Overall Financial Position
Kohinoor sugar mill is a major sugar industry in Pakistan working from the Pakistan`s independence. It producing sugar which fulfills the need of Pakistanis and foreign people. After the five years analysis the overall position bad.
I have used different tools and techniques to measure the performance of the Kohinoor sugar mill. I have done common size horizontal & vertical analysis, ratio analysis and apply univariate and multivariate models and comparison with other firms of this industry and conclude that the performance of Kohinoor sugar mill is very bad. And there are many chances of failure.
In common size analysis cost of goods sold and finance cost are very high which make the firm`s profitability position negative.
Short term solvency ratio is bad and working capital is negative. Long-term debt paying ability is not good and can not satisfy its creditors. Return on assets and return on investment also mostly in negative. Multivariate model shows that firm is much low from the standard of 2.675.which means there are many chances of bank-uptcy. Hence, Kohinoor sugar mill has unsound financial position and attraction less for investors.