afs project remianing

8/11/2019 AFS Project Remianing

1/16

Pak Suzuki Motor ompany

KHADIM ALI SHAH BUKHARI INSTITUTE OF TECHNOLOGY

Solvency Ratio

2008 2009 2010 2011 2012

Debt to Equity 0.0103 0.0003 0.0000 0.0000 0.0000

Debt to Capital 0.0102 0.0003 0.0000 0.0000 0.0000

Debt to Assets 0.0086 0.0003 0.0000 0.0000 0.0000

Financial Leverage 1.3565 1.2154 1.2804 1.3160 1.4737

Interest Coverage Ratio 4.1793 11.1788 -7.9673 -48.7433 -101.6241

Analysis:

Pak Suzuki Motors has no long term debt. It is 99.99 % Equity base.

0.0000

20.0000

40.0000

60.0000

80.0000

100.0000

120.0000

Debt to Equity Debt to Capital Debt to Assets Finanacial

Leaverage

Intrest

Coverage Ratio

2008

2009

2010

2011

2012


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Profitability Ratio

2008 2009 2010 2011 2012

Net profit margin 1.5750 0.9729 0.4951 1.5069 1.6709

Gross profit margin 0.0149 0.0217 0.0235 0.0355 0.0401Operating profit margin -0.5633 -0.5354 0.3989 2.7929 2.7522

Pretax margin 2.5011 1.6309 1.5665 2.5898 2.5623

Return on asset 3.2748 1.4747 1.1442 4.1639 4.3808

Operating return on assets 5.2004 2.4722 3.6201 7.1561 6.7179

Return on total capital -0.0156 -0.0098 0.0117 0.0961 0.1020

Return on equity 4.4422 1.7924 1.4651 5.4796 6.4558

Analysis Net profit margin went down from 2009 & 2010 but Pak Suzuki was able to raise it by 2011 and in

2012 as we can see same happened with Gross Profit Margin. It is because its COGS has beenoccupying larger part of Sale without considering any indirect costs.

From 2008 to 2012 Return on Assets has shown good figures which tells that Pak Suzuki has theabilities to turn assets into profit.

Return on Equity shows even better figures with growing rates ensuring that Pak Suzuki ismaking acceptable Profits to compensate for the risk being in business.

-2.0000

0.0000

2.0000

4.0000

6.0000

8.0000

10.0000

12.0000

Net profit

margin

Gross profit

margin

Operating

profit margin

Pretax

margin

Return on

asset

Operating

return onassets

Return on

total capital

Return on

equity

Earning per

share

2008

2009

2010

2011

2012


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Activity Ratio

2008 2009 2010 2011 2012Receivables Turnover 574.7029 299.2160 462.3424 425.6182 378.1448

Days of Sales outstanding 2.6000 5.2000 2.1000 2.2000 3.7000

Inventory Turnover 5.3000 376.8217 788.1318 792.1478 761.5158

Days of Inventory on hand 72.0000 98.0000 77.0000 93.0000 69.0000

Payables Turnover 26.3549 13.4939 15.8607 16.3728 16.9573

Number of days of Payables 5.1000 3.7000 4.8000 3.9000 5.3000

Total Asset Turnover 2.0793 1.5159 2.3109 2.7632 2.6218

Fixed Asset Turnover 8.1733 5.2496 8.7340 11.4153 13.6835

Working Capital Turnover 4.3497 2.8745 4.5697 4.5072 4.6187

cash conversion cycle 69.5000 99.5000 74.3000 91.3000 67.4000

Analysis Receivables turnover in days shows that cash collection of credit sales is approx 3 days

which generates cash inflows quicker.

Payables turnover in days shows that the period between purchases and payment is just5 days i.e. cash outflow within 5 days.

Total assets turnover indicates that the business is generating sales around 2-3 timeson each Rupee of assets.

0.0000100.0000200.0000300.0000400.0000500.0000600.0000700.0000800.0000

2008

2009

2010

2011

2012


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Cash Flow StatementPak Suzuki Motor Company

2008 2009 2010 2011 2012

CASH FLOWS FROM OPERATING ACTIVITIES (000) (000) (000) (000) (000)

Cash generated from / (used in) operations (1,465,559) 2,653,876 948,561 255,178 1,568,442

Finance costs paid (9,787) (15,755) (16,566) (17,866) (11,116)

Taxes paid (729,752) (659,290) (1,089,496) (1,525,837) (835,806)

Long-term loans 6,937 7,916 2,048 (409) 114

Long-term deposits and prepayments 1,658 (9,926) 6,110 8,012 (42,964)

Long-term receivables 45,143 (7,401) (16,386) (15,965) 23,179

Net cash generated from / (used in) operating activities (2,151,360) 1,969,420 (165,729) (1,296,887) 701,849

CASH FLOWS FROM INVESTING ACTIVITIES

Fixed capital expenditure (1,199,999) (1,075,128) (530,597) (885,490) (480,283)

Expenditure on intangible assets (73,297) (212,837) (368,319) (46,447) (202,677)

Proceeds from sale of investments 143,923 - 29,811 104,010 166,006

Proceeds from sale of property, plant and equipment 14,384 17,164 - - -

Mark-up on cash deposits with banks 691,571 429,617 447,459 388,458 257,203

Net cash used in investing activities (423,418) (841,184) (421,646) (439,469) (259,751)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (410,132) (81,757) (41,060) (41,350) (164,148)

Net increase / (decrease) in cash and cash equivalents (2,984,910) 1,046,479 (628,435) (1,777,706) 277,950

Cash and cash equivalents at beginning of the year 5,484,052 2,499,142 3,545,621 2,917,186 1,139,480

Cash and cash equivalents at end of the year 2,499,142 3,545,621 2,917,186 1,139,480 1,417,430


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CASH FLOW RATIO

2008 2009 2010 2011 2012

CASH FLOW TO REVENUE -0.0752 0.03989 -0.0147 -0.0337 0.00475

CASH FLOW TO ASSETS -0.176 0.05927 -0.0326 -0.0762 0.01302

CASH FLOW TO Equity -0.6015 0.20795 -0.1328 -0.3947 0.06861

CASH FLOW TO INCOME -4.7775 4.10032 -2.9763 -2.2377 0.2842

DIVIDEND PAYMENT -7.2779 12.7999 -15.305 -42.992 1.69329

CASH FLOW PER SHARE -0.6294 1.32268 -1.1581 -0.2319 0.02392

Analysis

-50

-40

-30

-20

-10

0

10

20

CASH FLOW

TO REVENUE

CASH FLOW

TO ASSETS

CASH FLOW

TO Equity

CASH FLOW

TO INCOME

DIVIDEND

PAYMENT

CASH FLOW

PER SHARE

2008

2009

2010

2011

2012


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Analysis:

It is evident from the income statement that Net income had fallen down in the year 2009 and then had

gone down even more in the year 2010 therefore EPS had been down. But from 2011 Pak Suzuki

showed good progress in Income and in 2012 as well. Therefore EPS from 7.59 in 2008 had come upto

11.8 in the year 2012.

Analysis:

As evident from the Income, same goes for dividend per share. From 0.2795 DPS in the

year 2008 which went down to a level of 0.1285DPS in year 2010, Pak Suzuki operated

well by 2012 and was able to award 0.594 DPS

7.59

3.1 2.57

9.65

11.88

0

5

10

15

2008 2009 2010 2011 2012

Earning per share

Earning per share

0.3795

0.155 0.1285

0.48250.594

0

0.5

1

2008 2009 2010 2011 2012

DIVIDEND PER SHARE

DIVIDEND PER SHARE

119.2 115.75

76.9

103.3 108.24

0

50

100

150

2008 2009 2010 2011 2012

MARKET SHARE PRICE

Market SHARE PRICE


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Competitive Analysis

2012 2011

PAK SUZUKI INDUS MOTORS PAK SUZUKI INDUS MOTORSNon-current assets 4,282,950 3,486,743 4,716,123 4,246,881

Current assets 17,060,451 22,587,737 18,608,777 24,088,975

Authorized capital 1,500,000 1,000,000 1,500,000 1,000,000

EQUITY 15,800,885 17,013,858 15,316,816 14,119,648

Non-current liabilities - 454,012 1,365,297 165,941

Current liabilities 5,547,980 12,260,958 8,008,085 10,395,919

-

5,000,000

10,000,00015,000,000

20,000,000

25,000,000

2012 PAK SUZUKI

2012 INDUS MOTORS

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

2011 PAK SUZUKI

2011 INDUS MOTORS


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Analysis:

Pak Suzuki Has more Non-Currents Assets in both the years than Indus Motor

Indus Motor Has more Current Assets and in an eyes view we come to know by its

balance sheet that Indus Motor has More Inventory left over at the end of the year which

definitely effects its cashflows.. Same is the case for its receivables. In this view then wecan say that Pak Suzuki is in a better position of liquidity

In 2011 Pak Suzuki has more Equity than Indus Motor but in 2012 though Pak Suzukis

equity increased but Indus Motor comes first.

Competitive Vertical Analysis

2012 2011

PAK SUZUKI INDUS MOTORS PAK SUZUKI INDUS MOTORS

NET SALES 0.95992 0.91474 0.96454 0.93373GROSS PROFIT 0.04008 0.08526 0.03546 0.06627

Operating Profit 0.01927 0.03669 0.01650 0.01739

PROFIT BEFORE TAXATION 0.02562 0.08202 0.02590 0.06501

PROFIT AFTER TAXATION 0.01671 0.05591 0.01507 0.04446

0.00000

0.20000

0.40000

0.60000

0.80000

1.00000

1.20000

NET SALES GROSS PROFIT Operating

Profit

PROFIT

BEFORE

TAXATION

PROFIT AFTER

TAXATION

2012 PAK SUZUKI

2012 INDUS MOTORS


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Analysis

In both the years though Pak Suzuki has more Sales than Indus Motor but its GrossProfit and profit after tax is less than Indus Motor. Its mainly because larger part of sales

has been chunked up by Cost of Goods Sold, whereas Indus Motors Sales in chunked

up lesser with COGS.

0.00000

0.20000

0.40000

0.60000

0.80000

1.00000

1.20000


Profit

PROFIT

BEFORE

TAXATION

PROFIT AFTER

TAXATION

2011 PAK SUZUKI

2011 INDUS MOTORS


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Income Statement comparison

2012 2011

PAK SUZUKI INDUS MOTORS PAK SUZUKI INDUS MOTORS

NET SALES 58,531,137 76,962,642 52,718,563 61,702,677

GROSS PROFIT 2,345,740 6,561,854 1,869,410 4,089,135

Operating Profit 1,610,912 2,823,928 1,472,369 1,072,814

PROFIT BEFORE TAXATION 1,499,760 6,312,267 1,365,297 4,011,455

PROFIT AFTER TAXATION 978,022 4,302,715 794,421 2,743,384

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

NET SALES GROSS

PROFIT

Operating

Profit

PROFIT

BEFORE

TAXATION

PROFIT

AFTER

TAXATION

2011 PAK SUZUKI

2011 INDUS MOTORS

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,00060,000,000

70,000,000

80,000,000

90,000,000

NET SALES GROSS

PROFIT

Operating

Profit

PROFIT

BEFORE

TAXATION

PROFIT

AFTER

TAXATION

2012 PAK SUZUKI

2012 INDUS MOTORS


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Competitive Horizontal Analysis

2012

PAK SUZUKI INDUS MOTORS

Non-current assets 83.2 82.1

Current assets 144.5 106.6Authorized capital 100.0 100.0

EQUITY 111.6 120.5

Non-current liabilities - 36.5

Current liabilities 208.8 84.8

Analysis:

Pak Suzuki shows better results when analyzed horizontally with its base year as

compare to its competitor on the assets side.

Equity is better but when compared with Indus Motor, IMC is in a better position when

compared with its base.

Current Liabilities are more than IMC which means there has been inflow of cash.

-

50.0

100.0

150.0

200.0

250.0

Non-current

assets

Current

assets

Auththrised

capital

EQUITY Non-current

liabilities

Current

liabilities

PAK SUZUKI

INDUS MOTORS


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2012

PAK SUZUKI INDUS MOTORSNET SALES 147.5461 122.1949

GROSS PROFIT 397.1751 160.4705Operating Profit 504.7801 2.6323

PROFIT BEFORE TAXATION 151.1587 157.3560

PROFIT AFTER TAXATION 156.5374 156.8397

Analysis:

Sales Revenue of Pak Suzuki is far more as compared to IMC with their Base Years

sales.

Similarly Gross profit and operating profits are also more of Pak Suzuki.

-

100.0000

200.0000

300.0000

400.0000

500.0000

600.0000


Profit

PROFIT

BEFORE

TAXATION

PROFIT AFTER

TAXATION

2012 PAK SUZUKI

2012 INDUS MOTORS


13/16



Competitive Ratio Analysis

Liquidity Ratio

2012 2011

PAK SUZUKI INDUS MOTOR PAK SUZUKI INDUS MOTOR

CURRENT Assets 3.0751 2.3172 2.3237 1.842

Quick Assets 0.2555 1.0792 0.1423 0.730

cash Ratios 0.2555 1.0361 0.1423 0.718

Defensive intervel Ratio 0.0247 0.1550 0.0220 0.151

Analysis

Current Assets ratio position of Pak Suzuki is much better than Indus Motor in both the

years.

Quick Assets ratios of both the years tell us that Indus Motor can pay off its current

liabilities from its current assets excluding inventory and remaining with much liquid

assets as compared to Pak Suzuki.

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

3.5000

2012 PAK

SUZUKI

2012 INDUS

MOTOR0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

2011 PAK

SUZUKI

2011 INDUS

MOTOR


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Solvency Ratio

2012 2011

Pak Suzuki INDUS MOTOR Pak Suzuki INDUS MOTOR

Interest Coverage Ratio 101.6241 48.7433 48.7433 101.6241

Analysis

0.0000

20.0000

40.0000

60.0000

80.0000

100.0000

120.0000

Intrest Coverage

Ratio

2012 Pak

Suzki

2012 INDUSMOTOR

0.0000

20.000040.0000

60.0000

80.0000

100.0000

120.0000

Intrest Coverage

Ratio

2011 Pak Suzki

2011 INDUSMOTOR


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Profitability Ratio

2012 2011PAK SUZUKI INDUS MOTOR PAK SUZUKI INDUS MOTOR

Net profit margin 1.6709 0.0853 1.5069 0.0663

Gross profit margin 0.0401 0.0559 0.0355 0.0445

Operating profit margin 2.7522 0.0367 2.7929 0.0174

Pretax margin 2.5623 0.0820 2.5898 0.0650

Return on total capital 0.1020 0.1644 0.0961 0.0736

Analysis

Net Profit margin of Pak Suzuki prevails IMC but when we look at the Gross profit

margin we see that that to Lager Chunk of COGS it leaves Pak Suzuki with Lesser

Gross profit margin as compared to IMC in both the years.

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

2012 PAK

SUZUKI

2012 INDUS

MOTOR

0.0000

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

2011 Pak Suzki

2011 INDUS

MOTOR


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Activity Ratio

2012 2011

PAK SUZUKI INDUS MOTOR PAK SUZUKI INDUS MOTOR

Days of Inventory on hand 0.4793 0.4608 0.4608 0.4793

Payables Turnover 16.9573 16.3728 16.3728 16.9573

Number of days of Payables 21.5247 22.2931 22.2931 21.5247

Total Asset Turnover 2.6218 2.7632 2.7632 2.6218

Fixed Asset Turnover 13.6835 11.4153 11.4153 13.6835

Working Capital Turnover 4.6187 4.5072 4.5072 4.6187

Analysis:

0.0000

5.0000

10.0000

15.0000

20.0000

25.0000

Daysof

Payables

Numberofdays

TotalAsset

FixedAsset

W

orkingCapital

2012 PAK

SUZUKI

2012 INDUS

MOTOR0.0000

5.0000

10.0000

15.0000

20.0000

25.0000

Daysof

Payables

Numberofdays

TotalAsset

FixedAsset

Wo

rkingCapital

2011 Pak Suzki

2011 INDUS

MOTOR

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