ANALYSIS OF

FINANCIAL
STATEMENTS AND
REPORTING
FAUJI FOODS LIMITED
Presented By:
Muhammad Ahmed
20P00062
 Founded 1966

Formerly known as Noon Pakistan limited

Noon Pakistan was a food company

Introduction conglomerate of Fauji foundation
Owned by Pakistan Army

Nurpur and Dostea

COMMON SIZE ANALYSIS
TREND ANALYSIS
 LIQUIDITY ANALYSIS
    2019 2018 2017 2016 2015
Networking Capital Ratio's UNITS          

Networking Capital   (8,789,298,051) (2,875,200,301) 1,652,213,894 (3,167,396,781) (1,052,408,716)

Current Ratio Times 0.31 0.58 1.70 0.40 0.34
Cash to Current Assets Ratio Times 0.03 0.02 0.30 0.16 0.07
Cash to Current Liabilities Ratio Times 0.01 0.01 0.51 0.06 0.03
Acid Test Ratio (Quick Ratio) Times 0.20 0.38 1.27 0.27 0.24

Cash to Current Assests and Liabilities Ratio

0.60
0.50
0.40
0.30
0.20
0.10
0.00
2019 2018 2017 2016 2015

Cash to Current Liabilities Ratio= Cash to Current Assets Ratio =

 LIQUIDITY ANALYSIS
    2019 2018 2017 2016 2015
Day Sales in Receivables and Inventory
90
Operating Cycle Ratio's (using 80
averages) UNITS           70
60
Day Sales in Receivables Days 10 6 5 6 20 50
40
Day Sales in Inventory Days 79 56 45 47 87 30
20
Operating Cycle Days 89 62 50 54 107 10
0
1 2 3 4 5
Days Purchase in Accounts
Day Sales in Receivables Days Day Sales in Inventory Days
Payables Days 67 46 52 82 218

Net Trade Cycle Days -137 -96 -92 -124 -284

    2019 2018 2017 2016 2015
Short Term Debt to Long Term Debt
Solvency Ratio's Units          
4; 0.97 5; 0.96
Total Debt Ratio Times 1.30 0.84 0.58 0.71 0.88 1.00

0.90
Total Equity Ratio Times -0.30 0.16 0.42 0.29 0.12 1; 0.81
0.80
Total Debt to Equity Capital Times -4.30 5.33 1.41 2.43 7.19 3; 0.66
0.70
2; 0.60
Long Term Debt to Equity Capital Times -0.83 2.13 0.93 0.07 0.30 0.60

0.50
Short Term Debt to Equity Capital Times -3.48 3.20 0.48 2.35 6.88 2; 0.40
0.40 3; 0.34
Short Term Debt to Total Debt Times 0.81 0.60 0.34 0.97 0.96 0.30
1; 0.19
Long Term Debt to Total Debbt Times 0.19 0.40 0.66 0.03 0.04 0.20
    2019 2018 2017 2016 2015 0.10 4; 0.03 5; 0.04

0.00
1 2 3 4 5
Times Interest Ratio Units          

Times Interest Ratio (Interest Coverage) Times 1.43 3.79 6.45 9.06 3.13
Short Term Debt to Total Debt Times Long Term Debt to Total Debbt Times

CAPITAL STRCUTURE AND SOLVENCY

ANALYSIS
 ROIC ANALYSIS
    2019 2018 2017 2016 2015
ROICE FORMULA'S          
NOPAT= EBIT (1-TAX RATE) 1550338921 2200796669 1949864824 871386342 76642690
  AVERAGE NOA 10179259836 11567161475 8645057623 3872618881 NA

RNOA (1) NOPAT/ AVG NOA 15% 19% 23% 23% N/A
             
NOPAT MARGIN= NOPAT/ SALES 27% 27% 28% 26% 11%
AVG NOA TURNOVER AVG NOA TURNOVER 0.56 0.70 0.81 0.87 NA

RNOA (2) NOPAT MARGIN*AVG NOA TURNOVER 15% 19% 23% 23% N/A

NOPAT MARGIN= NOPAT/ SALES 27% 27% 28% 26% 11%

OPERATING ASSETS TURNOVER= SALES/ AVG OA 0.45 0.64 0.72 0.71 NA
AVG NOA AVG OL/ AVG NOA 0.26 0.09 0.13 0.23 NA
LEVERAGE RATIO= (1+AVG OL/ AVG NOA) 1.26 1.09 1.13 1.23 NA
NOPAT MARGIN*OPERATING ASSETS
RNOA (3) TURNOVER*(1+ OL LEVERAGE RATIO) 15% 19% 23% 23% N/A
 ROIC ANALYSIS CONTD..
    2019 2018 2017 2016 2015 ROCE VS RNOA
(NET INCOME- PREFERRED 40%
32% 39%
DIVIDENDS)/ AVG COMMON 50% 19% 23% 23%
15%
ROCE (1)= EQUITY -377% 40% 32% 39% NA
              0%
2019 2018 2017 2016
ADJUSTED NET
INCOME MARFGIN= (NI-PREF DIV)/ SALES 1.01 0.35 0.33 0.29 0.15 -50%

AVG ASSETS
TURNOVER= SALES/ AVG ASSETS 0.45 0.64 0.71 0.70 0.39 -100%

  AVG ASSETS 12854492122 12731722177 9793958758 4794692372 1745915019 -150%

AVG ASSETS/ AVG COMMON

EQUITY MULTIPLIER= EQUITY -8.37 1.80 1.36 1.94 NA -200%

-250%
ADJUSTED NI MARGIN*AVG
ASSETS TURNOVER*EQUITY -300%
ROCE (2) MULTIPLIER -377% 40% 32% 39% N/A
              -350%

LEVERAGE*SPREAD (ROCE-RNOA) -3.92 0.21 0.09 0.17 N/A -377%

-400%

RNOA ROCE
ROCE (3)= RNOA+ (LEVERAGE* SPREAD) -377% 40% 32% 39% N/A
             
 OPERATING PERFORMANCE RATIO’S
Gross Profit Margin = Gross Profit/ Sales
Net Profit Margin = Net Income / Sales
Operating Profit Margin = EBIT/ Net Sales
Operating
Performance Ratio's Formula 2019 2018 2017 2016 2015 20%
5% 3% 3%
-32% -37% -19%
0%
1 2 3 4 0% 5
Gross Profit/ -20%
-12%
-15%
Gross Profit Margin Sales -12% 5% 3% 3% 0%
-29%
-40% -35% -33%
-42% -41%
Net Income / -60%
Net Profit Margin = Sales -101% -35% -33% -29% -15%
-80%

Operating Profit -100%

Margin = EBIT/ Net Sales -42% -32% -37% -41% -19% -101%

-120%
CGS Percentage = CGS / Net Sales -112% -95% -97% -97% -100%
 ASSET UTILIZATION
TURNOVER
Cash Turnover Formula Unit 2019 2018 2017 2016 2015
Cash Turnover Sales/ Avg Cash Times 54.11 12.51 9.16 18.02 7.59
Inventory Turnover CGS/ Avg Inventory Times 4.55 6.42 7.98 7.60 4.15

Accounts Receivable
Turnover Sales/ Avg A/R Times 37.58 63.66 67.42 58.26 18.05

Working Capital
Turnover Sales/ Avg Working Capital Times -0.99 -13.24 -9.24 -1.60 -0.66
PPE Turnover Sales/ Average PPE Times 0.72 1.10 1.19 1.08 0.60
Total Assets Turnover Sales/ Avg Total Assets Times 0.45 0.64 0.71 0.70 0.39
 ASSET UTILIZATION
TURNOVER
Inventory Vs PPE Turnover
Cash Vs Total Assets Turnover
9.00
60.00
7.98
8.00
7.60
50.00
7.00
6.42

6.00 40.00

5.00 30.00
Axis Title

4.55
4.15
4.00
20.00
3.00
10.00
2.00

0.00
1.00 0.636 0.715 0.703 2019 2018 2017 2016 2015
0.447 0.395
Cash Turnover Total Assets Turnover
0.00
2019 2018 2017 2016 2015
     2019 2018 2017 2016 2015

Market Measure Ratio's Units          

Price to Earnings Ratio Times (1.32) (5.62) (1.79) (10.13) (226.36)

Earnings Yield % age (0.76) (0.18) (0.56) (0.10) (0.00)

Dividend Yield Times 0 0 0 0 0

MARKET
MEASURE Dividend Payout Ratio Times 0 0 0 0 0

ANALYSIS Price to Book Ratio Times -15.07 7.47 45.85 5.23 22.66

Capital Yield % age (0.52) 0.84 (0.81) (0.63) 4.05

  2019 2018 2017 2016 2015

Cash Dividends 0 0 0 0 0
Market Value (year end) 14.47 30.28 16.46 88.67 242.21
Book Value (per share) -0.96 4.06 0.36 16.97 10.69
Stock Price 14.47 30.28 16.46 88.67 242.21
MARKET MEASURE ANALYSIS