A B F G H J K M Leverage Debt Management DuPont Total Total Debt I Total Assets Debt / STD/ Fixed Co Name Time Total LTD / (LTD + SHEJ Profitability Asset Turnover Equity Multiplier (STD + SHE) Total Debt / SHE ROE Basic Earning Pover Assets BVI TA Debt + 2 SHE 2020 0.63269 3 Idrees Textile Mills Ltd 0.209302196 0.5931324 1.722507726 0.6277398 -0.031668383 0.754838367 2.743983482 0.0656 0.037700486 0.42663 4 Idrees Textile Mills Ltd 2019 0.60035 0.226885673 0.5472486 1.502187181 0.59378 0.009308111 0.852169653 2.529871601 0.02007 0.067543286 0.44481 5 Idrees Textile Mills Ltd 2018 0.60237 0.179521088 0.5644811 1.514912183 0.6023718 0.027213952 0.768719443 2.514912183 0.05261 0.045872213 0.46985 6 7 Artistic Denim Mills Ltd 8 Artistic Denim Mills Ltd 2020 0.5496 0.229453266 0.4798391 1.220261903 0.5496027 0.01431761 0.540928223 2.220261903 0.0172 0.026506234 0.69637 2019 0.74517 0.181803986 0.4125378 2.9242486 1.5195337 0.111600349 0.597569111 1.924438113 0.12834 0.082114572 0.72255 9 Artistic Denim Mills Ltd 2018 0.396 0.120681948 0.3414025 0.655623104 0.3959978 0.062685907 0.815877276 1.655623104 0.08468 0.068573908 0.903 10 11 Faisal Spinning Mills Ltd 2020 0.98547 0.973007122 0.9694912 67.82425073 0.6619357 0.035170168 0.922694384 102.4635109 3.32508 0.058055868 0.42755 12 Faisal Spinning Mills Ltd 2019 0.92795 0.864851446 0.866295 12.87841723 0.4815234 0.065473549 1.377337836 26.745152 2.41186 0.136758199 0.61921 13 Faisal Spinning Mills Ltd 2018 0.90996 0.859469614 0.7996054 10.10605301 0.4531154 0.048793036 1.415655069 22.30348507 1.54059 0.102655418 0.7208 14 15 Feroze1888 Mills Ltd. 2020 0.51844 0.209077395 0.4481927 1.076573168 0.5093109 0.094124572 0.724085792 2.113783699 0.14406 0.084242822 0.47378 16 Feroze1888 Mills Ltd. 17 Feroze1888 Mills Ltd. 2019 0.4174s 0.099397453 0.3774534 0.716673061 0.4081535 0.204092974 0.864019421 1.755891019 0.30963 0.187738774 0.49675 2018 0.31801 0.046434622 0.2945782 0.466287463 0.3076739 0.126385327 0.932482741 1.515524967 0.17861 0.123752287 0.58646 18 19 Gadoon Textile Mills Ltd 2020 0.70853 0.356932207 0.6522796 2.43091951 0.7053723 0.001569647 0.940111308 3.446292687 0.00509 0.040436638 0.64353 20 Gadoon Textile Mills Ltd 2019 0.66608 0.309997871 0.6071448 1.994737812 0.6627258 0.037994804 1.14326795 3.009899038 0.13074 0.101391007 0.688 21 Gadoon Textile Mills Ltd 2018 0.64895 0.184274477 0.6187093 1.848573218 0.6450902 0.04301613 1.190651454 2.865604115 0.14677 0.088509251 0.69483
A B F G H J K M Leverage Debt Management DuPont Total Total Debt I Total Assets Debt / STD/ Fixed Co Name Time Total LTD / (LTD + SHEJ Profitability Asset Turnover Equity Multiplier (STD + SHE) Total Debt / SHE ROE Basic Earning Pover Assets BVI TA Debt + 2 SHE 2020 0.63269 3 Idrees Textile Mills Ltd 0.209302196 0.5931324 1.722507726 0.6277398 -0.031668383 0.754838367 2.743983482 0.0656 0.037700486 0.42663 4 Idrees Textile Mills Ltd 2019 0.60035 0.226885673 0.5472486 1.502187181 0.59378 0.009308111 0.852169653 2.529871601 0.02007 0.067543286 0.44481 5 Idrees Textile Mills Ltd 2018 0.60237 0.179521088 0.5644811 1.514912183 0.6023718 0.027213952 0.768719443 2.514912183 0.05261 0.045872213 0.46985 6 7 Artistic Denim Mills Ltd 8 Artistic Denim Mills Ltd 2020 0.5496 0.229453266 0.4798391 1.220261903 0.5496027 0.01431761 0.540928223 2.220261903 0.0172 0.026506234 0.69637 2019 0.74517 0.181803986 0.4125378 2.9242486 1.5195337 0.111600349 0.597569111 1.924438113 0.12834 0.082114572 0.72255 9 Artistic Denim Mills Ltd 2018 0.396 0.120681948 0.3414025 0.655623104 0.3959978 0.062685907 0.815877276 1.655623104 0.08468 0.068573908 0.903 10 11 Faisal Spinning Mills Ltd 2020 0.98547 0.973007122 0.9694912 67.82425073 0.6619357 0.035170168 0.922694384 102.4635109 3.32508 0.058055868 0.42755 12 Faisal Spinning Mills Ltd 2019 0.92795 0.864851446 0.866295 12.87841723 0.4815234 0.065473549 1.377337836 26.745152 2.41186 0.136758199 0.61921 13 Faisal Spinning Mills Ltd 2018 0.90996 0.859469614 0.7996054 10.10605301 0.4531154 0.048793036 1.415655069 22.30348507 1.54059 0.102655418 0.7208 14 15 Feroze1888 Mills Ltd. 2020 0.51844 0.209077395 0.4481927 1.076573168 0.5093109 0.094124572 0.724085792 2.113783699 0.14406 0.084242822 0.47378 16 Feroze1888 Mills Ltd. 17 Feroze1888 Mills Ltd. 2019 0.4174s 0.099397453 0.3774534 0.716673061 0.4081535 0.204092974 0.864019421 1.755891019 0.30963 0.187738774 0.49675 2018 0.31801 0.046434622 0.2945782 0.466287463 0.3076739 0.126385327 0.932482741 1.515524967 0.17861 0.123752287 0.58646 18 19 Gadoon Textile Mills Ltd 2020 0.70853 0.356932207 0.6522796 2.43091951 0.7053723 0.001569647 0.940111308 3.446292687 0.00509 0.040436638 0.64353 20 Gadoon Textile Mills Ltd 2019 0.66608 0.309997871 0.6071448 1.994737812 0.6627258 0.037994804 1.14326795 3.009899038 0.13074 0.101391007 0.688 21 Gadoon Textile Mills Ltd 2018 0.64895 0.184274477 0.6187093 1.848573218 0.6450902 0.04301613 1.190651454 2.865604115 0.14677 0.088509251 0.69483
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Question
Question:
As data is attached to the image. You are required to comment/analyze on Feroze 1888 Mills Ltd specifically the following three aspects.
i) Chosen companies leverage.
ii) Debt management.
iii) DuPont variants i.e., profitability, asset efficiency, and leverage.
Note: Do not Comment Shortly.
Transcribed Image Text:A
B
F
G
H
J
K
M
Leverage
Debt Management
DuPont
Total
Total Debt
I Total
Assets
Debt /
STD/
Fixed
Co Name
Time
Total LTD / (LTD + SHEJ
Profitability
Asset Turnover Equity Multiplier
(STD +
SHE)
Total Debt / SHE
ROE
Basic Earning Pover Assets
BVI TA
Debt +
2
SHE
2020 0.63269
3 Idrees Textile Mills Ltd
0.209302196 0.5931324
1.722507726 0.6277398
-0.031668383
0.754838367
2.743983482
0.0656
0.037700486 0.42663
4 Idrees Textile Mills Ltd
2019 0.60035
0.226885673 0.5472486
1.502187181
0.59378
0.009308111
0.852169653
2.529871601 0.02007
0.067543286 0.44481
5 Idrees Textile Mills Ltd
2018 0.60237
0.179521088 0.5644811
1.514912183 0.6023718
0.027213952
0.768719443
2.514912183 0.05261
0.045872213 0.46985
6
7 Artistic Denim Mills Ltd
8 Artistic Denim Mills Ltd
2020 0.5496
0.229453266 0.4798391
1.220261903 0.5496027
0.01431761
0.540928223
2.220261903
0.0172
0.026506234 0.69637
2019 0.74517
0.181803986 0.4125378
2.9242486 1.5195337
0.111600349
0.597569111
1.924438113 0.12834
0.082114572 0.72255
9 Artistic Denim Mills Ltd
2018
0.396
0.120681948 0.3414025
0.655623104 0.3959978
0.062685907
0.815877276
1.655623104 0.08468
0.068573908
0.903
10
11 Faisal Spinning Mills Ltd
2020 0.98547
0.973007122 0.9694912
67.82425073 0.6619357
0.035170168
0.922694384
102.4635109 3.32508
0.058055868 0.42755
12 Faisal Spinning Mills Ltd
2019 0.92795
0.864851446
0.866295
12.87841723 0.4815234
0.065473549
1.377337836
26.745152 2.41186
0.136758199 0.61921
13 Faisal Spinning Mills Ltd
2018 0.90996
0.859469614 0.7996054
10.10605301 0.4531154
0.048793036
1.415655069
22.30348507 1.54059
0.102655418
0.7208
14
15 Feroze1888 Mills Ltd.
2020 0.51844
0.209077395 0.4481927
1.076573168 0.5093109
0.094124572
0.724085792
2.113783699 0.14406
0.084242822 0.47378
16 Feroze1888 Mills Ltd.
17 Feroze1888 Mills Ltd.
2019 0.4174s
0.099397453 0.3774534
0.716673061 0.4081535
0.204092974
0.864019421
1.755891019 0.30963
0.187738774 0.49675
2018 0.31801
0.046434622 0.2945782
0.466287463 0.3076739
0.126385327
0.932482741
1.515524967 0.17861
0.123752287 0.58646
18
19 Gadoon Textile Mills Ltd
2020 0.70853
0.356932207 0.6522796
2.43091951 0.7053723
0.001569647
0.940111308
3.446292687 0.00509
0.040436638 0.64353
20 Gadoon Textile Mills Ltd
2019 0.66608
0.309997871 0.6071448
1.994737812 0.6627258
0.037994804
1.14326795
3.009899038 0.13074
0.101391007
0.688
21 Gadoon Textile Mills Ltd
2018 0.64895
0.184274477 0.6187093
1.848573218 0.6450902
0.04301613
1.190651454
2.865604115 0.14677
0.088509251 0.69483
Expert Solution
Introduction
Before investing in a company the potential investors analyze various aspects such as debt ratio, profitability index, asset turnover ratio, etc. The debt ratio tells about the ratio of owned funds and external funds. Debt management explains the creditworthiness of the company. The asset turnover ratio expresses the ability to generate revenue using the company's assets.
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