PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"
-
Upload
aamir-hayat -
Category
Documents
-
view
780 -
download
3
description
Transcript of PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"
![Page 1: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/1.jpg)
1
“FINANCIAL ANALYSIS OF GALXO SMITH KLINE COMPANY PAKISTAN
FROM 2004-2008”
Presented By: Aamir Hayat
Contact: +92-314-556-1080
GRADUATE SCHOOL OF MANAGEMENTInternational Islamic University Islamabad
![Page 2: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/2.jpg)
2
ANALYSIS OF FINANCIAL STATMENT
“GLAXO SMITH KLINE COMPANY PAKISTAN”
![Page 3: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/3.jpg)
3
CATEGORY OF RATIOS
“GLAXO SMITH CLINE COMPANY”Activity Ratios
Activity Ratios
Profitability Ratios
Profitability Ratios
Coverage Ratios
Coverage Ratios
Investor’s Analysis Ratios
Investor’s Analysis Ratios
Horizontal and Vertical
Analysis
Horizontal and Vertical
Analysis
![Page 4: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/4.jpg)
4
ACTIVITY RATIOSANALYSIS
![Page 5: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/5.jpg)
2004 2005 2006 2007 20080
1
2
3
4
5
6
Current RatioQuick RatioCash Ratio
CURRENT, QUICK AND CASH RATIOS
![Page 6: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/6.jpg)
6
RECEIVABLE TURNOVER RATIO
Year 2004 2005 2006 2007 2008
265.42 Times 145.14 times 119.11 times 90.81 times 13.18 times
2004 2005 2006 2007 20080
50
100
150
200
250
300
Receivable Turnover Ratio
Receivable Turnover Ratio
![Page 7: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/7.jpg)
7
RECEIVABLE TURNOVER IN DAYS
Year 2004 2005 2006 2007 2008
1.38 Days 2.51 Days 3.06 Days 4.02 Days 27.69 Days
2004 2005 2006 2007 20080
5
10
15
20
25
30
Receivable Turnover in Days
Receivable Turnover in Days
![Page 8: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/8.jpg)
8
INVENTORY TURNOVER RATIO
Year 2004 2005 2006 2007 2008
3.28 Times 3.09 Times 2.99 Times 2.98 Times 3.31 Times
2004 2005 2006 2007 20082.8
2.9
3
3.1
3.2
3.3
3.4
Inventory Turnover
Inventory Turnover
![Page 9: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/9.jpg)
9
INVENTORY TURNOVER IN DAYS
Year 2004 2005 2006 2007 2008
111.13 Days 118.12 Days 122.27 Days 122.58 Days 110.32 Days
2004 2005 2006 2007 2008104
106
108
110
112
114
116
118
120
122
124
Inventory Turnover in days
Inventory Turnover in days
![Page 10: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/10.jpg)
10
Year 2004 2005 2006 2007 2008
111.12 Days 129.28 Days 128.79 Days 124.8 Days 133.58 Days
DAY’S SALES IN RECEIVABLE
2004 2005 2006 2007 20080
20
40
60
80
100
120
140
160
Day's Sales In Receivable
Day's Sales In Receivable
![Page 11: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/11.jpg)
11
OPERATING CYCLE
Year 2004 2005 2006 2007 2008
112.51 Days 120.63 Days 125.33 Days 126.6 Days 138.01 Days
2004 2005 2006 2007 20080
20
40
60
80
100
120
140
160
Operating Cycle
Operating Cycle
![Page 12: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/12.jpg)
12
WORKING CAPITAL
Year 2004 2005 2006 2007 2008
3877907 5252464 5626548 5759184 6032399
2004 2005 2006 2007 20080
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Working Capital
Working Capi-tal
![Page 13: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/13.jpg)
13
SALES TO WORKING CAPITAL
Year 2004 2005 2006 2007 2008
2.29 Times 2.06 Times 1.82 Times 2.87 Times 2.27 Times
2004 2005 2006 2007 20080
0.5
1
1.5
2
2.5
3
3.5
Sales to Working Capital
Sales to Work-ing Capital
![Page 14: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/14.jpg)
14
COVERAGE RATIOSANALYSIS
![Page 15: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/15.jpg)
15
DEBT TO TOTAL ASSETS
Year 2004 2005 2006 2007 2008
19.18 % 18.43 % 20.19 % 20.13 % 21.37 %
2004 2005 2006 2007 200816.00%
17.00%
18.00%
19.00%
20.00%
21.00%
22.00%
Debt to Total Assets
Debt to Total Assets
![Page 16: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/16.jpg)
16
DEBT TO EQUITY RATIO
Year 2004 2005 2006 2007 2008
23.74 % 22.60 % 25.53 % 25.21 % 27.72 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Debt to Equity Ratio
Debt to Equity Ratio
![Page 17: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/17.jpg)
17
CURRENT LIABILITIES TO EQUITY RATIO
Year 2004 2005 2006 2007 2008
19.68 % 18.79 % 22.60 % 21.69 % 23.19 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Current Liabilities to Total Equity
Current Liabili-ties to Total Equity
![Page 18: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/18.jpg)
18
DEBT TO TANGIBLE NET WORTH
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Debt to Tangible Net Worth
Debt to Tangible NeT Worth
Year 2004 2005 2006 2007 2008
23.74 % 22.60 % 25.53 % 25.21 % 27.72 %
![Page 19: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/19.jpg)
19
INVESTORS RATIOSANALYSIS
![Page 20: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/20.jpg)
20
DEGREE OF FINANCIAL LEVEAGE
Year 2004 2005 2006 2007 2008
1 Times 1 Times 1 Times 1 Times 1 Times
2004 2005 2006 2007 20080
0.2
0.4
0.6
0.8
1
1.2
Degree of Financial Leverage
Degree of Financial Leverage
![Page 21: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/21.jpg)
21
EARNING PER SHARE
Year 2004 2005 2006 2007 2008
13.47 Per Share
16.60 Per Share
12.19 Per Share
9.8 Per Share
11.46 Per Share
2004 2005 2006 2007 20080
2
4
6
8
10
12
14
16
18
Earning Per Share
Earning Per Share
![Page 22: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/22.jpg)
22
PRICE EARNING RATIO
Year 2004 2005 2006 2007 2008
13.4 Times 11.2 Times 12.9 Times 19.5 Times 6.6 Times
2004 2005 2006 2007 20080
5
10
15
20
25
Price Earning Ratio
Price Earning Ratio
![Page 23: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/23.jpg)
23
PAYOUT RATIO
Year 2004 2005 2006 2007 2008
51.97 % 48.19 % 65.62 % 76.60 % 82.26 %
2004 2005 2006 2007 20080.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Payout Ratio
Payout Ratio
![Page 24: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/24.jpg)
24
PERCENTAGE OF EARNINGS RETAINED
Year 2004 2005 2006 2007 2008
51.78% 34.43% 23.37% 17.07% 51.78%
2004 2005 2006 2007 20080.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
% Age of Earnings Retained
% Age of Earnings Re-tained
![Page 25: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/25.jpg)
25
DIVIEND YIELD RATIO
Year 2004 2005 2006 2007 2008
3.86 % 4.29 % 5.06 % 3.89 % 12.51 %
2004 2005 2006 2007 20080.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Dividend Yield
Dividend Yield
![Page 26: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/26.jpg)
26
PROFITABILITY RATIOSANALYSIS
![Page 27: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/27.jpg)
27
NET PROFIT MARGIN
Year 2004 2005 2006 2007 2008
16.5 % 19.3 % 16.5 % 15.7 % 14.5 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%Net Profit Margin
Net Profit Margin
![Page 28: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/28.jpg)
28
GROSS PROFIT MARGIN
Year 2004 2005 2006 2007 2008
39.5 % 40.8 % 38.2 % 37.24 % 28.8 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%Gross Profit Margin
Gross Profit Margin
![Page 29: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/29.jpg)
29
RETURN ON ASSETS RATIO
Year 2004 2005 2006 2007 2008
21.4 % 27 % 18.8 % 17 % 18.8 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%Return on Assets
Return on Assets
![Page 30: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/30.jpg)
30
TOTAL ASSETS TURNOVER
Year 2004 2005 2006 2007 2008
1.29 Times 1.24 Times 1.14 Times 1.08 Times 1.29 Times
2004 2005 2006 2007 20080.95
1
1.05
1.1
1.15
1.2
1.25
1.3
1.35Total Asset Turnover
Total Asset Turnover
![Page 31: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/31.jpg)
31
DUPONT ANALYSIS
Year 2004 2005 2006 2007 2008
21.3 % 24 % 18.8 % 16.9 % 18.6 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
DuPont Analysis
DuPont Analysis
![Page 32: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/32.jpg)
32
RETURN ON FIXED ASSETS
Year 2004 2005 2006 2007 2008
1.026 1.206 0.94 0.75 0.809
2004 2005 2006 2007 20080.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
Return on Fixed Assets
Return on Fixed As-sets
![Page 33: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/33.jpg)
33
RETURN ON INVESTMENT
Year 2004 2005 2006 2007 2008
52.5 % 53.5 % 43.9 % 41.0 % 46.0 %
2004 2005 2006 2007 20080.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Return on Investment
Return on Investment
![Page 34: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/34.jpg)
34
RETURN ON TOTAL EQUITY
Year 2004 2005 2006 2007 2008
26.5 % 26.9 % 22.0 % 21.0 % 23.0 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Return on Total Equity
Return on Total Equity
![Page 35: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/35.jpg)
35
RETURN ON COMMON EQUITY
Year 2004 2005 2006 2007 2008
26.5 % 26.9 % 22.0 % 21.0 % 23.0 %
2004 2005 2006 2007 20080.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%Return on Common Equity
Return on Common Equity
![Page 36: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/36.jpg)
36
HORIZONTAL AND VERTICAL ANALYSIS
![Page 37: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/37.jpg)
37
VERTICAL ANALYSIS OF BALANCE SHEET
Vertical Analysis of Balance Sheet
Years 2004 2005 2006 2007 2008
Total Liabilities & Share Holder's Equity 100 100 100 100 100
Issued & paid up capital 12.73 13.22 14.46 16.79 16.06
Trade & other payables 13.89 10.82 16.93 16.71 17.57
Total Assets 100 100 100 100 100
Fixed assets 17.36 18.20 18.8 22.01 22.73
Long Term Loans 0.7 0.48 0.38 0.53 0.58
Trade debts 0.5 0.79 0.90 1.15 9.571
Investments 0 2.4 1.05 9.66 1.46
![Page 38: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/38.jpg)
38
VERTICAL ANALYSISPROFIT & LOSS A/C
Vertical Analysis of Profit & Loss
years 2004 2005 2006 2007 2008
Net Sales 100 100 100 100 100
C.G.S 71 63 61.67 62.75 71.23
Gross Profit 29 37 38.33 37.25 28.77
Profit after taxation 14.6 15.74 16.5 15.74 14.59
![Page 39: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/39.jpg)
39
HORIZONTAL ANALYSIS OF BALANCE SHEET
Horizontal Analysis of Balance Sheet
years 2004 2005 2006 2007 2008
Total Liabilities & Share Holders Equity
Issued & paid up capital 100 125 156.25 195.3124 195.3124
Reserves 100 120.7805 132.031 137.1522 142.2278
Current Liabilities
Trade & other payables 100 93.74531 167.5806 178.0585 195.7662
Taxation 100 269.6506 76.27451 45.48936 50.94932
ASSETS
fixed assets 100 104.85 123.77 156.02 168.47
Long term loans 100 82.95 75.02 112.70 129.28
Trade debts 100 194.21 253.53 349.77 3044.18
Cash & Bank Balances 100 130.46 152.80 139.25 89.22
![Page 40: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/40.jpg)
40
HORIZONTAL ANALYSISPROFIT & LOSS A/C
HOROZONTAL ANALYSYS OF P&L A/C
years 2004 2005 2006 2007 2008
Net Sales 100 106.20 113.77 119.67 151.16
C.G.S 100 103.90 116.05 124.20 178.08
Gross Profit 100 109.72 110.30 112.74 109.98
selling, mkt, dis Expenses 100 86.86 101.48 116.64 128.02
administrative Expenses 100 103.09 124.29 138.49 148.02
other operating Expenses 100 144.52 142.3 143.70 133.72
Net Profit 100 123.3 113.16 113.54 132.89
![Page 41: PowerPiont Presentation of Project " Analysis of Financial Statements of Glaxosmithkline Pakistan"](https://reader036.fdocuments.us/reader036/viewer/2022062513/55720569497959fc0b8b6f6f/html5/thumbnails/41.jpg)
41
THANK YOU