An Appraisal Case Study on Financial Analysis of Askari Cement Wah Ltd

Abstract

Abstract Performance of Askari Cement Limited using five years data on various financial aspects covering the period 2005 to 2009 was judged using multi-dimensional analytical tools which included Return On Capital Employed, Return On Equity, Return On Total Assets, Liquidity Ratios, Current Ratio, Quick Ratio, Efficiency Ratios( Inventory Turnover, Inventory Turnover In Days, Receivable Turnover, Credit Turnover, Creditor Turnover In Days) Operating Cycle, Cash Cycle, Asset Turnover, Fixed Asset Turnover, Leverage Ratios (Debt to Total Common Equity, Debt To Total Assets: Times Interest Earned. The study revealed that Overall profitability of the Askari Cement Limited is not satisfactory as it has declined considerably in the recent years as compared to 2005 and 2006. However, over all liquidity position of the company has been satisfactory. Company’s overall efficiency ratios are not satisfactory as judged by the current research. Leverage ratios of the company indicated that the percentage of borrowing to finance the assets has decreased considerably from 2005 to 2009. It is established that Askari Cement Limited is financing major portion of its investment from equity. It is therefore concluded that it is not a risky organization in an investment perspecti