TOPIC: Horizontal, Vertical & Ratio
Analysis
ASSIGNMENT #04
SUBMITTED BY:
MATEE-UL-HASNAIN
SP13-MBA (2-A)-032
AMAN ASGHAR
SP13-MBA (2-A)-039
HAMZA NADEEM
SP13-MBA (2-A)-023
SUBMISSION DATE: December 24, 2013
SUBMITTED TO:
Saira Javaid
DEPARTMENT OF MANAGEMENT SCIENCES
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY,
ISLAMABAD
Table of Contents
Attock Refinery Limited ................................................................................................................................ 3
Vertical Analysis ............................................................................................................................................ 3
Horizontal Analysis........................................................................................................................................ 4
Ratio Analysis ................................................................................................................................................ 5
Liquidity Ratio ............................................................................................................................................... 5
Current Ratio ................................................................................................................................................. 5
Quick assets test ratio ................................................................................................................................... 5
Liquidity Ratio ............................................................................................................................................... 5
Assets Management Ratios ............................................................................................................................... 5
Inventory Turnover Ratio .............................................................................................................................. 5
No. of Days in Inventory ............................................................................................................................... 6
Receivable Turnover Ratio ............................................................................................................................ 6
Average Collection Period ............................................................................................................................. 6
Payable Turnover Ratio ................................................................................................................................. 6
Average Payable Period ............................................................................................................................... 6
Total Assets Turnover Ratio .......................................................................................................................... 6
Assets Management Ratios ............................................................................................................................... 7
Profitability Ratios............................................................................................................................................ 7
Gross Profit Ratios............................................................................................................................................ 7
Net Profit Margin ............................................................................................................................................. 7
Return on Equity ........................................................................................................................................... 7
Profitability Ratios............................................................................................................................................ 7
Capital Structure Ratio .................................................................................................................................. 8
Attock Refinery Limited
Vertical Analysis
All the items income statement should be divided by the net sales/ net turn over and all the
items of balance sheet should be divided by the total assets/ total liabilities
Balance Sheet
2012
2011
14895.22
8745.22
70074.47
93,714.91
9840.29
13264.92
105.02
673.85
10650.69
49115.76
220.67
Vertical
Analysis
for
2012
(%)
15.89
9.33
74.78
100.00
10.50
14.15
0.11
0.72
11.37
52.41
0.24
12459.06
8745.22
158.40
42331.76
63,694.44
9670.97
13264.92
169.90
619.92
10872.58
25053.68
178.21
Vertical
Analysis
for
2011
(%)
19.56
13.73
0.25
66.46
100.00
15.18
20.83
0.27
0.97
17.07
39.33
0.28
9843.67
93,714.91
10.50
100.00
3864.28
63,694.44
6.07
100.00
2012
Vertical 2011
Analysis
for
Rs. In
2012
Million
Vertical
Analysis
for
2011
Rs. In Million
Equity and reserve
Surplus on revaluation of free hold land
Non-current liabilities
Total current liabilities
Property plant & equipment
Long term investment
Non-current assets
Loose tools
Stock in trade
Trade debts
Loams, advances, deposits payments and
other receivables
Cash and bank balances
Income Statement
Rs. In Million
Rs. In
Million
Net sales
Cost of sales
Gross Profit
154381.56
152362.20
2019.36
100.00
98.69
1.31
116397.37
114900.76
1496.61
100.00
98.71
1.29
Administration expenses
340.01
0.22
282.92
0.24
Distribution cost
37.62
0.02
32.88
0.03
Finance cost
994.74
0.65
45.41
0.04
Other charges
264.53
0.17
208.71
0.18
3
Other income
P/L before taxation from refinery
operations
Provision for taxation
P/L after taxation from refinery operations
P/L after taxation from non-refinery
operations
Profit for the year
1,636.90
1.06
569.92
0.49
382.46
0.25
926.99
0.80
2388.77
2771.23
1.55
1.80
1565.59
2492.28
1.35
2.15
1625.18
1146.05
1588.64
1.06
0.74
1.03
1375.12
1117.16
1068.39
1.18
0.97
0.92
2734.69
1.77
2185.55
1.89
Horizontal Analysis
((current year previous year)/ previous year) X 100 = ____%age
Balance Sheet
Equity and reserves
Surplus on revaluation of freehold
Non-current
liabilities
land
Total current liabilities
Property, plant and equipment
Long term investments
Non-current assets
Stores, spares and loose tools
Stock-in-trade
Trade debts
Loans, advances, deposits,
and
other receivables
prepayments
Cash and bank balances
Profit 8: Loss Account
Net Sales
Cost of sales
Gross Profit
Administration expenses
Distribution cost
Finance cost
2012
2011
Horizontal
Analysis for
2012 (%)
19.55
Rs. In Million
14,895.22
8,745.22
70,074.47
93,714.91
9,840.29
13,264.92
105.02
673.85
10,650.69
49,115.76
Rs. In Million
12,459.06
8,745.22
158.40
42,331.76
63,694.44
9,670.97
13,264.92
169.90
619.92
10,872.58
25,053.68
220.71
9,843.67
93,714.91
178.21
3,864.28
63,694.44
23.85
154.74
47.13
154,381.56
152,362.20
2,019.36
340.01
37.62
994.74
116,397.37
114,900.76
1,496.61
282.92
32.88
45.41
32.63
32.60
34.93
20.18
14.41
2,090.67
(100.00)
65.54
47.13
1.75
(38.19)
8.70
(2.04)
96.04
Other charges
Other income
Profit before taxation from refinery
operationsfor taxation
Provision
Profit after taxation from refinery
Profit
after taxation from nonoperations
Profit
foroperations
the year
refinery
264.53
1,636.90
382.46
2,388.77
2,771.23
1,625.18
1,146.05
1,588.64
2,734.69
208.71
569.92
926.69
1,565.59
2,492.28
1,375.12
1,117.16
1,068.39
2,185.55
26.75
187.22
(58.73)
52.58
11.19
18.18
2.59
48.69
25.13
Ratio Analysis
Liquidity Ratio
Current Ratio
Current assets/ current liabilities = ______times
For 2012
1.01
2011
0.16
Quick assets test ratio
Quick assets/ Current liabilities = ______times
For 2012
0.84
2011
0.69
Liquidity Ratio
Liquidity position of the Company has improved in comparison to last year. The Company successfully met
the challenges of circular debt issue by keeping a balance in its receivables and payables.
Assets Management Ratios
Inventory Turnover Ratio
Sales/ average inventory = ______times
For 2012
14.16
2011
12.73
No. of Days in Inventory
No. of days in a year/ inventory turnover =______days
For 2012
26
Receivable Turnover Ratio
2011
29
Net sales/ average accounts receivable = ______times
For 2012
4.90
2011
5.04
Average Collection Period
No. of days in a year/ inventory turnover =______days
For 2012
75
2011
73
Payable Turnover Ratio
Net purchases/ average accounts payable = ________times
For 2012
3.40
2011
3.78
Average Payable Period
No. of days in a year/ inventory turnover =______days
For 2012
107
2011
97
Total Assets Turnover Ratio
Net sales/ Average total assets = _______times
For 2012
1.65
2011
1.83
Assets Management Ratios
There is improvement in Inventory turnover ratio and No. of days in inventory because of better capacity
utilization.
Circular debt situation prevalent in the country has adversely affected our debtor turnover ratio and
number of days in receivable but this effect is mitigated by the positive change in creditor turnover
ratio and number of days in payables.
Profitability Ratios
Gross Profit Ratios
Gross profit/ net sales = _____%age
For 2012
1.31
2011
1.29
Net Profit Margin
Net income/ net sales = ______%age
For 2012
1.77
2011
1.88
Return on Equity
(Net income after taxes/total equity) X 100 = _____%age
For 2012
18.36
2011
17.54
Profitability Ratios
There is a positive trend in Gross profit margin as compared to last year due to better capacity
utilization of 99.5% (June 30, 2011: 97.2%) and favorable trend in international prices of petroleum
products and crude oil. This has made positive impact on Company's profitability.
However, the Net profit ratio of the company has declined
There is a positive trend of return on equity because of improvement in overall profitability of the
company.
7
Capital Structure Ratio
The capital structure ratios are not applicable to the company because it does not have any debts in
their capital structure.
