Despite any financial recession and economic stress, online purchasing continues to grow. Expansion of the market and evolving technology that simplifies our daily lives help to set the pace of e-commerce design. Customers want the shopping process to be quick and easy, and merchants want to increase sales by making their stores attractive and popular. Thus, e-commerce design tends to combine a look and usability that is at once unique and eye-catching. In this post, we showcase 35 attractive online store designs.

One of the trends we observed from this collection is a minimalist design style. Small details and accents (e.g. unobtrusive background patterns, icons, pictograms and typography) reflect a brand’s spirit and match the character of its products. Some websites, though, are unconventional, rich in visual effects. Please note that the selection of stores featured in this showcase was based more on design aesthetics than usability. But we made sure that the websites included here provide at least an easy shopping experience, even for foreign visitors.

[Editor's note: A must-have for professional Web designers and developers: The Printed Smashing Books Bundle is full of practical insight for your daily work. Get the bundle right away!]

Showcase of Beautiful Online Store Designs

Blik (http://www.whatisblik.com/)
Blik manufactures whimsical removable graphics to spice up the walls of your home. Even though the “About” info gets a bit lost in the large product preview in the center, getting an idea of what Blik is all about doesn’t take longer than a couple of seconds. Aside from the stylish look, the easy shopping experience is what makes this design exquisite: all products are categorized by tags, the thumbnails are big, product descriptions are detailed and supported by decal outlines, and quick tips are placed here and there for maximum assurance. Vintage-looking faded colors and rotating logo add considerably to the elegance.

(http://www.whatisblik.com/)

Fred Perry (http://www.fredperry.com/)
Fred Perry’s e-commerce store has a contemporary and elegant look, conveying key features of the brand very well. The stylish grayscale color scheme, along with sparse text in Helvetica font, make an impact. The design naturally combines Flash and JavaScript. The mini-cart window, the readable layout of the shopping cart and checkout pages, the usable navigation and informative product descriptions all up to a slick and friendly shopping experience.

(http://www.fredperry.com/)

Nectar (http://www.nectarboutique.com/)
The website for clothing and accessories boutique Nectar was designed by Sunrise Design studio (http://sunrisedesign.com/). The website’s structure allows you to browse goods and make purchases with ease. A muted palette and slipshod watercolor strokes in the background give the layout a positive feel. By the way, if you visit the designers’ portfolio page, you’ll see that painted styles must be their passion.

(http://www.nectarboutique.com/)

Tommy Hilfiger (http://usa.tommy.com/)
Another giant brand: Tommy Hilfiger. This design relies on simplicity, a comfortable shopping experience and its corporate identity.

(http://usa.tommy.com/)

Seibei (http://www.seibei.com/)
Now, that’s a design you will not forget! The site has a very simple, even minimal navigation combined with a striking “cartoonish” design. Product pages are clean and straightforward. Nice and unique design solution.

(http://www.seibei.com/)

Bellyshades (http://www.bellyshades.de/)
The design of German club-wear and accessories store Bellyshades stands out for sure. The vibrant acid colors, insane typography and animals that stand in for shopping carts will leave you anything but cold.

(http://www.bellyshades.de/)

Ten Little Monkeys (http://www.tenlittlemonkeys.co.uk/)
This design has a very strong visual appeal; vibrant colors work well on the dark background, the navigation is colorful yet intuitive (notice how the section for girls and boys are distinguished). Also, the choice of typography is appropriate for the shop’s main objective: selling branded children’s fashion and gifts.

(http://www.tenlittlemonkeys.co.uk/)

DogCollars.ca (http://www.dogcollars.ca/)
Here’s another beautiful e-commerce website: DogCollars.ca. It’s a simple HTML website with a neat grid-based layout, a warm chocolate color and big high-quality thumbnails. The design is minimalist but not plain, and it delivers a satisfying shopping experience.

(http://www.dogcollars.ca/)

’47 (http://www.nineteen47.com/)
Premium sports apparel brand ’47 has an interesting history: “This is a classic story. It’s the American dream come to life…” Thus, the company emphasizes the individuality of its brand in its store design and associates that brand with a community. The website combines jQuery and Flash, which slows the loading speed, but given its objective, this is not critical. Creative visualization and a well-implemented shopping mechanism make for a wonderful e-commerce design.

(http://www.nineteen47.com/)

Storyville Coffee Company (http://www.storyville.com)
Creating an e-commerce Flash platform, let alone a good one, is challenging. In addition to the Converse store profiled above, our showcase includes another fully Flash-based online store: Storyville Coffee Company. This one sports a pleasant coffee theme (appropriately enough), an original table-like product viewing area and an easy shopping process.

(http://www.storyville.com)

Narwhal Co. (http://narwhalcompany.com/)
Accessories made from recycled ties? Yes! Narwhal Co. produces original jazzy merchandise from recycled ties, including wallets, wrist wear, covers and cases.  The tie theme in the website’s header and footer, the stylish icons and the inventive product slideshow on the main page give this design a special flavor.

Eligibility Criteria
			One hundred thousand Laptops will be provided to following categories of youth in Punjab: All students of 4 years BS Degree Programme who have secured 60% or above marks (in the previous year) in case of annual examination system OR 70% or above marks (in the previous semester) in case of semester system All post graduate students (Part I & II) of 2 year Masters Degree Programme, who have secured 60% or above marks (in the previous year) in case of annual examination system OR 70% or above marks (in the previous semester) in case of semester system All students of Engineering Universities and Medical Colleges, who have secured 60% or above marks (in the previous year) in case of annual examination system OR 70% or above marks (in the previous semester) in case of semester system All currently enrolled students/scholars of MS, LLM, M.Phil and Ph.D The top 100 students of each Board of Intermediate and Secondary Education of Punjab
			In case of 1st year students, the data for the last examination in which the student appeared, shall be considered.
			However, the following are NOT eligible for this initiative:
			Students of Private Sector Institutions Evening Students of Public Sector Institutions MPhil/PhD/LLM/MS scholars who are either already in the Govt. Service or have already availed a similar facility or any benefit from HEC.
			Note
			If you are an eligible selected candidate and are facing any problem in registration for the laptop awards, please immediately contact respective Principal of the College/Registrar of the University/Secretary of the Board, to provide complete information to the concerned authority. If you think you are eligible and have not been selected or have any other grievances, kindly contact the respective Principal of the College / Registrar of the University / Secretary of the Board If you have not provided us your CNIC/B Form no., please immediately provide us the same through Principal of College / Registrar of University / Secretary of the Board, to become eligible for registration You can also register your grievance with the Independent Grievance Redressal Committees (IGRCs) at Divisional Commissioner's level, which have been constituted by the Chief Minister Punjab, to hear and dispose off appeals submitted by various students regarding e-Youth Laptops Scheme. The laptops awarded to the eligible candidates do not require any initial deposit or payment. All laptops distributed via this scheme are absolutely free of cost. These laptops are non transferable; however if the candidate thinks he/she already as a laptop and would like to spare it for another deserving candidate, the gesture shall be valued and appreciated by the Chief Minister Punjab in person.

Sr.
Name of Student
Class
Marks Obtained in Last Exam (%)
1
Ali Hassan
Business Administration
78
2
Aadla Hussain
English
70.00
3
Aaqiba Javed
Business Administration
75
4
Abdul Manan
Business Administration
67
5
Abdul Shakoor
Computer Sciences/Information Technology
75.5
6
Abdur Raheem Shoaib
Business Administration
72
7
Abid Mehmood
Computer Sciences/Information Technology
78.25
8
Abida Parveen
Business Administration
72
9
Abu Sufyan
Business Administration
63
10
Abu-Ul-Khair Muhammad Umar
Computer Sciences/Information Technology
72
11
Adeeb Sarwar
Business Administration
64
12
Adeela Aslam
Psychology
82.50
13
Adeela Farooq
Botany
72.50
14
Adnan Arshad
Business Administration
74
15
Adnan Haider
Business Administration
77
16
Adnan Shabbir
Business Administration
76
17
Aftab Sarwar
Economics
72.50
18
Ahsan Ijaz
Business Administration
71
19
Ahsen Javaid
Business Administration
79
20
Aisha Tabassum Rashid
Mathematics
70.25
21
Aleena
Business Administration
73
22
Ali Nasir
Business Administration
67
23
Ali Raza
Business Administration
64
24
Ali Raza Arshaad
Business Administration
65
25
Ali Zafar
Business Administration
64
26
Aliyha Busharat Ghumman
Psychology
80.67
27
Amana Amjad
Business Administration
74
28
Ambar Khalid
Business Administration
66
29
Amber Saleem Alvi
Business Administration
74
30
Ameer Muawiya
Business Administration
72
31
Amer Sultan
Business Administration
61
32
Amina Imtiaz
Business Administration
70
33
Amna
Business Administration
66
34
Amna Anwar
Business Administration
62
35
Amna Arshad
Business Administration
69
36
Anam Aftab
Business Administration
60
Designation: Registrar, Assistant Registrar(HR)
University of Gujrat
Contact Person: Muhammad Akram Bhatti, Sarwat Khurshid
37
Anam Amjad Ali
Business Administration
67
38
Anam Khalid
Business Administration
74
39
Anam Shehzadi
Business Administration
71
40
Anila Abbas
Business Administration
70
41
Ansar Adnan
Business Administration
65
42
Ansar Iqbal
Business Administration
62
43
Ansar Iqbal
Business Administration
62
44
Anum Riaz
Business Administration
67
45
Aqsa
Business Administration
68
46
Aqsa Inam
Business Administration
73
47
Aqsa Majeed
Business Administration
71
48
Arfa Asghar
Business Administration
67
49
Arooj Fatima
Business Administration
75
50
Arooj Sikandar
Sociology
70.00
51
Arslan Ali Butt
Business Administration
76
52
Arslan Mukhtar
Business Administration
66
53
Arva Kalsoom
Zoology
71.63
54
Asba Arshad
Business Administration
75
55
Asfa Aslam
Business Administration
72
56
Asif Hussain
Chemistry
72.00
57
Asma Nosheen
Zoology
81.67
58
Asma Shaheen
Business Administration
67
59
Asma Zahid Cheema
Business Administration
66
60
Asra Farooq Butt
Business Administration
76
61
Ata ul Mustafa
Business Administration
62
62
Athir Chaudhry
Psychology
75.00
63
Atia Arshad
Education
82.50
64
Atia Nisar
Chemistry
72.50
65
Atif ur Rehman
Business Administration
62
66
Awais Ahmad
Business Administration
61
67
Awais ur Rehman
Business Administration
62
68
Ayesha Batool
Business Administration
76
69
Ayesha Kanwal
Business Administration
72
70
Ayesha Mansha
Business Administration
78
71
Ayesha Tabbasam
Business Administration
63
72
Ayesha Tanwir
Business Administration
74
73
Bilal Mehmood
Business Administration
63
74
Bilal Ahmed
Business Administration
60
75
Bilal Ahmed
Business Administration
72
76
Bilal Asghar
Business Administration
66
77
Binish Aziz
Business Administration
62
78
Bushara Bibi
Business Administration
60
79
Bushra Bibi
Psychology
75.17
80
Bushra Hanif
Computer Sciences/Information Technology
72
81
Bushra Kanwal
Business Administration
72
82
Bushra Kousar
Chemistry
77.50
83
Choudhry Raza Mushtaq
Business Administration
72
84
Dawood Sadiq
Business Administration
62
85
Faiza Anwar
Business Administration
69
86
Faizan Zafar Sheikh
Business Administration
63
87
Farah Ishaq
Psychology
75.00
88
Farah Naz
Mathematics
74.25
89
Farhan Hasan Malik
English
72.88
90
Farkhanda Ashraf
Botany
70.50
91
Farwa Asghar
Business Administration
60
92
Faryal Gohar
Botany
72.63
93
Farzana Kausar
Business Administration
77
94
Fawad Haider
Business Administration
72
95
Ghaffar Younis
Business Administration
60
96
Gulfam Rasul
Business Administration
62
97
Gulshan Shakeela
Botany
71.50
98
Hafiz Muhammad Javaid Afzal
Physics
74.88
99
Hafiz Muhammad Umair
Business Administration
72
100
Hafiza Tahira
Business Administration
78
101
Hafsa Saeed
Business Administration
64
102
Hammad Tariq
Business Administration
61
103
Haseeb ul Quddus
Business Administration
75
104
Hasnain Haneef
Business Administration
63
105
Hassan Raza Ahmed
Business Administration
75
106
Hifza Saeed
Business Administration
77
107
Huma Rizwan
Business Administration
61
108
Huma Zafar
Business Administration
67
109
Humaira Murtaza
Psychology
80.00
110
Iqra Riaz
Business Administration
77
111
Iqra Shahzadi
Business Administration
73
112
Iram Naz
Psychology
75.17
113
Iram Nazir
Business Administration
64
114
Irtaza Ansar
Business Administration
80
115
Irum Shabeer
Business Administration
70
116
Irum Shaukat
Mathematics
77.33
117
Ishrat Fatima
Business Administration
64
118
Ismail Safi
Business Administration
78
119
Jabbar Ali
Business Administration
61
120
Jafar Ali Cheema
Business Administration
73
121
Jahanzaib
Business Administration
72
122
Jahanzaib Rasool
Business Administration
73
123
Jamshaid Ashraf
Chemistry
70.00
124
Javeria Bint e Najam
Business Administration
72
125
Jawad Mubashir
Business Administration
60
126
Junaid Azam
Business Administration
63
127
Junaid Iftikhar
Business Administration
60
128
Junaid Iftikkhar
Business Administration
60
129
Kalsoom Aziz
Business Administration
76
130
Kamir Sajjad
Business Administration
71
131
Kamran
Business Administration
70
132
Kamran Shafi
Business Administration
72
133
Kanwal Shahzadi
Business Administration
60
134
Kashif Saraj
Business Administration
74
135
Khadija Naseem
Chemistry
74.38
136
Khalida Safdar
Computer Sciences/Information Technology
73
137
Khalil Ahmed Barkat
Business Administration
60
138
Khawar Hanif
Business Administration
73
139
Khizar Nawaz
Business Administration
67
140
Kiran Butt
Business Administration
66
141
Kiran Mustafa
Physics
79.67
142
Kiran Shahzadi
Business Administration
71
143
Kirran Fatima
Business Administration
76
144
Lubna Ikhalq Khan
English
80.00
145
Luqman Ahmed
Business Administration
63
146
M Arif Ali
Business Administration
71
147
M Jahanzaib
Business Administration
64
148
M Mubashir Nasim
Business Administration
65
149
M Noman
Business Administration
64
150
M. Shahid Abdul Ghani
Business Administration
61
151
Madiha Fazal
Business Administration
77
152
Mahnaz Muhammad Ali
Economics
77.83
153
Maimoona Aftab
Business Administration
65
154
Mamoon Zameer
Business Administration
61
155
Maria Safdar
Business Administration
71
156
Maryam Amjad
Business Administration
78
157
Maryam Tufail
Business Administration
70
158
Maryam Yaqoob
Business Administration
62
159
Maryam Zahid
Business Administration
65
160
Mazammal Hussain
Business Administration
60
161
Mazammal Hussain
Business Administration
60
162
Mehvish Rubab
Business Administration
76
163
Mehwish Ashgar
Business Administration
74
164
Mehwish Naz
Business Administration
72
165
Minal Javaid
Business Administration
65
166
Mirza Muhammad Salman
Business Administration
67
167
Mirza Rizwan Sajid
Statistics
70.88
168
Mirza Sajid Younis
Business Administration
78
169
Mirza Sarfaraz Baig
Business Administration
72
170
Mohsin Hassan Butt
Business Administration
62
171
Mohsin Mehmood
Business Administration
64
172
Mohtsham Abid
Business Administration
68
173
Muhammad Abid Dar
Mathematics
72.88
174
Muhammad Afzaal
Business Administration
73
175
Muhammad Ali
Business Administration
70
176
Muhammad Ali Anjum
Business Administration
62
177
Muhammad Arslan Mahmood
Business Administration
75
178
Muhammad Atta ul Mustafa Jamil
Business Administration
67
179
Muhammad Ayaz Ahmed
Business Administration
72
180
Muhammad Bilal Saleem
Business Administration
73
181
Muhammad Farzeen Anjum
Business Administration
74
182
Muhammad Hamza
Chemistry
70.00
183
Muhammad Hassan Anwar
Computer Sciences/Information Technology
77
184
Muhammad Imran Butt
Business Administration
67
185
Muhammad Iqbal
English
75.17
186
Muhammad Irfan
Business Administration
71
187
Muhammad Jahangir
Business Administration
73
188
Muhammad Mubeen
Chemistry
70.00
189
Muhammad Munir
Chemistry
74.63
190
Muhammad Naeem
Business Administration
71
191
Muhammad Naeem Salamat
Business Administration
70
192
Muhammad Nawaz
Business Administration
62
193
Muhammad Noman
Business Administration
64
194
Muhammad Noman
Business Administration
64
195
Muhammad Rashid
Business Administration
67
196
Muhammad Rashid
Business Administration
72
197
Muhammad Rizwan Arif
Business Administration
73
198
Muhammad Safdar
Business Administration
63
199
Muhammad Salman Tahir
Business Administration
75
200
Muhammad Sarfraz Aslam
Education
70.00
201
Muhammad Shaharyar
Business Administration
61
202
Muhammad Shahid
Business Administration
70
203
Muhammad Tanveer
Business Administration
60
204
Muhammad Tayyeb Bilal
Business Administration
76
205
Muhammad Umair Fazal
Business Administration
82
206
Muhammad Wajid
Business Administration
60
207
Muhammad Waqas Afzal
Business Administration
62
208
Muhammad Zaid
Business Administration
73
209
Muhammad Zeeshan Butt
Zoology
71.63
210
Muhammad Zubair Amjed
Business Administration
63
211
Muneeba Nazir
Business Administration
74
212
Muqaddas Bibi
Mathematics
76.17
213
Muzammal Riaz
Business Administration
60
214
Nabeel Ahmad
Business Administration
60
215
Nabeela Mehreen Ahmad
Business Administration
63
216
Nadeem Ahmad Naz
Computer Sciences/Information Technology
81
217
Naghmana Afzal
Business Administration
74
218
Naghmana Kausar
Chemistry
76.00
219
Naila Afzaal
Business Administration
63
220
Naqash Iftikhar
Business Administration
70
221
Naseer Ahmed
Business Administration
74
222
Nazia Anwar
English
72.00
223
Nazia Choudray
Botany
79.17
224
Nazia Naseem
Business Administration
69
225
Nazish Ashraf
Business Administration
63
226
Nazish Azam
Business Administration
79
227
Nokhaiz Khalik
Business Administration
80
228
Noreena Kausar
Psychology
82.50
229
Nosheen Akhter
Business Administration
73
230
Nosheen Zahra
Physics
73.75
231
Qamar un Nisa
Computer Sciences/Information Technology
80.75
232
Qasim Mehmood Ghumman
Business Administration
74
233
Rabeea Javed
Business Administration
61
234
Rabia Ashari
Business Administration
66
235
Rabia Gul
Business Administration
73
236
Raheeb Anjum
Business Administration
64
237
Raheel Zulfiqar
Business Administration
77
238
Raja Summe Ullah
Chemistry
79.17
239
Rana Ahmad Shaheed
English
75.50
240
Rashid Zahoor
Business Administration
63
241
Razia Bibi Ishaq
Zoology
80.00
242
Reema Choudhary
Computer Sciences/Information Technology
84.46
243
Rizwan Yaqoob
Business Administration
67
244
Rizwan Yaqoob
Business Administration
67
245
Rizwana Zulfiqar
Business Administration
74
246
Rubina Sarawr
English
72.50
247
Rukhshanda Saleem
Zoology
75.33
248
Saad Ghaus
Business Administration
64
249
Saad Shahzad Khokhar
Business Administration
74
250
Saba Batool
Business Administration
68
251
Saba Jamil
Business Administration
64
252
Saba Khalid
Business Administration
69
253
Sabeen Butt
Business Administration
69
254
Sadia Ahmed
Business Administration
66
255
Sadia Batool
Business Administration
73
256
Sadia Khatoon
Chemistry
76.00
257
Sadia Mobashara
Psychology
70.00
258
Sadia Noreen
Mathematics
73.00
259
Sadia Shaheen
Business Administration
69
260
Safia Fazal
Business Administration
75
261
Safia Yaqoob
Business Administration
70
262
Safir Abbas
Zoology
75.00
263
Sagheer Sadiq
Business Administration
67
264
Saima Anwar Dhamyal
English
72.88
265
Saira Ashraf
Business Administration
68
266
Saira Bashir
Zoology
74.38
267
Sajid Bashir
Computer Sciences/Information Technology
74
268
Sajjad Farooq
Business Administration
68
269
Saliha Zahoor
Computer Sciences/Information Technology
78.6
270
Saman Ali
Business Administration
66
271
Samina Afzal
Zoology
71.25
272
Samira Bibi
Education
72.50
273
Samra Shafquat
Zoology
74.38
274
Sana Gull
Business Administration
71
275
Sana Rashid
Business Administration
74
276
Sana Tariq
Business Administration
72
277
Sania Riaz
Business Administration
68
278
Sania Riaz
Business Administration
62
279
Saqib Hussain
Computer Sciences/Information Technology
79.5
280
Saqib Nawaz
Business Administration
61
281
Sehar Shoukat
Business Administration
64
282
Sehrish Arif
Zoology
77.50
283
Shah Jahan Mazhar
Business Administration
72
284
Shahzad Ahmad
Computer Sciences/Information Technology
70
285
Shakeela Naz
Business Administration
73
286
Shamila Sabir
Zoology
72.13
287
Shamsa Kanwal
Business Administration
69
288
Sheikh Aadil Abbas
Chemistry
70.38
289
Sheraz Jehangir
Business Administration
74
290
Shoaib Ahmad
Business Administration
62
291
Shoaib Waqas
Business Administration
74
292
Shujah Tahir Uppal
Business Administration
74
293
Shumaila Yousaf
Mathematics
80.00
294
Sidra Maqsood
Sociology
81.67
295
Sidra Shahzadi
Business Administration
60
296
Sidra Tariq
Business Administration
67
297
Snober Naseem
Business Administration
65
298
Sohaib Ijaz
Business Administration
74
299
Sohail Ahmed
Business Administration
60
300
Sohail Muqadds
Business Administration
73
301
Sonam Muhammad Arshad
Business Administration
66
302
Sufain Tariq
Business Administration
62
303
Suleman Ahmad
Business Administration
60
304
Sulman Jamil
Business Administration
63
305
Suman Arshad
Business Administration
63
306
Sundas
Business Administration
67
307
Sundas Fida
Business Administration
67
308
Syed Basit Hussain Shah
Business Administration
74
309
Syed Muhammad Yaseen
Business Administration
74
310
Syed Wajee ul Hassan
Business Administration
72
311
Syed Waqar Haider
Business Administration
79
312
Syed Zagham Naseem
Computer Sciences/Information Technology
72
313
Syeda Zunaira Bano
Business Administration
70
314
Tabassum Iqbal
English
80.67
315
Tabinda Sikandar
Business Administration
73
316
Tahira Munir
Psychology
75.00
317
Tahoora Zainab
Business Administration
76
318
Taimmor Usman Butt
Zoology
70.00
319
Tajalli Fatima
Business Administration
77
320
Tanzila Nawaz
Business Administration
71
321
Tanzila Qamar
Sociology
80.00
322
Tasneem Ullah
Biochemistry And Molecular Biology
72.25
323
Tauqeer Hussain Shah
Sociology
78.33
324
Tayyaba Arshad
Business Administration
61
325
Tayyaba Bhashir
Business Administration
60
326
Tayyaba Khalid
Business Administration
65
327
Umair Azam
Business Administration
69
328
Umar Najeeb Cheema
Business Administration
60
329
Umer Riaz
Business Administration
61
330
Usman Ali
Business Administration
63
331
Usman Ilyas Meer
Business Administration
65
332
Usman Nadeem
Business Administration
65
333
Usman Naeem
Business Administration
73
334
Usman Raza
Business Administration
64
335
Usmara Kanwal
Business Administration
67
336
Uzma Anwar
Chemistry
86.25
337
Uzma Shahzadi
Education
77.50
338
Wajeeha Arif
Business Administration
63
339
Waqar Anjum
Business Administration
72
340
Waqas Akram
Physics
74.38
341
Waqas Aslam
Business Administration
74
342
Waqas Butt
Computer Sciences/Information Technology
79.25
343
Waqas Ilyas
Business Administration
75
344
Wasif Ammar
Business Administration
61
345
Wijahat Anwer
Business Administration
75
346
Yasir Akram
Business Administration
74
347
Yasir Waseem Arshad
Business Administration
74
348
Yasir Yaqoob
Business Administration
72
349
Zaffar Mehmood
Computer Sciences/Information Technology
73.6
350
Zaheer Abbas
Statistics
71.63
351
Zahid Aslam
Business Administration
73
352
Zahra Batool
Business Administration
68
353
Zain Afzal
Business Administration
74
354
Zainab Saifi
Business Administration
71
355
Zarfishan Shabbir
Education
71.25
356
Zeeshan Ilyas
Chemistry
76.33
357
Zeeshan Mateen
Business Administration
63
358
Zohaib Raza
Business Administration
70
359
Zoya Amin
Business Administration
71
360
Zubia Arshad
Business Administration
71
361
Zubira Latif
Business Administration
73
362
Zunera Khalid
Business Administration
67

Ratios

Liquidity Ratios

Liquidity Ratios are ratios that come off the Balance Sheet and hence measure the liquidity of the company as on a particular day i.e. the day that the Balance Sheet was prepared. These ratios are important in measuring the ability of a company to meet both its short term and long term obligations.

FIRST LIQUIDITY RATIO

Current Ratio

This ratio is obtained by dividing the 'Total Current Assets' of a company by its 'Total Current Liabilities'. The ratio is regarded as a test of liquidity for a company. It expresses the 'working capital' relationship of current assets available to meet the company's current obligations.

The formula:

Current Ratio = Total Current Assets/ Total Current Liabilities

An example from our Balance sheet:

Current Ratio = $261,050 / $176,522

Current Ratio = 1.48

The Interpretation:

Lumber & Building Supply Company has $1.48 of Current Assets to meet $1.00 of its Current Liability

SECOND LIQUIDITY RATIO

Quick Ratio:

This ratio is obtained by dividing the 'Total Quick Assets' of a company by its 'Total Current Liabilities'. Sometimes a company could be carrying heavy inventory as part of its current assets, which might be obsolete or slow moving. Thus eliminating inventory from current assets and then doing the liquidity test is measured by this ratio. The ratio is regarded as an acid test of liquidity for a company. It expresses the true 'working capital' relationship of its cash, accounts receivables, prepaid and notes receivables available to meet the company's current obligations.

The formula:

Quick Ratio = Total Quick Assets/ Total Current Liabilities

Quick Assets = Total Current Assets (minus) Inventory

An example from our Balance sheet:

Quick Ratio = $261,050- $156,822 / $176,522

Quick Ratio = $104,228 / $176,522

Quick Ratio = 0.59

The Interpretation:

Lumber & Building Supply Company has $0.59 cents of Quick Assets to meet $1.00 of its Current Liability

THIRD LIQUIDITY RATIO

Debt to Equity Ratio

This ratio is obtained by dividing the 'Total Liability or Debt ' of a company by its 'Owners Equity a.k.a Net Worth'. The ratio measures how the company is leveraging its debt against the capital employed by its owners. If the liabilities exceed the net worth then in that case the creditors have more stake than the shareowners.

The formula:

Debt to Equity Ratio = Total Liabilities / Owners Equity or Net Worth

An example from our Balance sheet:

Debt to Equity Ratio = $186,522 / $133,522

Debt to Equity Ratio = 1.40

The Interpretation:

Lumber & Building Supply Company has $1.40 cents of Debt and only $1.00 in Equity to meet this obligation.

Profitability Ratios:

Profitability Ratios show how successful a company is in terms of generating returns or profits on the Investment that it has made in the business. If a business is liquid and efficient it should also be Profitable.

FIRST PROFITIBILITY RATIO

Return on Sales or Profit Margin (%)

The Profit Margin of a company determines its ability to withstand competition and adverse conditions like rising costs, falling prices or declining sales in the future. The ratio measures the percentage of profits earned per dollar of sales and thus is a measure of efficiency of the company.

The formula:

Return on Sales or Profit Margin = (Net Profit / Net Sales) x 100

An example from our Balance sheet and Income Statement:

Total Net Profit after Interest and Taxes (from Income Statement) = $5,142

Net Sales (from Income Statement) = $727,116

Return on Sales or Profit Margin = [ $5,142 / $727,116] x 100

Return on Sales or Profit Margin = 0.71%

The Interpretation:

Lumber & Building Supply Company makes 0.71 cents on every $1.00 of Sale

SECOND PROFITABILITY RATIO

Return on Assets

The Return on Assets of a company determines its ability to utilize the Assets employed in the company efficiently and effectively to earn a good return. The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the company in generating profits on its Assets.

The formula:

Return on Assets = (Net Profit / Total Assets) x 100

An example from our Balance sheet and Income Statement:

Total Net Profit after Interest and Taxes (from Income Statement) = $5,142

Total Assets (from Balance sheet) = $320,044

Return on Assets = [ $5,142 / $320,044] x 100

Return on Assets = 1.60%

The Interpretation:

Lumber & Building Supply Company generates makes 1.60% return on the Assets that it employs in its operations.

THIRD PROFITABILITY RATIO

Return on Equity or Net Worth

The Return on Equity of a company measures the ability of the management of the company to generate adequate returns for the capital invested by the owners of a company. Generally a return of 10% would be desirable to provide dividends to owners and have funds for future growth of the company

The formula:

Return on Equity or Net Worth = (Net Profit / Net Worth or Owners Equity) x 100

Net Worth or Owners Equity = Total Assets (minus) Total Liability

An example from our Balance sheet and Income Statement:

Total Net Profit after Interest and Taxes (from Income Statement) = $5,142

Net Worth (from Balance sheet) = $133,522

Return on Net Worth = [ $5,142 / $133,522] x 100

Return on Equity or Return on Net Worth = 3.85%

The Interpretation:

Lumber & Building Supply Company generates a 3.85% percent return on the capital invested by the owners of the company.

Efficiency Ratios:

Efficiency ratios are ratios that come off the Balance Sheet and the Income Statement and therefore incorporate one dynamic statement, the income statement and one static statement, the balance sheet. These ratios are important in measuring the efficiency of a company in either turning their inventory, sales, assets, accounts receivables or payables. It also ties into the ability of a company to meet both its short term and long term obligations. This is because if they do not get paid on time how will you get paid on time. You may have perhaps heard the excuse 'I will pay you when I get paid' or 'my customers have not paid me!'

FIRST EFFICIENCY RATIO

DSO (Days Sales Outstanding)

The Days Sales Outstanding ratio shows both the average time it takes to turn the receivables into cash and the age, in terms of days, of a company's accounts receivable. The ratio is regarded as a test of Efficiency for a company. The effectiveness with which it converts its receivables into cash, This ratio is of particular importance to credit and collection associates.

Best Possible DSO yields insight into delinquencies since it uses only the current portion of receivables. As a measurement, the closer the regular DSO is to the Best Possible DSO, the closer the receivables are to the optimal level.
Best Possible DSO requires three pieces of information for calculation:

1)   Current Receivables

2)   Total credit sales for the period analyzed

3)   The Number of days in the period analyzed

Formula:

Best Possible DSO = Current Receivables/Total Credit Sales X Number of Days

The formula:

Regular DSO = (Total Accounts Receivables/Total Credit Sales) x Number of Days in the period that is being analyzed

An example from our Balance sheet and Income Statement:

Total Accounts Receivables (from Balance Sheet) = $97,456

Total Credit Sales (from Income Statement) = $727,116

Number of days in the period = 1 year = 360 days ( some take this number as 365 days)

DSO = [$97,456 / $727,116 ] x 360 = 48.25 days

The Interpretation:

Lumber & Building Supply Company takes approximately 48 days to convert its accounts receivables into cash. Compare this to their Terms of Net 30 days. This means at an average their customers take 18 days beyond terms to pay.

SECOND EFFICIENCY RATIO

Inventory Turnover ratio: This ratio is obtained by dividing the 'Total Sales' of a company by its 'Total Inventory'. The ratio is regarded as a test of Efficiency and indicates the rapidity with which the company is able to move its merchandise.

The formula:

Inventory Turnover Ratio = Net Sales / Inventory

It could also be calculated as:

Inventory Turnover Ratio = Cost of Goods Sold / Inventory

An example from our Balance sheet and Income Statement:

Net Sales = $727,116 (from Income Statement)

Total Inventory = $156,822 (from Balance sheet )

Inventory Turnover Ratio = $727,116/ $156,822

Inventory Turnover = 4.6 times

The Interpretation:

Lumber & Building Supply Company is able to rotate its inventory in sales 4.6 times in one fiscal year

THIRD EFFICIENCY RATIO

Accounts Payable to Sales (%)

This ratio is obtained by dividing the 'Accounts Payables' of a company by its 'Annual Net Sales'. This ratio gives you an indication as to how much of their supplier’s money does this company use in order to fund its Sales. Higher the ratio means that the company is using its suppliers as a source of cheap financing. The working capital of such companies could be funded by their suppliers..

The formula:

Accounts Payables to Sales Ratio = [Accounts Payables / Net Sales ] x 100

An example from our Balance sheet and Income Statement:

Accounts Payables = $152,240 (from Balance sheet )

Net Sales = $727,116 (from Income Statement)

Accounts Payables to Sales Ratio = [$152,240 / $727,116] x 100

Accounts Payables to Sales Ratio = 20.9%

The Interpretation:

21% of Lumber & Building Supply Company's Sales is being funded by its suppliers.