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Engro Foods Executive Summary

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According to ratio analysis, Engro Foods were in strong position during 2012 but financial position of company was slightly down in 2013.In 2013, the Company continues to maintain a strong positive outlook on the country despite the energy crisis, law and order issues and macroeconomic challenges it has to face. Engro Foods will continue to live its purpose-inspired growth strategy of elevating consumer delight worldwide and bring to the fore affordable and nutritious products that guarantee wholesome goodness to its consumers. The Company will continue to expand its market share by exploring markets within the country. It is expected that the company will be able to perform well because of its future expansion plan which will increase the market share from 25% to 35%. EPS is also showing the increasing trend. One more thing which is favorable for company is its diversification projects and investment horizon. If the company would be able to continue its current …show more content…

The company should increase its Liquid assets because Current ratio of the firm it can pay off its short term debts. Acid Test ratio shows that the firm is facing problem to pay it immediate liabilities. • The debt to equity ratio shows that firm depends more in equity than debt. More dependency on equity does not saves tax while depending on debts can cause tax saving. But relying more on debt is also not good for company’s financial position. So, it should maintain balance between debt and equity. • Engro foods should also reduce financial cost so no borrowings are left for which they have to pay interest. • They should maintain number of shareholders for increasing EPS. • Engro foods should increase net profit by controlling its cost and maintain pricing

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