hino pak.taimoor tk

Financial Analysis

HINOPAK; WHAT IS IT ABOUT?

Hinopak Motors Limited assembles, manufactures and markets world renowned Hino diesel trucks and buses in Pakistan. The Company has held the top position in the domestic market for medium and heavy-duty vehicles for 15 consecutive years and is highly acclaimed for quality and technological excellence. Backed by Hino’s expertise Hinopak has achieved standard of quality and excellence that rival the best in the region. With over 33,000 vehicles on road, Hino has gained 70% market share making it the largest manufacturer in medium and heavy-duty truck and bus industry in Pakistan. Hinopak’s product range has been designed and built in Hino’s traditions of automotive excellence to be the leader in its category and the main emphasis has been given to passengers’ safety & comfort.

MISSION STATEMENT

"The mission of Hinopak Motors Limited is to provide the society with safe, economical, comfortable and environment friendly means of transportation by manufacturing and supplying commercial vehicles and services".

VISION

“Total Customer Satisfaction, a set vision for the company. In pursuit new concepts have been introduced such as mobile workshops, 3S/2S dealership facilities, training programs and free service camps for the vehicle owners and drivers”.

THE HISTORY

Hinopak Motors Limited was formed in 1985 by a diverse group of sponsors. These included Hino Motors Limited, Toyota Tsusho Corporation of Japan, Al-Futtaim group of UAE and PACO.Hinopak family in Pakistan & under the guidance of our Japanese sponsors, Hinopak today has achieved standards of quality and excellence that rival the best in the region. In recognition of these efforts, the company has received a number of excellence awards for its management practices and quality standards. In 1998, Hino Motors Ltd., and Toyota Tsusho Corporation obtained majority shareholding in the company after disinvestments by the other two founding sponsors. This decision to invest in Hinopak at a time when the country's economy was passing through a depression and the sale of commercial vehicles was at an all time low reflects the confidence our Principals have in our company and their commitment to the Pakistani market.It is the enduring success of Hinopak that has made the Hino name and symbol of quality & reliability and Hino vehicles a prize possession for its owners.By continuing to move forward and staying alert to ever-changing market & social needs, Hinopak will continue to be a successful and well-respected corporate citizen of Pakistan.

COMSATS Institute of Information Technology, Lahore 1

Financial Analysis

CORPORATE FEATURES

Building on seventeen years of success, the Hinopak continues to play a leading role in marketing commercial vehicles with superior and advanced Japanese technology.

Market Leader in Pakistan, holding over 65% of the truck and bus market share.

First Pakistani automobile company and Hino affiliate to receive ISO-9001 certificate.

Voluntary initiative for ISO 14001 certification.

First company to export buses from Pakistan.

Recipient of Quality Excellence Awards.

First automotive company to introduce "3S" concept in heavy-duty commercial vehicles market.

First company to supply busses under "Urban Transport Scheme" in Pakistan.

Recipient of Employers' Federation of Pakistan's Golden Jubilee Award for Human Resource and Industrial Relations.

Recipient of Corporate Excellence Award from Management Association of Pakistan.

Recipient of Employers' Federation of Pakistan's Golden Jubilee Award for "Excellence in Productivity."

HINO’S ROLE AS CORPORATE CITIZEN

Hinopak has been a good member of the society as a corporate citizen. Our activities include environment protection, guarding against pollution, safety measures for operators, passengers & other read users and so on.

Hinopak also holds regular sports festival day in which the management, employees and their families participate with great zeal. Hinopak has participated in various horticultural events and it has won a lot of merit awards and trophies for its well-kept gardens which surrounds Hinopak’s offices. Hinopak has always been conscious of raising its safety standard for drivers, passengers and even pedestrians that’s why special emphasis is placed at preserving the environment and use minimum of wood for body manufacturing which all contributes finally to the attainment of the objective of the Company.


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Financial Analysis

HINOPAK Motors LtdBalance Sheet

AS AT DECEMBER 31, 2006

Rupees in Thousands 2006 2005CAPITAL AND RESERVES Share capital 124006 124006Reserves 291000 291000Inappropriate profit 1007847 752509Total capital and reserves 1422853 1167515

SURPLUS ON REVALUATION OF FIXED ASSETS 290541 296401 LIABILITIESNon-current LiabilitiesLiabilities against assets subject to Finance Lease 5691 9310Deferred taxation 48670 54332Current liabilities Current maturity of liabilities against assets subject to finance lease 3634 3295Trade and other payables 1978927 1301885Running finance under mark-up arrangements 262486 272014Accrued mark-up 496 5711Taxation 129322 56547 2374865 1639452CONTINGENCIES AND COMMITMENTSTotal Liabilities 2429226 1703094Total share holders' equity and liabilities 4142620 3167010

ASSETS

Non-Current Assets Property, plant and Equipment 864530 831265Intangible Assets 714 2412Investments --- ---Loans and Advances 6755 6397Trade Deposits 8299 6317

880298 846391Current assetsStores, spares and loose tools 25915 29802Stocks in trade 2381286 1790708Trade debts 503226 323086Loans and advances 92324 70743Trade Deposits and prepayments 58643 40865Accrued mark-up on term deposit account 2842 850Other Receivables 79789 6572Cash and bank balances 118297 57993

3262322 2320619Total assets 4142620 3167010

HINOPAK Motors Ltd


Financial Analysis

Profit and Loss AccountAS AT DECEMBER 31, 2006

Rupees in Thousands 2006 2005

Sales 6392282 6367606Cost of Goods Sold (5557702) (5706089)Gross Profit 834580 661517Distribution Expanses (188528) (149218)Administration Expanses (119721) (107363)Other Incomes 72620 64531Other Expanses (38772) (34407)Profit from Operations 560179 435060Finance Cost (48416) (53480)Profit before Taxation 511763 381580Taxation (187882) (138624)Profit after Taxation 323881 242956

Earnings per Share Rs. 26.12 Rs. 19.59

RATIO ANALYSIS


Financial Analysis

CURRENT RATIO

Current Assets Current Ratio =-------------------------------------

Current Liabilities

2006 2005

32623221.37

23206191.41

2374865 1639452

Analysis:

Shows a firm’s ability to cover its current liabilities with its current assets. Here the firm is showing decreasing trend from 2005 to 2006 which means the firm’s ability to recover its current liabilities from its current assets has slightly decreased.

QUICK RATIO

Current Assets — Inventory or Stock in trade Quick Ratio = ----------------------------------------------------------------

Current Liabilities

2006 2005

8810360.37

5299110.32

2374865 1639452

Analysis:

Quick ratio that is computed by excluding inventory from current assets also slightly increased in 2006. The ratio shows a firm’s ability to meet current liabilities with its most liquid assets. Firm is now much able than previous year to pay the short term liabilities through its most liquid assets. Quick ratio of less than 1 is clearly indicating that company is not much liquid to pay its short term debts.

CASH RATIO


Financial Analysis

Cash Cash Ratio = --------------------------------------------------------------

Current Liabilities2006 2005

118297

0.0557993

0.0352374865 1639452

Analysis: This ratio shows an immediate liquidity of firm. It is the extremely conservative point of view that an analyst computes the liquidity from Cash ratio. This ratio shows an immediate liquidity of firm so short term creditors are very much interested in cash ratio. Here the firm shows a slight increasing trend in the cash account which means the firm has improved its utilizing of the cash to its best advantages and putting cash to work in the operations of the company. Still firm has the room for increase in cash ratio as it is still les than 1, cash ratio of more than 1 will help them in doing cash investment in both short term and long term. It has increased because of healthy increase in cash and bank balances.

TOTAL DEBT RATIO

Total Assets — Total Equity Total Debt Ratio = -------------------------------------------

Current Liabilities

2006 2005 4142620—1713394

0.5863167010—1463916

0.5374142620 3167010

Analysis:The debt ratio indicates the percentage of assets financed by the creditors and it

helps to determine how well creditors are protected in case of insolvency. The percentage increase in total debt is only 4.9% which is mush less than 30% increase in total assets. So lower percentage of assets is now financed by other people money and thus less is the degree of indebtedness and less is the financial leverage than past year.

DEBT-EQUITY RATIO


Financial Analysis

Total Debt Debt-Equity Ratio = --------------------------------------------------

Total Equity

2006 2005

24292261.41

17030941.16

1713394 1463916

Analysis:This ratio also indicates the firm long term debt paying ability. These

computations compare the total debt with the total shareholder equity. This ratio also determines that how well the creditors are protected in case of insolvency.

EQUITY MULTIPLIER RATIO

Total Assets Equity Multiplier Ratio = ---------------------------------------------

Total Equity

2006 2005

41426202.41

31670102.16

1713394 1463916

Analysis:This ratio has increased from 2.16 in 2005 to 2.41 in 2006.

INTEREST COVERAGE RATIO

EBIT Interest Coverage Ratio = ---------------------------------------------

Interest

2006 2005

56017911.57

435060 8.135

48416 53480

Analysis: The time interest earned ratio indicates a firm’s long term debt paying ability from the income statement view. If this ratio is high so it shows that the firm is in a good


Financial Analysis

position to pay the long term debt. In case of HINOPAK Motors the increase was from 8.135 to 11.57 so it shows that the HINOPAK Motors have improved their position to pay long term debt but still it is not so easy for them to get the fund from any where with a very reasonable interest rate because it has a low coverage of the interest obligation.

CASH COVERAGE RATIO

EBIT + Depreciation Cash Coverage Ratio = ------------------------------------------

Interest

2006 2005

560179+7858813.19

435060+57412 9.20

48416 53480

Analysis: Cash coverage ratio gives better measure of the company ability to pay financing cost. It tells the cash earned in the year available to pay financing cost (Note: This is not the cash net flow). This is calculated by adding in the depreciation which is the non cash expense. The ratio analysis depicts that there is increase in cash coverage from 9.20 to 13.19; it means that firm that firm in good position to pay its interest obligation through cash.

INVENTORY TURNOVER RATIO

Cost of Goods Sold Inventory Turnover Ratio = ------------------------------------------

Inventory

2006 2005

55577022.83

5706089 3.186

2381286 1790708

Analysis: The calculation shows a slight decrease in 2006 to 2.83 from 3.186 in 2005. The firm is facing ineffectiveness in the utilization of its inventory management practices. The firm should plan for the nice perfection of the inventory management practices.


Financial Analysis

DAYS SALES IN INVENTORY

365 Days Sales in Inventory = ------------------------------------------

Inventory Turnover

2006 2005

365156.65

365 114.56

2.33 3.186

Analysis:Day’s sale in inventory has increased considerably from 114.56 to 156.65 in

2006. That is the average period in which inventory is sold finally. This change is because investment in inventory is more than expected increase in sales of finished goods. This resulted in increase in average days inventory is kept in stock. Thus reducing the times average inventory is sold in a year. One inference drawn from this can be that company fails to achieve the expected level of increase in sales.

RECEIVABLE TURNOVER RATIO

Sales Receivable Turnover Ratio = ------------------------------------------

Accounts Receivables

2006 2005

6392282540.8

6367606968.89

11820 6572

Analysis:Computation of this ratio provides how many times firm is effectively converting

accounts receivable to sales and eventually into profit. Higher the receivable turnover ratio, good is the firm’s credit and collection policies. In above case, the receivable turnover ratio has decreased it means that firm’s credit and collection policies have changed to some extent.

DAYS SALES IN RECEIVABLE 365

Days Sales in Receivable = ------------------------------------------


Financial Analysis

Receivable Turnover

2006 2005

3650.67

3650.37

540.8 968.89

Analysis:Computation of this ratio provides that on average how many days firm is

effectively using to convert into profit. Lesser will be the days sales in receivables; good is the firm’s credit and collection policies. In above case, the days sales in receivables have increased it means negative effect on firm.

TOTAL ASSETS TURNOVER

Sales Total Assets Turnover = ------------------------------------------

Total Assets

2006 2005

63922821.543

63676062.01

4142620 3167010

Analysis:This ratio shows how effectively total assets are being used to generate sales and

ultimately the profit. It has decreased in above case from 2.01 to 1.543 in 2006, which shows that firm is not effectively using its assets to generate high volume of sales. The reason behind is that percentage increase in assets is much more than percentage increase in sales. Assets increased by 30% where as increase in rupee sales is only .003%.

CAPITAL INTENSITY RATIO

Total Assets Capital Intensity Ratio = ------------------------------------------

Sales

2006 2005

41426200.648

31670100.497

6392282 6367606

Analysis:Capital intensity ratio is reciprocal of total assets turnover. It depicts how much

sales are required to increase assets by a unit. In above case the capital intensity ratio has increased from 0.497 to 0.648 in 2006. It means that in 2005, $1 increase in sales caused $0.497 increase in total assets. Whereas, in 2006 $1 increase in sales caused $0.648


Financial Analysis

increase in total assets. It shows that sales contribution in assets have increased than the previous year.

PROFIT MARGIN

Net Income Profit Margin = ------------------------------------------

Sales

2006 2005

3238810.050

2429560.038

6392282 6367606

Analysis:A commonly used profit measure is return on sale, often termed net profit margin.

This ratio gives a measure of net income dollars generated by each dollar of sales. The high it is, the better is the firm position. Is in our case the firm has slightly improved its position to generate profit against the each dollar sale. There are some factors which affect this ratio like competitive forces, economic condition, use of debt etc.

RETURN ON ASSETS

Net Income Return on Assets = ---------------------------------------

Total Assets

2006 2005

3238810.078

2429560.076

4142620 3167010

Analysis: Return on assets measures the firm’s ability to utilize its assets to create profits by

comparing profits with the assets that generate the profits. As in our case the firm has increased utilization of assets in a little better way than before. However, A little increase observed as compared to the previous year is not affecting the firm negatively.

RETURN ON EQUITY

Net Income Return on Equity = ------------------------------------------

Total Equity


Financial Analysis

2006 2005

3238810.189

2429560.165

1713394 1463916

Analysis:This ratio basically shows the total return against the total equity. It shows the

return to both the common shareholder as well as to preferred stock holder. HINOPAK will provide a better return of 0.189 in the recent year as compared to 0.165 in the previous year.

EARNING PER SHARE

Net Income Earning Per Share = ------------------------------------------

No. of Shares outstanding

2006 2005

32388126.12

24295619.59

12400 12402

Analysis:This ratio shows to investor the return on the shares. Higher the return more will

be the willingness of investor to invest in the firm. Higher EPS clearly indicates that Company is giving return of Rs. 26.12 in 2006 on every share as compared to Rs. 19.59 on behalf of every share in 2005. The improved EPS is very good sign for the investor.

PRICE EARNING RATIO

Price per Share Price Earning Ratio = ------------------------------------------

Earning per Share

2006 2005

60022.97

59030.11

26.12 19.59

Analysis:Price earning ratio shows how much investor is willing to pay for Rs.1 earning.

Price Earning Ratio has decreased from 30.11 to 22.97 in 2006. It means that the confidence of Investor has decreased in 2006.


Financial Analysis

BOOK VALUE PER SHARE

Total Equity Book Value Per Share = ------------------------------------------

No. of Shares Outstanding

2006 2005

1713394138.17

1463916118.03

12400 12402

Analysis:The Book value per share has increased from 118.03 to 138.17 in 2006. The 17%

increase in book value is due to 17% increase in the total equity.

MARKET TO BOOK RATIO

Market Value / share Market to Book Ratio = ------------------------------------------

Book Value / share

2006 2005

6004.34

5904.99

138.17 118.03

Analysis: Market Book ratio shows to the firm the market value per share against book value per share. Higher will be the market to book ratio, better it is for firm. In above case, the market to book ratio has decreased from 4.99 to 4.34. It is not a very good sign for the firm.

DUPONT ANALYSIS

ROE = Return on Equity = Net Income Total Equity

Multiplying by Assets/Assets


Financial Analysis

ROE = Net Income x Assets Assets Total Equity

ROE = ROA x Equity Multiplier ROE = ROA x (1 + Debt-Equity Ratio)

For 2006 For 2005

ROE = 0.078 x (1 + 1.41) ROE = 0.076 x (1+ 1.16) = 0.078 x 2.41 = 0.076 x 2.16 = 0.18 = 0.16 Then further decomposing ROE by multiplying with the top and bottom by total sales we get,

ROE = Net Income x Assets x Sales Total Equity Assets Sales

ROE = Net Income x Sales x Assets Sales Assets Total Equity

ROE = Profit Margin x Total Assets Turnover x Equity Multiplier

ROE = 0.050 x 1.54 x 2.41 ROE = 0.038 x 2.01 x 2.16 = 0.18 =. 16

INTERPRETATION

The increase in ROE in 2006 is the cause of both increased FLM and ROA. The increase of equity multiplier is because more equity is raised by issuance of stocks but the percentage increase in equity is less than percentage increase in assets. In last year 1rs rise in equity results in Rs. 2.16 rise in assets but now it results in Rs. 2.41 in 2006. By going through financial of the firm we discovered that its ROE did not increased by much amount, it’s almost negligible. We see that in 2006 its ROA was higher than 2005 similarly higher FLM which produced high value of ROE. We see that in 2006 firm was better utilizing its assets and profit margin was also high while in 2005 it was less than 2006.

Common-Size Analysis HINOPAK Motors LtdBalance Sheet


Rupees in Thousands 2006 2005CAPITAL AND RESERVES


Financial Analysis

Share capital 2.99 3.91

Reserves 7.02 9.18

Inappropriate profit 24.32 23.76

Total capital and reserves 34.34 36.86

SURPLUS ON REVALUATION OF FIXED ASSETS 7.01 9.35 LIABILITIESNon-current Liabilities 1.31 2.00Liabilities against assets subject to Finance Lease 0.14 0.29Deferred taxation 1.17 1.71Current liabilitiesCurrent maturity of liabilities against assets subject to finance lease

.087 0.10

Trade and other payables 47.77 41.10

Running finance under mark-up arrangements 6.34 8.59

Accrued mark-up .012 0.18

Taxation 3.12 1.79

CONTINGENCIES AND COMMITMENTS 57.33 51.77

Total Liabilities 58.64 53.78

Total share holders' equity and liabilities 100 100

ASSETS

Non-Current AssetsProperty, plant and Equipment 20.87 26.24Intangible Assets 0.017 0.076Investments ---- ---

Loans and Advances 0.163 0.20

Trade Deposits 0.20 0.19

21.25 26.72Current assetsStores, spares and loose tools 0.625 0.657Stocks in trade 57.48 56.54

Trade debts 12.15 10.20

Loans and advances 2.23 2.23

Trade Deposits and prepayments 1.41 1.30Accrued mark-up on term deposit account 0.069 0.027Other Receivables 1.93 0.21Cash and bank balances 2.86 1.83

78.75 73.28Total assets 100 100

INTERPRETATION

Common Size Analysis of HINOPAK Motor Company Ltd.

Balance Sheet:


Financial Analysis

Vertical Analysis for the years 2005 and 2006:

While doing the vertical analysis of HINOPAK Motors co. we have taken the total assets as a base.

Share Capital and reserves share:

Vertical analysis of 2005 and 2006 shows different percentages: in year 2006 shared capital were 2.99 as compared to 3.91 in year 2005. It means that shared capital has decreased by 1.92%.

In the case of reserves the reserves for the firm are classified as capital and revenue. The reserves amounts have decreased in 2006 from 9.18 to 7.02

Liabilities

The firm relied heavily on loans to fulfill its financing needs. The firm’s reliance on the liabilities increased from 53.78% to 58.64% in the year 2006.

ASSETS:

Fixed Assets:

The fixed assets of the firm show a decrease year from 26.72 in 2005 to 21.25 in 2006. This mainly shows that the cash flow situation of the firm should be improved. This also suggests that the firm is facing cash shortage problems.

Current Assets: In current assets the firm stores, spares and loose tools decreased from 0.657 to 0.625. Stocks percentage in total assets has increased from 56.54% to 57.48%., showing slight increase. There was increase in trade debts from 10.20% to 12.15%. The over all current assets of 2005 and 2006 have little difference except little big differences in liabilities and fixed assets.

Common-Size Analysis HINOPAK Motors LtdProfit and Loss Account


Rupees in Thousands 2006 2005


Financial Analysis

Sales 100 100

Cost of Goods Sold 86.9 89.6

Gross Profit 13.1 10.4

Distribution Expanses 2.94 2.34

Administration Expanses 1.87 1.68

Other Incomes 1.13 1.01

Other Expanses 0.60 0.54

Profit from Operations 8.76 6.83Finance Cost 0.76 0.84Profit before Taxation 8.00 5.99Taxation 2.90 2.18Profit after Taxation 5.06 3.81

Earnings per Share .0004 0.0003

INTERPRETATION

Vertical analysis gives a more insight of the cost and revenue structure of the firm during the years.

The gross profits of the firm increased from 10.40% in 2005 to 13.10% in 2006. This represents production efficiency or reduced cost of inputs in the year. The increase in gross profit is due to decrease in percentage of cost of goods sold from 89.6 % in 2005 to 86.9% in 2006.The distribution expanses slightly increased from 2.34% to 2.94% in 2006 and administration expenses increases in 2006 with 0.19% but it does not create severe effect on the operating profit of the firm.

Operating profit of the firm slightly increased in 2006 to 8.76% from 6.83% in 2005. Finance cost slightly decreased 0.08 % than finance cost in year 2006. Taxation increased in 2006 with the percentage of 0.72 as compared to its previous year

Index Analysis: HINOPAK Motors LtdBalance Sheet

AS AT DECEMBER 31, 2006Rupees in Thousands 2006 2005 Index AnalysisCAPITAL AND RESERVES Share capital 124006 124006 100Reserves 291000 291000 100


Financial Analysis

Inappropriate profit 1007847 752509 133.93Total capital and reserves 1422853 1167515 121.87

SURPLUS ON REVALUATION OF FIXED ASSETS 290541 296401 98.02 1713394 1463916 117.04LIABILITIESNon-current LiabilitiesLiabilities against assets subject to Finance Lease 5691 9310 61.12Deferred taxation 48670 54332 89.59Current liabilities Current maturity of liabilities against assets subject to finance lease 3634 3295 110.28Trade and other payables 1978927 1301885 152.00Running finance under mark-up arrangements 262486 272014 96.49Accrued mark-up 496 5711 8.682Taxation 129322 56547 228.69 2374865 1639452 144.85CONTINGENCIES AND COMMITMENTSTotal Liabilities 2429226 1703094 142.63

Total share holders' equity and liabilities 4142620 3167010 130.80

ASSETS

Non-Current Assets Property, plant and Equipment 864530 831265 104.01Intangible Assets 714 2412 29.60Investments --- --- ---Loans and Advances 6755 6397 105.59Trade Deposits 8299 6317 131.37

880298 846391 104.01Current assetsStores, spares and loose tools 25915 29802 86.95Stocks in trade 2381286 1790708 132.98Trade debts 503226 323086 155.75Loans and advances 92324 70743 130.50Trade Deposits and prepayments 58643 40865 143.50Accrued mark-up on term deposit account 2842 850 334.35Other Receivables 79789 6572 1214.07Cash and bank balances 118297 57993 203.98

3262322 2320619 140.57Total assets 4142620 3167010 130.80

INTERPRETATION

So, according to the Index Analysis of the whole Balance Sheet, we get to know that in the comparison of year 2005 and 2006 the value of total equity that comes from shared capital and reserves is same in both years. The value of Non-Current liabilities decreased due to decrease in liabilities subject to finance and decrease in deferred taxes. Same as the value of TOTAL LIABILITIES increased to 142% in 2006. TOTAL ASSETS value has increased 130% than previous year.


Financial Analysis

Index Analysis: HINOPAK Motors LtdProfit and Loss Account


Rupees in Thousands 2006 2005 Index Analysis

Sales 6392282 6367606 100.38Cost of Goods Sold (5557702) (5706089) 97.39Gross Profit 834580 661517 126.16Distribution Expanses (188528) (149218) 126.34Administration Expanses (119721) (107363) 111.51Other Incomes 72620 64531 112.53Other Expanses (38772) (34407) 112.68Profit from Operations 560179 435060 128.75Finance Cost (48416) (53480) 90.53Profit before Taxation 511763 381580 134.11Taxation (187882) (138624) 135.53Profit after Taxation 323881 242956 133.30

Earnings per Share Rs. 26.12 Rs. 19.59 133.33

INTERPRETATION

In 2006, the gross profit increased 126.16% as compared to 2005 because of decrease in cost of goods sold to 97% than the previous year. Looking at the operating profit, it increased to128.75% than the previous year operating profit due to much increase in gross profit and other income to 112.53% in 2006. Finance cost of the firm decreased to 90.53%, it means that the company has financed less by outside sources or we have focused on short term borrowings. Net profit of our firm increased to 133.30% in year 2006 due to which our earning per share increased to 133.33%.Increase in earning per share is a very good sign for the investor.

CONCLUSION

The Financial Analysis of HINOPAK MOTORS CORPORATION depicts that the financial position of HINOPAK improved in year 2006. We came to conclusion that firm’s profitability or other ratios have not been changed so much; change in liquidity measures is almost negligible because current ratio decreased while quick ratio and cash ratio has increased because inventory is not included in quick and cash ratios. Increase in


Financial Analysis

earning per share from Rs. 19.59 to Rs 26.12 is healthy sign for investor to invest in HINOPAK.


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