FIN619 Mba Final Project-Finance

Friday 31 October 2014

FIN619 Finance Project Assignment 5 help

FIN619 Final Project Finance Assignment 4 help fall 2013

Type One: PASS:
What to do now?
The students whose results of Written Work as a whole i.e. (Proposal & Final Project) have been declared as Pass should carefully read and follow the comments and instructions given in their evaluated project and start preparing for presentation & viva voce. They are required to read the guidelines for presentation & viva voce (Lesson no.6) uploaded on VULMS in the course. Also follow the relevant presentation template (available in Downloads Section or Lesson no.6) to design the presentation power point slides. Assignment No.6 (Submission of PPTs for Pass Students Only) will be opened soon.
Note for “Pass” students:
Students who have been declared as Pass in Assignment No.4 are required to ignore Assignment No. 5 (Revised Submission of Final Project).

Type Two: Needs Improvement:

The students who have valid proposal but their status is “Needs Improvement” in the Final Project (Assignment No.4) are given a CHANCE to improve their work by following the comments and instructions given by the Instructor in their evaluated projects. They are also required to resubmit their improved project before or within Due Date: 24th January, 2014. Assignment for Revised Submission of Project (Assignment No.5) has been opened in the course on VULMS. Make sure submissions through E-mail will NOT be entertained. Furthermore, it is your responsibility to confirm immediately (at your own end) after uploading your final project against Assignment No.5 that it is uploaded and opening properly as corrupt files shall NOT be considered.

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Profitability Ratio Analysis of Lucky Cement,Kohat Cement,PIONEER Cement 2011,2012,2013

FIN619 Final Project on Profitability Ratio Analysis of Lucky Cement,Kohat Cement,PIONEER Cement 2011,2012,2013

I would like to dedicate my project to my family i.e., my parents, wife and children. My family, in particular my wife has given me tremendous support and encouragements to complete my MBA degree. It was not easy being abroad and while working in a dynamic multinational organization but my wife has made it possible with her extended efforts in taking care of children studies and related matters. She took over all the responsibilities including my part, towards children and kept me spared, only for study during this whole period.

I am grateful to Almighty Allah who has given me the ability and wisdom to realize the importance of knowledge and continuous learning. With the blessings of Almighty Allah, I have enjoyed a continuous growth in my career and personal life.

After that I am thankful to my company (Schlumberger) who being a multinational organization developed a culture of encouragements and facilitation to its employees for personal development and further studies. I am appreciative to my managers (Scott Bittner and Ziad Abounohra), who have always been supportive, especially for consistently & willingly approving my leaves for studies & exams.

I am also thankful to Virtual University of Pakistan for eradicating traditional blockades & boundaries for Pakistani knowledge seekers. Within all limitations and odds, VU is one of the best institutions of Pakistan and doing enormous contribution to the nation building/development in an exceptional way. I am proud to be a cyberian.

Executive Summary

Profitability ratio used to access a firms ability to generate profit as compared to its expensive and other relevant costs incurred during a specific period time. Hence for most of these ratios, having a higher value relative to competitor’s ratio or the same ratio from a previous period is indicative that a company is doing well.

The study has been conducted over the topic of analysis of Profitability ratio at Lucky Cement, Kohat Cement, and Pioneer cement. The main sources for data collection were three company website. Already published data like balance sheets and others financial documents of most recent three years (2011, 2012, 2013) have been used to dig out the result. This study will helped people to get deeper understanding of process of Profitability ratio analysis and readers will able to understand how financial decision have been taken to strength the financial position. Hence for this study comparative income statement, balance sheets have been taken for mentioned ratio analysis. The main theme behind this study was to supplement knowledge to with absolute practical exposure to day to day functions of the sector.

In next coming few pages, readers will be able to study the Profitability ratio analysis of mentioned three companies, data have been presented in tabulation form and in graphically presentation that will enhance the readers understanding which ratios are increasing and decreasing in the particular years.

1.1 Introduction of the Project

This Study is going to conduct over the three company’s Lucky cement, Kohat Cement, and Pioneer cement industry in Pakistan. The main purpose behind this study is to measure the profitability ratio analysis of the said three companies and then do comparison. As we know that profitability ratio measure any company ability to generate earning relatives to sales as well as assets and equity too.

On the other hand these all ratios assess the ability of a company to generate profits, earnings and cash flows relative to some metric, often the amount of money invested. This ratio might help to measures both returns on the investor money in the company and the firm’s margins too. Financial expert used Profitability ratio to evaluate the profitability of a company and it is vital to measure the performance of the company. We can also use profitability ratio to determine the profit earned by company relatives to its sales, net worth and total assets.

So the reason for selecting this topic is to analyze and determine the company bottom line. So for all these analysis I have selected Lucky Cement, Kohat Cement and Pioneer Cement for analysis and comparison. In my project I have measured said companies overall efficiency and performance through doing financial ratio analysis of mentioned three companies. All these analysis have done through these companies balance sheet. With help of ratio analysis, comparison of profitability financial soundness can be made between one company and other companies in the same industry so for this comparison three companies have been selected for this financial analysis.

1.2 Significance

At the end of the project on Profitability ratio, readers will able to understand:

Ability to understand which company is performing well to generate profit
Ability to understand how these companies are managing their asset and debt
Help the company’s management to study the position of their firms in respect of sales expenses, profitability and using capital.
Become simple to understand various figures in the financial statement through the use of Profitability ratios
It helps in investment decisions in the case of investors and lending decisions in the case of bankers etc.

According to above analysis finding, we can see that Lucky cement gross profit margin ratio is increasing as compare to other two companies. It means Lucky cement have effective control on its cost while producing sales. Decreasing trend of other both companies are indicating that both Kohat and Pioneer cement industries have less control while generating sales

Gross profit margin ratio of Lucky, Kohat and Pioneer cement has fluctuating trend year after year. These three cements companies show a declining and little bit increasing over 2008 to 2010. This decreasing trend raising a concern for both of three companies as they are incur increasing level of price and high cost of production such as finish goods, opening and closing and under and over valuation of cement stock. These companies performance regarding each other is look like same but an industry set benchmark help in further elaboration of their performance according to cement industry sector.

As per above analysis we can see that Net profit margin of Lucky cement is increasing as compare to other two companies. The main reason is that net profit out of each dollar of sales has become larger or greater,

The higher net profit margin ratio better sign of performance..Net Profit ratio reflects the profitability of the firm. Increases/decreases in net profit ratio indicate a change in profit. These three companies deteriorate in its position over 2008 to 2010.But Lucky cement profit margin looks better as compare to other two cement companies. Profit margin reflects the healthy performance of company regarding its effective investment planning and strategies and show company ability to earning the profit through meeting sale expectations in cement market.

Project for FIN619 on Profitability Ratio analysis on mentioned companies is available.

FIN619 Project on Profitability Ratio Analysis (100 % project approval guarantee)

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Activity Ratios Analysis of Kohat Lucky and Attock Cement 2013

FIN619 final project finance of Virtual university has been prepared to complete MBA degree requirement and activity ratios analysis have be done on Kohat cement.Lucky cement and Attock cement for the year 2011,2012 and 2013.

FIN619 FINAL PROJECT ACTIVITY RATIS ANALYSIS OF KOHAT CEMENT, LUCKY CEMENT, ATTOCK CEMENT FOR THE YEAR 2011,2012 and 2013

Executive Summary

The analysis has been conducted on activity ratios analysis of Kohat, Attock and Lucky cement for the year 2011, 2012, and 2013. Activity ratio are very concern to measures how firms efficiently converts its assets into sales. Activity ratio analysis always helps company shareholders to dig out the ability, efficiency to convert assets in consciousness of cash. The primary objectives of this research were to determine and examine the reason why company I able to manage its assets effectively and why company is not able.

Analysis over mentioned companies has been completed with the help of secondary data by exploring company’s official websites. This study has achieved all the objectives and ratio result about three companies has been displayed in both tabulation and graphic form. For better understanding this study has done some interpretation as well under each table and graph.

According to activity ratios analysis, the accounts receivable turnover ratio of Kohat cement is better than Lucky and Attock cement Kohat cement is able to receiving quickly debt from the consumers. The result of average collection period of Lucky cement is good than Kohat and Attock cement therefore result also lies that Lucky cement has http://qundeel.com/ strong account receivable than Kohat and Attock cement. The accounts Payable turnover ratio of Lucky cement in year 2013 is good than Kohat and Attock cement. Inventory turnover ratio of Lucky cement is high as compare to Attock and Kohat cement.

In fact Activity ratio analysis indicates as operating ratio or management ratio as well, it means measure the efficiency which a current business by uses its own assets like inventories, accounts receivable and fixed assets. The common use of activity ratio are the average collection period, inventory turnover, fixed assets turnover and total asset turnover.

The basic aim of this analysis is to compare the ratio analysis of selected companies and dig out which company is using its inventory or raw material efficiently.

A company invests funds for its operational activities in assets like sort term and long term to increase its sales and profit. So the success or failure depends upon proper utilization of assets, if these assets are properly utilized and managed then the company able to increase its sales and profit too, hence activity ratio are calculated to evaluate how efficiently and effectively the company utilizing its assets.

Kohat Cement

Kohat Cement Company Limited (incorporated in 1980) is an ISO 9001-2008 certified company, listed on Stock Exchanges of Pakistan and engaged in manufacturing of Grey and White Cements. Quality of our products is better than approved British and Pakistan Standards. The plant is located in Kohat about 60 kilometers from Peshawar.

Attock Cement

ACPL is a member of Pharaon Group of Companies operating in Pakistan. ACPL’s projects was conceived in 1981. The projects is a Pak-Saudi venture and has involved an initial capital outlay of around Rs. 1.5 billion with a foreign exchange component of around US$ 45 million. ACPL’s manufacturing plant is located in Tehsil Hub, District Lasbela, Baluchistan, at a distance of about 45 kilometers north west of Karachi.

ACPL has attained ISO 9001:2000 and ISO 14000 certifications from Lloyds Register Quality Assurance (LRQA) in 2002 and 2006.ACPL is making substantial contribution to the country’s economy and deposited over Rs.2,600 Million (US$ 30 Million) to the national and provincial exchequer in the form of Excise Duty, Sales Tax, Special Excise Duty, Royalty and Income Tax during the year 2010 – 2011

Lucky Cement

Lucky Cement Limited (LCL) is Pakistan’s largest producer and leading exporter of quality cement with the production capacity of 7.75 million tons per annum. The company is listed on Karachi, Lahore, Islamabad and London Stock Exchanges.

Over the years, the Company has grown substantially and is expanding its business operations with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu and Khyber Pakhtunkha to furnish the Northern areas of the country. Lucky Cement is Pakistan’s first company to export sizeable quantities of loose cement being the only cement manufacturer to have its own loading and storage terminal at Karachi Port.

Lucky Cement is an ISO 9001:2008 and 14001:2004 certified company and also possesses many other international certifications including Bureau of Indian Standards, Sri Lankan Standard Institute, Standards Organization of Nigeria, Kenya Bureau of Standards and South African Bureau of Standards.

ACCOUNTS RECEIVABLE TURNOVER

Company	2011	2012	2013

Kohat Cement	Paid Content	Paid Content	Paid Content
Lucky Cement	Paid Content	Paid Content	Paid Content
Attock Cement	Paid Content	Paid Content	Paid Content

As per above calculation in table of account receivable ratios of Kohat cement , Luck cement and Attock cement for the year 2011,2012,2013. The Kohat cement ratio for the year 2011, 2012, and 2013 is 373.59, 1092.24, and 1321.46 times respectively. Luck cement ratio for the years 2011, 2012, 2013 is 37.16, 39.86, 27.81 time respectively. http://qundeel.com/And the Attock cement ratio for the years 2011, 2012, 2013 are 161.18, 88.20, 42.64 time respectively. From the above information we conclude that the ratio of Kohat cement is high with respect to other companies. This ratio has been calculated to see the efficiency of firm’s credit policies and also highlight the level of investment in receivable required to maintain the firm sales level. Therefore Kohat ratio for the last three years is representing that this company is receiving quickly debt from the consumers than other two companies.

Average Collection Period

Company	2011	2012	2013

Kohat Cement	Paid Content	Paid Content	Paid Content
Lucky Cement	Paid Content	Paid Content	Paid Content
Attock Cement	Paid Content	Paid Content	Paid Content

As per above calculation in table average collection period ratio of three companies Kohat cement Lucky cement and Attock Cement for the year 2011, 2012, and 2013. The Kohat cement ratio for the year 2011, 2012,and 2013 is 0.97 days, 0.33 days and 0.27 days respectively. The lucky cement for the year 2011, 2012, http://qundeel.com/and 2013 is 9.82 days, 9.15 days and 13.12 days respectively and Attock cement for the year is 2.26 days, 4.13 days, 8.56 days respectively. Above analysis tells us the average collection period of Lucky cement is high with respect to other two companies Kohat and Attock cement. The recorded ratio result also lies that Lucky cement is implementing very restrict policy for giving credit convenience to their customer’s because as per analysis Lucky cement has strong account receivable then other two companies.

Get Complete Project of Activity ratio analysis on mentioned companies through email. Project include working sheet (excel) with complete three years of ratio analysis.

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FIN619 Project Finance on Activity Ratio Kohat,Lucky,Attock 2013-2014

Table of Content

Section 1	8
Chapter 1 Introduction of the Project	8
1.1 Financial period under consideration for analysis (2011, 2012, 2013)	8
1,2 Introduction to Companies	9
1.3 objectives:	9
1.4 Significance	10
CHAPTER 2 Methodology	10
2.1 Data Collection Sources	10
2.2 Data Processing & Analysis:	11
CHAPTER # 3 Data Analysis	12
ACCOUNTS RECEIVABLE TURNOVER	12
Average Collection Period	13
ACCOUNTS PAYABLE TURNOVER.	15
AVERAGE PAYMENT PERIOD	17
Inventory Turnover	19
Average age of inventory	20
Operating Cycle	22
TOTAL ASSETS TURNOVER:	23
FIXED ASSET TURNOVER	25
Chapter 4 Conclusion & Recommendation	27
4.1 Conclusion	27
4.2 RECCOMENDATIONS	28
Section II	29
a) Introduction of the student	29
B Bibliography	30

Findings of Activity Ratio Analysis

As per above calculation in table of account receivable ratios of Kohat cement , Luck cement and Attock cement for the year 2011,2012,2013. The Kohat cement ratio for the year 2011, 2012, and 2013 is 373.59, 1092.24, and 1321.46 times respectively. Luck cement ratio for the years 2011, 2012, 2013 is 37.16, 39.86, 27.81 time respectively. And the Attock cement ratio for the years 2011, 2012, 2013 are 161.18, 88.20, 42.64 time respectively. From the above information we conclude that the ratio of Kohat cement is high with respect to other companies. This ratio has been calculated to see the efficiency of firm’s credit policies and also highlight the level of investment in receivable required to maintain the firm sales level. Therefore Kohat ratio for the last three years is representing that this company is receiving quickly debt from the consumers than other two companies.

As per above calculation in table average collection period ratio of three companies Kohat cement Lucky cement and Attock Cement for the year 2011, 2012, and 2013. The Kohat cement ratio for the year 2011, 2012,and 2013 is 0.97 days, 0.33 days and 0.27 days respectively. The lucky cement for the year 2011, 2012, and 2013 is 9.82 days, 9.15 days and 13.12 days respectively and Attock cement for the year is 2.26 days, 4.13 days, 8.56 days respectively. Above analysis tells us the average collection period of Lucky cement is high with respect to other two companies Kohat and Attock cement. The recorded ratio result also lies that Lucky cement is implementing very restrict policy for giving credit convenience to their customer’s because as per analysis Lucky cement has strong account receivable then other two companies.

As per above calculation in table the account payable turnover ratio of Kohat cement, Lucky cement, and Attock cement for the year 2011, 2012, and 2013. The Kohat cement ratio for the year 2011, 2012 and 2013 is 6.29 time, 6.08 times and 6.32 times respectively. Similarly the lucky cement ratio for the year 2011, 2012 and 2013 is 5.06 times, 5.58 times and 10.57 times respectively. The third company Attock cement payable turnover for the year 2011, 2012 and 2013 is 6.01 times, 6.11 times and 5.67 times respectively. As the above information tells us that accounts payable turnover ratio of Lucky cement is higher in year 2013 than other two companies and second one is Kohat cement. How if we see the increasing trend, then three companies has better position for short term liquidity measures but Attock cement is leading position over Kohat and Lucky Cement .

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