Financial Management

(Assignment)

SUBMITTED BY:
SOHAIB SAFDAR MALIK (01-120112-082)
USMAN KHURSHID (01-120112-090)
M.UMAR FAROOQ (01-120112-058)
MBA III (A)
Date : 21/12/2012
Submitted to:

Miss. Rabia Shareef

Degree of Operating leverage:

Degree of Operating leverage = % Change In EBIT/% Change in Sales
Fiscal year 2012:
% change in EBIT= 1037102919 (-592621559) /(-592621559) = -2.7500
%change in Sales= 6261867722 5210209429 /5210209429 = 0.2018
Degree of Operating leverage = -2.7500 / 0.2018
Degree of Operating leverage = -13.63

Fiscal year 2011:

% change in EBIT= -592621559 (-363474805)/ (-363474805) = 0.6304
%change in Sales= 5210209429- 6214371763/6214371763 = -0.1615
Degree of Operating leverage = 0.6304 /-0.1615
Degree of Operating leverage = -3.90
Fiscal year 2010:
% change in EBIT= -363474805- 44538443/ 44538443 = -9.1609
%change in Sales= 6214371763-7578457178/ 7578457178
= -0.1799
Degree of Operating leverage = -9.1609 / -0.1799
Degree of Operating leverage = 50.922

Fiscal year 2009:

% change in EBIT= 44538443 - 227758726/ 227758726 = -0.8044
%change in Sales= 7578457178 - 6071270854/ 6071270854 = 0.2482
Degree of Operating leverage = -0.8044 / 0.2482
Degree of Operating leverage = -3.24

Fiscal year 2008:

% change in EBIT= 227758726 - 659215447/ 659215447 = -0.6545
%change in Sales= 6071270854-7611236705 / 7611236705
= -0.2023
Degree of Operating leverage = -0.6545 / -0.2023
Degree of Operating leverage = 3.24

Degree of Financial Leverage :

Degree of Financial Leverage = EBIT / EBIT - I {Preferred Dividend/(1-Tax)}
Fiscal year 2012:
Degree of Financial Leverage = 1037102919 / 1037102919 - 348032232- {(0/1-0.086)}
Degree of Financial Leverage = 1.5050

Fiscal year 2011:

Degree of Financial Leverage = -592621559 / (-592621559) -622655407-{(0/1-0.035)}
Degree of Financial Leverage = 0.4876

Fiscal year 2010:

Degree of Financial Leverage = -363474805 / (-363474805) -724053189 -{(0/1-0.045)}
Degree of Financial Leverage = 0.3342

Fiscal year 2009:

Degree of Financial Leverage = 44538443 / 44538443- 706299453 - {(0/1-0.0918)}

Degree of Financial Leverage = -0.0673

Fiscal year 2008:

Degree of Financial Leverage = 227758726 / 227758726 - 494863830 - {(0/1-0.1785)}
Degree of Financial Leverage = -0.8526

Degree of Total Leverage :

Degree of Total Leverage = (Sales Variable cost) / EBIT - I {(Preferred
Dividend / 1-Tax)}
Fiscal year 2012:
Degree of Total Leverage = (6261867722 - 5342992987) / 1037102919 348032232
{(0/1-0.086)}
Degree of Total Leverage = 1.33
Fiscal year 2011:
Degree of Total Leverage = 5210209429 - 5304752999 / (-592621559) -622655407
-{(0/1-0.035)}
Degree of Total Leverage = 0.77

Fiscal year 2010:

Degree of Total Leverage = 6214371763 - 5889773394 / (-363474805) -724053189
-{(0/1-0.045)}
Degree of Total Leverage = 0.2984
Fiscal year 2009:
Degree of Total Leverage = (7578457178 - 6919319192) / 44538443 706299453
-{(0/1-0.0918)}
Degree of Total Leverage = -0.996

Fiscal year 2008:

Degree of Total Leverage = (6071270854 - 5277750305) / 227758726 494863830
-{(0/1-0.1785)}
Degree of Total Leverage = -2.9708

Return on Equity:
Return on Equity = Net Income (Net Profit) / Total Equity
Fiscal year 2012:
ROE =629488518 / 570525902
ROE = 1.10 or 110 %

Fiscal year 2011:

ROE = (-1396003019) / 1256932344
ROE = -1.11 or -111%

Fiscal year 2010:

ROE =(-1136512441) / 88488196
ROE = -12.84
Fiscal year 2009:
ROE =(-722551563) / 887260656
ROE = -0.814 or 81.4%
Fiscal year 2008:
ROE =(-314802203) /2238856688
ROE = -0.14 or 14%

Return on Assets:
Return on Assets = Net Income (Net Profit) / Total Assets
Fiscal year 2012:
ROA =629488518 / 5823301472
ROA =0.1080 or 10.80%

Fiscal year 2011:

ROA =(-1396003019) / 5787152512
ROA = -0.24 or 24%
Fiscal year 2010:
ROA =(-1136512441) / 8691983556
ROA = -0.13 or 13%
Fiscal year 2009:
ROA =(-722551563) / 9051232152
ROA = 0.079 or 7.9%

Fiscal year 2008:

ROA =(-314802203) / 9082467061
ROA = 0.034 or 3.4%

Net Profit Margin:

Net Profit Margin = Net Income (Net Profit) / Total Sales (Revenue)
Fiscal year 2012:
NPM = 629488518 / 6261867722
NPM = 0.10 or 10%

Fiscal year 2011:

NPM =(-1396003019) / 5210209429
NPM = 0.26 or 26%

Fiscal year 2010:

NPM =(-1136512441) /6214371763
NPM = 0.182 0r 18.2%
Fiscal year 2009:
NPM =(-722551563) / 7578457178
NPM =0.095 or 9.5%

Fiscal year 2008:

NPM =(-314802203) / 6071270854
NPM =0.051 or 5.1%