RATIO ANALYSIS

Total assets turnover ratio

Ratio 2017 2018 2019

Sales 96,868,170 109,626,704 Pending

Total assets 47,476,673 55,029,842 Pending

Assets turnover% 2.04 1.99 Pending

INTERPATATION:

This ratio shows the efficiency of company that how efficiently organization
use their assets to generate sales. In 2017 this ratio was 2.12 which
increases gradually to 2.66 in 2019. This show the better efficiency of
company.

Debt ratio

Ratio 2017 2018 2019

Total debt 10,723,310 11,669,306 Pending

Total 47,476,673 55,029,842 Pending

assets
Debt ratio 22.5 21.2 Pending
%
INTERPRETATION:

This ratio shows that how much of the business ‘s assets is financed
by debts. Here its shows that how much of firm’s assets are financed through
debts .in 2017 it was 9.6 and now it is 9.3. Decreasing trend in this ratio is
better for the firm.

Profitability Ratio:

Gross Profit Margin

Ratio 2017 2018 2019

Gross Profit 38,945,315 43,475,743 Pending

Sale 96,868,170 109,626,704 Pending

Total 40.2% 39.65% Pending

INTERPRETATION:

It shows the cost of sales relative to its profit. The higher the ratio is
better for the company. It shows a fluctuating trend from 2017 to 2019. In
2017 it is better than in 2019.
Net Profit Margin

Ratio 2017 2018 2019

Net Profit 4,748,222 2,630,688 Pending
Sales 96,868,170 109,626,704 Pending

Total 4.9% 2.3% Pending

INTERPRETATION:

It shows that net profit that company has earned. this ratio is not stable
of the company. In 2017 it is 0.27 and in 2019 it is -0.24. it shows decreasing
trend that is not good for the company.

Return on Assets

Year 2017 2018 2015

Net profit after 4,748,222 2,630,688
tax

Total Assets 47,476,673 55,029,842

Total 10% 4.78%

INTERPRETATION

How much earning is generated through assets by the company. The

higher the ratio is the better. It is 0.30 in 2017 and -0.01 in 2019 that is better
now . It shows company is using its assets in generating revenue more
efficiently.:

Current Ratio:

Year 2017 2018 2015

Current Assets 29,300,309 35,438,249

Current 10,723,310 11,669,306

Liabilities
Total 2.7 : 1 3:1
HORIZONTAL ANALYSIS:

Years 2017 2018 2019

Total 2.04% 1.99%
assets
turnover
Debt 22.5% 22.1%
ratio
Current 2.7:1 3:1
Ratio
Net 4.9% 2.3%
profit
margin

Horizontal analysis of the company shows wide range of fluctuation in

its assets turnover to net profit margins. Some areas show increasing trend
while s some of them remain consist and some shows decreasing trend.
company must work out to stabilize it’s increasing, decreasing and fluctuated
values while focusing on continuous growth.