GUL AHMED TEXTILE MILLS LTD. & FAZAL TEXTILE MILLS LTD.

EXPLANATIONS OF RATIOS FOR THE YEAR 2008

1. Current Ratio:
Current Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because total current asset and total current liabilities of Fazal Textile Mills are less than total current asset and total current liabilities of Gul Ahmed Textile Mills.

2. Quick Ratio:
Quick Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more cash and Government security receivable as compare to Fazal Textile Mills.

3. Laverage Ratio:
Laverage Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because total liabilities and net worth of Fazal Textile Mills is less than Gul Ahmed Textile Mills.

4. Gross Margin Ratio:

Gross Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more gross profit and net sales as compare to Fazal Textile Mills.

5. Net Profit Margin Ratio:

Net Profit Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and net sales as compare to Fazal Textile Mills.

6. Inventory Turn Over Ratio:

Inventory Turn Over Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because Fazal Textile Mills has more cost of good sold and less inventory as compare to Gul Ahmed Textile Mills.

7. Account Receivable Turn Over Ratio:

Account Receivable Turn Over Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net credit sales as compare to Fazal Textile Mills.

8. Return On Investment Ratio:

Return on Investment Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2008 because Fazal Textile Mills has less net worth and net profit as compare to Gul Ahmed Textile Mills.

9. Return On Assets Ratio:

Return On Assets Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2008 because Gul Ahmed Textile Mills has more net profit and total asset as compare to Fazal Textile Mills.

GUL AHMED TEXTILE MILLS LTD. & FAZAL TEXTILE MILLS LTD. EXPLANATIONS OF RATIOS FOR THE YEAR 2009 1. Current Ratio:
Current Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2009 because total current asset and total current liabilities of Fazal Textile Mills are less than total current asset and total current liabilities of Gul Ahmed Textile Mills.

2. Quick Ratio:
Quick Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more cash and Government security receivable as compare to Fazal Textile Mills.

3. Laverage Ratio:
Laverage Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2009 because total liabilities and net worth of Fazal Textile Mills is less than Gul Ahmed Textile Mills.

4. Gross Margin Ratio:

Gross Margin Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more gross profit and net sales as compare to Fazal Textile Mills.

5. Net Profit Margin Ratio:

Net Profit Margin Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more net profit and net sales as compare to Fazal Textile Mills.

6. Inventory Turn Over Ratio:

Inventory Turn Over Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more cost of good sold and inventory as compare to Fazal Textile Mills.

7. Account Receivable Turn Over Ratio:

Account Receivable Turn Over Ratio of Fazal Textile Mills is less as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more net credit sales as compare to Fazal Textile Mills.

8. Return On Investment Ratio:

Return on Investment Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2009 because Fazal Textile Mills has less net worth and net profit as compare to Gul Ahmed Textile Mills.

9. Return On Assets Ratio:

Return On Assets Ratio of Fazal Textile Mills is more as compared to Gul Ahmed Textile Mills for the year 2009 because Gul Ahmed Textile Mills has more net profit and total asset as compare to Fazal Textile Mills.