Balance Sheet

NON-CURRENT ASSETS
Fixed assets
Capital work in progress
Operating fixed assets at
cost
Accumulated Depreciation
Property, Plant and
Equipment
Intangible assets
Biological Assets
Longterm Loans and
Deposits
Total Non Current Assets
CURRENT ASSETS
Stores, spares and loose
tools
Stock in trade
Trade debts
Advances, deposits,
prepayments and other
receivables
Cash and bank balances
Total Current Assets
TOTAL ASSETS

31-Sept-12
Rupees in
%
'000

Common Size Statements

Vertical Analysis
31-Sept-11
31-Sept-10
Rupees in
%
Rupees in
%
'000
'000

31-Sept-09
Rupees in
%
'000

31-Sept-08
Rupees in
%
'000

13,281,922
698,734,955

14,503,179
623,887,372

5,196,841
585,549,778

17,925,373
543,536,774

2.485%
75.348%

-36.963% (239,179,759)
43.480%
304,357,015

-33.156%
42.191%

(347,305,229)
351,429,726

1.632%
85.831%

-42.662% (314,961,729)
43.169%
308,925,643

1.900%
81.723%

1,332,093
597,550,737

-41.257% (294,626,169)
40.466%
302,924,568

0.203%
91.036%

-44.886% (269,058,792)
46.150%
316,490,986

0.714%
80.443%

1,285,370
9,505,667
0

0.158%
1.168%
0.000%

1,606,712
7,133,000
0

0.210%
0.934%
0.000%

1,060,580
6,875,933
751,753

0.162%
1.048%
0.115%

1,325,725
5,397,600
1,110,482

0.182%
0.742%
0.153%

1,657,156
5,132,000
716,334

0.230%
0.711%
0.099%

375,502,685

46.126%

332,168,534

43.511%

312,944,927

47.677%

329,521,634

45.270%

329,787,878

45.717%

12,491,433

1.534%

9,293,902

1.217%

12,426,849

1.893%

12,781,281

1.756%

13,305,761

1.845%

342,532,608
59,816,430
11,387,684

42.076%
7.348%
1.399%

312,065,976
63,244,881
33,068,115

40.877%
8.284%
4.332%

230,917,920
40,716,666
51,252,732

35.180%
6.203%
7.808%

260,382,527
58,674,183
53,330,558

35.771%
8.061%
7.327%

288,698,972
39,067,739
39,601,514

40.021%
5.416%
5.490%

13,217,682
1.816%
398,386,231 54.730%
727,907,865 100.000%

10,909,851
391,583,837
721,371,715

1.512%
54.283%
100.000%

12,354,863
1.518%
438,583,018 53.874%
814,085,703 100.000%

13,579,771
1.779%
431,252,645 56.489%
763,421,179 100.000%

8,127,597
1.238%
343,441,764 52.323%
656,386,691 100.000%

EQUITY AND LIABILITIES

SHARE CAPITAL AND
RESERVES
Authorised capital
Issued, subscribed and paidup capital
Reserves
Unappropriate Profits
Total Equity

100,000,000
50,400,000

12.284%
6.191%

100,000,000
50,400,000

13.099%
6.602%

100,000,000
50,400,000

15.235%
7.678%

100,000,000
50,400,000

13.738%
6.924%

100,000,000
50,400,000

13.862%
6.987%

9,635,878
372,529,248
432,565,126

1.184%
45.760%
53.135%

9,635,878
299,459,093
359,494,971

1.262%
39.226%
47.090%

9,635,878
246,193,884
306,229,762

1.468%
37.507%
46.654%

9,635,878
209,806,010
269,841,888

1.324%
28.823%
37.071%

9,635,878
200,794,368
260,830,246

1.336%
27.835%
36.158%

NON-CURRENT LIABILITY
Deferred Tax

5.572%
45,360,346

Long term loan - Secured

Retirement and other
benefits
Total Non Current Liabilities
CURRENT LIABILITIES
Short term running finances
- secured
Creditors, Accrued and
Other Liabilities
Accrued finance cost
Current portion of long term
loans - secured
Total Liabilities
TOTAL EQUITY AND
LIABILITIES

5.707%
43,565,335

7.199%

4.256%
1.021%
2.621%

0
47,652,492

0.000%
5.853%

0
36,144,725

0.000%
4.735%

0
28,565,965

0.000%
4.352%

0
22,000,528

93,012,838

11.425%

79,710,060

10.441%

75,819,871

11.551%

50,478,690

6.935%

56,976,231

7.898%

140,987,776

17.319%

154,794,581

20.276%

166,615,728

25.384%

307,671,564

42.268%

288,711,025

40.023%

17.974%

288,507,739
814,085,703

0.147%
0.000%
35.439%
100.000%

21.814%
166,533,908
2,887,659
0
324,216,148
763,421,179

0.378%
0.000%
42.469%
100.000%

28,478,162

3.912%
30,700,000
0.000%
7,368,418
3.022%
18,907,813

146,322,898
1,197,065
0

47,253,906

15.731%
103,254,409
4,466,921
0
274,337,058
656,386,691

0.681%
0.000%
41.795%
100.000%

12.064%
87,816,200
12,099,523
0
407,587,287
727,907,865

1.662%
0.000%
55.994%
100.000%

12.449%
89,805,848
10,311,523
14,736,842
403,565,238
721,371,715

1.429%
2.043%
55.944%
100.000%

VERTICAL INCOME STATEMENT

INCOME STATEMENT

Sales

less:Cost of Goods Sold

Gross Profit
Less: Operating Expenses
Administration expenses
Distribution & Marketing
expenses
Other operating expenses
Operating Profit
Add: Other operating
income
Earning Before Interest
and Tax
less: Finance Cost
Earning Before Tax
less: Taxation
PROFIT FOR THE YEAR

1,884,503,1
25
(1,421,735,
606)
462,767,51
9

100.00
0%
75.444
%
24.556
%

(84,567,76
6) 4.488%
(206,795,7 10.973
47)
%
(12,104,04
2) 0.642%
159,299,96 8.453%
4
0.850%
16,023,676
175,323,64 9.303%
0
(22,964,48
2) 1.219%
152,359,15 8.085%
8
(44,009,00
3) 2.335%
108,350,15 5.750%
5

1,794,248,
317
(1,400,131,
599)
394,116,71
8

100.00
0%
78.034
%
21.966
%

(66,738,99
1) 3.720%
(183,404,1 10.222
82)
%
(8,373,794) 0.467%
135,599,75
1 7.557%

1,376,861,
492
(1,073,513,
561)
303,347,93
1

100.00
0%
77.968
%
22.032
%

1,255,064,
266
(1,020,067,
729)
234,996,53
7

100.00
0%
81.276
%
0

1,038,637,
296
(848,823,
705)
189,813,5
91

100.00
0%
81.725
%
18.275
%

(60,990,98
3) 4.430%

(49,421,20
2) 3.938%

(135,992,9
53) 9.877%
(7,056,707) 0.513%

(124,569,6
12) 9.925%
(1,947,763) 0.155%

99,307,288 7.213%

59,057,960 4.706%
12,962,644 1.033%

8.165%
2.138%

7,513,001 0.546%
106,820,28
9 7.758%
(37,612,52
6) 2.732%

6.027%
1.935%

69,207,763 5.026%
(22,739,88
9) 1.652%

18,533,577 1.477%
(4,481,935) 0.357%

6,123,349
45,436,67
3
(32,323,2
68)
13,113,40
5
(4,775,86
5)

73,425,209 4.092%

46,467,874 3.375%

14,051,642 1.120%

8,337,540 0.803%

10,906,983
146,506,73
4
(38,360,46
8)
108,146,26
6
(34,721,05
7)

0.608%

72,020,604 5.738%
(53,487,02
7) 4.262%

(40,779,9
24) 3.926%
(108,184, 10.416
873)
%
(1,535,47
0) 0.148%
39,313,32
4 3.785%
0.590%
4.375%
3.112%
1.263%
0.460%

Balance Sheet
NON-CURRENT ASSETS
Fixed assets
Capital work in progress
Operating fixed assets at cost
Accumulated Depreciation
Property, Plant and Equipment
Intangible assets
Biological Assets
Longterm Loans and Deposits
Total Non Current Assets
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Advances, deposits, prepayments and other
receivables
Cash and bank balances
Total Current Assets
TOTAL ASSETS
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised capital
Issued, subscribed and paid-up capital
Reserves
Unappropriate Profits
Total Equity

31-Dec-12
Rupees in
'000

31-Dec-11
Rupees in '000

31-Dec-10
Rupees in
'000

31-Dec-09
Rupees in
'000

31-Dec-08
Rupees in
'000

13,281,922
698,734,955
(347,305,229)
351,429,726
1,285,370
9,505,667
0
375,502,685

14,503,179
623,887,372
(314,961,729)
308,925,643
1,606,712
7,133,000
0
332,168,534

1,332,093
597,550,737
(294,626,169)
302,924,568
1,060,580
6,875,933
751,753
312,944,927

5,196,841
17,925,373
585,549,778
543,536,774
(269,058,792) (239,179,759)
316,490,986
304,357,015
1,325,725
1,657,156
5,397,600
5,132,000
1,110,482
716,334
329,521,634
329,787,878

12,491,433
342,532,608
59,816,430
11,387,684

9,293,902
312,065,976
63,244,881
33,068,115

12,426,849
230,917,920
40,716,666
51,252,732

12,781,281
260,382,527
58,674,183
53,330,558

13,305,761
288,698,972
39,067,739
39,601,514

12,354,863
438,583,018
814,085,703

13,579,771
431,252,645
763,421,179

8,127,597
343,441,764
656,386,691

13,217,682
398,386,231
727,907,865

10,909,851
391,583,837
721,371,715

100,000,000
50,400,000
9,635,878
372,529,248
432,565,126

100,000,000
50,400,000
9,635,878
299,459,093
359,494,971

100,000,000
50,400,000
9,635,878
246,193,884
306,229,762

100,000,000
50,400,000
9,635,878
209,806,010
269,841,888

100,000,000
50,400,000
9,635,878
200,794,368
260,830,246

NON-CURRENT LIABILITY
Deferred Tax
45,360,346
Long term loan - Secured
Retirement and other benefits
Total Non Current Liabilities
CURRENT LIABILITIES
Short term running finances - secured
Creditors, Accrued and Other Liabilities
Accrued finance cost
Current portion of long term loans secured
Total Liabilities
TOTAL EQUITY AND LIABILITIES

43,565,335

47,253,906

28,478,162

30,700,000
0
7,368,418
22,000,528
18,907,813
50,478,690
56,976,231

0
47,652,492
93,012,838

0
36,144,725
79,710,060

0
28,565,965
75,819,871

140,987,776

154,794,581

166,615,728

307,671,564

288,711,025

146,322,898
1,197,065
0

166,533,908
2,887,659
0

103,254,409
4,466,921
0

87,816,200
12,099,523
0

89,805,848
10,311,523

288,507,739
814,085,703

324,216,148
763,421,179

274,337,058
656,386,691

407,587,287
727,907,865

14,736,842
403,565,238
721,371,715

HORIZONTAL INCOME STATEMENT

INCOME STATEMENT

Sales
less:Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Administration expenses
Distribution & Marketing
expenses
Other operating expenses
Operating Profit
Add: Other operating
income
Earning Before Interest
and Tax

less: Finance Cost

Earning Before Tax

less: Taxation
PROFIT FOR THE YEAR

31-Sept-12

31-Sept-11

31-Sept-10

1,884,503,1
25
(1,421,735,
606)
462,767,51
9

1,794,248,3
17
(1,400,131,
599)
394,116,71
8

1,376,861,4
92
(1,073,513,
561)
303,347,93
1

(84,567,766
)
(206,795,74
7)
(12,104,042
)
159,299,96
4

(66,738,991
)
(183,404,18
2)

(60,990,983
)
(135,992,95
3)

(8,373,794)
135,599,75
1

16,023,676
175,323,64
0

31Sept-09

31Sept-08

1,255,064,266

1,038,637,296

(1,020,067,729)

(848,823,705)

234,996,537

189,813,591

(49,421,202)

(40,779,924)

(124,569,612)

(108,184,873)

(7,056,707)

(1,947,763)

(1,535,470)

99,307,288

59,057,960

39,313,324

10,906,983
146,506,73
4

7,513,001
106,820,28
9

12,962,644

6,123,349

72,020,604

45,436,673

(22,964,482
)
152,359,15
8

(38,360,468
)
108,146,26
6

(37,612,526
)

(53,487,027)

(32,323,268)

69,207,763

18,533,577

13,113,405

(44,009,003
)
108,350,15
5

(34,721,057
)

(22,739,889
)

(4,481,935)

(4,775,865)

73,425,209

46,467,874

14,051,642

8,337,540

81.440
%
67.495
%
143.801
%

72.750
%
64.950
%
107.63
4%

32.564
%
26.471
%
59.814
%

20.83
8%
20.17
4%
23.80
4%

107.376
%
91.150
%
688.296
%
305.206
%
161.682
%
285.864
%
28.954
%
1061.85
8%

63.656
%
69.528
%
445.35
7%
244.92
1%
78.121
%
222.44
2%

49.561
%
25.704
%
359.58
0%
152.60
5%
22.694
%
135.09
7%

21.19
0%
15.14
5%
26.85
1%
50.22
4%

18.678
%
724.70
0%

16.364
%
427.76
3%

821.488
%
1199.54
6%

627.01
1%
780.65
8%

376.14
2%
457.33
3%

65.47
5%
41.33
3%
6.154
%
68.53
5%

58.50
8%

Balance Sheet
NON-CURRENT ASSETS
Fixed assets
Capital work in progress
Operating fixed assets at cost
Accumulated Depreciation
Property, Plant and Equipment
Intangible assets
Biological Assets
Longterm Loans and Deposits
Total Non Current Assets
CURRENT ASSETS
Stores, spares and loose tools
Stock in trade
Trade debts
Advances, deposits,
prepayments and other
receivables
Cash and bank balances
Total Current Assets
TOTAL ASSETS

31-Sept-12

31-Sept-11

Common Size Statements

Horizontal Analysis
31-Sept-10
31-Sept-09
31-Sept-08

Rupees in
'000

Rupees in
'000

Rupees in
'000

13,281,922
14,503,179
698,734,955
623,887,372
(347,305,229) (314,961,729)
351,429,726
308,925,643
1,285,370
1,606,712
9,505,667
7,133,000
0
0

Rupees in
'000

31-Sept12

Rupees in
'000

31-Sept31-Sept- 31-Sept11
10
09
% Increase/Decrease Over Base Year (2008)

1,332,093
5,196,841
17,925,373
597,550,737
585,549,778
543,536,774
(294,626,169) (269,058,792) (239,179,759)
302,924,568
316,490,986
304,357,015
1,060,580
1,325,725
1,657,156
6,875,933
5,397,600
5,132,000
751,753
1,110,482
716,334

375,502,685

332,168,534

312,944,927

329,521,634

-25.904% -19.091%
28.553% 14.783%
45.207% 31.684%
15.466%
1.501%
-22.435%
-3.044%
85.223% 38.991%
100.000% 100.000%
329,787,878 13.862%
0.722%

12,491,433
342,532,608
59,816,430
11,387,684

9,293,902
312,065,976
63,244,881
33,068,115

12,426,849
230,917,920
40,716,666
51,252,732

12,781,281
260,382,527
58,674,183
53,330,558

13,305,761
288,698,972
39,067,739
39,601,514

12,354,863
438,583,018
814,085,703

13,579,771
431,252,645
763,421,179

8,127,597
343,441,764
656,386,691

13,217,682
398,386,231
727,907,865

10,909,851
391,583,837
721,371,715

-92.569%
9.937%
23.182%
-0.471%
-36.000%
33.982%

-71.008%
7.730%
12.492%
3.987%
-20.000%
5.175%

4.944%
-5.107%

55.023%
-0.081%

-6.120%
18.647%
53.110%

-30.151%
8.094%
61.885%

-6.605%
-20.014%
4.221%

-3.942%
-9.808%
50.186%

-71.244%
13.245%
12.002%
12.852%

-16.498%
24.473%
10.130%
5.829%

29.421%
-25.502%
-12.294%
-9.009%

34.668%
21.154%
1.737%
0.906%

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES
Authorised capital
Issued, subscribed and paid-up
capital
Reserves
Unappropriate Profits
Total Equity

100,000,000
50,400,000

100,000,000
50,400,000

100,000,000
50,400,000

100,000,000
50,400,000

100,000,000
50,400,000

9,635,878
372,529,248
432,565,126

9,635,878
299,459,093
359,494,971

9,635,878
246,193,884
306,229,762

9,635,878
209,806,010
269,841,888

9,635,878
200,794,368
260,830,246

0.000%

0.000%

0.000%

0.000%

0.000%
0.000%
85.528%
65.842%

0.000%
0.000%
49.137%
37.827%

0.000%
0.000%
22.610%
17.406%

0.000%
0.000%
4.488%
3.455%

NON-CURRENT LIABILITY
Deferred Tax
45,360,346
Long term loan - Secured
Retirement and other benefits
Total Non Current Liabilities
CURRENT LIABILITIES
Short term running finances secured
Creditors, Accrued and Other
Liabilities
Accrued finance cost
Current portion of long term
loans - secured
Total Liabilities
TOTAL EQUITY AND LIABILITIES

43,565,335

47,253,906

28,478,162

30,700,000
0
7,368,418

47,652,492
93,012,838

36,144,725
79,710,060

28,565,965
75,819,871

22,000,528
50,478,690

140,987,776

154,794,581

166,615,728

307,671,564

47.754% 41.907% 53.922%

-7.237%
100.000% 100.000% 100.000% 100.000%
18,907,813 152.025% 91.163% 51.080% 16.357%
56,976,231 63.248% 39.901% 33.073% -11.404%

288,711,025
-51.166%

146,322,898
1,197,065
0

166,533,908
2,887,659
0

103,254,409
4,466,921
0

87,816,200
12,099,523
0

288,507,739
814,085,703

324,216,148
763,421,179

274,337,058
656,386,691

407,587,287
727,907,865

89,805,848
10,311,523

-46.384%

-42.290%

6.567%

62.932% 85.438% 14.975%

-2.215%
-88.391% -71.996% -56.680% 17.340%
14,736,842 100.000% 100.000% 100.000% 100.000%
403,565,238 -28.510% -19.662% -32.022%
0.997%
721,371,715 12.852%
5.829%
-9.009%
0.906%

31-Sept-12

31-Sept-11

31-Sept-10

31-Sept-09

31-Sept-08

INCOME STATEMENT
Sales
less:Cost of Goods Sold
Gross Profit
Less: Operating Expenses
Administration expenses
Distribution & Marketing expenses
Other operating expenses
Operating Profit
Add: Other operating income
Earning Before Interest and Tax
less: Finance Cost
Earning Before Tax
less: Taxation
PROFIT FOR THE YEAR
Dividends
Average Fixed Assets
Average Inventory
Tax Rate
Average Total Assets
COGS
Finance Cost

1,884,503,125
(1,421,735,606)
462,767,519

1,794,248,317
(1,400,131,599)
394,116,718

1,376,861,492
(1,073,513,561)
303,347,931

1,255,064,266
(1,020,067,729)
234,996,537

1,038,637,296
(848,823,705)
189,813,591

(84,567,766)
(206,795,747)
(12,104,042)
159,299,964
16,023,676
175,323,640
(22,964,482)
152,359,158
(44,009,003)
108,350,155

(66,738,991)
(183,404,182)
(8,373,794)
135,599,751
10,906,983
146,506,734
(38,360,468)
108,146,266
(34,721,057)
73,425,209

(60,990,983)
(135,992,953)
(7,056,707)
99,307,288
7,513,001
106,820,289
(37,612,526)
69,207,763
(22,739,889)
46,467,874

(49,421,202)
(124,569,612)
(1,947,763)
59,057,960
12,962,644
72,020,604
(53,487,027)
18,533,577
(4,481,935)
14,051,642

(40,779,924)
(108,184,873)
(1,535,470)
39,313,324
6,123,349
45,436,673
(32,323,268)
13,113,405
(4,775,865)
8,337,540

34,457,318
353835609.5
327299292
28.88%
788753441

20,182,832
322556730.5
271491948
32.10%
709903935

10,014,167
321233280.5
245650223.5
32.85%
692147278

4,755,631
329654756
274540749.5
24.10%
724639790

10,080,000
164893939
144349486
36.41%
360685857.5

1,421,735,606
22,964,482

1,400,131,599
38,360,468

1,073,513,561
37,612,526

1,020,067,729
53,487,027

848,823,705
32,323,268

Ratio Analysis
Mitchells Fruit Farms
Introduction
Since its inception in 1933, Mitchells has come a long way to reach and sustain its position as one of the top Food and
Beverage Company in the industry. Along with its outstanding physical performance it has maintained steady financials
even when the country is facing major economic perils. Mitchells is the only major food company in Pakistan today with
fully integrated operations having its own growing and processing facilities at one location. Modern high-volume industrial
equipment, professional management and a trained workforce all combine to ensure that Mitchells continues its
dominance as the innovator, market leader and trend setter.

Liquidity Measures
The liquidity ratios show the ability of a company to satisfy short term financial obligations. The current ratio is an
indicator of the companys priorities and shows how liquid the company is. The current ratio of Mitchells fruit farms in
2008 was 0.97 but even while facing adverse economic conditions they have successfully managed to consistently increase
the ratio to 0.98 in the next year and by 2012, it had risen to 1.55. A rise in the current ratio means that either the
company has increased its current assets while the current liabilities have remained constant, or that the current liabilities

of the company have decreased while the current assets has remained constant. A quick look on the company financials
shows that while the current liabilities have fluctuated over the five year period, the overall trend shows that they have
fallen. On the other hand, the current assets show a rising trend from 2008 till 2012. This merely strengthens the
argument that the company has improved its liquidity position by getting itself out of the danger zone i.e. a liquidity ratio
below 1 and is well in the safe zone with a current ratio of 1.55.
The quick ratio provides us with a clearer view of the companys liquidity position and in the case of Mitchells fruit farms;
it seems to be in a highly detrimental state. The quick ratio has increased from 0.25 to 0.33. Though this does represent an
improvement in the ratio, the company still needs to work on its financial state and reduce its dependence on stock. In
comparison to the industry, we can see that Mitchells has performed well and can be categorized as one of the top
performers of the industry.

Asset Management
The asset management ratios of a company attempt to represent the companys success in managing its assets to
generate sales. These ratios cam provide insight into the companys management of the credit policy and inventory
management. The days in receivables ratio analyses the companys credit policy and its current state in terms of credit.
The days in receivable ratio of the company suggests an improvement in the credit position of the company. In 2008 the
company was able to successfully recover its money in 14 days. Now this has fallen down to 12 days. Though there hasnt
been a massive change, it still represents an improvement in the books. Another positive is that the main competitor of
Mitchells; national foods has a days in receivable ratio of 14.68 compared to 12 of Mitchells fruit farms. At the same time
however, the days in payables ratio has showed a steadier more horizontal trend across the five years as the change in the
ratio is only by a single day (fallen from 39 days to 38 days). the across the board improvements in all the ratios is
apparent in the operating cycle as well which shows a mammoth improvement from 99 days down to 62 days whilst the

cash conversion cycle has also fallen from 60 to 24 days. Here also, the industry average for the cash conversion cycle is
below that of Mitchells which suggests financial stability for the company.
The fixed asset turnover ratio of Mitchells fruit farms is also rising which shows that the company aims to invest in the
long run. This improves and strengthens investor confidence which would also improve the companys position on the
stock exchange. The asset turnover ratio has steadily risen over the five year period and currently stands at 2.31 compared
to 1.44 from 2008. An increase in the capital structure of the firm means that the company has a long run performance
strategy. This means that Mitchells is sacrificing its short term gains in order to secure grater long term gains. Similar to
this ratio is the total asset turnover ratio which has also steadily increased across the five years due to a rise in both the
current assets and the fixed assets and a rise in the total sales as well.

Debt Management
The changes in the debt to equity ratio and the debt to asset ratio represent a major change in the capital structure of the
business. The overall trend visible in both these ratios is significantly positive, via this we can infer that the company
wishes to decrease its reliance on debt and is paying off creditors and decreasing the load rather than taking on more
loans and adversely affecting the performance and financials of the company. The debt to equity ratio has fallen from 1.77
to 0.88. The change means that either the debt has fallen or the total equity has risen; and in our case we can see that
since the company has paid off its loans thereby decreasing the total debt of the company, the ratio has consistently fallen
over the five years. There is a similar situation in the case of the debt to asset ratio where not only has the debt of the
company decreased, but this is coupled with an increase in the assets. The ratio has fallen from 63.84% down to 46.86%.
This will not only strengthen investor confidence but at the same time it will also improve the companys position in the
market. Also, in comparison to the industry, Mitchells has a lower TIE ratio and a lower debt to equity ratio; both of which
suggest that the company is not reliant on loans and that a smaller chunk of the income goes into paying out loans and
interest.

Profitability Ratios:
The profitability ratios of a company indicate a dollar of income on each dollar of net sales. Similar to ratios in other
categories, the gross profit margin and the net profit margin have shown a vast improvement even while the local
economy has been stagnant and has faced various obstacles. The gross profit margin indicates a 34.4% increase across the
five years which means an annual increase of almost 7%. Similarly, in the case of the net profit margin the margin has
increased from 0.80% to 5.75%. This is a whopping increase of 618.75%. This is a marvelous improvement and this further
improves the position of Mitchells for the running of the market leader in the food and beverages category. Also, during
the same time period, national foods has also improved both its gross profit and net profit margins however the
percentage change increase in both the cases is higher of Mitchells. The EBITDA margin to sales ratios of both companies
have improved which means that now, not only is the income of the company rising, but it is extracting more and more
profit from sales. However, in contrast to the industrial average as declared by the state bank of Pakistan it seems that
both Mitchells fruit farms and its competitors have a lot of catching up to do. The report suggests that the industry
average net profit margin for the 2011 fiscal year is 10.38%. This suggests that even though Mitchells has performed well,
in the previous years, there is still room for further growth.

Market Value Ratios:

The market value ratios of a company indicate the performance of a company in a fiscal year. The market value ratios
include the EPS, the P.E. ratio and the Book Value/Share ratio. A high PE ratio indicates the growth of the stock and also
shows how much an investor is willing to pay off a dollars earnings. The P.E. ratio of Mitchell's has shown a steady
increase which not only suggests that the company is doing well but that its share has a solid ground in the stock
exchange. The Earnings per Share of the company has also risen over the five years which suggests that the overall
allocation of profit to shares has increased. In contrast to its major competitor national foods, Mitchells has fared well in
trying to reach its limits and improve its financial standing.

An analysis of the PE ratios of both companies suggest that whilst both companies have improved their performance,
Mitchells has come out n top with not only a higher PE ratio keeping investors happy but has increased its ratio quite
significantly. This will therefore not only keep current investors happy but will also attract newer investors.

Conclusion:
In my opinion, Mitchells Fruit farms is an excellent company which has proved its credibility not only by smartly investing
in the future but also through making sound financial decisions which will attract new investors and therefore be a risk
free way of raising capital and further improving on the problems that it faces. . They have realized that optimum
profitability and liquidity can only be reached by investing smartly into physical capital. In a troubled economy, Mitchells
has proved itself to be the market leader in the food and beverages industry by outgrowing and outperforming each and
every one of its competitors

RATIOS
LIQUIDITY RATIOS
Current Ratios
Quick Ratios
ASSET MANAGEMENT RATIOS
Fixed Asset Turn Over
Asset Turnover
Inventory Turnover
Receivable Turnover
Payable Turnover
Operating Cycle
DSI
DSO
DPO
Operating Cycle
Cash Conversion Cycle
DEBT MANAGEMENT RATIOS
Debt to Equity Ratio
Debt to Assets Ratio
TIE
PROFITABILITY RATIOS
Net Profit Margin
Gross Profit Margin
Return on Capital Employed
Return on Equity
Return on Assets

MARKET VALUE RATIOS

1.52
0.33

1.33
0.37

1.25
0.41

0.98
0.34

0.97
0.25

5.33
2.31
4.15
31.50
9.72

5.56
2.35
4.49
28.37
8.41

4.29
2.10
4.65
33.82
10.40

3.81
1.72
3.92
21.39
11.62

6.30
1.44
2.94
26.59
9.45

87.94
11.59
37.57
99.52
61.96

81.35
12.87
43.41
94.22
50.80

78.51
10.79
35.11
89.31
54.20

93.17
17.06
31.42
110.23
78.81

124.14
13.73
38.62
137.87
99.25

0.88
0.47
7.63

1.12
0.53
3.82

1.14
0.53
2.84

1.70
0.63
1.35

1.77
0.64
1.41

5.75%
24.56%
33.36%
25.05%
13.31%

4.09%
21.97%
33.36%
20.42%
9.62%

3.37%
22.03%
27.96%
15.17%
7.08%

1.12%
18.72%
22.48%
5.21%
1.93%

0.80%
18.28%
14.30%
3.20%
1.16%

Earning Per Share

P.E. Ratio
Dividend Payout Ratio
Market Price
Book value per share
Market value to Book Value

21.5
16.74
31.80%
360
8.58
41.95

14.57
5.49
27.49%
80
7.13
11.22

9.22
7.48
21.55%
69
6.08
11.36

2.79
26.49
33.84%
73.9
5.35
13.80

1.65
35.61
120.90%
58.75
5.18
11.35

Ratio Comparison with Industrial Average and Competitor

For the fiscal year ended December 2011
Liquidity ratio:
Current ratio
Quick Ratio

0.97
0.16

Debt management
Debt ratio
Debt/equity ratio
Times Interest Earned

1.48
2.1
5.61

Asset management ratios

Inventory Turnover ratio
Receivable T/O
DSI
DSO
Operation Cycle
Payable T/O
DPO
Cash Conversion Cycle
Asset T/O

6.89
57.69
52.98
6.33
59.30
5.03
72.54
-13.24
2.03

Profitability Ratios:
GP Margin
NP Margin
ROA
ROCE

27.39%
10.93%
25.30%
75.75%

Market
EPS

0.5409