ATTOCK CEMENT LIMITED

INTRODUCTION:
Attock Cement Pakistan Limited (ACPL) was established in 1981 with an initial capital outlay of Rs 1.5
billion including a foreign exchange component of $45 million. The company started commercial
production in 1988 with a plant capacity of 2,000 tons per day of clinker (approx. 0.6 million tons
annually). Through a series of expansions, with the latest line added in FY18, the company boasts a
production capacity of 3 million tons per annum.

With the Factory located in Hub, Balochistan, the Company is currently running three manufacturing
plants at its facilities.

ACPL has also made investment in a cement grinding unit in Iraq through a joint venture with the Iraq-
based Al Geetan Commercial Agencies to form a subsidiary, a limited liability company. Attock Cement
holds 60 percent share of the company. The mill has a capacity of 0.9 million tons at a cost of $24
million.

ACPL is the first and only company that has Quality Control Lab that has been accredited ISO 17025 by
Pakistan National Accreditation Council. Moreover, we are also QMS ISO 9001:2015, EMS ISO
14001:2015 and OHSAS 18001-2007 certified.

For ACPL, the choice of Falcon as Trademark is anything but random. Taking our cue from the fastest
bird in the skies known for its versatility, perseverance, strength and endurance, we seek to deliver a
product that ensures our position as the indisputable market leader in the cement industry.

VISION

To be the leading organization continuously providing high quality cement, excelling in every aspect of
its business and to remain market leader in cement industry.

MISSION

To be a premier and reputable cement manufacturing company dedicated to become an industry

leader by producing quality products, providing excellent services, enhancing customer satisfaction
and maximizing shareholders’ value through professionalism and dedicated team work.

BALANNCE SHEET:
BALANCE SHEET
FY - 2020 FY - 2019 FY - 2018 FY - 2017 FY - 2
(Rupees '000)
ASSETS
Non-current assets
Fixed assets – PPE 17255963 17685584 17962931 16660338
long-term investments 1858089 1836541 1435379 786112
long-term loans & advances - considered good 38818 47593 47311 48588
long-term deposits 99940 99940 99940 42980
deferred tax assets 131543
total non-current assets 19252810 19669658 19677104 17,538,018.00
Current assets
Inventories 3465940 3395522 3649066 1,929,782
trade receivable - considered good 494535 795061 709917 180497
loan & advances - considered good 162443 87931 78499 76383
short-term deposits & prepayments 13248 45212 22593 23655
investment at fair value
other receivables 324522 235807 201370 105787
taxation - payment less provisions 2866866 2602240 1453299 236663 Nil
tax refund due from govt - salex tax 56521 182587 289270 496755 Nil
cash & bank balances 785559 302586 324936 121847
total current assets 8169634 7646946 6728950 3171362
Total assets 27422444 27316604 26406054 20,709,380.00 1

EQUITY & LIABILITIES

LIABILITIES
non-current liabilities
long-term loans 236250 2187500 3437500 1500000 Nil
long-term lease liabilities 46456 7915 10793 1033
deferred tax liabilities 1081132 351283 817747
employee benefit obligations 359643 266878 387093 489453
Total long-term debt 1723481 2813576 3835386 2808233 Nil
Total non current liabilities 3446962 5627152 7670772 5616466
current liabilities
trade & other payables 4185436 3577440 4983843 3816087
unclaimed dividend 10416 10182 8998 7592 Nil
accrued mark-up 33590 143867 88773 45990 Nil
short-term borrowings 4902750 4669202 2612508 2080847 Nil
current portion of long-term lease liabilities 14115 2878 3911 2996
subject to financial lease
total current liabilities 9146307 8403569 7698033 5953512
Total liabilities 10869788 11217145 11533419 8761745

Share capital & reserves

share capital-issued, subscibed & paid up 1374270 1374270 1145225 1145225
unappropriated profit 15178386 14725189 13727410 10802410
Total Equity 16552656 16099459 14872635 11947635 1

Total equity & liabilities 27422444 27316604 26406054 20709380 1

INCOMME STATEMENT:

INCOME STATEMENT FOR THE YEAR ENDED JUNE 30,2020

FY - 2020 FY - 2019 FY - 2018 FY - 2017 FY - 2016

(Rupees '000)
Revenue 18500574 20780934 16495659 14735172 13918340
cost of sales -14251503 -15978032 -11697583 -8842960 -8331840
gross profit 4249071 4802902 4798076 5892212 5586500

SG&A expenses
distribution cost -1830945 -1414820 -782218 -90531 -954746
admin expenses -506937 -505149 -533111 -419378 -401792
other expenses -92274 -149756 -163000 -333645 -314095
-2430156 -2069725 -1478329 -843554 -1670633

other income 233547 293803 60804 236632 341095

Profit from operation or EBIT 2052462 3026980 3380551 4472290 4257015

finance cost -525894 -648444 -251172 -28369 -21309

share of net income 5923 24665
profit before income tax or EBT 1532491 2403201 3129379 4443921 4235706
income tax expense / credit -425000 -330000 1270405 -1409864 -1345683

profit for the year or EAT or net profit 1107491 2073201 4399784 3034057 2890023

basic & diluted earning per share 8.06 15.09 38.42 26.49 25.92

COMMON SIZING:
BALANCE SHEET
FY - 2020 FY - 2019 FY - 2018 FY - 2017
(Rupees '000)
ASSETS
Non-current assets
Fixed assets – PPE 0.62 0.64 0.680258057 0.8044
long-term investments 0.06 0.06 0.054357951 0.0379
long-term loans & advances - considered good 0.001 0.001 0.001791672 0.0023
long-term deposits 0.003 0.003 0.003784738 0.0020
deferred tax assets 0.004981547
total non-current assets 0.7 0.72 0.745173967 0.84686
Current assets 0 0
Inventories 0.12 0.12 0.138190507 0.09318
trade receivable - considered good 0.01 0.029 0.02688463 0.00871
loan & advances - considered good 0.005 0.003 0.002972765 0.00368
short-term deposits & prepayments 0.0004 0.001 0.000855599 0.00114
investment at fair value 0 0
other receivables 0.01 0.008 0.007625903 0.00510
taxation - payment less provisions 0.1 0.09 0.055036584 0.01142
tax refund due from govt - salex tax 0.002 0.006 0.010954685 0.02398
cash & bank balances 0.02 0.01 0.01230536 0.00588
total current assets 0.29 0.27 0.254826033 0.15313
Total assets 27422444 27316604 26406054 20,709,3

EQUITY & LIABILITIES

LIABILITIES
non-current liabilities
long-term loans 0.008615206 0.0800795 0.130178481 0.07243
long-term lease liabilities 0.001694087 0.000289751 0.000408732 4.98808
deferred tax liabilities 0.039425078 0.012859688 0 0.03948
employee benefit obligations 0.013114914 0.009769809 0.014659252 0.02363
Total long-term debt 0.062849285 0.102998748 0.145246465 0.13560
Total non current liabilities 0.12569857 0.205997495 0.29049293 0.27120
current liabilities 0 0 0 0
trade & other payables 0.152628117 0.130962106 0.188738651 0.18426
unclaimed dividend 0.000379835 0.00037274 0.000340755 0.00036
accrued mark-up 0.001224909 0.00526665 0.003361843 0.00222
short-term borrowings 0.178786034 0.17092908 0.098935949 0.10047
current portion of long-term lease
liabilities 0.000514724 0.000105357 0.00014811 0.00014
subject to financial lease 0 0 0 0
total current liabilities 0.333533619 0.307635935 0.291525307 0.28747
Total liabilities 0.396382904 0.410634682 0.436771772 0.42308
0 0 0 0
Share capital & reserves 0 0 0 0
share capital-issued, subscibed & paid up 0.050114789 0.050308962 0.043369789 0.05529
unappropriated profit 0.553502306 0.539056356 0.519858439 0.52161
Total Equity 0.603617096 0.589365318 0.563228228 0.57691
 0 0 0 0
Total equity & liabilities 1 1 1 1

INCOME STATEMENT FOR THE YEAR ENDED JUNE 30,2020

FY - 2020 FY - 2019 FY - 2018 FY - 201

Revenue 1 1 1 1
-
cost of sales 0.107678082 0.768879397 -0.70913099 -0.6001
gross profit 0.229672387 0.231120603 0.29086901 0.39987
0 0 0
SG&A expenses 0 0 0
- - -
distribution cost 0.098966929 0.068082599 0.047419627 -0.0061
-
admin expenses -0.02740115 0.024308291 -0.03231826 -0.0284
- - -
other expenses 0.004987629 0.007206413 0.009881388 -0.0226
- - -
0.131355708 0.099597304 0.089619275 -0.0572
0 0 0 0
other income 0.01262377 0.014138104 0.003686061 0.01605
Profit from operation or EBIT 0.11094045 0.145661403 0.204935796 0.30351
0 0 0 0
- - -
finance cost 0.028425821 0.031203795 0.015226551 -0.0019
share of net income 0.000320152 0.001186905 0 0
profit before income tax or EBT 0.082834781 0.115644513 0.189709244 0.30158
-
income tax expense / credit -0.02297226 0.015879941 0.077014504 -0.0956
0 0 0 0
profit for the year or EAT or net profit 0.059862521 0.099764573 0.266723748 0.20590
0 0 0 0
basic & diluted earning per share 4.35662E-07 7.26146E-07 2.3291E-06 1.79774

INDEX SIZING:
BALANCE SHEET

2018 2019 2020

ASSETS
Non-current assets
Fixed assets – PPE 100% 0.98456 0.960643
long-term investments 100% 1.279482 1.294494
long-term loans & advances - considered
good 100% 1.005961 0.820486
long-term deposits 100% 1 1
deferred tax assets 100% 0 0
total non-current assets 100% 0.999622 0.978437
Current assets
Inventories 100% 0.930518 0.949816
trade receivable - considered good 100% 1.119935 0.69661
loan & advances - considered good 100% 1.120154 2.069364
short-term deposits & prepayments 100% 2.001151 0.586376
investment at fair value
other receivables 100% 1.171014 1.611571
taxation - payment less provisions 100% 1.790574 1.972661
tax refund due from govt - salex tax 100% 0.631199 0.195392
cash & bank balances 100% 0.931217 2.417581
total current assets 100% 1.136425 1.214102
Total assets 100% 1.034483 1.038491

EQUITY & LIABILITIES

LIABILITIES
non-current liabilities
long-term loans 100% 0.636364 0.068727
long-term lease liabilities 100% 0.733346 4.304271
deferred tax liabilities
employee benefit obligations 100% 0.689442 0.929087
Total long-term debt 100% 0.733584 0.449363
Total non current liabilities 100% 0.733584 0.449363
current liabilities
trade & other payables 100% 0.717808 0.839801
unclaimed dividend 100% 1.131585 1.157591
accrued mark-up 100% 1.620617 0.378381
short-term borrowings 100% 1.787249 1.876645
current portion of long-term lease liabilities 100% 0.735873 3.609051
subject to financial lease
total current liabilities 100% 1.091651 1.188136
Total liabilities 100% 0.972578 0.94246
Share capital & reserves
share capital-issued, subscibed & paid up 100% 1.2 1.2
unappropriated profit 100% 1.072685 1.105699
Total Equity 100% 1.082489 1.112961

Total equity & liabilities 100% 1.034483 1.038491

INCOME STATEMENT FOR THE YEAR ENDED JUNE 30,2020

2018 2019 2020

Revenue 1 1.259782 1.121542

cost of sales 1 1.365926 1.218329
gross profit 1 1.001006 0.885578

SG&A expenses
distribution cost 1 1.808729 2.340709
admin expenses 1 0.947549 0.950903
other expenses 1 0.918748 0.566098
1 1.400044 1.643853

other income 1 4.831968 3.840981

Profit from operation or EBIT 1 0.89541 0.607138

finance cost 1 2.581673 2.09376

share of net income
profit before income tax or EBT 1 0.767948 0.489711
income tax expense / credit 1 -0.25976 -0.33454

profit for the year or EAT or net profit 1 0.471205 0.251715

basic & diluted earning per share 1 0.392764 0.209787

RATIO ANALYSIS:
Activity Ratios
2016 2017 2018 2019 2020
Inventory Turnover 4.54 4.6 4.19 4.53 4.15
No. of days in 80.31 79.38 87.03 80.46 87.87
inventory
Receivables 21.35 25.74 9.05 10.08 45.18
Turnover
No. of days in 17.1 14.18 40.33 36.21 8.08
receivables
Fixed Asset 2.09 1.19 0.89 1.06 0.95
Turnover
Total Asset 1.04 0.84 0.7 0.77 0.68
Turnover
Solvency Ratios
2016 2017 2018 2019 2020
Debt to asset ratio 0.27 0.55 0.58 0.51 0.45
Debt to capital 0.77 0.9 0.93 0.91 0.9
ratio
Debt to equity 3.47 10.1 13.4 10.2 9.1
ratio
Financial leverage 0.34 0.39 0.43 0.43 0.41
ratio
Liquidity Ratios
2016 2017 2018 2019 2020
Current ratio 2.63 0.53 0.87 0.9 0.89
Quick ratio 1.93 0.2 0.4 0.5 0.51
Profitability Ratios
2016 2017 2018 2019 2020
Gross Profit 40.14% 39.98% 29.09% 23.11% 22.97%
Margin
Operating Profit 30.59% 30.35% 20.49% 14.57% 11.09%
margin
Net Profit Margin 20.76% 20.59% 26.67% 9.98% 5.99%
ROA 21.68% 17.27% 18.68% 7.72% 4.05%
ROE 29.82% 27.10% 32.81% 13.39% 678.36%
Retun on Common 21.67% 17.27% 11.18% 2.82% 1.87%
equity
Valuation Ratios
2016 2017 2018 2019 2020
P/E 12.61 14.42 19.04 15.77 15.50
P/CF 14.54 17.84 19.12 17.39 14.28
P/S 1.33 1.97 1.31 0.72 0.72
Basic EPS 19.24 19.87 21.73 18.40 13.71
Cash Flow per 1.80 2.29 2.21 2.20 3.50
share
EBITDA per share 0.30 0.30 0.20 0.14 0.11

ANALYSIS:
 Inventory turnover:- Over 5 years it remains stable and it indicates the efficiency of the firm in
terms of handling with 2017 being the most efficient in terms of inventory turnover.

 Days of inventory on hand:- As analyzing the above inventory turnover it is also being
observed that 2017 has the best days of inventory on hand ratio as the less it is the better and
77 days means usually it took them 77 days to clear the existing inventory but after that it
increase and that could be due to no. of reasons like strict receiving policy.

 Receivable turnover:- In 2016 and 2017 it was good but in 2018 and 2019 it got better indicating
lenient receiving policy but got drastically increased in 2020 indicating strict policy of receiving.

 average collection period receivables (days):- Now it takes the company lesser days to
convert and get their credit into cash in 2020 and it is better than before as high collection
period day and turnover is efficient.

 Days of payables and payable ratio:- Now in 2019 and 2020 it is good but in 2016 and 17 the
company found it difficult to pay on time.

 working capital:- In 2015 it was positive but now it is negative indicating company does not have
enough current asset to pay current liabilities.

 Working capital t.o:- Working capital turnover is decreasing which indicates that company is not
effective in using its short term debts and liabilities to increase the sales.

 Fixed Asset T.O:- This ratio is decreasing as company is not able to generate enough revenue
from their fixed assets.
 Total Asset T.O: This ratio is also decreasing as company is not utilizing its total assets properly
to generate revenue.

 Interest coverage: The ratio indicates that how many times company can cover its interest ratio
and it is still poor as it is decreasing.
 Fixed charge coverage: It is company's ability to cover fix charge such as debt payment and it is
poor as it is decreasing.

 Gross profit margin:- This ratio tells how effective company cut down its Cost of sales to achieve
gross profit. This ratio is decreasing for attock cement as their cost of sales are increasing.
 Operating profit margin: This ratio tells how much company profits from its operation. This ratio
is also decreasing over the years which need to be taken into consideration. As in future
company may faces losses.
 Net profit margin: This ratio tells how much company earn from its 1 rupee sale. This ratio is
also decreasing which means company is having loss.

 operating roa: This indicates the company's operating income generated per rupee invested in
total assets. This ratio is decreasing which tells that company is not managing its operations
effectively.
 return on total capital: It quantifies how much return a company has generated through the use
of its capital structure. attock cement is considered as value destroyer.

 ROE: It is defined as the amount of profit or net income a company earns per investment in
rupee. It reveals how much profit a company earns with the money shareholders invested. This
ratio is increased now.
 ROA: This ratio measures that how effectively a company can earn a return on its investment in
assets. This ratio is also decreasing which means company is not utilising its resources
effectively.
 pretax margin: It shows how much company earns after all operating expenses, including
interest and depreciation, have been deducted from total sales. This ratio is decreasing which
tells company is not controlling it expenses effectively.

 Financial leverage ratio: This ratio measures the percentage change in EPS for a unit change in
operating income. The ratio is increasing which means that company has been aggressive in
financing its growth with debt.
 Debt to Asset ratio: This ratio is still under 1 which means that they have enough Total assets
against for their total liabilities. If it exceeds from 1 Attock cement will have more liabilities then
it's asset.
 Debt to Capital ratio: This ratio is also increasing slowly which is to be considered, this shows
that how much capital is available to payoff debts. If it increases from 1, the company will face
problems.
 Debt to Equity ratio: The debt to equity ratio is much higher which means that company is
financially unstable and is at risk because the ratio is increasing rapidly which can create future
problems.
 current ratio: Attock current ratio has decreased . This shows that attock cement can payoff
their debts from current asset but only for short term, they will face problems in long term.

 quick ratio: Quick ratio is also decreasing which means attock cement doesnot have enough
liquid assets to pay off its liabilities. They can face problem in future.

 cash ratio: Cash ratio is also decreasing as it can be seen that there current liabilities are
increasingly significantly. They need to control their short term debts.
  defensive interval ratio: It is increasing over the years means company has more cash now for
daily operations.
 Dividend payout and retention:- dividend payout is decreasing and retention is increasing
means company is retaining more profit and returning less to shareholders.

INDUSTRY AVERAGES:
Industry Averages for Activity Ratios
2016 2017 2018 2019 2020
Inventory Turnover 5.252 4.5 4.042 3.704 3.248
No. of days in 96.784 97.01 104.076 107.666 115.152
inventory
Receivables Turnover 21.546 18.236 13.288 13.858 18.282
No. of days in 12.52 15.43 23.696 27.066 22.702
receivables
Payables Turnover 4.604 4.25 3.236 2.644 1.922
No. of days in Payables 84.782 96.742 107.93 130.144 173.36
Working Capital 0.948 -1.518 2.008 -14.696 -18.138
Turnover
Fixed Asset Turnover 1.156 0.94 0.74 0.656 0.592
Total Asset Turnover 0.648 0.568 0.476 0.448 0.4
Industry Averages for Solvency Ratios
2016 2017 2018 2019 2020
Debt to asset ratio 0.394 0.374 0.518 0.448 0.518
Debt to capital ratio 0.528 0.718 0.812 0.616 0.65
Debt to equity ratio 2.03 3.932 5.9 5.502 5.586
Financial leverage ratio 1.068 0.822 0.93 1.178 1.368
Industry Averages for Liquidity Ratios
2016 2017 2018 2019 2020
Current ratio 2.458433 2.482074 1.882599 1.0975 0.90506
Quick ratio 2.085505 2.186716 1.575343 0.83041 0.648938
Cash ratio 5.367995 1.362424 0.694464 0.423358 0.271766
Defensive Interval ratio 27.18301 13.80624 8.796795 6.425731 3.537264
Industry Averages for Profitability Ratios
2016 2017 2018 2019 2020
Gross Profit Margin 0.399284 0.339027 0.265174 0.190277 0.086132
Operating Profit 0.271961 0.249427 0.184217 0.13261 0.009463
margin
Pretax Margin 0.345645 0.273503 0.179796 0.096524 -0.14953
Net Profit Margin 0.236439 0.190764 0.218975 0.127068 -0.19935
Operating ROA 0.561064 0.472196 0.306483 0.21967 0.030322
ROA 0.423009 0.358732 0.308731 0.206531 0.046175
Return on total capital 0.222465 0.565157 0.438808 0.078549 -0.00109
ROE 0.230878 0.154029 0.151035 0.087428 1.290639
Retun on Common 0.8459 0.581628 0.831524 0.271365 -0.24899
equity
Industry Averages for Valuation ratios
Title 2016 2017 2018 2019 2020
P/E 12.44576 20.51832 13.94782 9.01424 243.0975
Basic EPS 110.4458 58.38198 68.39231 55.73314 2.452027
Cash Flow per share 0.758611 0.848681 0.758102 0.884239 1.775586
EBITDA per share 120.7288 64.36427 60.76832 60.47428 -1.24825

General Industry Average (incl. all years)

Activity Ratios
Inventory Turnover 4.1492
No. of days in 104.1376
inventory
Receivables Turnover 17.042
No. of days in 20.2828
receivables
Payables Turnover 3.3312
No. of days in Payables 118.5916
Working Capital -6.2792
Turnover
Fixed Asset Turnover 0.8168
Total Asset Turnover 0.508
General Industry Average (incl. all years)
Solvency Ratios
Debt to asset ratio 0.4504
Debt to capital ratio 0.6648
Debt to equity ratio 4.59
Financial leverage ratio 1.0732
General Industry Average (incl. all years)
Liquidity Ratios
Current ratio 1.765133
Quick ratio 1.465382
Cash ratio 1.624001
Defensive Interval ratio 11.94981
General Industry Average (incl. all years)
Liquidity Ratios
Gross Profit Margin 0.255979
Operating Profit 0.169535
margin
Pretax Margin 0.149187
Net Profit Margin 0.114779
Operating ROA 0.317947
ROA 0.268636
Return on total capital 0.260779
ROE 0.382802
Return on Common 0.456286
equity

COMPARISION:

Title General Industry Average 5 year avg.

Inventory Turnover 4.1492 4.402

No. of days in 104.1376 83.01

inventory
Receivables Turnover 17.042 22.28

No. of days in 20.2828 23.18

receivables
Payables Turnover 3.3312 3.304

No. of days in Payables 118.5916 114.262

Working Capital -6.2792 -11.944

Turnover
Fixed Asset Turnover 0.8168 1.236

Total Asset Turnover 0.508 0.806

Debt to asset ratio 0.4504 0.472

Debt to capital ratio 0.6649 0.882

Debt to equity ratio 4.59 9.254

 Financial leverage ratio 1.0732 0.4

Current ratio 1.77 1.163189123

Quick ratio 1.47 0.707313931

Cash ratio 1.62 4.831743785

Defensive interval ratio 11.95 12.56340892

Gross Profit Margin 0.256 0.310567778

Operating Profit 0.1695 0.214178833
margin
Pretax Margin 0.1492 0.144762831
Net Profit Margin 0.1148 0.16797844
Operating ROA 0.0946 0.181019455
ROA 0.0828 0.138783029
Return on total capital 0.2608 0.153584343
ROE 0.3828 0.07045232
Retun on Common 0.3688 0.109622011
equity
P/S 1.05 1.21

Basic EPS 43.61 18.59

Cashflow per share 17.8 24

EBITDA per share 50.86 21
p/e ratio 50.68 15.47

p/cf ratio 13.94 16.63

Interpretations:
 Inventory turnover is a measure of effeciency and how quickly the company is selling its
inventory and then restocking it, Attock Cement's Inventory turnover with the normal industry
practice, we noticed that it is ahead which means that in a year they sells and restock 4.4 time
while other cement companies on avg. do that 4.1 time which indicates stronger sales, so Attock
Cement is effecient as compared to others

 No. days in inventory answers the number of days it takes for the company to convert its
inventory into sales,it is the lower the better if we compare the inventory days of attock Cement
 in comparision with the industry average so the inventory days of Attock Cement are lower than
the average industry practice, which means Attock Cement takes less time to convert its
inventory into sale. It takes attock cement just 83 days to convert inventory into sales.

 Receivables turnover measures the efficieny of the company with which it collects the
receivables from its credit customers, the higher the better. If we compare the industry average
with the past 5 years avg receivables turnover ratio of Attock Cement we find that it is better
than the industry average, so we can say that Attock cement is good in collecting the debt from
its credit customers. It takes them on avg. 22 days to collect their credit.

 No. of days in receivables indicates us the average number of days the company takes to collect
the receivables from its credit customers, if we compare the past 5 years avg receivable days
with the industry avg of Attock Cement we found that it takes on avg. 23 days to collect the debt
on average whereas the normal industry practice is 20.3 days, so we can conclude that Attock
Cement is weak in this regard and needs to collect receivables faster to manage liquidity issues

 Payables turnover measures the efficiency of the company with which it pays off the debt to its
creditors , a higher payable turnover ratio is preffered over a lower one. So, if we compare the
past 5 years average practice of Attock Cement with the Industry avg of five years so, Attock
Cement has 3.304 whereas the industry avg is 3.3312, we can say that attock Cement is lacking
behind just a little in this case and we can conclude that Attock Cement pays its credit suppliers
a little later than the normal industry

 No. of days in payables indicates the average number of days it takes the company to pay back
its creditors, so the normal industry avg. for payable days is 118.6 days whereas in case of
Attock Cement's 5 years avg progress the payable days stand at 114.26 days, which is less than
the industry average, which means Attock Cement is more fast and efficient as compared to
others in terms of paying back its credit

 Working Capital turnover measures how efficiently the company is using its working capital to
support the sales and growth, in case of the cement sector the ratio is on average the industry
avg stands at -6.3 whereas Lucky Cement stands at -11.94 which is less from industry avg. and
Attock Cement needs improvement in this and should use it efficiently. It lacks in using their
working capital effectively.

 Fixed asset turnover measures the efficiency of a company as to how nicely they have used the
investment in fixed assets to generate sales, basically it indicates that for every $1 of investment
in fixed assets the company was able to generate $1.2 of sales if we speak of Attock Cement's
which is better than the avg. of industry

 Total Asset turnover measures the efficieny of the company in terms of how effectively they
have managed the total assets in generating sales, speaking of Attock Cement's past 5 years avg
practice the ratio had been better than the industry avg, industry tells that for every $1
investment in total assets others are able to generate sales worth $0.5 whereas in case of attock
 cement the sales stand at $0.80 means they are managed their total assets effectively and
efficiently
 Debt to asset ratio measures that how much debt company has used for its asset and in case of
industry avg. other cement companies have ratio of 0.45 of debt for their assets but attock has
0.47 which means they used more debt to finance their assets and they have to pay more debt
back which is risky
 Similar to above one debt to capital ratio tells how much debt company is using for its capital.
Attock cement has ratio of 0.88 while others avg. is 0.66 and it is alarming for attock cement as
they have to pay it back.
 Debt to equity ratio means how much creditors are financing the company and with 9.2 attock's
position is alarming and by analysing the above ratio's it is safe to use the idiom that now water
has crossed our heads
 The lower financial leverage is the better and attock cement has 0.4 as compared to industry's
1.07 means attock meets the criteria
 Current ratio is the basic ratio to measure liquidy and if we talk about attock's liquidity it is
behind the industry as it has 1.16 ratio and industry has 1.77
 Quick ratio is slightly different from current as it excludes receivables and is considered a more
liquid ratio. Attock lacks behind in terms of liquidity and it is dangerous as they lack liquidity

 In terms of having cash to pay liability attock is way ahead than others
 Attock is ahead of others in terms of having cash for their daily expenditure. So for day to day
operations they do not need to worry as they have enough cash to run those effectively

 The higher the gross profit margin ratio the better as this tells us about how much % profit
company has earned from revenue and attock is ahead of others as it has 31.06%
 Attock is way ahead than others if we talk about operating profit margin means profit from
operations
 Pretax margin is how much a company earns after paying interest and before tax and it is a
measure of sustainability. Attock is slightly behind than others

 In terms of handling profit attock is superior and they again proved by having great net profit
margin ratio
 Operating return on assets indicates the company's operating income generated per dollar
invested in total assets and once again atock is ahead others

 Return on Assets indicates the company’s net income generated per dollar invested in total
assets and as again attock has a 13.88% ROA which means great return on assets

 Return on total capital indicates the company's net income generated per dollar invested in
total capital and attock cement is not getting a good return on capital

 Return on equity is one of the main ratio that investor sees before investing and attock cement
is behind the industry as it does not give satisfying results
 Return on common equity is similar to above but it includes common investors and again attock
is behind others which may not be a good sign for company's reputation

 p/s tells how much investors are willing to pay and attock lacks behind in this. They can improve
this by alloting more to stock means by improving basic eps

 Basic eps: Attock is not alloting enough percent of their income to common stock and it may not
be good for investors as they would prefer others.

 Cash flow per share: Attock generates more cash based on net income and attock is ahead than
others
 EBITDA per share tells how much is value of stock before interest and tax and attock is behind
others which is alarming but that depends on current situation however attock needs a strong
strategy.
 It tells the market value of company as compared to its earning and attock is way behind it and
is undervalued
 Attock is ahead in terms of p/cf and has higher ratio as compared to industry. It measures value
of stock relative to operating cashflow. High ratio is not good and means company share is
trading at higher price but is nit generating cashflow.

CONCLUSION:
Attock cement company is still performing better than others and is superior in terms of many points.
What I observed is that they are lacking liquidity and have taken more debt in financing assets and also,
they need to focus on basic eps and shares but apart from that they are good and they just need to
maintain other stuff. Management is pretty good, but they are not the gamechangers and needs to
improve their reputation in front of investors a bit more.
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