Calculations Calculations 2017 2018 %
Financial Ratios Formulae
(2017) (2018) Results Results Change
Remarks
LIQUIDITY RATIOS
𝐶𝑢𝑟𝑟𝑒𝑛 𝐴𝑠𝑠𝑒𝑡 1582 1646 Decreased
Current Ratio 1.46 1.28 -12% Low and risky
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 1081 1285
1007 1039 Decreased
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 − 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
Quick Ratio 1081 1285 0.93 0.81 -13% Low and risky
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑁𝑒𝑡 𝑤𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 501 361 Low
Net working capital to total asset 4311 4535 0.12 0.08 -0.32 (poor)
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
FINACIAL LEVERAGE
RATIOS
𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡 1670 1722 Decreased
Debt-equity Ratio 2641 2772 0.63 0.61 -3% Good
𝑇𝑜𝑡𝑎𝑙 𝐸𝑞𝑢𝑖𝑡𝑦
𝐸𝐵𝐼𝑇 358 473 Increased
Times interest Earned Ratio 18 18 19.89 24.89 25% Good
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝐸𝐵𝐼𝑇𝐷𝐴 698 972 Increased
EBITDA ratio 132 165 3.58 3.75 5% Good
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 1670 1722 Low and Decreasing
Total Debt Ratio 4311 4535 0.39 0.38 -2% Good
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
PROFITABILITY RATIO
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 246 321 Low with good
Return on Asset 4311 4535 6% 7% 24% prospects
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 246 321 Increasing (good)
Return on Equity 2641 2772 9% 11% 23%
𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦
246 321 Increased
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
Profit Margin 3013 3377 Good
𝑆𝑎𝑙𝑒𝑠 8% 10% 16%
ASSET MANAGEMENT
RATIO
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑 1840 1897 Decreased
Inventory Turnover 575 607 3.20 3.13 -2% Not good
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
365 𝑑𝑎𝑦𝑠 365 365 Increased
Day's Sales in Inventory 3.2 3.13 114.06 116.79 2% Poor
𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
𝑆𝑎𝑙𝑒𝑠 3013 3377 Increasing (not safe)
Receivables turnover 175 191 17.22 17.68 3%
𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
365 𝑑𝑎𝑦𝑠 365 365 Decreased
Day's Sales in receivables 17.22 17.68 21.20 20.64 -3% Good
𝑅𝑒𝑐𝑒𝑖𝑐𝑎𝑏𝑙𝑒𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
𝑆𝑎𝑙𝑒𝑠 3013 3377 Increased but low
Total Asset Turnover 4311 4535 70% 74% 7% Poor
𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡
MARKET VALUE RATIO
𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 8 8.6 Increased
Price-earnings ratio 1.11 0.85 7.21 10.12 40% good
𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 8 8.6 Decreased
Price-Sales ratio 9.66 11.69 0.95 0.88 -7% Poor
𝑆𝑎𝑙𝑒𝑠 𝑝𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝑀𝑎𝑟𝑘𝑒𝑡 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 8 8.6 Decreased
Market-to-book ratio 8.46 9.73 0.83 0.74 -11% Low (poor)
𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
BERGER PAINT RETURN ON ASSET TREND ANALYSIS
RETURN ON ASSET (ROA)
9% 8%
8%
7%
7%
6%
6% 5%
5%
4%
4%
3%
2%
1%
0%
2014 2015 2016 2017 2018
YEAR
DANGOTE BUSINESS SCHOOL
BAYERO UNIVERSITY KANO
MBA 8307
COURSE TITKE; BUSINESS DYNAMICS & MANAGEMENT CONSULTING
QUESTION;
SYNOPSIS OF THE BOOK ‘CHANGE YOUR THINKING CHANGE YOUR LIFE’
BY
RAPHEAL VINCENT MBAH
DBS/18/MBA/00397
JUNE 2019
2017 2018 CHANGE
ASSETS N'000 N'000
Non-current assets
Property, plant and equipment 2205523 2410120 204597
Intangible assets 54628 33785 -20843
Investment property 466295 445270 -21025
2729446 2889175 159729
Current Assets
Inventories 574991 606712 31721
Trade and otheer receivables 175390 190982 15592
Deposits for imports 29411 134775 105364
Prepayments and advances 46439 65578 19139
Other financial assets 0 129213 129213
Cash and bank balances 755747 518864 -236883
1581978 1646124 64146
Total Assets 4311424 4535299 223875
Equity and liabilities
Equity
Share capital 144912 144912 0
Share premium 635074 635074 0
Retained earnings 1861159 2033066 171907
Total Equity 2641145 2813052 951893
Non-current liabilities
Loans and borrowings 380821 256707 -124114
Deferred income 71579 64327 -7252
Deferred tax liability 137347 116175 -21172
Total 589747 437209 -152538
Current liabilities
Loans and borrowings 73435 109897 36462
Current tax liabilities 102498 175649 73151
Trade and othe payables 557395 622491 65096
Deferred incom 26077 24668 -1409
Dividend payable 321127 352333 31206
Total current liabilities 1080532 1285038 204506
Total liabilities 1670279 1722247 51968
-
Total equity and liabiliies 7311424 4535299 2776125
CHANGE
%
ASSETS
Non-current assets
51.16% 53.14% 1.99%
Property, plant and equipment
1.27% 0.74% -0.52%
Intangible assets
10.82% 9.82% -1.00%
Investment property
63.31% 63.70% 0.40%
Current Assets
13.34% 13.38% 0.04%
Inventories
4.07% 4.21% 0.14%
Trade and otheer receivables
0.68% 2.97% 2.29%
Deposits for imports
1.08% 1.45% 0.37%
Prepayments and advances
0.00% 2.85% 2.85%
Other financial assets
17.53% 11.44% -6.09%
Cash and bank balances
36.69% 36.30% -0.40%
100.00% 100.00% 0.00%
Total Assets
Equity and liabilities
Equity
3.36% 3.20% -0.17%
Share capital
14.73% 14.00% -0.73%
Share premium
43.17% 44.83% 1.66%
Retained earnings
43.17% 62.03% 18.86%
Total Equity
Non-current liabilities
8.83% 5.66% -3.17%
Loans and borrowings
1.66% 1.42% -0.24%
Deferred income
3.19% 2.56% -0.62%
Deferred tax liability
13.68% 9.64% -4.04%
Total
Current liabilities
1.70% 2.42% 0.72%
Loans and borrowings
2.38% 3.87% 1.50%
Current tax liabilities
12.93% 13.73% 0.80%
Trade and othe payables
0.60% 0.54% -0.06%
Deferred incom
7.45% 7.77% 0.32%
Dividend payable
25.06% 28.33% 3.27%
Total current liabilities
38.74% 37.97% -0.77%
Total liabilities
169.58% 100.00% -69.58%
Total equity and liabiliies
BERGER PANITS PLC
SUMMARY OF STANDARDIZED STATEMENT OF FINANCIAL POSITION
(ASSETS, EQUITY AND LIABILITIES)
ASSETS, EQUITY AND LIABILITIES COMMON-SIZE COMMON-BASE COMBINED
N IN THOUSANDS ASSETS, EQUITY AND YEAR ASSETS, COMMON-SIZE
LIABILITIES EQUITY AND AND BASE
LIABILITIES YEAR ASSETS,
EQUITY AND
LIABILITIES
2017 2018 2017 2018
ASSETS
Non-current assets
Property, plant and equip-
ment 2205523 2410120 51.16% 53.14% 1.09 1.04
Intangible assets 54628 33785 1.27% 0.74% 0.62 0.59
Investment property 466295 445270 10.82% 9.82% 0.95 0.91
2729446 2889175 63.31% 63.70% 1.06 1.01
Current Assets
Inventories 574991 606712 13.34% 13.38% 1.06 1.00
Trade and other receiva-
bles 175390 190982 4.07% 4.21%
Deposits for imports 29411 134775 0.68% 2.97% 4.58 4.36
Prepayments and advances 46439 65578 1.08% 1.45% 1.41 1.34
Other financial assets 0 129213 0.00% 2.85% 0.00 0.00
Cash and bank balances 755747 518864 17.53% 11.44% 0.69 0.65
1581978 1646124 36.69% 36.30% 1.04 0.99
Total Assets 4311424 4535299 100.00% 100.00% 1.05 1.00
Equity and liabilities
Equity
Share capital 144912 144912 3.36% 3.20% 1.00 0.95
Share premium 635074 635074 14.73% 14.00% 1.00 0.95
Retained earnings 1861159 2033066 43.17% 44.83% 1.09 1.04
Total Equity 2641145 2813052 43.17% 62.03% 1.51 1.44
Non-current liabilities
Loans and borrowings 380821 256707 8.83% 5.66% 0.67 0.64
Deferred income 71579 64327 1.66% 1.42% 0.17 0.85
Deferred tax liability 137347 116175 3.19% 2.56% 1.62 0.80
Total 589747 437209 13.68% 9.64% 3.18 0.70
Current liabilities
Loans and borrowings 73435 109897 1.70% 2.42% 1.50 1.42
Current tax liabilities 102498 175649 2.38% 3.87% 1.71 1.63
Trade and othe payables 557395 622491 12.93% 13.73% 1.12 1.06
Deferred incom 26077 24668 0.60% 0.54% 0.95 0.90
Dividend payable 321127 352333 7.45% 7.77% 1.10 1.04
Total current liabilities 1080532 1285038 25.06% 28.33% 1.19 1.13
Total liabilities 1670279 1722247 38.74% 37.97% 1.03 0.98
Total equity and liabiliies 7311424 4535299 169.58% 100.00% 0.62 0.59
SOURCE OF CASH
Intangible assets 20843
Investment property 21025
Retained earnings 171907
Loans and borrowings 36462
Current tax liabilities 73151
Trade and othe payables 65096
388484
USE OF CASH
Property, plant and equipment -204597
Inventories -31721
Trade and otheer receivables -15592
Deposits for imports -105364
Prepayments and advances -19139
Other financial assets 129213
Loans and borrowings -124114
Deferred tax liability -21172
Deferred incom -1409
-393895
NET CASH BALANCE -5411
