Ratio Analysis

1) Liquidity Ratios:

(i) Networking Capital = Current Assets Current Liabilities
= 71,986,243,000
(ii) Current Ratio = Current Assets / Current Liabilities
= 4.38 (4.38: 1)
(iii) Quick Ratio = Quick Assets / Current Liabilities
= 4.15 (4.15: 1)

Current Assets = 93,253,919,000
Current Liabilities = 21,267,676,000
Quick Assets = 88,346,229,000
Quick Assets = Current Assets Stores and Spares Loans and
Advances Current Maturity of long term investments

2) Leverage Ratios:
Not applicable as the company does not have long term debts.
3) Profitability Ratios:
(i) Gross Profit Ratio = Gross Profit / Net Sales * 100
= 59.96 %
(ii) Net Profit Ratio = Profit after tax / Net Sales * 100
= 42.53 %
(iii) Return on Equity = Profit after tax / Shareholders equity * 100
= 32.38 %
(iv) Return of total investment = Profit after tax / Total Assets * 100
= 23.99 %

Gross Profit = 57,699,615
Net Sales = 96,221,728,000
Net Profit after tax = 40,923,538,000
Shareholders Equity = 126,384,187,000
Total Assets = 170,551,187,000
4) Coverage Ratio:
Not applicable as the company does not have long term debts.

5) Activity Ratio:
Receivable Turnover = Annual net credit Sales / Closing Receivables
= 2.38 (2.38: 1)
Avg. Collection Period = Days in the year / Receivable Turnover
= 153 days
Payable Turnover Not applicable subject to nature of companys
business
Inventory Turnover = Cost of goods sold / Closing Inventory
= 11.11 (11.11: 1)
Total Assets Turnover = Net Sales / Total Assets
= 0.70 (0.70: 1)

Annual Net credit Sales / Net Sales = 119,646,000
Closing Receivables / Trade Debts = 50,159,492
Cost of Goods Sold = Field Expenditures + Royalties
= 38,522,113
Closing Inventory / Stores and Spares = 3,467,552
Total Assets = 170,551,187

Ratio Comparison with Industry (PSO)
Name of Ratio
Pakistan
petroleum
Limited
Industry
(PSO) Comments
Networking Capital 71,986,243,000
Current Ratio 4.38
Quick Ratio 4.15
Gross Profit Ratio 59.96 %
Net Profit Ratio 42.53 %
Return on Equity 32.38 %
Return of total investment 23.99 %
Receivable Turnover 2.38
Avg. Collection Period 153 days
Inventory Turnover 11.11
Total Assets Turnover 0.70