Subject: Report on Engro

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Outline

Firm Analysis Ratio Analysis

Index Analysis

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Firm

Firm Name: Engro Chemical Pakistan Limited About Engro A premier fertilizer manufacturing and marketing Company with specific product line that focuses on balanced crop nutrition and increased yield for the farmer.
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It is the second largest producer of Urea Fertilizer in Pakistan The Companys current manufacturing base includes urea name plate capacity of 975,000 tons per annum and blended fertilizer (NPK) capacity of 160,000 tons per year.
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Analysis Analysis is done for analyzing the current financial condition of the firm. Three types of analysis are used. Ratio Analysis Index Analysis Common Analysis
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Ratio Analysis

Liquidity Ratio
No. Ratio

2006

2007 2.48

2008 1.95

Current Ratio 1.36

Interpretation: As the ratios 06,07,08 are above than 1 so the firm is in good condition.

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Quick Asset Ratio

NO. 1 Ratio Quick Asset Ratio 2006 0.69 2007 1.75 2008 1.95

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Asset Test Ratio

NO. 1

Ratio

2006

2007 2.09

2008 1.369

Asset Test Ratio 1.00

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Inventory to Net Working Capital

NO. 1

Ratio

2006

2007 0.27

2008 0.61

Inventory 0.99 to Net Working Capital

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Cash Ratio

NO. 1

Ratio Cash Ratio

2006 0.656

2007 0.633

2008 0.95

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Profitability ratio

Net Profit Margin

NO. 1

Ratio Net Profit Margin

2006 10.6%

2007

2008

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