Part 1

Working capital
WORKING CAPITAL

100%
Dewan Cement limited

50%

0%

-50%

-100%
Company Industry
2012 -4955109 5088021
2011 -5137170
2010 -4575565
2009 -3600460

Performance Compare to Industry’s Ratio

Year Company Industry Decision
2012 (4955109) 5088021 WORSE

Working capital measures a firm’s ability to meet its short term obligations. It shows the
difference between current assets and current liabilities.

In this company working capital is Rs. (4955109). It means that the company’s working capital
is Rs.(4955109) times less than that of its current liabilities.

If we compare the results of the company with the results of industry, company’s results are
showing WORSE position, because company’s working capital is less than industry’s working
capital.

Performance Compare by year to year

2009 2010 2011 2012 Decision
(3600460) (4575565) (5137170) (4955109) WORSE

In year 2009 working capital was (3600460). It means working capital were
(3600460) times less than that of its current liabilities. In year 2011 the
working capital was also decrease to (5137170) and in 2012 it is also
remain (4955109).

If we evaluate the performance of the firm over the period of
time, company’s results are showing WORSE position because company's
current ratio is showing Negative trend.

Current ratio
Current Ratio

1.4

1.2

1

0.8

0.6

0.4

0.2

0
Company industry
2012 0.233 1.31
2011 0.194
2010 0.198
2009 0.295

2009 2010 2011 2012


2012 0.233 1.31 WORSE
Current ratio measures a firm’s ability to meet its short term obligations. It
shows the relationship between current assets and current liabilities.

In this company current ratio is 0.233 times. It means that the company’s
current assets are 0.233: 1 times that of its current liabilities.

If we compare the results of the company with the results of
industry, company’s results are showing WORSE position, because
company’s current ratio is less than that of industry’s current ratio.

Performance Compare by Year to Year

2009 2010 2011 2012 Decision
0.295 0.198 0.194 0.233 WORSE

In year 2009 current ratio was 0.295 times. It means current
assets were 0.295:1 times that of its current liabilities , and in
2012 it is decreased to 0.233 times.
If we evaluate the performance of the firm over the period of
time, company’s results are showing WORSE position because
company's current ratio is showing decreasing trend.

Quick Ratio
Quick Ratio

0.6

0.5

0.4

0.3

0.2

0.1

0
Company Industry
2012 0.092 0.52
2011 0.083
2010 0.079
2009 0.095


2012 0.092 0.52 WORSE

• Quick ratio measures a firm’s ability to meet its short term obligations. It
shows the relationship between quick assets and current liabilities.
• In this company quick ratio is 0.092 times. It means that the company’s
quick assets are 0.092:1 that of its current liabilities.
• If we compare the results of the company with the results of
company’s quick ratio is less than industry’s quick ratio.


2009 2010 2011 2012 Decision
0.095 0.079 0.083 0.092 BETTER

• In year 2009 quick ratio was 0.095 times. It means quick
assets were 0.095:1times that of its current liabilities. In year
2010 the quick ratio was 0.079 times, and in 2011 it was 0.083
and in 2012 it is reached to 0.092 times (the result shows
mixed trend).
• If we evaluate the performance of the firm over the period of
time, company’s results are showing BETTER position because
company's current ratio is showing increasing trend.

Cash Ratio
Cash Ratio

0.25

0.2

0.15
2012
0.1 2011
2010
0.05
2009

0
Company Industry
2012 0.0194 0.23
2011 0.0112
2010 0.0105
2009 0.0239

Performance Compare to Industry Ratio

2012 0.0194 0.23 WORSE
• Cash ratio measures a firm’s ability to meet its short term
obligations. It shows the relationship between cash and
current liabilities.
• In this company cash ratio is 0.0194 times. It means that the
company’s cash ratio is 0.0194:1 times that of its current
liabilities.
industry, company’s results are showing WORSE
position, because company’s cash ratio is less than industry’s
cash ratio.

Performance Compare by Year to Year Ratio

2009 2010 2011 2012 Decision
0.0239 0.0105 0.0112 0.0194 BETTER

• In year 2009 cash ratio was 0.0239 times. It means cash were
0.0239: 1 times that of its current liabilities. In year 2010 the cash
was decrease to 0.0105 times, and in 2011 it is increase to 0.0112
times, and than in 2012 it is reached to 0.0194 times.
company's current ratio is showing mixed trend (if we compare it
with 2010 the result is showing increasing trend).

Debt Ratio
Debt Ratio

3

2.5

2

1.5

1

0.5

0
Company Industry
2012 0.63 0.27
2011 0.632
2010 0.632
2009 0.618

2012 0.63 0.27 WORSE

• Debt ratio measures a firm’s ability to meet its long term
obligations. It shows the relationship between total debts and
total assets.
• In this company debt ratio is 0.63 times. It means that the
company’s total debts are 0.63 times of its total assets.
industry, company’s results are showing WORSE
position, because company’s debt ratio is more than that of
industry’s debt ratio.


2009 2010 2011 2012 Decision
0.618 0.632 0.632 0.63 WORSE

• In year 2009 debt ratio was 0.618 times. It means debts were
0.618 times more than that of its total assets. In year 2010 &
2011 the debt ratio was increase to 0.632 times, and in 2012
it was also to 0.27 times.
company's debt ratio is showing increasing trend.

DEBT TO EQUITY RATIO
Debt to Equity Ratio

7

6

5

4

3

2

1

0
Company Industry
2012 1.67 0.27
2011 1.72
2010 1.71
2009 1.62

2012 1.67 0.27 WORSE
• Debt to equity ratio measures a firm’s ability to meet its long
term obligations. It shows the relationship between total
debts and total share holder’s equity.
• In this company debt to equity ratio is 1.67 times. It means
the company’s total liability is 1.67 of its total share holder
equity.
industry, company’s results are showing WORSE position than
industry’s results, because company’s debt to equity ratio is
more than that of industry’s debt to equity ratio.


2009 2010 2011 2012 Decision
1.62 1.71 1.72 1.67 WORSE

• In year 2009 debt to equity ratio was 1.62 times. It means
debts to equity were 1.62 times more than that of its total
share holder’s equity. In year 2010 and 2011 the debt to
equity ratio was increase to 1.71 and 1.72 times, and in 2012
it is also to 1.67 times.

company's debt ratio is showing increasing trend.

Equity Ratio
Equity Ratio

1.6

1.4

1.2

1
2012
0.8 2011

0.6 2010
2009
0.4

0.2

0
Company Industry
2012 0.37 0.73
2011 0.37
2010 0.37
2009 0.38

Performance Compare with Industry Ratio

2012 0.37 times 0.73 times WORSE
• Equity Ratio indicates how much shareholders would receive in the
event of a company-wide liquidation. Or a financial ratio that
measures the level of leverage used by a company, the equity ratio
quantifies the proportion of the total assets that are financed by
stockholders, and not creditors (or debt).
• In this company equity ratio is 0.63 times. It means that the
company’s total shareholder equities are 0.37 times of its total
assets.
company’s equity ratio is less than that of industry’s equity ratio.


2009 2010 2011 2012 Decision
0.38 times 0.37 times 0.37 times 0.37 times BETTER

• In 2009 the equity ratio is 0.38 times. It means that Shareholder
investment in a firm is 0.38 times of its total assets. In 2010 the
ratio is decrease to 0.37 times and in 2011 and 2012 the ratio is also
0.37.

company's equity ratio is constant before three years.

RETURN ON ASSETS
Return on Assets

0.16
0.14
0.12
0.1
0.08 2012
0.06 2011
0.04
2010
0.02
0
-0.02
-0.04
-0.06
Company Industry
2012 1.84% 15.13%
2011 -1.75%
2010 -2.93%

2012 1.84 % 15.13% WORSE

• Return on assets shows the relationship between net profit and total
assets. It is a percentage of net profit based on the value of total
assets.

• In this company return on assets is 1.84%. It means that a company
generates net profit of 1.84% based on the value of total assets.

• If we compare the results of the company with the results of the
industry, company’s results are showing WORSE position because
company’s return on assets is less than that of an industry return on
assets.


2010 2011 2012 Decision
(2.93 %) (1.75 %) 1.84 % BETTER

• In year 2010 return on asset ratio was (2.93%). It means the
firm’s bear loss of (2.93%) based on the value of total assets.
In year 2011 the return on asset ratio was (1.75%), and in
2012 the firm generate profit 1.8% based on the value of total
assets.
company's return on asset ratio is showing increase trend.

TOTAL ASSETS TURNOVER
Total Assets Turnover

14

12

10

8 2012
2011
6
2010
2009
4

2

0
Company Industry
2012 0.33 13.33
2011 0.25
2010 0.17
2009 0.26


2012 0.33 Times 13.33 Times WORSE

• Total assets turnover ratio indicates that how many times a
company generated revenue from its total assets of its own worth.
• In this company total assets turnover ratio is 0.33 times. It means
that company total assets generate total revenue 0.33 times of its
own worth.
company’s total assets turnover ratio is less than that of an industry
total assets turnover ratio.


2009 2010 2011 2012 Decision

• Total assets turnover ratio indicates that how many times revenue
can be generated by the total assets of its own worth.
• In year 2009 total assets turnover ratio was 0.26 times. It means
the firm’s total assets can generate total revenue 0.26 times. In year
2010 and 2011 the total assets turnover ratio was 0.17 and 0.25
times, and in 2012 it is increase to 0.33 times.
company's total asset turnover ratio is showing increasing trend.

FIXED ASSETS TURNOVER
Fixed Assets Turnover

20

15

2012
10
2011
5 2010
2009
0
Company Industry
2012 0.36 16.72
2011 0.26
2010 0.18
2009 0.28



• Fixed assets turnover ratio indicates that how many times a
company generated revenue from its fixed assets of its own worth.
• In this company fixed assets turnover ratio is 0.36 times. It means
that a company fixed assets generate total revenue 0.36 times of its
own worth.
company’s fixed assets turnover ratio is less than that of an industry
fixed assets turnover ratio.


2009 2010 2011 2012 Decision

• Fixed assets turnover ratio indicates that how many times revenue
can be generated by the fixed assets of its own worth.
• In year 2009 fixed assets turnover ratio was 0.28 times. It means
the firm’s fixed assets can generate total revenue 0.28 times. In
year 2010 the fixed assets turnover ratio was decrease to 0.18
times, and in 2011 and 2012 it is increase to 0.0.26 and 0.36 times.
company's fixed asset turnover ratio is showing increasing trend.

RETURN ON SHAREHOLDER EQUITY
Return on Shareholders Equity

15.00%

10.00%

5.00%

0.00% 2012
2011
-5.00%
2010
-10.00% 2009

-15.00%

-20.00%
Company Industry
2012 4.87% 14.63%
2011 -4.97%
2010 -8.11%
2009 -1.98%


2012 4.87 % 14.63 % WORSE
• Return on equity shows the relationship between net profit and total
shareholders’ equity. It is a percentage of net profit based on the value of
total shareholders’ equity.
• In this company return on equity is 4.87%. It means that a company
generates net profit of 4.87% based on the value of total shareholders’
equity.
company’s return on equity is less than that of an industry return on
equity


2009 2010 2011 2012 Decision
(1.98 %) (8.11 %) (4.97 %) 4.87 % BETTER
• Return on equity ratio measures the overall record of management in
producing profit on the value of total share holder’s equity. It shows the
relationship between profit and total share holder’s equity.
• In year 2009 return on equity ratio was (1.98%). It means the firm’s bear
loss of (1.98%) based on the value of total share holder’s equity. In year
2010 and 2011the loss on based of the return on equity ratio was increase
to (8.11%) and (4.97%), and in 2012 the firm generate profit base on
shareholder equity is increase to 4.87%.
time, company’s results are showing BETTER position because company's
return on equity ratio is showing increasing trend.

EARNING PER SHARE
Earning Per Share

12

10

8

6
2012
4
2011
2 2010
2009
0

-2

-4
Company Category 2
2012 0.98 12
2011 -0.97
2010 -1.74
2009 -0.46

Performance Compare with Industry

2012 0.98 12 WORSE

• Earnings per share are the earning of the company on each share. It shows
relationship between net income and number of shares issued. It is
generally more considerable by the shareholders.
• In this Company earning per share is Rs 0.98 per share. It means company
generate net income Rs 0.98 per share based on outstanding/issued
common per share.
company’s earning per share is less than that of an industry earning per
share


2009 2010 2011 2012 Decision
(0.46) (1.74) (0.97) 0.98 BETTER
• In 2009 earnings per share was Rs.(0.46) per share. it means that
company bear loss Rs.(0.46)per share in this year . And in 2010 and
2011 this ratio was increased to Rs.(1.74) and (0.97) per share. and
in 2012 the firm earn profit Rs.0.98 per share.
• If we evaluate the performance of the firm over the period of time
company’s results are showing BETTER position because there is an
increasing trend in company’s earnings per share.

PERCENTAGE OF EARNING RETAINED

Percentage of Retained Earning

100%

50%

0%

-50%
2012
-100% 2011
-150% 2010
2009
-200%

-250%

-300%
Company Industry
2012 100% 67%
2011 -100%
2010 -100%
2009 -100%


2012 100 % 67 % BETTER

• Retained earnings indicate that net income retained by the firm for
reinvestment in its operations; earnings / net income that are not paid out
as dividends to shareholders.
• In this company percentage of earning retained is 100%. It means that a
firm retained 100% of overall net income for reinvestment in its operation.
Company not paid out dividends to shareholders.
industry, company’s results are showing BETTER position because
company’s earning retained is more than that of an industry earning
retained.


2009 2010 2011 2012 Decision
(100 %) (100 %) (100 %) 100 % BETTER

• In year 2009 the firm percentage of earning retained was (100%). It
means firm fulfill 100% net loss from retained earning account. In
year 2010 and 2011 this ratio was also (100%) and (100%). But in
2012 the percentage of earning retained is 100%, firm retained
overall net income for reinvestment in its operation.
company's earning retained ratio is showing increasing trend.

DIVIDEND PAYOUT
Dividend Payout

0.35

0.3

0.25

0.2 2012
2011
0.15
2010
0.1 2009

0.05

0
Company Industry
2012 0% 33%
2011 0
2010 0
2009 0


2012 0% 33 % WORSE

• Dividend payout ratio indicates how much of the company’s profits
are being paid out to shareholders.
• In this company dividend payout ratio is 0%. It means firm not paid
dividend or profit to shareholders.
company’s dividend payout ratio is less than that of an industry
ratio.


2009 2010 2011 2012 Decision
0 0 0 0 WORSE

• In year 2009 firm dividend payout ratio was 0%. It means firm
not paid dividend or profit to shareholders. In 2010 and 2011
this ratio was also 0%. In 2012 this ratio is also 0%.
company's dividend payout ratio is 0%. This ratio is not
change in four years.

DIVIDEND YIELD
Dividend Yield

0.18

0.16

0.14

0.12 2012

0.1 2011
2010
0.08
2009
0.06

0.04

0.02

0
Company Industry
2012 0 17%
2011 0
2010 0
2009 0

Performance Compare with Industry Ratio
2012 0% 17 % WORSE

• Dividend yield indicates how much of an income return you
receive for the money you spend on your investment.
• In this company dividend yield ratio is 0%. It means dividend
payout ratio is also 0%.
the industry, company’s results are showing WORSE position
because company’s dividend yield ratio is less than that of an
industry ratio.


2009 2010 2011 2012 Decision
0 0 0 0 WORSE

• In year 2009, 2010 and 2011 the firm dividend yield ratio
was 0%. Because firm not paid dividend or profit to
shareholders of company. In 2012 this ratio is also 0%.
• If we evaluate the performance of the firm over the
period of time, company’s results are showing WORSE
position because company's dividend yield ratio is 0%.
This ratio is not change in four years.

BOOK VALUE PER SHARE
Book Value Per Share

90
80
70
60
50
2012
40
2011
30
2010
20
10 2009
0
Company Industry
2012 20.22 63
2011 20.18
2010 21.47
2009 23.03

2012 20.22 63 WORSE

• A measure used by owners of common shares in a firm to
determine the level of safety associated with each individual share
after all debts are paid accordingly.
• In this company the book value of per share is Rs.20.22. it means if
a company is dissolve a shareholder get Rs.20.22 on the basis of per
share.
company’s book value per share is less than that of an industry
ratio.


2009 2010 2011 2012 Decision
23.03 21.47 20.18 20.22 WORSE
• In year 2009 the book value per share of firm was 23.03. it
means if a company is dissolve a shareholder get Rs.23.03 per
share, after paid all debts of firm’s. In 2010 and 2011 this value
was decrease to Rs.21.47 and 20.18 per share, and in 2012 this
value is also Rs.20.22 per share.
company's book value per share is showing decreasing trend.

GROSS PROFIT MARGIN
Gross Profit Margin

30.00%

25.00%

20.00%

15.00%
2012
10.00% 2011
5.00% 2010

0.00% 2009

-5.00%

-10.00%
Company Industry
2012 12.38% 25.87%
2011 -1.11%
2010 -8.75%
2009 7.63%


2012 12.38 % 25.87 % WORSE

• Gross profit margin shows the relationship between gross profit
and net sales. It is a percentage of gross profit based on the value of
net sales.
• In this company gross profit margin is 12.38%. It means that a
company generates gross profit of 12.38% based on the value of net
sales.
company’s gross profit margin is less than that of an industry gross
profit margin.


2009 2010 2011 2012 Decision
7.63% (8.75 %) (1.11 %) 12.38 % BETTER
• In year 2009 gross profit margin ratio was 7.63%. It means the
firm’s generate gross profit of 7.63% based on the value of net
sales. In year 2010 and 2011 the firm bear gross loss (8.75%) and
(1.11%) based on the value of net sales, but in 2012 gross profit
margin ratio increased to 12.38%.
company's gross profit margin ratio is showing increasing trend.

OPERATING PROFIT MARGIN
Operating Profit Margin

20.00%

15.00%

10.00%

5.00%

0.00% 2012
2011
-5.00%
2010
-10.00%
2009
-15.00%

-20.00%

-25.00%
Company Industry
2012 6.30% 17.87%
2011 -6.78%
2010 -17.49%
2009 0.98%

2012 6.30 % 17.87 % WORSE

• Operating profit margin shows the relationship between
operating profit and net sales. It is a percentage of operating
profit based on the value of net sales.
• In this company operating profit margin is 6.30%. It means that a
company generates operating profit of 6.30% based on the value
of net sales.
industry, company’s results are showing WORSE position
because company’s operating profit margin is less than that of
an industry operating profit margin.

2009 2010 2011 2012 Decision
0.98% (17.49 %) (6.78 %) 6.30 % BETTER

• In year 2009 operating profit margin ratio was 0.98%. It
means the firm’s generate operating profit of 0.98%
based on the value of net sales. In year 2010 and 2011
the firm bear operating loss was (17.49%) and (6.78%)
based on the value of net sales. But in 2012 the firm
operating profit margin ratio is increase to 6.30%.
• If we evaluate the performance of the firm over the
period of time, company’s results are showing BETTER
position because company's operating profit margin ratio
is showing increasing trend.

NET PROFIT MARGIN
Net Profit Margin

15.00%
10.00%
5.00%
0.00%
2012
-5.00%
2011
-10.00%
2010
-15.00%
2009
-20.00%
-25.00%
-30.00%
Company Industry
2012 5.44% 10.65%
2011 -7.13%
2010 -17.81%
2009 -2.87%

2012 5.44 % 10.65 % WORSE

• Net profit margin shows the relationship between net profit and
net sales. It is a percentage of net profit based on the value of net
sales.
• In this company net profit margin is 5.44%. It means that a
company generates net profit of 5.44% based on the value of net
sales.
industry, company’s results are showing WORRSE position because
company’s net profit margin is less than that of an industry net
profit margin.

2009 2010 2011 2012 Decision
(2.87 %) (17.81 %) (7.13 %) 5.44 % BETTER

• NET profit margin ratio measures the overall record of management
in producing profit. It shows the relationship between net profit
and net sales.
• In year 2009 net profit margin ratio was (2.87%). It means the
firm’s bear net loss of (2.87%) based on the value of net sales. In
year 2010 and 2011 this loss was increase to (17.81%) and (7.13%).
In 2012 the net profit margin ratio increase to 5.44%.
company's net profit margin ratio is showing increasing trend.

ACCOUNT RECEIVABLE TURNOVER
Account Receivable Turnover

40

35

30

25
2012
20 2011
15 2010

10

5

0
Company Industry
2012 15.03 28.58
2011 11.73
2010 9.03

• Account receivable turnover ratio indicates that how many
times a company converts its receivable into cash during a
year.
• In this company account receivable turnover ratio is 15.03
times. It means that a company converts its receivables into
cash 15.03 times during a year.
because company’s account receivable turnover ratio is less
than that of industry’s account receivable turnover ratio.

2010 2011 2012 Decision
9.03 times 11.73 times 15.03 times BETTER

• Account receivable turnover ratio indicates how efficiently
management utilizes its assets in generating revenue by relating or
comparing sales to different types of assets.
• In year 2010 account receivable turnover ratio was 9.03 times. It
means the firm can convert its account receivables into cash 9.03
times. In year 2011 the account receivable turnover ratio was 11.73
company's account receivable turnover ratio is showing increasing
trend.

ACCOUNT RECEIVABLE TURNOVER IN DAYS
Account Receivable Turnover in Days

100
90
80
70
60 2012
50 2011
40 2010
30
20
10
0
Company Industry
2012 24.28 12.77
2011 31.32
2010 40.44

2012 24.28 Days 12.77 Days WORSE

• Account Receivable Turnover in days or Average collection
period indicates that how many days a company converts it’s
receivable into cash during a year.
• In this company average collection period is 24.28 days. It
means that a company converts its receivables into cash after
every 24.28 days during a year.
because company’s average collection period is more than
that of industry average collection period.

2010 2011 2012 Decision
40.44 days 31.32 days 24.28 days BETTER

• Average collection period indicates how efficiently management utilizes its
assets in generating revenue by relating or comparing sales to different
types of assets.
• It shows the relationship between days and account receivable turnover.
• In year 2010 average collection period was 40.44 days. It means the firm
can collect its account receivables within 40.44 days. In year 2011 the
average collection period was 31.32 days, and in 2012 it is decrease to
24.28 days.
time, company’s results are showing BETTER position because company's
account receivable turnover in days ratio is showing decreasing trend.

INVENTORY TURNOVER
Inventory Turnover

90

80

70

60

50 2012
2011
40
2010
30

20

10

0
Company Industry
2012 31.69 13.27
2011 38.18
2010 15.07

2012 31.69 Times 13.27 Times BETTER

• Inventory turnover ratio indicates that how many times a
company converts its inventory into cash or sales during a
year.
• In this company inventory turnover ratio is 31.69 times. It
means that a company converts its inventory into cash or
sales 2.48 times during a year.
the industry, company’s results are showing BETTER position
because company’s inventory turnover ratio is more than that
of industry inventory turnover ratio.

2010 2011 2012 Decision
15.07 times 38.18 times 31.69 times BETTER

• Inventory turnover ratio indicates how many times a company
converts its inventory into cash or sales during a year.
• It shows the relationship between costs of goods sold and average
inventory.
• In year 2010 inventory turnover ratio was 15.07times. It means the
firm can convert its inventory into cash or sales 15.07 times during
a year. In year 2011 the inventory turnover ratio was 38.18
company's inventory turnover ratio is showing increasing trend.

INVENTORY TURNOVER IN DAYS

Inventory Turnover in Days

50
45
40
35
30 2012
25 2011
20 2010
15
10
5
0
Company Industry
2012 11.52 27.51
2011 9.56
2010 24.2

2012 11.52 Days 27.51 Days BETTER

• Inventory Turnover in days indicates that how many days a
company converts its inventory into cash or sales during a
year.
• In this company the inventory turnover in days is 11.52 days.
It means a company converts its inventory into cash or sales
after every 11.52 days during a year.
the industry, company’s results are showing BETTER position
because company’s Inventory Turnover in days is less than
that of industry.

2010 2011 2012 Decision

• In year 2010 the inventory turnover in days is 24.2 days. It
means a company converts its inventory into cash or sales
after every 24.2 days during a year. In year 2011 the result
was decrease to 9.56 days and in 2012 it is reached to 11.52
days.
company's inventory turnover in days ratio is showing
decreasing trend as compare to 2010.

OPERATING CYCLE

Operating Cycle

160
140
120
100
80 2012

60 2011

40 2010

20
0
Company Industry
2012 35.8 42.28
2011 40.68
2010 64.65

Operating Cycle 2012 of a Dawan
Cement Limited
Operating Cycle 2012 is 35.8 Days

11.52

Inventory Turnover in Days
Account Receivable Turnover in Days

24.28

2012 35.8 Days 42.28 Days BETTER

• Operating Cycle indicates that how many days a company converts
its inventory into cash during a year or the average time between
purchasing or acquiring inventory and receiving cash proceeds
from its sale.
• In this company the operating cycle is in 35.8 days. It means a
company converts its inventory into cash after every 35.5 days
during a year.
industry, company’s results are showing BETTER position because
company’s operating cycle in days is less than that of industry.


2010 2011 2012 Decision

• In year 2010 the operating cycle is in 64.65 days. It means a
company converts its inventory into cash after every 64.65
days during a year. In year 2011 the result was decrease to
40.68 days and in 2012 it is reached to 35.8 days.
company's operating cycle in days is showing decrease trend.

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