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Liquidity ratio:It shows the firm ability to meet its short term obligations.

1.Current ratio = total current assets

Total current liabilities1,354,393= 2,225,060

Current ratio = 0.61

2.quick ratio = total current asset-inventoryTotal liabilities

1,354,393-408,158= 2,225,060

Quick ratio =0.43

3.Cash ratio = cash & equivalentsCurrent liabilities= 299,135

2,225,060Cash ratio =0.13

LEVERAGE RATIO:These ratio show the extent to which the company is finance by debt.

1.Debt to equity ratio = total debt

Share holder equity= 2,328,4951,351,262

Debt to equity ratio = 1.72

2. Debt to total asset = total debtTotal asset

= 2,328,4953,679,757

Debt to total asset = 0.63

3.Interest coverage ratio = EBITFinancial charges= 624,583

132,913Interest coverage ratio = 4.7

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ACTIVITY RATIO:this ratio shows how efficiently the firm is utilizing their assets.

1) A/R turn over = net credit salesA/R

= 4,075,778

458,638Account receivable turnover = 8.88 times

2) A/R turn over (days) = days in the year A/R turnover (times)

= 3658.88

A/R turnover (days) = 41.1 days

3) Inventory turnover(times) = C.G.Sinventory

= 3,236,667408,158Inventory turnover (times) = 7.93 times

4) Inventory turnover (days)= days in the year Inventory turnover(times)

= 3657.93

Inventory turnover (days)= 46.02

5) Asset turnover = sales

T. assets= 4,075,778

3,679,757Asset turnover = 1.11

PROFITABILITY RATIO :It shows profitability of a company.

1)Gross profit margin = n.sales-C.G.S * 100N.sales

= 4,075,778-3,236,667 * 100

4,075,778Gross profit margin = 20.59%2) Net profit margin = Net Income

Net sales= 624,583 * 100

4,075,778Net profit margin = 15.32 %

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3)Return on asset = Net incomeTotal assets

= 624,583 * 1003,679,757

Return on asset = 16.97%

COMPANY NAME : FAZAL TEXTIL MILLS