carnival plc strategic financial analysis · web viewcarnival plc size & market share the...

CARNIVAL PLC STRATEGIC FINANCIAL ANALYSIS

ContentsHistorical background..................................................................................................................................3

Vission.........................................................................................................................................................3

Mission........................................................................................................................................................4

Carnival Plc Brands......................................................................................................................................4

Strategy.......................................................................................................................................................4

Carnival Plc Size & Market Share.................................................................................................................5

Segment Analysis:........................................................................................................................................6

Financial Analysis.........................................................................................................................................9

Trend Analysis.........................................................................................................................................9

Profitability Analysis............................................................................................................................9

Financial Risk Analysis........................................................................................................................11

Short Term Financial Position............................................................................................................11

Efficiency Analysis..............................................................................................................................12

Cash Flow Analysis.............................................................................................................................12

Cross Sectional Analysis.........................................................................................................................13

Profitability Analysis..........................................................................................................................13

Liquidity Analysis...............................................................................................................................14

Solvency Analysis...............................................................................................................................14

Efficiency Analysis..............................................................................................................................15

Risk Management......................................................................................................................................16

Foreign Exchange Rate Risks Management Strategy.............................................................................16

Interest Rate Risks.................................................................................................................................16

Fuel Price Risks......................................................................................................................................16

Credit Risk..............................................................................................................................................17

Credit Rating......................................................................................................................................18

BETA..........................................................................................................................................................20

Technical Analysis......................................................................................................................................21

Weekly Chart.............................................................................................................................................21

BY ASIM RAFIQUE


Carnival v/s FTSE........................................................................................................................................22

Analysis......................................................................................................................................................23

Weighted Average Cost Of Capital............................................................................................................23

Future Strategy..........................................................................................................................................23

Conclusion.................................................................................................................................................24

Recommendations.....................................................................................................................................24

References.................................................................................................................................................26

Appendix 1:...............................................................................................................................................28

Revenue distribution geographically.........................................................................................................28

Segment Ratio Analysis.............................................................................................................................29

BUSINESS SEGMENT REVENUE DISTRIBUTION..........................................................................................29

Appendix 2:...............................................................................................................................................30

PROFITABILITY RATIOS CALCULATION.......................................................................................................30

SOLVENCY RATIOS CALCULATION..............................................................................................................31

LIQUIDITY..................................................................................................................................................32

EFFICENCY RATIO.......................................................................................................................................32

Cash flow analysis......................................................................................................................................33

Efficiency ratios calculation.......................................................................................................................33

Liquidity Position.......................................................................................................................................33

Solvency Analysis.......................................................................................................................................34

Debt & Equity Weights..............................................................................................................................34

BY ASIM RAFIQUE


Introduction

Carnival Plc is one of the leading cruises & Vacation Company in world. Our portfolio comprises on the world leading brands in the cruise industry. We offer extensive choices of vacation & holiday products.

The primary markets of our well known brands include United Kingdom, Italy, and North America & Germany. Our customers placed values to our products in different cultures, leisure time preferences & languages.

The largest worldwide cruise & vacation corporation is carnival plc, operates a fleet of 100 vessels, with another seven vessels planned for deliverance between now and March 2016.Headquater with in U.S.A, Miami, London, England & Miami.

Historical background

Ted Arison, pioneer in the cruise industry. Having been a world most renowned brand it went public in an initial public offering of 20% of common equity. Carnival started expanding all the way through acquisition. Carnival has representation almost all segments in cruise market.An agreement was reached between Carnival corporation & P&O in 2003, to combine both corporations & become the first worldwide largest cruise operator.

Vission

“We have a clear vision for our future: maintaining a constant focus on providing higher quality vacations at tremendous value to our customers,

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while keeping an eye on the bottom line and earning superior returns for

our shareholders”.

Mission

“Our mission is to take the world on vacation and deliver exceptional experiences through many of the world’s best-known cruise brands that cater to a variety of different geographic regions and lifestyles, all at an outstanding value unrivaled on land or at sea”.

Carnival Plc Brands

P&O Cruises Australia P&O Cruises

Ibero Cruises Costa

Carnival Princess

Holland America Seabourn

Cunard AIDA

(Source: Carnival Plc website; Mission & History, Jul 27, 2012)

Strategy

Carnival embraces Broad Differentiation as its current general strategy. Carnival plc. Proposing to its customer’s variety of vacations holiday. Carnival styles the cruse to give something special for every generation to cater the need for young generation to eldest at ocean. Its price strategy is broader to cater the need of all income groups. The variety of fares can differ from a three day cruise from a regional port in an inside state on a in

BY ASIM RAFIQUE

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#aida

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#cunard

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#seabourn

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#hollandAm

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#princess

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#carnival

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#costa

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#Ibero

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#p_and_o

http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products#p_and_oAus


an indoors state room on a contemporary line to a penthouse suite on a world cruise on a premium or luxury line.

(Source: Northcote.co.uk website; Home, Apr 16, 2013)

Carnival Plc Size & Market Share

The global cruise industry is estimated around 36.2 billion dollar which was in 2012 approximately was 34.57 %, yearly passengers take away is estimated 20.9 million. The global industry growth annually compounded in between 1990 to 2011 is approximately 7.7 %., with carrying capacity 19.2 billion greater than in 2010 which was 11.3 billion. Carnival plc market

share constitute around 52% of the global cruise industry revenue.

(Source: Cruise market watch.com; Market Share, Nov 21, 2011)

Carnival plc is listed on both London & New York stock exchange. Globally the one & only corporation whose stocks are part of FTSE 100 index & S&P 500 index, under the symbol of CCL & US, respectively in the UK under & US trading as well ADS on the New York Stock exchange.(Source: Carnival Plc.com; Corporate information, July 27, 2012).

The total market capitalization 25.98 billion with average three month volume of 183,844 & total outstanding shares 775 million.

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(Source: Yahoo Finance.com, Summary Jul 18, 2013)

Share holding among different stake holders

The breakdown of institutional share holding represented in form pie chart.

(Source: Money.cnn.com; Markets, July 16, 2013)

Segment Analysis:

Business Segment

Carnival Plc operates in two business segment one is group of cruise companies & other is a trip corporation that supports its trips in Canadian Yukon and Alaska of Holland America Princess Alaska.(Source: Digitallook.com, UK Market data; July 02, 2012)

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In 2012 the total revenue from cruise segment consists of 99 % of the total revenue which shows that in this year the company is at good enough capacity.

In 2011 the total revenues from the cruise segment is 98% which is also showing the strength of the cruise segment in contributing of the company total revenues.

Segment Ratio Analysis

In 2010 the total revenue is 98% which also a major contributor in total revenues.

(Source: Carnival plc, Annual Report 2012)

Geographical Segment

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Revenue distribution geographically is as follows;

(Source: Carnival Plc Annual report, 2012)

Carnival plc covers two segment geographically Australia & Asia Cruise, North America & Europe. Carnival passenger capacity in percentage of 100 ships around the world major cruise destination includes:Carnival & global passenger compounded annual growth increased from 5.4% to 6.4% between 2006 - 2011 & 2.8% between 2011 to 2012. (Source: Biz.yahoo.com, Quotes & Info, Apr 3, 2013)

The Europe, Australia, Asia and Other regions’

The annually compounded growth between 2006 t0 2011 was 11% & from 2011 to 2012 was 3.5%.

North American

The contribution from North American region increased by 2.2% between 2006 to 2011 & 2.3 in between 2011 to 2012.

Analysis

The total profit of Australia & Asia declined by 1.44 % as calculated above & the revenue earned by this segment represent 9.8 % of the total revenues in the financial year 2012.

Profit from the Europe segment declined as well approximately 9.96 % which represent the 34.89 % which is so significant & major cause of concern for the management.

BY ASIM RAFIQUE


Performance of the North American segment as much better than the performance of the above discussed two segments. This segment shows an incline profit by 1.49 % as compared to last financial year of 2011.The profit from this segment comprises approximately of 51% of the total revenues which is a significant contributor of the total segment profit.The other segment profit also has inclined from the last financial year of 2011 by 18.76 % which is the largest increase among all other geographic

regions. The profit from this segment comprises 3.6 % of the total revenue

of the current financial year.

Conclusion

The Australia & Asia, Europe shares almost 45 % of the total revenues but these segments performance are not good enough as compared to other segments which should be examined carefully in order to improve the profitability of these segments.Performance from the American & other segments seem much better as compared to other sectors & from the last year. Company must review its policy in The Australia & Asia, Europe & examines factors which are negatively affected the profitability.(See Appendix 1 for more detail & calculation)

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Financial Analysis

Trend Analysis

Profitability Analysis

As it’s reflected in the below represented chart that the company ROE is sloping downward throughout the five years. Further investigation of this declining ROE is due to ROA & there is no change in leverage position of the company.

Decomposition of ROA for examination in fall down in net profit margin & asset turn over it can be easily inferred that there is much more fluctuation in net profit margin than in asset turnover & net profit margin causes ROA to decline.

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Now it is necessary to investigate what are the reasons behind this net profit margin deterioration.

Above mentioned chart clarify the case that net profit margin is declining due to decline in EBIT margin & it’s open the door of further analysis to strengthen are reasons to explain this downward movement.

Now we can clearly identify that the gross profit margin is source of decline in EBIT margin to the greater extent rather than operating expenses.

Note: Revenue & cost of goods sold impact checkBY ASIM RAFIQUE


Financial Risk Analysis

As appear in the above diagram that the company total debt to equity showing downward trend & company is in comfortable position because financial risk is declining.Further analysis shows that the long term debt to total capital ratio also declining as well as total debt to total capital ratio but to the lesser extent which signals that the long term debt is a significant source of decline in

financial risk.

Short Term Financial Position

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Company short term financial position is deteriorating for last five years as it can be easily analyzed by the above chart that both current & quick ratio is showing downward trend which can cause firm to pay its short term debt timely & brought about the company under distress in short term.

Efficiency Analysis

As it can be easily interpreted that the both inventory & receivable days show instability over the five years. But fluctuation in account receivable is greater than in inventory which affects both profitability & liquidity position of a company. No clear trend in both days in inventory & receivables which reflect that either company policy is not consistent or the company policy affected by seasonality because the demand of company product is highly elastic.

Cash Flow Analysis

BY ASIM RAFIQUE


As it can viewed from the above chart that the company’s revenues cash producing ability for its operations are declining which is not a positive sign for the company because company needs cash to carry out its day to day operations.

Company cash flow to investing & financing showing clearly stable upward trend which signals that the company is able to acquire assets, pay debts & can make distributions to its owners.

Cross Sectional Analysis Profitability Analysis

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It clears from the above chart that the carnival plc more profitable than the industry.Carnival plc net, operating & gross profit margins are above the industry five years average net, operating, gross profit margins.

Conclusion:

The reason for improve profitability may be improved cost structure or seasonal affects. But the former reason is not justified in trend analysis which was showing upward trend. (Source: Investing.uk;stocks, Jan 2, 2008)

Liquidity Analysis

As far as liquidity position are concerned carnival plc is not as liquid as other firms in the industry this is a sign for short term financial inability to pay its debts timely. As it can be seen that we have much more inventory than the other firms this can cause increase in carrying & handling cost for the carnival

BY ASIM RAFIQUE


Solvency Analysis

It is clear from the chart that we are in convincingly in good position to manage our debt than the firms in the industry.(See appendix 2 for detail calculation

Efficiency Analysis

BY ASIM RAFIQUE


It is clear that the inventory turnover is below than industry which means that we not selling as many as goods as other firms in the industry.As oppose to inventory turnover a/c receivable turnover exceeds than industry turn over which means that on the average we have strict credit terms as compared to industry.

Conclusion :

The strict credit term than industry is bring about the decline in inventory turnover which should be taken under consideration.(SOURCE: Global Business Browser)

Risk Management

Foreign Exchange Rate Risks Management Strategy

Carnival plc manages its foreign currency risk exposure through its financing & operating activities, in addition to netting certain exposures by using non derivatives or derivatives financial instruments.Our brands yield large revenues and incur considerable expenses in Sterling, the Australian dollar & Euro consequently variations & these currencies against the US dollar will affect the consolidated financial result of carnival plc we express our financial statements in US dollars.So the stronger (unfavorable) & weaker (favorable) US dollar will impact our financial statements.

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Interest Rate Risks

Management of interest rate risk is pursue through debt portfolio management by buying high quality short term floating rate investment s,& evaluating debt portfolio In order to make adjustment to the mix of floating & fixed rate debt or the early retirement or existing debt.

Fuel Price Risks

Carnival plc faces market risk due to change in fuel prices, consumed by the ships. To mitigate a portion of economic risk caused by increased in fuel prices, fuel derivatives are used.Carnival uses derivative market for fuel derivatives contracts to maximize operational flexibility recently we use zero collar derivative contract on Brent, based on the prices of Brent however carnival actually used marine fuel for their ships. There is insignificant correlation between Brent & marine fuel. Carnival plc also evaluates different strategies & derivative product.

Credit Risk

Carnival monitors its credit risk concentration as operating control measures concerned with financial & other institutions on priority basis.Carnival all derivative contracts are in the money till November 30, 2012 related to foreign currency, fuel & interest rate swap derivative contracts, & are insignificant is the replacement cost, net of any collateral received, in case when counter parties expected not to perform. All of them are our lending banks.By diversifying our counterparties, Dealing with large, high standing financial institutions, export credit agencies & insurance companies Carnival looks for curtail credit risk exposure, including counter party non performance attached with our investment, contingent obligations, cash

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equivalents, new ship progress payment guarantees, contingent obligations, derivative instruments & insurance contracts.To preserve liquidity & minimize risk we follow guidelines regarding credit rating & investment maturities. In general guarantees /collateral are not needed to support long-term ship charters and new ship progress payments to shipyards, notes receivable on significant asset sales.Carnival keeps eye on creditworthiness of tour operator, travel agents & credit cards providers. Credit risk from the payment received from the travel agent & tour operator from Europe is immaterial. (Source: Carnival plc, Annual Report 2012)

Credit Rating

(SOURCE: Carnival Plc.com; Credit rating, Oct 11, 2006)

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(SOURCE: Company check.com, 22/02/2013)

BETA

The measure of financial risk beta of carnival plc calculated on by using covariance of daily sock return of carnival & FTSE.

BY ASIM RAFIQUE


The overall beta of five years is 1.059, which shows greater volatility in carnival stock than FTSE but critical analysis shows that the beta is sloping downward which also impact the weighted average cost of capital carnival plc which in turn affect the cash flows of the carnival plc & also improves in the return on stock.

But in case of boom in the stock market this downward trend is not healthy sign because the stock return will not exceeds the return on market.

But still in the downward trend over the five years the company beta is still above one.

(See appendix 2 for detail calculation)

BY ASIM RAFIQUE

Weekly Chart


Technical Analysis

From 2008 to May 2009 the carnival plc chart shows downward trend as long term simple moving average is above both medium term 50 & short term 20 moving averages.

But after July 2009 carnival changed its trend toward upside & continuously move in upward direction till June 2011 as it is showed by the 2oo day moving average which is well below than 50 day & 20 day moving averages as it is also support by RSI which continues remains above 50 most of the times. at this stage there is much more stability.

In June 2011 the trend changed & carnival started to form a new trend which swiftly enters in to downward & continues to move downward till July 2012 at this stage RSI figure touched to 40 but still there was not too much dips in the market as supported by MACD. After July 2012 the market again changed its trend trends toward strongly as it is appeared by higher highs & also supported by RSI which touched to 80 & become turned into over sold area & this trend going to an end at March 2013.

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Now currently market is downward trend as shown by the above charts but the momentum is not so strong to support to take any sell position.

Carnival v/s FTSE

Analysis

As it is reflected in the graph that the carnival stock is more volatile than the benchmark FTSE which can be interpreted that the more fluctuation in the carnival stock return than the FTSE.It can be inferred that the Equity beta of Carnival plc is greater than one(1) which is also confirmed by the beta calculation.

Weighted Average Cost Of Capital

We use the book value for the weights of debt & equity & the beta value was the same as we calculated above. We uses 20 year rate because a long

BY ASIM RAFIQUE


term investor must have at least 20 year time period & reason for using treasury rate because it is safest & longest tenured rate available.

WAAC = Cost of Debt*debt / (debt +equity) + Cost of Equity*debt / (debt +equity)

WAAC = 7%* 39% + 13%* 61%

WAAC = 11% approximately

Future Strategy

Carnival dedicated to be profitable by expanding its business lines, introduce new fleets by replacing inefficient ones’ by every two to three

years. Carnival considering the growth of emerging regions as in China &

Japan in Asia because over the five years the customers have doubled from

the emerging regions.We also focus on reducing our cost by managing our fuel consumption & other cost. As well as gaining efficiency by using technologyCarnival also ambitious to increase its cash flows from operations & focus on return the higher yields to share holders.(Source: Carnival plc, Annual Report)

Conclusion .Due to global financial crises the global cruise industry facing downturn in the demand of their products which in turn affect also carnival. The operating cost has increased due to increase in higher fuel prices, the currency impact, inflationary pressures on food, freight, crew travel and other hotel operating expenses. As result of this increase in cost the

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http://www.wikiwealth.com/dictionary:required-return-of-equity

http://www.wikiwealth.com/dictionary:required-return-of-debt


operating income has declined as compared to past results. Although the gross & net revenue increased as compared to past.

The Australia & Asia, Europe shares almost 45 % of the total revenues but these segments performance are not good enough as compared to other segments.Performance from the American & other segments seem much better as compared to other sectors & from the last year. As far as long term financial condition over the time & as compared to industry is not cause of concern for carnival plc as oppose to short term financial position over the period & as compared to industry.Carnival also not using its resources efficiently over the years & as compared to industry as reflected in the efficiency ratios.Stronger (unfavorable) & weaker (favorable) US dollar will impact carnival financial statements even though carnival using forward contract to manage its exposure. Carnival manages its risk of foreign exchange, interest rate, credit & fuel price risk efficiently & effectively. Company beta as measure of financial risk is also moving downward which shows that carnival is not risky over the years.

Recommendations

Carnival plc should review its strategic environment internally & externally to control increase in operating cost.

Company must review its policy in The Australia & Asia, Europe & examines factors which are negatively affected the profitability.

Carnival must manage its liquidity & its efficiency by using alternative available sources.

Carnival would be cost effective if it uses options contracts rather using forward contracts.

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References

Biz.yahoo.com. 2013. SummaryofCARNIVAL PLC - Yahoo!Finance. [online] Available at:

http://biz.yahoo.com/e/130403/cuk10-q.html [Accessed: 18 may 2013].

carnival plc. 2012. annual report. [report] London:.

carnival plc. 2012. annual report. [report] London:.

carnival plc. 2012. Annual Report. [report] pp. 57-59.

carnival plc. 2012. annual report. [report] london: pp. 41-42.

Companycheck.co.uk. n.d.. Untitled. [online] Available at:

http://companycheck.co.uk/company/04039524#risk-tab [Accessed: 25 may 2013].

Cruisemarketwatch.com. 2012. Market Share | Cruise Market Watch. [online] Available at:

http://www.cruisemarketwatch.com/market-share/ [Accessed: 17 may 2013].

Digitallook.com. 2003. Carnival Company Research - Stock Quote (CCL) Share Prices, Stock Quotes,

Charts, News, Financials, and More - Digital Look. [online] Available at:

http://www.digitallook.com/companyresearch/52275/Carnival/company_research.html [Accessed: 08

June 2013].

Investing.com. n.d.. Carnival Financial Ratios | CCL Stock - Investing.com. [online] Available at:

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http://www.investing.com/equities/carnival-corporation-ratios [Accessed: 25 June 2013].

Money.cnn.com. 1972. CCL - Carnival Corp Company Profile - CNNMoney.com. [online] Available at:

http://money.cnn.com/quote/profile/profile.html?symb=CCL [Accessed: 18 June 2013].

Money.cnn.com. 1972. CCL - Carnival Corp Company Profile - CNNMoney.com. [online] Available at:

http://money.cnn.com/quote/profile/profile.html?symb=CCL [Accessed: 18 Jul 2013].

Phx.corporate-ir.net. 1994. Carnival Corporation | Corporate Information | Mission & History. [online]

Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-history [Accessed: 18 Jul

2013].

Phx.corporate-ir.net. 2013. Carnival Corporation | Corporate Information | Our Brands. [online]

Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-products [Accessed:

08 Jul 2013].

Phx.corporate-ir.net. 2006. Carnival Corporation | Press Center | Corporate Information.

[online] Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=200767&p=irol-prlanding

[Accessed: 19 Jul 2013].

Phx.corporate-ir.net. 2006. Carnival Corporation | Investor Relations | Credit Ratings. [online]

Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=140690&p=irol-credit [Accessed: 25

Jul 2013].

Yahoo! Finance. 2013. Carnival Corporation. [online] Available at: http://finance.yahoo.com/q?

s=ccl&ql=1 [Accessed: 24 Jul 2013].

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http://finance.yahoo.com/q?s=ccl&ql=1

http://finance.yahoo.com/q?s=ccl&ql=1


Appendix 1:

Revenue distribution geographicallyRegions 2012 2011 2010 2009 2008 North America $7,952 $7,835 $7,467 $7,085 $8,320 $38,659 Europe 5,367 5,961 5574 5190 5513 $27,605 Australia and Asia 1,506 1,528 1063 790 780 $5,667 Others 557 469 365 395 334 $2,120 Total $15,382 $15,793 $14,469 $13,460 $14,947 $74,051

2012 Revenues % Operating Income Total Asset North America Cruise Brands $9,364 $1,277 $21,893 EAA Cruise Brands 5,827 $433 $15,894 Cruise Support 86 ($78) $888 Revenue from cruise $15,277 99%

Tour and Other $211 1%

Intersegment elimination -106

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Total $15,382 $1,632 $38,675 2011 Revenues % Opearting Income

North America Cruise Brands $8,921 $1,266 $21,642 EAA Cruise Brands 6,504 $1,026 $15,626 Cruise Support 90 ($47) $795 Revenue from cruise $15,515 98%

Tour and Other $392 2%



North America Cruise Brands $8,379 1340 $21,239 EAA Cruise Brands 5,730 1069 $14,849 Cruise Support 79 -60 $802 Revenue from cruise $14,188 98.1%

Tour and Other $403 2.8%



North America Cruise Brands $7,815 $1,184 $21,073 EAA Cruise Brands 5,280 1034 $14,659 Cruise Support 78 -48 $593 Revenue from cruise $13,173 97.9% -16

Tour and Other $427 3.2%



North America Cruise Brands $8,766 $1,628 $20,484 EAA Cruise Brands 5,713 1136 $11,579 Cruise Support 76 -63 $770 Revenue from cruise $14,555 97.4%

Tour and Other 561 3.8%


Total $14,947 $2,701 $32,833

Segment Ratio Analysis

2008 2009 2010 2011 2012

0.186 0.164 0.166 0.145 0.107

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0.443 0.363 0.38 0.41 0.40

0.082 0.059 0.06 0.06 0.04

BUSINESS SEGMENT REVENUE DISTRIBUTION

Revenue from cruise Tour and Other2008 $14,555 561

2009 $13,173 $427

2010 $14,188 $403

2012 $15,277 $211

2011 $15,515 $392

Appendix 2:

TREND ANALYSIS

PROFITABILITY RATIOS CALCULATION

YEAR ROE ROA LEVERAGE2008 11.9 6.88 1.752009 8.7 5.10 1.672010 8.78 5.32 1.632011 8.16 5.02 1.622012 5.44 3.34 1.64

YEAR ROA NET PROFIT MARGIN ASSET TRUN OVER

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2008 6.88 15.55 0.442009 5.10 13.3 0.382010 5.32 13.67 0.392011 5.02 12.11 0.412012 3.34 8.44 0.40

YEAR NET PROFIT MARGIN TAX BURDEN EBIT MARGINGross Margin

2008 15.55 0.980 18.26 47.352009 13.3 0.991 16 48.672010 13.67 0.999 16.22 47.992011 12.11 1.000 14.28 45.72012 8.44 0.997 10.67 44.57

YEAR EBIT MARGIN Gross Margin

2008 18.26 47.352009 16 48.672010 16.22 47.992011 14.28 45.72012 10.67 44.57

YEAR SG&A Expense/Revenue COGS/Revenue2008 20.73 52.652009 22.94 51.332010 22.92 52.012011 21.78 54.32012 22.51 55.43

SOLVENCY RATIOS CALCULATION

YEAR Total Debt/EquityLong Term Debt/Total

Capital

Total Debt/Total

Capital Payout Ratio(%)

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2008 49 27 33 54.112009 46 28 31 02010 41 25 29 15.942011 39 24 28 41.162012 37 22 27 59.94

YEAR Total Capital (1) Retained Earning Treasury Stock2008 18,534,980.00 9110756.3 1496301.62009 19,551,520.30 9482054.7 1379562.52010 20,801,361.30 11059813.1 1537226.72011 21,099,313.30 11666454.7 1812690.72012 20,490,048.60 11532868.6 1846107.8

100,477,223.50 52851947.4 8071889.3

YEAR Total Capital (1) Retained Earning Treasury Stock2008 100.000 49.154 8.0732009 100.000 48.498 7.0562010 100.000 53.169 7.3902011 100.000 55.293 8.5912012 100.000 56.285 9.010

LIQUIDITY

Current Ratio Quick/Acid Test Ratio

2008 29 182009 31 182010 22 122011 21 122012 25 16

EFFICENCY RATIO

YEAR Inventory TurnoverReceivables

TurnoverDays In

InventoryDays Receivables

Outstanding

2008 24.37 35 14.98 10.432009 21.76 34.51 16.77 10.582010 23.52 47.44 15.52 7.692011 24.71 58.38 14.77 6.252012 22.32 30.07 16.35 12.14

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YEAR Days In Inventory Days Receivables Outstanding

2008 14.98 10.432009 16.77 10.582010 15.52 7.692011 14.77 6.252012 16.35 12.14

Cash flow analysisYEAR C.f to revenue Debt coverage

2008 23.8460075 19.1692009 26.38744899 23.8652010 24.82912299 26.5132011 22.68682643 24.9482012 19.49681451 19.963

YEARcfo to investing & financing

2008 94.992009 96.122010 97.772011 100.722012 101.25

CROSS SECTIONAL ANALYSIS

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Efficiency ratios calculation

Inventory

Turnover(CCL) industry Receivables

Turnover(CCL) industry

2012 22.32 43.62 2012 30.07 17.3

Liquidity Position Current Ratio Industry Quick ratio Industry

2012 0.29 1.17 0.24 0.72

Solvency Analysis 2012

Total Debt/Equity(CCL) 37Industry 52.93

Debt & Equity WeightsWeights by Book Value

Total Liabilities 9506394 39Total Equity 14934250 61Total 24440644 100

Beta Calculation

years BETA2009 0.7322010 0.482011 (0.29)2012 0.1192013 0.02Total 1.059

BY ASIM RAFIQUE

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