Professional Documents
Culture Documents
Profitability Ratios
Nat profit Margin
Analysis
This ratio shows a general rela
that the firm is earning more p
previous year we have found t
Gross profit Margin Ratio
Analysis
This ratio shows the relations
the beneficial for the organiza
Total Assets Turnover
(Net sales/Total assets)*100
Analysis
Return on Assets
(Net income/Total assets)*100
Analysis
Analysis
This ratio shows the relationship
increases it is good signal for the
Analysis
Current ratio indicates the ext
ability increases which is very
Debt Ratio
Analysis
Debt ratio indicates the percenta
when we comapre current year r
and it is negative sign for the co
Debt/equity ratio
(Total liabilities/stockholder's
Analysis
Increase in times interest earn
in 2007.
Analysis
Investor Analysis
Earning per share
(Net income/number of co
Divident payout
Analysis
bility Ratios
Years
PSO
2008
2.84%
2007
1.34%
shows a general relationship between net profit and sales of the year.If this ratio is high it
rm is earning more profit and this is beneficial for the organization.When we compare the r
year we have found that net profit margin is increasing.This is the good news for the organ
rofit/Net sales)*100
Years
PSO
2008
6.06%
2007
3.51%
shows the relationship between the gross profit andof the organization.In genarl the highe
cial for the organization.Higher ratio represent that company is efficient in generating the
ts Turnover
/Total assets)*100
Years
PSO
2008
3.89
times
2007
4.67
times
shows the relationship between the net sales and total assets.This shows that how much the compa
zing the assets of the firm.When we compare this ratio with the previous year ratio we have found
e which is the negative sin for the organization.This is due to tha inefficient use of assets.So when
decrease.
n Assets
e/Total assets)*100
Years
PSO
2008
11.06%
2007
6.28%
gives a general relationship between the net incom and total assats of the company.As this ratio in
dicator for the firm.When we compare this ratio with the previous year ratio we found that tha com
cause due to net income because we have found that the operating expenses are low for this reaso
tio is also increases.
n total equity
Years
PSO
2008
2007
45.00%
22.00%
shows the relationship between net income and total equity.It shows the percentage earned on equ
t is good signal for the organization.
assets/current liabilities)
Years
PSO
2008
2007
1.24
times
1.22
times
atio indicates the extent to which the claims of short term creditiors are covered by assets.
reases which is very good.
king capital
assets-Current liabilities)
bilities/total assets)*100
Years
PSO
2008
2007
22142472 11127546
Years
2008
PSO
76%
2007
72%
indicates the percentage of assets financed by creditiors.The lower the ratio,the better the compan
omapre current year ratio with the previous year ratio we have found that debt ratio increse in cur
egative sign for the company.
ilities/stockholder's eqity)
Years
PSO
2008
3.1
2007
2.57
times
times
Years
PSO
2008
98.09
times
2007
53.97
times
n times interest earned ratio that the debt paying ability in 2008 is better then
Years
2008
2007
PSO
21
12
Days
Days
Years
2008
2007
PSO
64
45
Days
Days
s/inventory turnover)
Years
2008
2007
PSO
19
14
Days
Days
n average collection period shows that chances for bad debts also increases and it is not a
he company.Increase in average payment period shows that company uses better its financ
.But increase in average age of inventory shows management not properly work.
or Analysis
per share
Years
2008
PSO
5.1
Years
2008
PSO
81.94
rning ratio
times
t payout
per share/earning per share)*100
Years
2008
PSO
28.68%
y has unable to attarct big investor because of low dividend payout and price
The End
ter then
2007
14.3
2007
27.34
times
2007
76.80%