Sapphire Textile Mills Limited
Horizontal Analysis of Balance
Sheet
Sapphire Vertical Analysis of Balance Sheet
Textile Mills
Limited Vertical Analysis of Income
Statement
Horizontal Analysis of Income
Statement
RATIOS
• Sapphire Group is a Pakistani industrial
conglomerate largely focused on
the textile industry. Based in Lahore, it is
Introduction an integrated textile group,
manufacturing cotton yarn, fabric, and
finished garments.
Current ratio
Sapphire Textile 2014 2015 2016 2017 2018
Sapphire 2014 2015 2016 2017 2018
Current asset 8,324,019,651 9,207,109,411 11,583,158,478 14,030,361,000 15,347,245,872
Textile
Current asset 8,324,019,6 9,207,109, 11,583,158, 14,030,361, 15,347,245,
51 411 478 000 872
Current 5,944,456,2 7,800,847, 9,676,419,0 11,806,321, 12,971,562,
Current liabilities liabilities5,944,456,219 19 7,800,847,121
121 9,676,419,041
41 170 11,806,321,170
256 12,971,562,256
Current ratio 1.40029959 1.1802704 1.19705011 1.18837704 1.18314552
8 59 8
Current ratio 1.400299598 1.180270459 1.19705011 1.18837704 1.183145528
Sapphire Textile
1.45
1.4
1.35
1.3
1.25
Sapphire Textile
1.2
1.15
1.1
1.05
2014 2015 2016 2017 2018
Net Working Capital to Sale Ratio
Sapphire Textile 2014 2015 2016 2017 2018
Total current assets 8,324,019,651 9,207,109,411 11,583,158,478 14,030,361,000 15,347,245,872
Total current liabilities 5,944,456,219 7,800,847,121 9,676,419,041 11,806,321,170 12,971,562,256
Sales 25,411,301,753 23,315,336,620 23,110,564,181 25,583,975,268 28,896,327,034
Net working capital to sale 0.09 0.06 0.08 0.09 0.08
ratio
Sapphire Textile
0.09
0.08
0.07
0.06
0.05
Sapphire Textile
0.04
0.03
0.02
0.01
0
2014 2015 2016 2017 2018
Total Assets Turn Over
Sapphire Textile 2014 2015 2016 2017 2018
Sales 25411301753 23315336620 23110564181 25583975268 28896327034
Total assets 22,050,550,287 28,087,804,661 31,800,656,888 42,532,024,018 42,330,151,035
Total assets 1.152411229 0.830087538 0.726732289 0.601522638 0.682641718
turn over
Sapphire Textile
1.4
1.2
0.8
Sapphire Textile
0.6
0.4
0.2
0
2014 2015 2016 2017 2018
Fixed Assets Turnover
Sapphire Textile 2,014 2,015 2,016 2,017 2,018
Sales 25411301753 23315336620 23110564181 25583975268 28896327034
Fixed assets 13,726,530,636 18,880,695,250 20,217,498,410 28,501,663,018 26,982,905,163
Fixed assets turnover 1.85125451 1.234877017 1.143097119 0.897630965 1.070912374
Sapphire Textile
2
1.8
1.6
1.4
1.2
0.8
Sapphire Textile
0.6
0.4
0.2
0
2014 2015 2016 2017 2018
Return on Assets
Sapphire Textile
2,014 2,015 2,016 2,017 2,018
Net income
983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020
Total assets
22050550287 28087804661 31800656888 42532024018 42330151035
Return on assets
0.044597748 0.036817953 0.04554038 0.063992877 0.037681392
Sapphire Textile
0.07
0.06
0.05
0.04
Sapphire Textile
0.03
0.02
0.01
0
2014 2015 2016 2017 2018
Quick Ratio
Sapphire Textile
2014 2015 2016 2017 2018
Total current assets
Quick Ratio
8324019651 9207109411 11583158478 14030361000 15347245872
Total current liabilities
5944456219 7800847121 9676419041 11806321170 12971562256
Stock in trade
3776222400 3969334963 4281470839 5326588336 5471700519
Quick ratio
0.765048489 0.671436623 0.754585721 0.737212934 0.761322743
Sapphire Textile
0.78
0.76
0.74
0.72
0.7
Sapphire Textile
0.68
0.66
0.64
0.62
2014 2015 2016 2017 2018
Number of Days of Inventory
Sapphire
Textile
2,014 2,015 2,016 2,017 2,018
Stock in trade
3776222400 3969334963 4281470839 5326588336 5471700519
Cost of goods sold
/365
22,623,272,169 20,707,601,784 20,547,990,291 22,906,156,922 25,360,086,618
Number of days
of inventory
60.9249257 69.9649953 76.0530268 84.8769503 78.75251846
Sapphire Textile
90
80
70
60
50
Sapphire Textile
40
30
20
10
0
2014 2015 2016 2017 2018
Operating Profit Margin
Sapphire
Textile
2014 2015 2016 2017 2018
Operating
income
1985976417 1847805762 2609779353 3944309779 3340232478
Sales
25411301753 23315336620 23110564181 25583975268 28896327034
Operating
profit margin
0.078153274 0.079252802 0.112925817 0.154171107 0.11559367
Sapphire Textile
0.18
0.16
0.14
0.12
0.1
Sapphire Textile
0.08
0.06
0.04
0.02
0
2014 2015 2016 2017 2018
Gross Profit Margin
Sapphire
Textile
2,014 2,015 2,016 2,017 2,018
Gross profit
2,788,029,584 2,607,734,836 2,562,573,890 2,677,818,346 3,536,240,416
Sales
25411301753 23315336620 23110564181 25583975268 28896327034
Gross profit
margin
0.109716126 0.11184633 0.110883225 0.104667798 0.122376813
Sapphire Textile
0.125
0.12
0.115
Sapphire Textile
0.11
0.105
0.1
0.095
2014 2015 2016 2017 2018
Net Profit Margin
Sapphire Textile
2,014 2,015 2,016 2,017 2,018
Net income
983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020
Sales
25411301753 23315336620 23110564181 25583975268 28896327034
Net profit margin
0.04 0.04 0.06 0.11 0.06
Sapphire Textile
0.12
0.1
0.08
Sapphire Textile
0.06
0.04
0.02
0
2014 2015 2016 2017 2018
Inventory Turnover
Sapphire Textile
2014 2015 2016 2017 2018
Cost of goods sold
22623272169 20707601784 20547990291 22906156922 25360086618
Stock in trade
3776222400 3969334963 4281470839 5326588336 5471700519
Inventory turnover
5.99 5.22 4.80 4.30 4.63
Sapphire Textile
7
Sapphire Textile
3
0
2014 2015 2016 2017 2018
Time interest coverage ratio
Sapphire Textile 2014 2015 2016 2017 2018
Profit from 1985976417 1847805762 2609779353 3944309779 3340232478
operations
Finance cost 715768385 669410841 873059367 968945979 1391490732
Time interest 2.774607623 2.760346336 2.989234698 4.070722068 2.400470518
coverage ratio
Equity ratio
Sapphire 2014 2015 2016 2017 2018
Textile
total equity 13340615177 14370171153 14903981167 16793923250 16022255202
TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035
equity ratio 0.605001463 0.511616031 0.468668972 0.394853611 0.378506923
Sapphire Textile
0.7
0.6
0.5
0.4
Sapphire Textile
0.3
0.2
0.1
0
2014 2015 2016 2017 2018
Debt to equity ratio
Sapphire 2014 2015 2016 2017 2018
Textile
total non- 2,765,478,891 5,916,786,387 7,220,256,680 13,730,948,198 13,336,333,577
current
liabilities
total equity 13340615177 14370171153 14903981167 16793923250 16022255202
Debt to equity 20.73% 41.17% 48.45% 81.76% 83.24%
Ratio
Sapphire Textile
90.00%
80.00%
70.00%
60.00%
50.00%
Sapphire Textile
40.00%
30.00%
20.00%
10.00%
0.00%
2014 2015 2016 2017 2018
Accounts Receivable Turnover in Days
Sapphire Textile 2014 2015 2016 2017 2018
Sales and services 25411301753 23315336620 23110564181 25583975268 28896327034
Other receivables 54051052 145975668 170505333 266589119 566397978
average A/R 66557445 100013360 158240500.5 218547226 416493548.5
Account Receivable 381.7950306 233.1222211 146.0470872 117.0638298 69.38001114
Turnover
Accounts Receivable 0.956010348 1.56570231 2.499193972 3.117957106 5.260881254
Turnover in Days
Return on Equity
Sapphire Textile 2014 2015 2016 2017 2018
net income 983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020
total equity 13340615177 14370171153 14903981167 16793923250 16022255202
Return on Equity 0.073715108 0.071964032 0.097169608 0.162067347 0.099552716
Sapphire Textile
0.18
0.16
0.14
0.12
0.1
Sapphire Textile
0.08
0.06
0.04
0.02
0
2014 2015 2016 2017 2018
Debt ratio
Sapphire Textile 2014 2015 2016 2017 2018
total debt(total - 8,709,935,110 13,717,633,508 16,896,675,721 25,738,100,768 26,307,895,833
equity)
total assets 22,050,550,287 28,087,804,661 31,800,656,888 42,532,024,018 42,330,151,035
Debt ratio 0.394998537 0.488383969 0.531331028 0.605146389 0.621493077
0.7
Sapphire Textile
0.6
0.5
0.4
0.3
Sapphire Textile
0.2
0.1
0
2014 2015 2016 2017 2018
EPS
Sapphire 2014 2015 2016 2017 2018
Textile
net income 983,404,894 1,034,135,461 1,448,214,006 2,721,746,595 1,595,059,020
issued share 20,083,140 20,083,140 20,083,140 20,083,140 20,083,140
EPS 48.96669017 51.49271782 72.11093514 135.5239567 79.42279046
Sapphire Textile
160
140
120
100
80
Sapphire Textile
60
40
20
0
2014 2015 2016 2017 2018
Return on investment
Sapphire Textile 2014 2015 2016 2017 2018
Profit after 983404894 1034135461 1448214006 2721746595 1595059020
taxation for the
year
total fix assets 13726530636 18880695250 20217498410 28501663018 26982905163
Return on 0.07164264 0.054772107 0.071631711 0.095494308 0.059113687
investment
Sapphire Textile
0.18
0.16
0.14
0.12
0.1
Sapphire Textile
0.08
0.06
0.04
0.02
0
2014 2015 2016 2017 2018
Operating return on assets
Sapphire Textile 2014 2015 2016 2017 2018
Profit from 1985976417 1847805762 2609779353 3944309779 3340232478
operations
TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035
Operating return 0.09006471 0.065786763 0.082066838 0.092737411 0.078909061
on assets
Sapphire Textile
0.1
0.09
0.08
0.07
0.06
0.05
Sapphire Textile
0.04
0.03
0.02
0.01
0
2014 2015 2016 2017 2018
Cash Ratio
Sapphire Textile 2014 2015 2016 2017 2018
cash + Market 878,751,999 1,155,391,157 1,856,551,777 1,733,821,338 1,741,048,628
security
total current 5,944,456,219 7,800,847,121 9,676,419,041 11,806,321,170 12,971,562,256
liabilities
Cash Ratio 0.147827146 0.148110986 0.191863516 0.146855342 0.134220427
Financial leverage Ratio
Sapphire Textile 2014 2015 2016 2017 2018
total equity 13340615177 14370171153 14903981167 16793923250 16022255202
TOTAL ASSETS 22050550287 28087804661 31800656888 42532024018 42330151035
Financial leverage 0.605001463 0.511616031 0.468668972 0.394853611 0.378506923
Ratio
Sapphire Textile
0.7
0.6
0.5
0.4
Sapphire Textile
0.3
0.2
0.1
0
2014 2015 2016 2017 2018
Account Payables Days
Sapphire Textile 2014 2015 2016 2017 2018
account payable 2,036,146,471 2,316,663,831 2,525,623,858 3,224,402,305 3,867,282,911
total purchase 15,636,504,239 13,833,049,295 13,719,911,307 15,425,588,394 17,235,900,373
total purchase 42839737.64 37898765.19 37588798.1 42261886.01 47221644.86
/365
Account Payables 47.52938704 61.12768633 67.19086498 76.29575036 81.89640413
Days
Sapphire Textile
90
80
70
60
50
Sapphire Textile
40
30
20
10
0
2014 2015 2016 2017 2018
