Ratio Analysis Of Engro Foods

Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of

Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user’s decisions.

The company has been pioneer in field of business and also been responsible. The company has kept its objective very close to its heart and its initiative to reduce Carbon Footprint and water wastage to Zero by 2040 and Sustained source of supply for its food business by 2020 shows its commitment towards external stakeholders as well. They have been pioneer in field of business and have worked to improve its business

Gross profit ratio had been declining through the period of 2008-2010, which indicates decrease of markup that the company achieved on its inventory, which also means that it lowered sales prices compared to costs.

Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories,

• Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving

The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.

To make further comment we need to investigate further by looking at industry, competitors and economy. There may be other factors causing this ratio to decrease such as a general decline gross margin profit in retail sector affecting all companies, high inflation causing less demand, increasing competition etc. We should do further investigation to make further comment.

Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories,

Clearly, Net profit margin is decreased in 1994. In 1992 it was the highest then it is showing downward trend. It is the only cause which is lowering Return over Equity (ROE).

When Sanjay Khosla left Fonterra Group in 2007 to spearhead Kraft Foods’ business in developing countries, he was tasked with discovering a way to realize the potential for growth in developing markets that had eluded Kraft and so many other large, successful

supplier and also, there are evidences about the issue of KFC which are video and

The financial data of company does not tell us the entire position of an organisation and its performance over the year or certain period of time for comparative purposes. Therefore, the use of ratios

estern and local franchise brands have developed group is largely a young, upwardly mobile, and aspirational significantly in China over the past 15 years, as the two-income family demographic with one child and Chinese consumer has become an engine of considerable discretionary income. economic growth and the country’s business environment has Food

Engro Foods (EFOODS) is among one of the top FMCG organizations in Pakistan. It is one the fastest and growing company. Engro Foods comes under the umbrella of its parent company Engro Corporation in 2005. Engro Foods is a public limited company, and is listed at Karachi Stock Exchange. It trades in an open market. Mainly the