Comparison between two textiles giant, nishat & sapphire using ratio analysis

Abstract

The need of the study provides a clear picture to concern parties who directly or indirectly interact with the company. It benefits the management of the companies by providing them with the crystal clear picture of company’s financial performance in comparison with each other, enabling them to make better and efficient decisions in the future and achieve organizations goals. The study also encourages and motivates employees and offers of the organization showing them how actively they are working day and night contributing for company’s growth. This study is also beneficial to the investors who are interested in investing in the company’s shares. This study will help them make investing decisions more accurately and efficiently. The main objective of the study is to know about the financial strengths and weakness of nishat & sapphire through FINANCIAL RATIO ANALYSIS. 1. To study and understand the existing financial system at nishat & sapphire 2. To evaluate short term financial position of the companies by Liquidity Ratios. 3. To understand the capital structure of the companies with the help of Leverage ratio. 4. To provide appropriate suggestions and solutions to their problems regarding their financial position on the basis of financial ratio analysis for the better performance of the organizations The information which is going to be used in this project is collected through secondary sources. That information was utilized only for calculating financial ratios and based on the results, interpretations, suggestions and conclusions were made. 1. All of the data is collected from the annual reports of nishat & sapphire. 2. Some of the information regarding theoretical aspects is collected from internet. Every study is bound with certain limitations. The below mentioned are the constraints under which the study is carried out. Lack of availability of sufficient information. Because of the pandemic our group was not able to visit the organization hence we couldn’t meet their CFO. Poor internet connection due to the current pandemic. It was very difficult for us to contact our supervisor. Limitation of time. Managing FYP with classes and other projects, assignments, quizzes was kind of difficult.