PAKISTAN TOBACCO COMPANYAnalysis

Current ratio 2011 : Current ratio = Current assets Current liabilities

= 4172950 1.11

3750209 In this case company has 1.11 dollar to cover every 1 dollar of liability

Current ratio 2010 : Current ratio = Current assets Current liabilities

= 6515716 0.85 7623526

In this case company has 0.85 dollar to cover every 1 dollar of liabilityCurrent ratio 2009 : Current ratio = Current assets Current liabilities

= 6242528 0.91 6856780

In this case company has 0.91 dollar to cover every 1 dollar of liability.

Current asset ratio Comparison :Year Pakistan tobacco company industry2011 1.112010 0.852009 0.91

Quick asset ratio 2011:

Quick ratio = Current assets – inventory 0.05 Current liabilitiesIn this case company has 0.05 dollars of quick assets to meet current liabilities of 1 dollar. Quick asset ratio 2010:

Quick ratio = Current assets – inventory 0.04 Current liabilities

In this case company has 0.04 dollars of quick assets to meet current liabilities of 1 dollar.

Quick asset ratio 2009:

Quick ratio = Current assets – inventory 0.04 Current liabilities

In this case company has 0.04 dollars of quick assets to meet current liabilities of 1 dollar.

Quick asset ratio comparison

Year Pakistan tobacco company industry2011 0.052010 0.042009 0.04

Debt-to-equity ratio 2011:

Debt-to-equity = Total debt 0.53 Shareholders Equity

It shows that for every 1 dollar of equity company has 0.53 dollar of debt.

Debt-to-equity ratio 2010:

Debt-to-equity = Total debt 0.63 Shareholders Equity

It shows that for every 1 dollar of equity company has 0.63 dollar of debt.

Debt-to-equity ratio 2009:

Debt-to-equity = Total debt 0.31 Shareholders Equity

It shows that for every 1 dollar of equity company has 0.31 dollar of debt.

Debt-to-equity ratio comparison

Year Pakistan tobacco company industry2011 0.532010 0.632009 0.31

Debt-to-total assets ratio 2011 :

Debt-to-total assets = Total Debt Total Assets

= 9905133 1.13 8734400

It shows that for every 1 dollar of asset there is debt of 1.13 dollar.

Debt-to-total assets ratio 2010 :

Debt-to-total assets = Total Debt Total Assets

= 8761107 0.7 12363196It shows that for every 1 dollar of asset there is debt of 0.7 dollar.

Debt-to-total assets ratio 2009 :

Debt-to-total assets = Total Debt Total Assets

= 7966627 0.65 12226861It shows that for every 1 dollar of asset there is debt of 0.65 dollar.

Debt-to-total assets ratio comparison

Year Pakistan tobacco company industry2011 1.132010 0.72009 0.65

Total capitalization 2011 :

Total Capitalization = Long term Debt Total capitalization

= 9905133 2.2 4324448It shows that in total capitalization total debt is 2.2 times of long term debt and equity.

Total capitalization 2010 :

Total Capitalization = Long term Debt Total capitalization

= 8761107 0.7 12363196

It shows that in total capitalization total debt is 0.7 times of long term debt and equity.

Total capitalization 2009 :

Total Capitalization = Long term Debt Total capitalization

= 7966627 0.65 12226861It shows that in total capitalization total debt is 0.65 times of long term debt and equity.

Total capitalization ratio comparison:

Year Pakistan tobacco company industry2011 2.22010 0.72009 0.65

Interest coverage ratio 2011:

Interest coverage = EBIT Interest charges

= 660654 4.7 140539This ratio shows that for every 1 dollar of Interest Company has 4.7 dollar of earning.

Interest coverage ratio 2010:

Interest coverage = EBIT Interest charges

= 1530756 10.22 149680

This ratio shows that for every 1 dollar of Interest Company has 10.22 dollar of earning.

Interest coverage ratio 2009:

Interest coverage = EBIT Interest charges

= 4589465 104.77 43802This ratio shows that for every 1 dollar of Interest Company has 104.7 dollar of earning.

Interest coverage ratio comparison

Year Pakistan tobacco company industry2011 4.72010 10.222009 104.77

Recivable turnover ratio 2011:

Recievable turnover = Annual net credit sales Recivables

= 22949974 64.50 355813This shows that firm is collecting 64.50 times its account receivables in one period.

Recivable turnover ratio 2010:

Recievable turnover = Annual net credit sales Recivables

= 20952629 80.05 261739

This shows that firm is collecting 80.15 times its account receivables in one period.

Recivable turnover ratio 2009:

Recievable turnover = Annual net credit sales Recivables

= 21666525 102.7 210912

This shows that firm is collecting 102.7 times its account receivables in one period.

Recievable turn over ratio comparison:

Year Pakistan tobacco company industry2011 64.502010 80.052009 102.7

Average collection period 2011:

Average collection period = 360_______ Recivable turn over

= _360_ 5.58 approx 6 days 64.50

This shows that the firm is taking almost 6 days in collection of receivablesAverage collection period 2010:

Average collection period = 360_______ Recivable turn over

= _360_ 4.497 approx 4 days 80.05 This shows that the firm is taking almost 4 days in collection of receivables

Average collection period 2009:

Average collection period = 360_______ Recivable turn over

= _360_ 3.5 approx 4 days 102.7 This shows that the firm is taking almost 4 days in collection of receivables

Average collection period ratio comparison

Year Pakistan tobacco company(days) industry2011 62010 42009 4

Payable turnover ratio 2011:

Payable turnover ratio = Credit purchases_ Account payable

= _16709273_ 1.89 8823095

This shows that the firm is paying 1.89 times its payables.

Payable turnover ratio 2010:

Payable turnover ratio = Credit purchases_ Account payable

= _14747717_ 1.93 7623526This shows that the firm is paying 1.93 times its payables.

Payable turnover ratio 2009:

Payable turnover ratio = Credit purchases_ Account payable

= _13442066_ 1.96 6856780This shows that the firm is paying 1.96 times its payables.

Payable turn over ratio comparison:

Year Pakistan tobacco company industry2011 1.892010 1.932009 1.96

Average payment period 2011:

Average payment period = 360____________ Payable turnover ratio

= _360 190 days 1.89

This ratio shows the average number of days that company is taking in paying of its payables is 190 days

Average payment period 2010:

Average payment period = 360____________ Payable turnover ratio

= _360 186 days 1.93 This ratio shows the average number of days that company is taking in paying of its payables is 186 days

Average payment period 2009:

Average payment period = 360____________ Payable turnover ratio

= _360 183 days 1.96 This ratio shows the average number of days that company is taking in paying of its payables is 183 days

Average payment period comparison

Year Pakistan tobacco company (days) industry2011 1902010 186

2009 183

Total assets turnover ratio 2011:

Total assets ratio = Net sales__ Total assets

= _22949974_ 1.73 13239068

one dollar of assets firm is making sale of 1.73 dollars

Total assets turnover ratio 2010:

Total assets ratio = Net sales__ Total assets

= _20952629_ 1.69 12363196

one dollar of assets firm is making sale of 1.69 dollars

Total assets turnover ratio 2009:

Total assets ratio = Net sales__ Total assets

= _21666525_ 1.77 12226861one dollar of assets firm is making sale of 1.77 dollars.Total assets turnover ratio comparison:

Year Pakistan tobacco company industry2011 1.732010 1.692009 1.77

Inventory turnover ratio 2011:

Inventory turnover = CGS____ inventory

= _16709273_ 2.58 6462330

This ratio shows that 2.58 times inventory is turnover in one accounting period.

Inventory turnover ratio 2010:

Inventory turnover = CGS____ inventory

= _14747717_ 2.45 6002824This ratio shows that 2.45 times inventory is turnover in one accounting period.

Inventory turnover ratio 2009:

Inventory turnover = CGS____ inventory

= _13442066_ 2.3 5765367This ratio shows that 2.3 times inventory is turnover in one accounting period.

Inventory turn over ratio comparison

Year Pakistan tobacco company industry2011 2.582010 2.452009 2.3

Average inventory turnover period 2011:

Average inventory turnover period = ____ 360_________ Inventory turnover ratio

= _360_ 139 days 2.58This ratio shows that firm is taking almost 139 days in one turnover of inventory.

Average inventory turnover period 2010:

Average inventory turnover period = ____ 360_________ Inventory turnover ratio

= _360_ 147 days 2.45This ratio shows that firm is taking almost 147 days in one turnover of inventory.

Average inventory turnover period 2009:

Average inventory turnover period = ____ 360_________

Inventory turnover ratio

= _360_ 154 days 2.3This ratio shows that firm is taking almost 154 days in one turnover of inventory.

Average inventory turn over period comparison

Year Pakistan tobacco company (days) industry2011 1392010 1472009 154

Gross profit margin ratio 2011:

Gross profit margin = Inventory turnover = gross profit Net sales = _6240701_ 0.27 22949974This shows that the firm is generating gross profit of 27% from sale of one dollar.

Gross profit margin ratio 2010:

Gross profit margin = Inventory turnover = gross profit Net sales = _6204912_ 0.296 20952629This shows that the firm is generating gross profit of 29% from sale of one dollar.

Gross profit margin ratio 2009:

Gross profit margin = Inventory turnover = gross profit Net sales = _8224459_ 0.379 21666525This shows that the firm is generating gross profit of 38% from sale of one dollar.

Gross profit margin ratio comparison:

Year Pakistan tobacco company (days) industry2011 0.27

2010 0.2962009 0.379

Net profit margin ratio 2011 :

Net profit margin = Net profit aftertaxes Net sales = _363785_ 0.01 22949974This ratio shows that the firm from sale of one unit is gaining profit of only 1% Net profit margin ratio 2010 :

Net profit margin = Net profit aftertaxes Net sales = _925100 0.044 20952629This ratio shows that the firm from sale of one unit is gaining profit of only approx 4%

Net profit margin ratio 2009 :

Net profit margin = Net profit aftertaxes Net sales = _3022406_ 0.139 21666525This ratio shows that the firm from sale of one unit is gaining profit of only approx 14%

Net profit margin ratio comparison:

Year Pakistan tobacco company (days) industry2011 0.012010 0.0442009 0.139

Return on investment ratio 2011:

Return on investment = Net profit aftertaxes Total assets

= 363785__ 0.027 13239068

this ratio shows that for every one dollar of assets firm is producing net profit of 0.027 dollar.Return on investment ratio 2010:

Return on investment = Net profit aftertaxes Total assets

= 925100_ 0.0748 12363196this ratio shows that for every one dollar of assets firm is producing net profit of 0.0748 dollar

Return on investment ratio 2009:

Return on investment = Net profit aftertaxes Total assets

= 3022406__ 0.247 12226861this ratio shows that for every one dollar of assets firm is producing net profit of 0.247 dollarReturn on investment ratio comparison:

Year Pakistan tobacco company (days) industry2011 0.0272010 0.07482009 0.247

Return on equity ratio 2011:

Return on investment = Net profit aftertaxes Share holders equity

= 363785__ 0.109 3333935Its shows that for one dollar of equity shareholders are getting approx 11% profit.

Return on equity ratio 2010:

Return on investment = Net profit aftertaxes Share holders equity

= 925100__ 0.2568 3602089Its shows that for one dollar of equity shareholders are getting 25% profitReturn on equity ratio 2009:

Return on investment = Net profit aftertaxes Share holders equity

= 3022406 0.709

4260234Its shows that for one dollar of equity shareholders are getting approx 71% profit

Return on equity comparison:

Year Pakistan tobacco company (days) industry2011 0.1092010 0.25682009 0.709

Return on Investment and the Du Pont Approach 2011:

Return on investment = net profit margin × total assets turnover

= 0.01 × 1.73 0.0173

This ratio shows that for every one dollar of assets firm is producing net profit of 0.0173 dollar.

Return on Investment and the Du Pont Approach 2010:

Return on investment = net profit margin × total assets turnover

= 0.044 × 1.694 0.0745

This ratio shows that for every one dollar of assets firm is producing net profit of 0.0745 dollar.

Return on Investment and the Du Pont Approach 2009:

Return on investment = net profit margin × total assets turnover

= 0.139 × 1.77 0.246

This ratio shows that for every one dollar of assets firm is producing net profit of 0.246 dollar.

Equity muliplier 2011:

Equity mulitiplier = Total Assets ÷ Shareholder’s Equity

= 8734400 ÷ 3334000 2.61

Equity muliplier 2010:

Equity mulitiplier = Total Assets ÷ Shareholder’s Equity

= 6515716 ÷ 3602000 1.8

Equity muliplier 2009:

Equity mulitiplier = Total Assets ÷ Shareholder’s Equity

= 6242528 ÷ 4260000 1.4

Return on Equity2011;

= Net Profit Margin × Total Asset Turnover × Equity Multiplier

= 0.01 × 1.73 × 4.11

= 0.017

Its shows that for one dollar of equity shareholders are getting 17% profit

Return on Equity2010;

= Net Profit Margin × Total Asset Turnover × Equity Multiplier

= 0.044 × 1.69 × 1.8

= 0.133

Its shows that for one dollar of equity shareholders are getting 13% profit

Return on Equity2009;

= Net Profit Margin × Total Asset Turnover × Equity Multiplier

= 0.0139 × 1.77 × 1.4

= 0.0344

Its shows that for one dollar of equity shareholders are getting 3% profit