Question: 1) You are required to identify the three best companies based on financial strength On the Attached Image.2)You should practically focus on the interpretation of these ratios to point up companies which are best in the following respects 1.) Leverage, 2.) Debt Management & 3.) Dupont Analysis3) Once the ratios are derived, you are expected and required to comment/analyze specifically the following aspects and “point out the best three companies”:i) Chosen companies leverage.ii) Debt management.iii) DuPont variants i.e., profitability, asset efficiency, and leverage.4) Also draw strength from market intelligence, if, you have or are able to obtain about the chosen companies(s) and is worth explanation. Such information typically may include major expansion project initiated during the last two years. ABFGHJKMLeverageDebt ManagementDuPontTotalTotal DebtI TotalAssetsDebt /STD/FixedCo NameTimeTotal LTD / (LTD + SHEJProfitabilityAsset Turnover Equity Multiplier(STD +SHE)Total Debt / SHEROEBasic Earning Pover AssetsBVI TADebt +2SHE2020 0.632693 Idrees Textile Mills Ltd0.209302196 0.59313241.722507726 0.6277398-0.0316683830.7548383672.7439834820.06560.037700486 0.426634 Idrees Textile Mills Ltd2019 0.600350.226885673 0.54724861.5021871810.593780.0093081110.8521696532.529871601 0.020070.067543286 0.444815 Idrees Textile Mills Ltd2018 0.602370.179521088 0.56448111.514912183 0.60237180.0272139520.7687194432.514912183 0.052610.045872213 0.4698567 Artistic Denim Mills Ltd8 Artistic Denim Mills Ltd2020 0.54960.229453266 0.47983911.220261903 0.54960270.014317610.5409282232.2202619030.01720.026506234 0.696372019 0.745170.181803986 0.41253782.9242486 1.51953370.1116003490.5975691111.924438113 0.128340.082114572 0.722559 Artistic Denim Mills Ltd20180.3960.120681948 0.34140250.655623104 0.39599780.0626859070.8158772761.655623104 0.084680.0685739080.9031011 Faisal Spinning Mills Ltd2020 0.985470.973007122 0.969491267.82425073 0.66193570.0351701680.922694384102.4635109 3.325080.058055868 0.4275512 Faisal Spinning Mills Ltd2019 0.927950.8648514460.86629512.87841723 0.48152340.0654735491.37733783626.745152 2.411860.136758199 0.6192113 Faisal Spinning Mills Ltd2018 0.909960.859469614 0.799605410.10605301 0.45311540.0487930361.41565506922.30348507 1.540590.1026554180.72081415 Feroze1888 Mills Ltd.2020 0.518440.209077395 0.44819271.076573168 0.50931090.0941245720.7240857922.113783699 0.144060.084242822 0.4737816 Feroze1888 Mills Ltd.17 Feroze1888 Mills Ltd.2019 0.4174s0.099397453 0.37745340.716673061 0.40815350.2040929740.8640194211.755891019 0.309630.187738774 0.496752018 0.318010.046434622 0.29457820.466287463 0.30767390.1263853270.9324827411.515524967 0.178610.123752287 0.586461819 Gadoon Textile Mills Ltd2020 0.708530.356932207 0.65227962.43091951 0.70537230.0015696470.9401113083.446292687 0.005090.040436638 0.6435320 Gadoon Textile Mills Ltd2019 0.666080.309997871 0.60714481.994737812 0.66272580.0379948041.143267953.009899038 0.130740.1013910070.68821 Gadoon Textile Mills Ltd2018 0.648950.184274477 0.61870931.848573218 0.64509020.043016131.1906514542.865604115 0.146770.088509251 0.69483

Leverage means that the company is using the debt method in order to finance or fund the operations…

Answered: You are required to identify the three…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question:
1) You are required to identify the three best companies based on financial strength On the Attached Image.
2)You should practically focus on the interpretation of these ratios to
point up companies which are best in the following respects 1.) Leverage, 2.) Debt Management & 3.) Dupont Analysis
3) Once the ratios are derived, you are expected and required to comment/analyze specifically the following aspects and “point out the best three companies”:
i) Chosen companies leverage.
ii) Debt management.
iii) DuPont variants i.e., profitability, asset efficiency, and leverage.
4) Also draw strength from market intelligence, if, you have or are able to obtain about the chosen companies(s) and is worth explanation. Such information typically may include major expansion project initiated during the last two years.

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

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