## Findings of Activity Ratio Analysis

As per above calculation in table of account receivable ratios of Kohat cement , Luck cement  and Attock cement for the year 2011,2012,2013. The Kohat cement ratio for the year 2011, 2012, and 2013 is 373.59, 1092.24, and 1321.46 times respectively. Luck cement ratio for the years 2011, 2012, 2013 is 37.16, 39.86, 27.81 time respectively. And the Attock cement ratio for the years 2011, 2012, 2013 are 161.18, 88.20, 42.64 time respectively. From the above information we conclude that the ratio of Kohat cement is high with respect to other companies. This ratio has been calculated to see the efficiency of firm’s credit policies and also highlight the level of investment in receivable required to maintain the firm sales level. Therefore Kohat ratio for the last three years is representing that this company is receiving quickly debt from the consumers than other two companies.

As per above calculation in table average collection  period ratio of three companies Kohat cement Lucky cement and Attock Cement for the year 2011, 2012, and 2013. The Kohat cement ratio for the year 2011, 2012,and 2013 is 0.97 days, 0.33 days and 0.27 days respectively. The lucky cement for the year 2011, 2012, and 2013 is 9.82 days, 9.15 days and 13.12 days respectively and Attock cement for the year is 2.26 days, 4.13 days, 8.56 days respectively. Above analysis tells us the average collection period of Lucky cement is high with respect to other two companies Kohat and Attock cement. The recorded ratio result also lies that Lucky cement is implementing very restrict policy for giving credit convenience to their customer’s because as per analysis Lucky cement has strong account receivable then other two companies.

As per above calculation in table the account payable turnover  ratio of Kohat cement, Lucky cement, and Attock cement for the year 2011, 2012, and 2013. The Kohat cement ratio for the year 2011, 2012 and 2013 is 6.29 time, 6.08 times and 6.32 times respectively. Similarly the lucky cement ratio for the year 2011, 2012 and 2013 is 5.06 times, 5.58 times and 10.57 times respectively. The third company Attock cement payable turnover for the year 2011, 2012 and 2013 is 6.01 times, 6.11 times and 5.67 times respectively. As the above information tells us that accounts payable turnover ratio of Lucky cement is higher in year 2013 than other two companies and second one is Kohat cement. How if we see the increasing trend, then three companies has better position for short term liquidity measures but Attock cement is leading  position over Kohat and Lucky Cement .