1. PROJECT: FIANANCIAL ANALYSIS.
INTRODUCTION TO BUSINESS FINANCE – FALLS 2013
COLGATE PALMOLIVE
PROCTOR & GAMBLE
ZULFIQAR INDUSTRIES LIMITED

2. COLGATGE PAMOLIVE
PROCTOR & GAMBLE
ZULFIQAR INDUSTRIES LTD.

3. DuPONT IDENTITY
PROFIT MARGIN x TOTAL ASSETS TURNOVER x EQUITY MULTIPLIER
SALES
DIVIDED BY
TOTAL ASSETS
x
TOTAL ASSETS
DIVIDED BY
COMMON
EQUITY
=
NET INCOME
DIVIDED BY
SALES
x
RETURN ON
EQUITY - ROE
DuPont identity is ROE calculated by the breakup of three
components,.
ROE essentially indicates how well the company used
reinvested earnings to generate additional earnings.
In the nutshell, ROE represents how much profit a
company is able to generate given the resources
provided by its stockholders…

4. ROE 2008 – 2012
P&G’s
AVERAGE
ROE
18.6%
20.8%
C-P
AVERAGE
ROE
ZIL
AVERAGE 8.9%
BETTER
GOOD
LOW

6. CURRENT RATIO
CURRENT RATIO
CURRENT ASSETS / CURRENT
LIABILITIES
An indication of a company’s
ability to pay its short term
obligations.
If the current assets of
the company are more
than twice its current
liabilities, that company
is considered to have a
good short term
financial strength…

7. P&G’s
AVERAGE
CURRENT
RATIO
CURRENT RATIO 2008 – 2012
C-P
AVERAGE
CURRENT
RATIO
ZIL
AVERAGE
CURRENT
RATIO
0.8 X
2.56 X
1.53 X
GOOD
WEAK!
OK

8. QUICK 0R ACID TEST RATIO
A measure of a company’s
liquidity and the ability to meet
its obligations.
It shows the per
dollar relation of
easily convertible
assets available to
pay off current
liabilities…
CURRENT ASSETS INVENTORIES
-
CURRENT
LIABILITES

9. P&G’s
AVERAGE
QUICK
RATIO
C-P
AVERAGE
QUICK
RATIO
ZIL
AVERAGE
QUICK
RATIO
QUICK RATIO 2008 – 2012
0.52 X
1.22 X
0.64 X
WEAKER
STRONG
WEAK

10. INVENTORY TURNOVER
COST OF
GOODS
SOLD
INVENTORIES
=
INVENTORY
TURNOVER
RATIO
SHOWS the
number of times
the company ‘s
stock is sold and
re-stocked.
Determines the
sales of a
company and its
ability to restock.

11. P&G’s
AVERAGE
INVENTORY
TURNOVER
C-P
AVERAGE
INVENTORY
TURNOVER
ZIL
AVERAGE
INVENTORY
TURNOVER
INVENTORY TURNOVER 2008 – 2012
8.292 X
5.56 X
2.77 X
GREAT
OK WEAK

12. PROFIT MARGIN ON SALES
NET PROFIT
SALES
=
PROFIT
MARGIN ON
SALES
This ratio indicates how
much profit the
company generates per
dollar sales…
Higher profit
margin
companies
are preferred
over lower
ones.

13. P&G’s
AVERAGE
PROFIT
MARGIN
C-P
AVERAGE
PROFIT
MARGIN
ZIL
AVERAGE
MARGIN
PROFIT MARGIN ON SALES 2008 – 2012
15 %
8.8 %
2.76 %
MORE PREFERRED
PREFERRED NOT
PREFERRED

15. PnG ZIL Colgate Ind. Average
Current Ratio
Quick Ratio
CURRENT AND QUICK RATIO COMPARISION
2008 - 2012

16. PnG ZIL Colgate Ind. Average
Debt Ratio
PnG
ZIL
Colgate
Ind. Average
DEBT RATIO COMPARISION
2008 - 2012

17. ASSET TURNOVER RATIO
2008 - 2012
Asset TurnoverPnG
ZIL
Colgate
Ind. Average
Asset Turnover
PnG
ZIL
Colgate
Ind. Average

18. Time Interest RatioPnG
ZIL
Colgate
Ind. Average
Time Interest Ratio
PnG
ZIL
Colgate
Ind. Average
TIMES INTEREST EARNED RATIO
2008 - 2012

19. PROFIT MARGINS
2008 - 2012
PnG ZIL Colgate Ind. Average
Profit margin on Sales
PnG
ZIL
Colgate
Ind. Average

21. DuPont Analysis
2008 - 2012
ROA (%)
ROE (%)0
5
10
15
20
25
PnG
ZIL
Colgate
Ind. Average
ROA (%)
ROE (%)

23. HORIZONTAL & VERTICAL ANALYSIS
COLGATE PALMOLIVE
2008 - 2012
-10%
0%
10%
20%
30%
40%
50%
60%
70%
1 2 3 4
TOTAL
SHAREHOLDERS
EQUITY TREND
ASSETS TREND
LIABILITIES TREND
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012
C.S - ASSETS
C.S - LIAB.
0
10
20
30
40
50
60
70
80
2008 2009 2010 2011 2012
C.S - INCOME
C.S - COGS
C.S - G.P
0%
10%
20%
30%
40%
50%
60%
1 2 3 4
SALES TREND
INCOME TREND

24. HORIZONTAL & VERTICAL ANALYSIS
ZULFIQAR INDUSTRIES LIMITED
2008 - 2012
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2011 2010 2009 2008 2007
Gross Profit
Selling, Dist. & Admin
Exp
Operating Exp
Profit for the year
0
100,000
200,000
300,000
400,000
500,000
600,000
2011 2010 2009 2008 2007
Non-Current Assets
Current Assets
Non-Current Liabilities
Current Liabilities
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2011 2010 2009 2008 2007
Net Sales
Cost of Sales
Gross Profit

25. HORIZONTAL & VERTICAL ANALYSIS
P&G
2008 - 2012
0%
20%
40%
60%
80%
100%
120%
2012 2011 2010 2009 2008
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
0%
20%
40%
60%
80%
100%
120%
2012 2011 2010 2009 2008
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses