Hum network limited

HUM network limited is a market leader in electronic media industry by competing in various genres.
HUM network limited was incorporated as a public limited company under companies ordinance, 1984.
The company is listed on Karachi stock exchange. The registered office of company is located at
Ibrahim Ismail chundrigar road Karachi.
The companys core business is to launch satellite channels and aim to provide ultimate media
experience to people of Pakistan.hum is one of the networks whom efforts again given a boost and
recognition to Pakistani drama in Pakistani people as well at international arena.
Financial Analysis
Financial analysis is the process of identifying the financial strengths and weakness of the firm by
properly establishing relationship between the items of balance sheet and profit and loss account, in
order to make rational decision in keeping with the objective of the organization, for that purpose the
management use analytical tools. To evaluate the financial condition and performance of the business
entity, the financial analyst needs to perform "checkups" on various aspects of the business financial
health. A tools frequently used during these checkups is a financial ratio analysis, which relates two
piece of financial data by dividing one quantity by the other we calculate ratios because in this way we
get a comparison that may prove more useful than the raw number by themselves. The business itself
and outside providers of capital (creditors and investors) all undertake financial statement analysis. The
type of analysis varies according to the specific interest party involved. The nature of analysis is
depending at the purpose of analyst.
Parties interested in financial analysis
Following are the parties that are interested in the financial analysis of a bank:
Trade creditors
Trade creditors are interested in firm's ability to meet their claims over a very short period of time. Their
analysis will, therefore confine to the evaluation of the firm's liquidity positions.
Suppliers of long-term debt
Suppliers of long-term debt on the other hand are concerned with firm's long-term solvency and survival. They
analyze the firms profitability over time, its ability to generate cash to be able to pay interest and repay
interest and repay principal and the relationship between various source of funds. (Capital structure
relationship). Long-term creditors do analysis the historical financial statements but they place more emphasis
on the firm's projected financial statement to make analysis about its future solvency and profitability.

Investors
Investors who have invested their money in the firms share are most concerned about the firm steady growth
in earning. As such, they concentrate on the analysis of the firm's present and future profitability. They are
also interested in the firms financial structure of the extent it influence the firms earning ability and risk.
Management
An organization would be interested in every aspect of the financial analysis. It is their overall responsibility to
see that the resources of the firm are used most effectively and efficiently and that the firm's financial
condition is sound. So thus management employee financial analysis for the purpose of internal control and to
better provide what capital supplier seeks in financial condition and performance from the business and from
an internal control standpoint, management needs to take financial analysis in order to plan and control
effectively. They also use financial analysis in order to prepare their strategy of risk management which help to
reduce or help to tackle various kinds of standalone as well macro level risks.

Ratio Analysis

Ratio analysis is the most commonly used to analyze the financial strength of any company. It is a quantitative
relation between two magnitudes of the same kind. In ratio analysis, the financial ratios of the firm are
compared to that of its competitors. This comparison allows the firm to detect major operating differences to
increase their profit.
A lot of entities like research houses, investment bankers, financial institutions and investor use
to analysis the financial strength of any company. With the help of these we can make decision
about management and its capabilities, these decisions are important for the firms growth. This
analysis makes use of certain ratios to achieve the above-mentioned purpose.
Liquidity analysis HUM network limited

Ratios
Liquidity ratios
Current ratio

2011

2012

2013

200

244

366

Quick ratio(acid test ratio)

%
185

%
212

%
328

Cash ratio

%
93%

%
109

%
141

By liquidity ratios we can conclude that HUM network limited is getting better in terms of
liquidity because they are having continuous increasing trend in all three basic liquidity
measures. In other words it means that HUM network limited is having more cash or cash
equivalents than as compare to last year with respect to liabilities.