Appendix 1

AFTAB AUTO
Year 2012 2013 2014 2015 2016
sales 2541222318 1989267641 2709873313 2457042702 3051577604
Net Income 292194825 270314972 383548013 201390207 267706903
Total Asset 5882731801 6583842784 7745987418 8116929429 9791411491
Stockholder
Equity 4505520429 4864313402 5039362248 5198108811 5368570401
Account
Receivables 1090824279 1393578674 1074836385 862021456 1326788239
Inventory 728649604 813509912 1212223816 877128176 1450628484
Fixed Asset 2082068578 2044727125 2962369742 4750548552 4204546703
Current Asset 3800663223 4539115659 4783617676 3366380877 5586864788
Current Debt 1285187917 1620538836 2125407096 1905222064 2842150915
Long Term Debt 92023455 98990546 581218074 1013598555 1580690175
Total Debt 1377211372 1719529382 2706625170 2918820619 4422841090
Operating
Profit(EBIT) 374585328 353953227 552348468 445880025 381040724
Interest
Expences 55845149 76980209 155472315 172596114 N/A
Fixed Charges N/A N/A N/A N/A N/A

Profitability Ratio (appendix 1.1)

Years 2012 2013 2014 2015 2016

Profit Margin 11.50% 13.59% 14.15% 8.20% 8.77%

Return On Asset 4.97% 4.11% 4.95% 2.48% 2.73%

Return On
6.49% 5.56% 7.61% 3.87% 4.99%
Equity
 Asset Utilization Ratio (appendix 1.2)
Years 2012 2013 2014 2015 2016
Receivables
2.329634907 1.4274527 2.52119611 2.850326619 2.29997336
Turnover
Times 2.32 1.42 2.52 2.85 2.29
Average
Collection 154.5306515 252.1974984 142.7893683 126.301315 156.5235521
Period
Days 154 252 142 126 156
Inventory
3.487577985 2.445289986 2.235456256 2.801235634 2.103624489
Turnover
Times 3.48 2.44 2.23 2.8 2.1
Fixed Asset
1.220527674 0.972876829 0.91476539 0.517212418 0.725780404
Turnover
Times 1.22 0.97 0.91 0.52 0.73
Total Asset
0.431979972 0.302143855 0.349842204 0.302705934 0.311658601
Turnover
Times 0.43 0.3 0.35 0.3 0.31

Liquidity Ratio(appendix 1.3)

Years 2012 2013 2014 2015 2016

Current Ratio 2.957282101 2.800991595 2.250683027 1.766923101 1.965717147

Times 2.96 2.8 2.25 1.77 1.97

Quick Ratio 2.390322519 2.298991955 1.680334025 1.306542029 1.455319027
Times 2.39 2.3 1.68 1.31 1.46

Debt Utilization Ratios(appendix 1.4)

Years 2012 2013 2014 2015 2016
Debt TO Total
23.41% 26.12% 34.94% 35.96% 45.17%
Asset
Times Interest
6.707571467 4.597976955 3.5527127 2.583372329 N/A
Earned

Times 6.71 4.6 3.55 2.58 N/A

Fixed Charge
N/A N/A N/A N/A N/A
Coverage

Times N/A N/A N/A N/A N/A

Appendix 2

NAVANACNG
Year 2012 2013 2014 2015 2016
sales 1449403168 1538100495 1606179151 1406080506 625632685
Net Income 248441058 230943961 226434116 160772986 55656856
Total Asset 1767295017 2572296315 2945505788 2319127301 4430455220
Stockholder Equity 1356852716 1544408999 1928628703 1894925117 2151753280
Account Receivales 93059248 145233178 156158484 86660128 584569355
Inventory 388743535 540298075 531954495 442422648 846284069
Fixed Asset 737965458 1351514379 1489868335 1277122164 2449535102
Current Asset 1029329559 1220781936 1455637453 1042005137 1980920118
Current Debt 360753083 972808568 949368793 382066199 933988897
Long Term Debt 49689218 55078748 67508292 42135985 1344713043
Total Debt 410442301 1027887316 1016877085 424202184 2278701940
Operating Profit(EBIT) 322251602 299451028 300108621 189688846 86891002
Interest Expences 12881418 N/A N/A N/A N/A
Fixed Charges
 Profitability Ratio(appendix 2.1)
Years 2012 2013 2014 2015 2016

Profit Margin 17.14% 15.01% 14.10% 11.43% 8.90%

Return On Asset 14.06% 8.98% 7.69% 6.93% 1.26%

Return On Equity 18.31% 14.95% 11.74% 8.48% 2.59%

Asset Utilization Ratio( Appendix 2.2)

Years 2012 2013 2014 2015 2016
Receivables Turnover 15.57505782 10.59055869 10.28557085 16.22522997 1.070245437
Times 15.58 10.59 10.29 16.23 1.07

Average Collection
23.11387888 33.99254096 35.00048809 22.18766703 336.371441
Period

Days 23 33 35 22 336

Inventory Turnover 3.728430282 2.846762863 3.019392008 3.178138625 0.739270309

Times 3.73 2.85 3.02 3.18 0.74

Fixed Asset Turnover 1.96405286 1.138057071 1.078067849 1.100975729 0.255408744

Times 1.96 1.14 1.08 1.1 0.26

Total Asset Turnover 0.820125194 0.597948411 0.54529825 0.60629725 0.141211829

Times 0.82 0.6 0.55 0.61 0.14

 Liquidity Ratio (appendix 2.3)
Years 2012 2013 2014 2015 2016

Current Ratio 2.853280006 1.254904589 1.533268698 2.727289511 2.120924697

Times 2.85 1.25 1.53 2.73 2.12

Quick Ratio 1.775691059 0.699504387 0.972944302 1.569315712 1.214828198
Times 1.78 0.7 0.97 1.57 1.21

Debt Utilization Ratios(Appendix 2.4)

Years 2012 2013 2014 2015 2016

Debt TO Total Asset 23.22% 39.96% 34.52% 18.29% 51.43%

Times Interest Earned 25.01678014 N/A N/A N/A N/A

Times 25.02 N/A N/A N/A N/A

Fixed Charge
N/A N/A N/A N/A N/A
Coverage

Times N/A N/A N/A N/A N/A

GRAPH ANALYSIS
Profitability Ratio (series 1- Aftab, series 2- Navana)

Profit Margin
18.00%
17.14%
16.00%
15.01%
14.00% 13.59% 14.15%
14.10%
12.00% 11.50% 11.43%
Percentages(%)

10.00%
8.90%
8.77% Series1
8.00% 8.20%
Series2
6.00%
4.00%
2.00%
0.00%
2012 2013 2014 2015 2016

Profit margin determines what percentage of sales is the net income.The profit margin in 2012 for Aftab
autos is given as 11.50% and is a lot less than Navana CNG. In 2013 the growth rate for Aftab increases
by 2.09% but during that period Navana has a decrease by 2.13%. The decrease in ratio in case of
Navana was a gradual one but Aftab has a drastic fluctuation during the year 2014-2015 and rose
gradually by 2016.

Return On Assets
16.00%
14.00% 14.06%
12.00%
Percentages(%)

10.00%
8.98%
8.00% Series1
7.69%
6.93%
6.00% Series2
4.97% 4.95%
4.00% 4.11%
2.48% 2.73%
2.00%
1.26%
0.00%
2012 2013 2014 2015 2016

Return on assets is the percentage of profit earned with the firm’s resources. Both the companies had
greater percentage but gradually falls off.
 Return On Equity
20.00%
18.00% 18.31%
16.00%
14.95%
14.00%
Percentages (%)

12.00% 11.74%
10.00% Series1
8.00% 8.48% Series2
7.61%
6.00% 6.49%
5.56% 4.99%
4.00% 3.87%
2.00% 2.59%
0.00%
2012 2013 2014 2015 2016

ROE is the amount of net income returned as a percentage of shareholder’s equity. Both the companies
had a gradual decrease of percentage for net income return. This reveals the less amount of profit being
created. Aftab started having unpredictable fluctuations from 2013-2016.

Asset Utilization Ratio

Receivables Turnover
18
16 16.23
15.58
14
12
10 10.59 10.29
Times

8 Series1
6 Series2
4
2.32 2.52 2.85 2.29
2
1.42 1.07
0
2012 2013 2014 2015 2016

Aftab maintains a fairly good turnover during the period from 2012-2016, whereas the Navana CNG has
different peaks of receivable turnover which bring risk to the company. It has its highest value at 2016
and maintains a steady value from 2013-2014.
 Inventory Turnover
4
3.73
3.5 3.48
3.18
3 3.02
2.85 2.8
2.5 2.44
2.23
Times

2 2.1 Series1

1.5 Series2

1
0.74
0.5
0
2012 2013 2014 2015 2016

Navana has greater inventory turnover proving an efficient operation than Aftab from the year 2012-
2015. But Aftab takes over the turnover in 2016 proving greater efficiency that Navana.

Fixed Asset Turnover

2.5

2 1.96

1.5
Times

1.22 Series1
1.14 1.08 1.1
1 0.97 Series2
0.91
0.73
0.5 0.52
0.26
0
2012 2013 2014 2015 2016

Fixed asset turnover measures the company’s efficiency in which a company uses its fixed asset to
generate sales revenue. Navana has the greatest turnover in 2012 and falls steeply in the next year then
maintains a constant value and falls again. The greatest utilization for this company was at 2012
amongst all these years. Aftab maintains a constant value from 2012-2014 decreasing at 2015 and then
rises and has greater utilization of fixed assets for sale than Navana.
 Total Asset Turnover
0.9
0.8 0.82
0.7
0.6 0.6 0.61
0.55
0.5
Times

Series1
0.4 0.43
0.35 Series2
0.3 0.3 0.3 0.31
0.2
0.14
0.1
0
2012 2013 2014 2015 2016

Total asset turnover is the measure of how efficiently a company can utilize its asset to generate sales.
Navana has greater turnover in 2012 compared to its own performance in the consecutive years and
also for Aftab till 2015. Aftab maintains a higher turnover later, leading to more income from sales.

Liquidity Ratio

Current Ratio
3.5
3
2.5
Axis Title

2
Series1
1.5
Series2
1
0.5
0
2012 2013 2014 2015 2016

The current ratio refers to the company’s ability to pay back the liabilities. In the year 2012, Navana and
Aftab fairly maintains a similar digit of ratio and Navana falls greatly between 2012-2013 and rises
gradually, reaching a higher peak than Aftab and falls again. Aftab maintains a gradual decrease in ratio
but falls between 2014-2015 and rises again.

Quick Ratio
3

2.5
2.39 2.3
2
1.78 1.68
Times

1.5 1.57 Series1

1.46
1.31 1.21 Series2
1 0.97
0.7
0.5

0
2012 2013 2014 2015 2016

Quick ratio refers to the term of the firm paying for its current liabilities using liquid assets. In 2012,
Aftab maintains a very high ratio.The amount for Aftab falls slowly from 2012-2014 and is the lowest in
2015 but rises again. Navana has greater ratio in 2015 compared to Aftab and its own performance was
best at 2012. There is a noticeable rise and fall in ratio in case of Navana CNG.

Debt Utilization Ratio

Debt to Total Asset

60.00%

50.00% 51.43%
45.17%
Percentages (%)

40.00% 39.96%
34.94%
34.52% 35.96%
30.00% Series1
26.12%
23.41%
23.22% Series2
20.00% 18.29%
10.00%

0.00%
2012 2013 2014 2015 2016
Debt utilization ratio refers to the company’s asset provided via debt. Navana has fairly larger utilization
ratio than Aftab. Navana had maximum ratio in 2016 amongst all the years shown. Aftab has increasing
assets provided via debt.

Time Interest Earned

30

25 25.02

20
Times

15 Series1
Series2
10
6.71
5 4.6
3.55 2.58
0 0 0 0 0
2012 2013 2014 2015 2016

Navana CNG has the greatest amount of time interest in 2012 and abruptly falls to zero, indicating huge
interest expense. Aftab autos maintain a gradual decrease to time interest earned thus entering into
weak financial stability for the company.

Fixed Charge Coverage

1
0.9
0.8
0.7
0.6
Times

0.5 Series1
0.4 Series2
0.3
0.2
0.1
0 0 0 0 0 0
2012 2013 2014 2015 2016

Due to the unavailability of data this was not found.