The document analyzes various financial ratios of Fauji Cement Company Limited from 2021 to 2019. It calculates liquidity, activity, debt, and profitability ratios such as current ratio, quick ratio, inventory turnover, debt ratio, gross profit margin, return on assets, and earnings per share. The ratios indicate that in 2021 the company had higher liquidity and profitability compared to previous years.
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Fauji Cement Company Limited report.docx
1. pg. 1
Fauji Cement Company Limited
Group member:
Muhib Ullah
Shahsawar Afridi
Sajjad Ahmad
Arsalan khan
BBA Section B 4th
semester
Subject: Business Finance
Submitted to Gohar Saleem Parvaiz
2. pg. 2
Financial Ratios of Fauji Cement Company Limited
Analysing Liquidity
Net Working Capital (NWC)
NWC = Current Assets - Current Liabilities
year Current Assets Current Liabilities Net working capital
2021 12438732 6146335 6292397
2020 7152550 5182458 1970092
2019 5675651 3751829 1923822
6292397
1970092 1923822
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
2021 2020 2019
NWC
3. pg. 3
Current Ratio (CR):
Current Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
year Current Assets Current Liabilities Current Ratio
2021 12438732 6146335 2.023
2020 7152550 5182458 1.38
2019 5675651 3751829 1.51
The calculation of current ratio shows that Fauji Cement Company is well
secured in this region. Its current ratio 2.023 in 2021 is more than previous year
ratio 1.38 which indicates that Fauji Cement Company has enough assets to pay
its short term debts
2.023
1.38
1.51
2 0 2 1 2 0 2 0 2 0 1 9
CURRENT RATIO
4. pg. 4
Quick Ratio
Quick Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠−𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
year Current Assets inventory Current
Liabilities
Quick Ratio
2021 12438732 1189198 6146335 1.83
2020 7152550 1187752 5182458 1.15
2019 5675651 944022 3751829 1.26
The calculation of the quick ratio shows that company is well secured in this
region Fauji Cement Company’s quick ratio in 2021 is 1.83 while in 2020 it is
1.15 which indicate that company can easily meet its short term liabilities even
its position with respect to the inventory turnover is also better so company is
secured in paying its short term debts
1.83
1.15
1.26
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2021 2020 2019
Quick Ratio