PAKISTAN TOBACCO COMPANY

Analysis

Current ratio 2011 : Current ratio = Current assets Current liabilities = 4172950 3750209 1.11

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 7623526 0.85

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

= 6242528 6856780

0.91

In this case company has 0.91 dollar to cover every 1 dollar of liability. Current asset ratio Comparison :
Year 2011 2010 2009 Pakistan tobacco company 1.11 0.85 0.91 industry

Quick asset ratio 2011: Quick ratio = Current assets inventory Current liabilities 0.05

In 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 Current liabilities 0.04

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 Current liabilities 0.04

In this case company has 0.04 dollars of quick assets to meet current liabilities of 1 dollar. Quick asset ratio comparison
Year 2011 2010 2009 Pakistan tobacco company 0.05 0.04 0.04 industry

Debt-to-equity ratio 2011: Debt-to-equity = Total debt Shareholders Equity 0.53

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 Shareholders Equity 0.63

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 Shareholders Equity 0.31

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

Debt-to-equity ratio comparison

Year 2011 2010 2009 Pakistan tobacco company 0.53 0.63 0.31 industry

Debt-to-total assets ratio 2011 : Debt-to-total assets = Total Debt Total Assets = 9905133 8734400 1.13

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 12363196 0.7

It 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 12226861 0.65

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

Debt-to-total assets ratio comparison

Year 2011 2010 2009 Pakistan tobacco company 1.13 0.7 0.65 industry

Total capitalization 2011 : Total Capitalization = Long term Debt Total capitalization

= 9905133 4324448

2.2

It 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 12363196 0.7

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 12226861 0.65

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

Total capitalization ratio comparison:

Year 2011 2010 2009 Pakistan tobacco company 2.2 0.7 0.65 industry

Interest coverage ratio 2011: Interest coverage = EBIT Interest charges = 660654 140539 4.7

This 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 149680 10.22

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 43802

104.77

This ratio shows that for every 1 dollar of Interest Company has 104.7 dollar of earning. Interest coverage ratio comparison
Year 2011 2010 2009 Pakistan tobacco company 4.7 10.22 104.77 industry

Recivable turnover ratio 2011: Recievable turnover = Annual net credit sales Recivables

= 22949974 355813

64.50

This 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 261739

80.05

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 210912

102.7

This shows that firm is collecting 102.7 times its account receivables in one period. Recievable turn over ratio comparison:
Year 2011 2010 2009 Pakistan tobacco company 64.50 80.05 102.7 industry

Average collection period 2011: Average collection period = 360_______ Recivable turn over

= _360_ 64.50

5.58

6 days

This shows that the firm is taking almost 6 days in collection of receivables
Average collection period 2010: Average collection period = 360_______ Recivable turn over

= _360_ 80.05

4.497

4 days

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_ 102.7

4 days

This shows that the firm is taking almost 4 days in collection of receivables Average collection period ratio comparison
Year 2011 2010 2009 Pakistan tobacco company(days) 6 4 4 industry

Payable turnover ratio 2011:

Payable turnover ratio =

Credit purchases_ Account payable 1.89

= _16709273_ 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_ 7623526 Payable turnover ratio 2009:

1.93

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

Payable turnover ratio =

Credit purchases_ Account payable

= _13442066_ 6856780

1.96

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

Payable turn over ratio comparison:

Year 2011 2010 2009

Pakistan tobacco company 1.89 1.93 1.96

industry

Average payment period 2011:

Average payment period =

360____________ Payable turnover ratio

= _360 1.89

190 days

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 1.93

186 days

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 183 days

= _360 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 2011 2010 2009 Total assets turnover ratio 2011: Total assets ratio = Net sales__ Total assets = _22949974_ 13239068 1.73 Pakistan tobacco company (days) 190 186 183 industry

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_ 12363196 1.69

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_ 12226861 1.77

one dollar of assets firm is making sale of 1.77 dollars. Total assets turnover ratio comparison:
Year 2011 2010 2009 Inventory turnover ratio 2011: Inventory turnover = CGS____ inventory Pakistan tobacco company 1.73 1.69 1.77 industry

= _16709273_ 6462330

2.58

This ratio shows that 2.58 times inventory is turnover in one accounting period.
Inventory turnover ratio 2010: Inventory turnover = CGS____ inventory = _14747717_ 6002824 2.45

This ratio shows that 2.45 times inventory is turnover in one accounting period.
Inventory turnover ratio 2009: Inventory turnover = CGS____ inventory = _13442066_ 5765367 2.3

This ratio shows that 2.3 times inventory is turnover in one accounting period. Inventory turn over ratio comparison
Year 2011 2010 2009 Pakistan tobacco company 2.58 2.45 2.3 industry

Average inventory turnover period 2011: Average inventory turnover period = ____ 360_________ Inventory turnover ratio 139 days

= _360_ 2.58

This 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 147 days

= _360_ 2.45

This 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 154 days

= _360_ 2.3

This ratio shows that firm is taking almost 154 days in one turnover of inventory. Average inventory turn over period comparison
Year 2011 2010 2009 Pakistan tobacco company (days) 139 147 154 industry

Gross profit margin ratio 2011: Gross profit margin = Inventory turnover = gross profit Net sales _6240701_ 22949974 0.27

This 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_ 20952629 0.296

This 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_ 21666525 0.379

This shows that the firm is generating gross profit of 38% from sale of one dollar.

Gross profit margin ratio comparison:

Year 2011 2010 2009 Pakistan tobacco company (days) 0.27 0.296 0.379 industry

Net profit margin ratio 2011 : Net profit margin = Net profit aftertaxes Net sales _363785_ 22949974 0.01

This 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 20952629 0.044

This 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_ 21666525

0.139

This ratio shows that the firm from sale of one unit is gaining profit of only approx 14% Net profit margin ratio comparison:
Year 2011 2010 2009 Pakistan tobacco company (days) 0.01 0.044 0.139 industry

Return on investment ratio 2011:

Return on investment = Net profit aftertaxes Total assets = 363785__ 13239068 0.027

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_ 12363196 0.0748

this 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__ 12226861 0.247

this ratio shows that for every one dollar of assets firm is producing net profit of 0.247 dollar Return on investment ratio comparison:
Year 2011 2010 2009 Pakistan tobacco company (days) 0.027 0.0748 0.247 industry

Return on equity ratio 2011: Return on investment = Net profit aftertaxes

363785__ 3333935

0.109

Its shows that for one dollar of equity shareholders are getting approx 11% profit.
Return on equity ratio 2010: Return on investment = Net profit aftertaxes

925100__ 3602089

0.2568

Its shows that for one dollar of equity shareholders are getting 25% profit

Return on equity ratio 2009: Return on investment = Net profit aftertaxes

3022406 4260234

0.709

Its shows that for one dollar of equity shareholders are getting approx 71% profit Return on equity comparison:
Year 2011 2010 2009 Pakistan tobacco company (days) 0.109 0.2568 0.709 industry

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 Shareholders Equity

= 8734400 3334000

2.61

Equity muliplier 2010:

Equity mulitiplier = Total Assets Shareholders Equity

= 6515716 3602000 Equity muliplier 2009:

1.8

Equity mulitiplier = Total Assets Shareholders 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