FINANCIAL ANALYSIS OF NATIONAL FOOD

Submitted to Sir Bilal Sarwar Submitted by M.Ali Naqvi (G.L) [L1F11MCOM0164] Arslan Nawaz (D.M.D) [L1F11MCOM2165] Usman Shahzad [L1F11MCOM2175] Aqsa Muzaffar [L1F11MCOM2169] Hina Razzaq [L1F11MCOM2137]

Introduction of National Food

Founded in 1970 started out as a Spice company. In 1988, National Foods became the certified vendor of McCormick, USA. In 1998, National Foods converted into a Public Limited, listed in all the three stock exchanges of Pakistan. Only food company in Pakistan to have ISO 9001 and HACCP certifications along with SAP.

Introduction of National Food

International brand sold in over 35 countries 300 products in 12 major product categories 6 manufacturing units (Karachi, Bin Qasim, Lahore) Central Warehousing (Lahore, Gujranwala, Multan, Islamabad) Rs. 1 million to the economy every day in shape of taxes Annualized Growth Rate of 23% for the last 35 years

Overall Analysis of Financial Ratios

Ratio Current ratio Quick ratio 2011 1.23 Times 0.18 Times 2010 1.01 Times 0.15 Times

Operation cash flow ratio

Asset turnover Ratio Debt ratio Debt to equity ratio Gross Margin Net Profit Margin Return On Assets Earnings per share P/E ratio

0.21%
1.93 Times 0.68% 2.09% 28.51% 4.18% 12.67% 5.56 Rs. 13.48 Times

(0.20)
1.68 Times 0.72% 2.60% 29.55% 1.93% 5.95% 2.09 Rs. 21.03 Times

Analysis of Financial Ratios

(A) Liquidity ratios
Current Ratio
1.5 1 1.23 1.01

0.5
0 2011 2010

Analysis of Financial Ratios

(A) Liquidity ratios
Quick Ratio
0.19 0.18 0.17 0.16 0.15 0.14 0.13 0.18

0.15 2011 2010

Analysis of Financial Ratios

(A) Liquidity ratios
Operation cash flow Ratio
0.3 0.2 0.1 0 -0.1 -0.2 -0.3 2011 2010 -0.2 0.21

Analysis of Financial Ratios

(B) Activity ratios
Asset Turnover Ratio
2 1.9 1.8 1.7 1.6 1.5 2011 2010 1.68 1.93

Analysis of Financial Ratios

(B) Activity ratios
Debt Ratio
0.74 0.72 0.7 0.72 Ratio 0.68 2011 2010

0.68
0.66

Analysis of Financial Ratios

(C) Leveraging ratios
Debt Ratio
0.74 0.72 0.7 0.72

0.68
0.66

0.68 2011 2010

Analysis of Financial Ratios

(C) Leveraging ratios
Debt to equity Ratio
3 2.5 2 1.5 1 0.5 0 2.6 2.09

2011

2010

Analysis of Financial Ratios

(D) Profitability Ratios
Gross Margin
30 29.5 29 28.5 28 27.5 2011 2010 28.51 29.55

Analysis of Financial Ratios

(D) Profitability Ratios
Profit Margin
5 4 3 2 1 0 2011 2010 1.93 4.18

Analysis of Financial Ratios

(D) Profitability Ratios
ROA
15 10 12.67

5
0 2011

5.95

2010

Analysis of Financial Ratios

(E) Market ratios
EPS
6 5 4 3 2 1 0 5.56

2.09 2011 2010

Analysis of Financial Ratios

(E) Market ratios
P/E
25 20 15 10 5 0 2011 2010 13.48 21.03

Horizontal Analysis

Horizontal Analysis

Vertical Analysis

Vertical Analysis

Share Market Price of NFL

1998 2006 1999 2007 2000 2008 2001 2009 2002 2010 2003 2011 366.55 2004 2012 2005

Share price of National Food Limited on last trading date of every June from 1998 to 2012.

208

192.14

111.9 58 29.25 33 17.8516.5 27.1

125 111.15 75 73.21 43.92