
 According to Trend Analysis , Agha Steel Industries Ltd has
moderate trend at some points company’s financial position
got down but at the most of the time ,it has stable financial
position for consecutive four years .
04/06/2023 32
 04/06/2023 33

Thanks to giving
me this opportunity
that how to
calculate company
financial reports
Thanks all of you for listening me