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khan
Table of Contents
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Title
Page
1
Introduction
4
2
Company Overview
5

3

Ratio Analysis
6-26

3.i Liquidity Ratio
7

3.i.a Current Ratio
8

3.i.b Quick Ratio
9

3.i.c Cash Ratio
10

3.ii Leverage Ratio
11

3.ii.a Debt to Equity Ratio
12

3.ii.b Debt to Total Assets Ratio
13

3.ii.c Interest Coverage Ratio
14

3.ii.d Debt to Capital Ratio
15

3.iii Turnover Ratio
16

3.iii.a Receivable Turnover Ratio
17

3.iii.b Accounts Receivable in Days Ratio
18

3.iii.c Inventory Turnover Ratio
19

3.iii.d Inventory Turnover in Days Ratio
20

3.iii.e Total Asset Turnover Ratio
21

3.iv Profitability Ratio
22

3.iv.a Net Profit Margin Ratio
23

3.iv.b Gross Profit Margin Ratio
24

3.iv.c Return on Assets Ratio
25

3.iv.d Return on Equity Ratio
26
4
Findings and Analysis
27
5
Conclusion
28
6
References
29

List of Figures
Figure No
Title
Page
1
Current Ratio
8
2
Quick Ratio
9
3
Cash Ratio
10
4
Debt to Equity Ratio
12
5
Debt to Total Assets Ratio
13
6
Interest Coverage Ratio
14
7
Debt to Capital Ratio
15
8
Receivable Turnover Ratio
17
9
Accounts Receivable in Days Ratio
18
10
Inventory Turnover Ratio
19
11
Inventory Turnover in Days Ratio
20
12
Total Asset Turnover Ratio
21
13
Net Profit Margin Ratio
23
14
Gross Profit Margin Ratio
24
15
Return on Assets Ratio
25
16
Return on Equity Ratio
26

1. Introduction
The process of reviewing and evaluating a company 's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. Financial statements record financial



References: i. Northern Jute Manufacturing Company Limited (Annual Report 2008 to 2013) ii. Text book: Fundamentals of Financial Management iii. http://www.investopedia.com/terms/r/ratioanalysis.asp iv. http://en.wikipedia.org/wiki/Financial_ratio v. http://www.demonstratingvalue.org/resources/financial-ratio-analysis

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