ASSIGNMENT NO.

2 **** NISHAT MILLS **** HAMZA ZUBAIRI - MBA W/E - 3A, REGN# 19747

Gross Working Capital:

Current asset + Inv. = 8,294,838,000 + 4,092,512,000 = Rs. 12,387,350,000/- Year 2009
Current asset + Inv. = 8,818,379,000 + 4,163,194,000 = Rs. 12 981 573 000/- Year 2008

Net Working Capital:

Current asset + Inv. – Liab. = 12,387,350,000 - 9,602,265,000 = Rs. 2,785,085,000/- Year 2009
Current asset + Inv. – Liab. = 12,981,573,000 - 12,053,926,000 = Rs. 927,647,000/- Year 2008

Current Ratio:
Current assets / current liabilities = 0.86 Year 2009
Current assets / current liabilities = 0.73 Year 2008

Quick Ratio:
(Current assets – Inv.) / Current Liab. = (8,294, 838,000 - 4,092,512,000) / 9,602,265,000 = 0.4376 Year 2009
(Current assets – Inv.) / Current Liab. = (8,294,838,000 - 4,092,512,000) / 12,053,926,000 = 0.3486 Year 2008

Inventory Turnover
Annual Sales / Inventory = 23,870,379,000 / 4,092,512,000 = 5.8326 Year 2009
Annual Sales / Inventory = 19,589,804,000 / 4,163,194,000 = 4.7054 Year 2008

DSO
A/Receivable / Daily sales = 1,300,366,000 / 65,398,299 = 19.88 days Year 2009
A/Receivable / Daily sales = 1,387,146,000 / 53,670,696 = 25.84 days Year 2008

Days in Inventory
365 days / Inventory turnover ratio = 365 / 5.8326 = 62.57 days Year 2009
365 days / Inventory turnover ratio = 365 / 4.7054 = 77.57 days Year 2008

Days in Payables
Accounts payable / (COGS / 365) = 1,309,658,000 / (19,518,838,000 / 365) = 24.49 days Year 2009
Accounts payable / (COGS / 365) = 1,194,856,000 / (16,778,058,000 / 365) = 25.99 days Year 2008

Operating Cycle
Days in Inv. + Days in DSO = 62.57 + 19.88 = 82.45 days Year 2009
Days in Inv. + Days in DSO = 77.57 + 25.84 = 103.41 days Year 2008

Cash Cycle
Operating cycles + Days in Payable = 82.45 +24.49 = 106.94 Year 2009
Operating cycles + Days in Payable = 103.41 +25.99 = 129.40 Year 2008

Profit Margin
Net profit (after tax) / Revenue = 1,268,001,000 / (23,870,379,000 – 19,518,838,000) = 29.13 % Year 2009
Net profit (after tax) / Revenue = 5,857,587,000 / (19,589,804,000 – 16,778,058,000) = 208.36 % Year 2008

ROE
Net profit (after tax) / Paid up Capital = 1,268,001,000 / 19,330,767,000 = 6.544 % Year 2009
Net profit (after tax) / Paid up Capital = 5,857,587,000 / 26,492,070,000 = 22.11 % Year 2008

EPS
Net profit (after tax) / Total Equity = 6.81 Year 2009
Net profit (after tax) / Total Equity = 36.86 Year 2008

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