Group ASSIGNMENT
Instructor
Ms. Ayesha Hameed
Prepared By:
Abdul Muizz Khan 20221-32073
Asad Ahmed Khan 20221-32356
Ahmed Shabbir 20221-32351
Alina Illyas 20221-32686
Komal Kumari 20221-33129
UNIT Y FOODS
L IM IT E D
Overview
Unity Foods Limited was incorporated in Pakistan in 1991 as a Private
Limited Company under the Companies Ordinance, 1984 (now
Companies Act, 2017) and subsequently converted into a Public Limited
Company on June 16, 1991. The principal business activity of the
Company has been changed from yarn manufacturing to edible oil
extraction, refining and related businesses.
Unity Foods Limited aims to provide food for life. We transform crops
into products that serve the vital global needs of the food sector in this
ever-growing world. We have diversified our business portfolio to
operate in an assorted agro product mix for a global breadbasket,
handling various agro commodities to connect them from the farm to the
dining table. Our products include Edible Oil, Staples (Flour, Rice,
Lentils, Pulses), Industrial Fats and various feed ingredients for poultry
and livestock sector. Along with innovation, we provide customized
solutions to industries handling food and feed products to help them
enhance their performance and profitability.
UNIT Y FOODS
L IM IT E D
R AT IO ANAL YSIS
R AT IO ANAL YSIS
R AT IO ANAL YSIS
1.Liquidity - the ability of the firm to pay its way.
2.Investment /Shareholders - information to enable
decisions to be made on the extent of the risk and the
earning potential of a business investment.
3.Gearing - information on the relationship between
the exposure of the business to loans as opposed to
share capital.
4.Profitability - how effective the firm is at generating
profits given sales and or its capital assets.
5.Financial - the rate at which the company sells its
stock and the efficiency with which it uses its assets.
RATIO ANALYSIS
FINANCIAL DATA Values in 000s
2020 2021 2022
1 Current Assets 15,127,05 33,728,469 49,032,81
2 6
2 Fixed Assets 3,816,338 8,809,906 9,588,166
3 Total Assets 18,943,39 42,538,375 58,620,98
0 1
4 Average Total Assets 9,471,695 21,269,187 29,310,49
1
5 Cash & Cash equivalent 163,360 718,318 318,043
6 Inventory 5,113,010 10,790,944 11,263,34
7
7 Average Inventory 5,113,010 7,951,977 11,027,14
5
8 Current Liabilities 12,877,04 28,812,367 37,121,52
6 2
9 Owner's Equity 5,849,691 13,379,279 21,156,54
8
10 Number of Common Shares 544,050 994,050 1,194,050
11 Average number of Common 544,050 769,050 1,094,050
Shares
12 Average Owner's Equity 5,849,691 9,614,48517,267,91
4
13 Market Price per share 32.04 26.47 14.17
14 Dividend Paid - - -
15 Book Value per Share 10.75 11.20 17.72
16 Total Sales 32,659,47 66,400,968 82,184,55
3 3
17 Operating Expenses 1,298,283 1,428,274 1,601,753
18 Operating Income 739,539 4,516,851 3,950,072
19 Other Expenses 387,941 263,564 217,232
20 Earnings Before interest & Taxes 739,539 4,516,851 3,950,072
21 Interest Expense 544,989 960,978 1,800,963
22 Net Income 209,629 3,338,193 2,181,310
23 Total Liabilities 13,093,69 29,159,096 37,464,43
9 4
24 Earnings Per Share 0.39 4.34 1.99
RATIO ANALYSIS
1. Current Ratio:
Current Ratio= Current Assets /Current Assets
2020 2021 2022
15,127,051 33,728,468 49,032,815
=1.17 =1.17 =1.32
12,877,046 8,809,906 9,588,165
Comment:
Current Rati o
1.32
1.17 1.17
2020 2021 2022
2. Quick Ratio:
Quick Ratio= Current assets – Inventory /Current liabilities
2020 2021 2022
15,127,051- 5,113,010 33,728,468-10,790,943 49,032,815-11,263,346
=0.778 =0.796 =1.017
12,877,046 8,809,906 9,588,165
Comment:
RATIO ANALYSIS
Quick Rati o
1.02
0.78 0.80
3. Net
2020 2021 2022
working
capital ratio:
Net working capital ratio = Current assets – current liability /total assets
2020 2021 2022
15,127,051- 12,877,046 33,728,468-8,809,906 49,032,815-9,588,165
=0.12 =0.12 =0.20
18,943,390 42,538,375 58,620,981
Comment:
Net Working Capital Rati o
0.20
0.12 0.12
2020 2021 2022
4. Cash ratio:
Cash ratio = Cash and cash equivalent /Current liability
2020 2021 2022
163,370,179 718,318,480 318,042,746
=0.01 =0.02 =0.01
12,877,046 8,809,906 9,588,165
RATIO ANALYSIS
Comment:
Cash Rati o
0.02
0.01
0.01
2020 2021 2022
5. Operating ratio:
Operating ratio = Operating expenses /operating income
2020 2021 2022
1,298,282 1,428,274 1,601,753
=1.76 =0.32 =0.41
739,539 4,516,850 3,950,071
Comment:
Operati nG Rati o
1.76
0.41
0.32
2020 2021 2022
6. Operating Expenses to Sales:
Operating expenses to sales = Operating expenses /total net sales
2020 2021 2022
1,298,282 1,428,274 1,601,753
= 3.98% = 2.15% = 1.95%
32,659,472 66,400,968 82,184,552
RATIO ANALYSIS
Comment:
Operati ng Expenses to Sales
3.98%
2.15%
1.95%
2020 2021 2022
7. Inventory turnover ratio:
Inventory turnover ratio =Total sales /average inventory
2020 2021 2022
32,659,472 66,400,968 82,184,552
= 6.39 = 8.35 = 7.45
5,113,010 7,951,976 11,027,145
Comment:
Inventory turnover rati o
8.35
7.45
6.39
2020 2021 2022
8. Fixed assets turnover ratio:
Fixed assets turnover ratio = Total sales /fixed assets
2020 2021 2022
RATIO ANALYSIS
32,659,472 66,400,968 82,184,552
= 8.56 = 7.54 = 8.57
3,816,337 8,809,906 9,588,165
Comment:
Fixed assets turnover rati o
8.56 8.57
7.54
2020 2021 2022
9. Total assets turnover ratio:
Total assets turnover ratio = Total sales /total assets
2020 2021 2022
32,659,472 66,400,968 82,184,552
= 8.56 = 7.54 = 8.57
18,943,389 42,538,374 58,620,981
Comment:
Total assets turnover rati o
1.72
1.56
1.40
2020 2021 2022
10. Assets to equity ratio:
RATIO ANALYSIS
Assets to equity ratio = Total assets /owner’s equity
2020 2021 2022
18,943,389 42,538,374 58,620,981
= 3.24 = 3.18 = 2.77
5,849,690 13,379,279 21,156,547
Comment:
Assets to equity rati o
3.24
3.18
2.77
2020 2021 2022
11. Return on assets ratio:
Return on assets ratio = Net Income /average total assets
2020 2021 2022
209,628 3,338,192 2,181,309
= 2.21% = 15.69% = 7.44%
9,471,694 21,269,187 29,310,490
Comment:
RATIO ANALYSIS
Return on assets rati o
15.69%
7.44%
2.21%
2020 2021 2022
12. Return on equity ratio:
Return on equity ratio = Net income /average owner’s equity
2020 2021 2022
209,628 3,338,192 2,181,309
= 3.58% = 34.72% = 12.63%
5,849,690 9,614,485 17,267,913
Comment:
Return on equity rati o
34.72%
12.63%
3.58%
2020 2021 2022
13. Profit Margin ratio:
Profit Margin ratio = Net income /total net sales
2020 2021 2022
209,628 3,338,192 2,181,309
= 0.64% = 5.03% = 2.65%
32,659,472 66,400,968 82,184,552
RATIO ANALYSIS
Comment:
Profi t Margin rati o
5.03%
2.65%
0.64%
2020 2021 2022
14. Basic earning ratio:
Basic earning ratio = Earning before interest and taxes / Total assets
2020 2021 2022
739,539 4,516,850 3,950,071
= 3.90% = 10.62% = 6.74%
18,943,389 42,538,374 58,620,981
Comment:
Basic earning rati o
10.62%
6.74%
3.90%
2020 2021 2022
15. Total debt ratio:
Total debt ratio = Total liabilities /Total assets
2020 2021 2022
13,093,698 29,159,095 37,464,433
= 0.69 = 0.69 = 0.64
18,943,389 42,538,374 58,620,981
RATIO ANALYSIS
Comment:
Total debt rati o
0.69
0.69
0.64
2020 2021 2022
16. Interest coverage ratio:
Interest coverage ratio = EBIT/ Interest expense
2020 2021 2022
739,539 4,516,850 3,950,071
= 1.36 = 4.70 = 2.19
544,988 960,978 1,800,963
Comment:
Interest coverage rati o
4.70
2.19
1.36
2020 2021 2022
17. Debt/Equity ratio:
Debt/Equity ratio = Total liability /owner’s equity
2020 2021 2022
RATIO ANALYSIS
13,093,698 29,159,095 37,464,433
= 2.24 = 2.18 = 1.77
5,849,690 13,379,279 21,156,547
Comment:
Debt/Equity rati o
2.24 2.18
1.77
2020 2021 2022
18. Earning per share - EPS ratio:
Earning per share EPS ratio = Net income / Average no. of common stock
2020 2021 2022
209,628 3,338,192 2,181,309
= 0.39 = 4.34 = 1.99
544,050 769,050 1,094,050
Comment:
Earning per share - EPS rati o
4.34
1.99
0.39
2020 2021 2022
19. Price to earning ratio:
RATIO ANALYSIS
Price to earning ratio = Market price per share /Earning per share
2020 2021 2022
32.04 26.47 14.17
= 82.15 = 7.44 = 6.24
0.39 4.34 1.99
Comment:
Price to earning rati o
82.15
7.44 6.24
2020 2021 2022
20. Dividend payout ratio:
Dividend payout ratio = Dividend paid /Net income
2020 2021 2022
0 0 0
=0 =0 =0
209,628 3,338,192 2,181,309
Comment:
Dividend payout rati o
- - -
2020 2021 2022
