SUPERIOR UNIVERSITY

FINANCIAL STATEMENT ANALYSIS

 TRADING AND MANUFACTURE PUBLIC COMPANY
(GHAZI FABRICS INTERNATIONAL COMPANY)

FINANCIAL STATEMENT ANALYSIS

Type of comparison
Trend analysis
Trend analysis means the analysis of company past performance and with current
performance. How its make profit and lose in current year and in last years.

Last year analysis

SUMMATY OF LAST SIX YEARS
Description 2007 2006 2005 2004
Operating performance
Sale-net 2758729 2423485 1690006 2060539
Cost of good sold 2709774 2236963 1636404 2003935
7
Gross profits 48982 186522 53602 56604
Operating profit (54524) 80087 31140 7785
Profit after tax (183249) 6595 (102722) (67830)
FINANCIAL ANALYSIS
Property plant and equipment-net 1683150 1781739 1593238 1249699
Capital work in process 37809 54594 77963 296550
Fixed asset 1720959 1836333 1671201 1546249
Current assets
Sotres.spares and loose tool 29555 27707 25558 20615
Stocks in trade 359710 343524 179517 103415
Other current assets 188388 127710 175230 189992
Cash and cash equivalent 3878 4593 14898 6013

581531 503534 395203 516055

Current liabilities

Short term borrowing 296168 208028 99523 292763

Current portion of long term loans 285716 194583 151250 52500
Other current liabilities 128335 112115 134496 166151

710669 514726 385269 511414

Net working capital ( 129138 ) ( 11192) 9934 4641

Long term loans 1224759 1229207 1020427 821889

Trend analysis of last three years and current years

Explanation

We conduct the comparison through company last three years and with
his current years performance. So we conduct the result that ghazi fabrics
increase the profit with passage of time and the result is that people trust on
it and purchase its shares. So in 2007 sale is much better from previous one
because this years his sale is good as compare with other years performance
his current years sale is 2758729m and his CGS which company suffer
is2709747m and his G.P is 48982m and if we see the last three years sale
and his cost of good sold and gross profit so in 2006 sale are2423485m and
cost of goods sold are 2236963m and G.P is 186522m and in 2005 sale
169006m and CGS 1636404m and G.P 53602 . And in 2004 sale are 56604
and CGS 2003935m and G.P 56604. And profit and tax of 2007 is (183249)
and its show this year his profit is not much good. And in 2006 6595m and
2005 (102722m) and in 2004 (67830m). Current assets of all years are
581531m, 503534m, 395203, and 516055, respectively. And current
liabilities of all years last three years and current years is respectively
710669m 514726, 385269m 511414m.

And the result which we conduct through trend analysis of

company last three years. And I have find out the result that ghazi fabric
current profits are not much high as compare whit other last years because
they do increase sale and but his cost of good are increase with respectively
and the result is that they are not increase profit ratio and we see his last
years performance we can see clearly his performance is better from his
current years performance. And the result is that they sufferer loses.
 LIQUIDITY RATIO
Ration analysis
Ratio year
s
Current ratio 2007 Current asset/current liabilities 581531/710669
=
2006 Current asset/current liabilities 503534/514726

2005 Current asset/current liabilities 395203/385269

2004 Current asset/current liabilities 516055/511414

Asset test 2007 Current asset-inventory/current 581531-359710/710669

ratio liabilities
2006 Current asset-inventory/current 503534-343524/514726
liabilities
2005 Current asset-inventory/current 395203-179517/385269
liabilities
2004 Current asset-inventory/current 516055-299435/511414
liabilities
ACTIVITY OR STOCK TURN OVER
RATIO
Inventory 2007 Cost of goods sold/inventory 2709747/359710
turnover ratio
2006 Cost of goods sold/inventory 2236963/343524

2005 Cost of goods sold/inventory 1636404/179517

2004 Cost of goods sold/inventory 2003936/299435

Average 2007 Account payable/average sale per 96886/

payment day
period
2006 Account payable/average purchase 70536/
per day
2005 Account payable/average purchase 85494/
per day
2004 Account payable/average purchase 78541/
 per day
average 2007 Account receivable /average per day 8299/
collection sale
period
2006 Account receivable /average per day 8588
sale
2005 Account receivable /average per day 96175
sale
2004 Account receivable /average per day 8015
sale
Total asset Sale / total asset 2758729/2302980
turn over
Sale / total asset 2423485/503534
Sale / total asset 1690006/2340357
Sale / total asset 2060539/2102868
DEBT RATIO
Gross profit Gross profit / sale 48982/2758729
margin ratio
Gross profit / sale 186522/2423485

Gross profit / sale 53602 /1690006

Gross profit / sale 56604 /2060539

Operating Operating profit /sale (54524)/2758729

profit margin
ratio
Operating profit /sale 80087 /2423485
Operating profit /sale (31140) /1690006
Operating profit /sale (7785)/2060539
Net profit Share holder equity /sale
margin ratio
Share holder equity /sale
Share holder equity /sale
Share holder equity /sale

Earning per Earning after tax/ total number of (183249) /400000

share share
Earning after tax/ total number of 6595 /400000
share
Earning after tax/ total number of (102722) /400000
share
Earning after tax/ total number of (67830) /400000
share
Return on Earning after tax / total asset (183249)/2302980
total asset
Earning after tax / total asset 6595/2340357
Earning after tax / total asset 102722) /2066894
Earning after tax / total asset 67830) /2062794