Afs Final Presentation

8/14/2019 Afs Final Presentation

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atio Analysis Of OGDCLatio Analysis Of OGDCL


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INTRODUCTION

Presented by:

Mudassir AliHassan IjazAmmar Ahmad BhattiFeroze Ahmed


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OGDCL is the national oil & gas company of Pakistan.

Established in 1961 .

Listed on all three stock exchanges in Pakistan

First Pakistani E&P company listed on the London StockExchange

The government of Pakistan owns 85.02% of the shares ofthe company

bout OGDCL


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ATA COLLECTIONOURCES ANDMETHODS


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ATA COLLECTION SOURCESMain source of data collection [www.ogdcl.com]

By Reference of the accounts department of the

company.

Net searching


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ATA COLLECTION METHODS

Trend analysis.

Ratio analysis.

Horizontal Analysis

Vertical Analysis.


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ATA ANALYSISND RESULTS


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IQUIDITY ANALYSISIQUIDITY ANALYSIS


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Ratio 2005 2006 2007 2008 2009

A/R Turnover 3.59 4.28 3.81 3.44 2.59

Current Ratio 5.35 7.09 6.65 3.72 4.08

Acid Test Ratio 5.33 7.06 6.69 3.76 4.10

3.6

4.33.8

3.4

2.6

5.4

7.16.7

3.74.1

5.3

7.16.7

3.84.1

0

1

2

3

4

5

6

7

8

2005 2006 2007 2008 2009

ACCOUNT RECEIVABLE TURNOVER CURRENT RATIO ACIDTESTRATIO


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Ratio 2005 2006 2007 2008 2009

InventoryTurnover

500.30 422.25 332.58 253.03 363.36


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0

20

40

60

80

100

120

140

160

2005 2006 2007 2008 2009

ACCOUNT RECEIVABLE TURNOVER IN DAYS OPERATING CYCLE

Ratio 2005 2006 2007 2008 2009

A/R Turnover indays

101.59 85.36 95.79 106.14 141.13

Inventory Turnover

500.30 422.25 332.58 253.03 363.36

InventoryTurnover in days

0.73 0.86 1.10 1.44 1.00

0.00

0.20

0.40

0.600.80

1.00

1.20

1.40

1.60

2005 2006 2007 2008 2009

INVENTORY TURNOVER IN DAY


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52000000.00

54000000.00

56000000.00

58000000.00

60000000.00

62000000.00

64000000.00

66000000.00

68000000.00

2005 2006 2007 2008 2009

WORKING CAPITAL

Ratio 2005 2006 2007 2008 2009

WorkingCapital

59123991.00 67554077.00 63663888.00 58385055.00 65547042.00


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The overall liquidity position of the organization inquestion that is OGDCL is looking good.

The current ratio improved in the last year as thetraditional value of current ratio is 2.

The current ratio of OGDCL has been greater than twoduring these five years, which bears the testimony of the

better liquidity position of the company.


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LONG TERM DEBTLONG TERM DEBTRATIO ANALYSISRATIO ANALYSIS


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Ratio 2005 2006 2007 2008 2009

Times InterestEarned

8246.14 6594.53 136.33 148.26 88.39

Fixed ChargeCoverage

8246.14 6594.53 136.33 148.26 88.39

0

2000

4000

6000

8000

10000

2005 2006 2007 2008 2009

TIMESINTEREST EARNED FIXEDCHARGECOVEARGE


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0.00

1.00

2.00

3.00

4.00

2005 2006 2007 2008 2009

DEBTRATIO

DEBTEQUITYRATIO

DEBTTOTANGIBLENETWORTH

Ratio 2005 2006 2007 2008 2009

Debt ratio 0.27 0.23 0.31 0.27 0.29

Debt equity ratio 0.37 0.29 0.39 0.38 0.41

Debt to tangible

net worth

2.68 3.32 1.85 1.76 1.49


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The long term debt paying ability of OGDCL is lookinggood and promising for its future.

The times interest earned ratio is exceptional due tocompanys less borrowings and as a result of that less

interest charges.

The extent to which the company finances its assets byusing debt money is also very low, which augurs well forthe company in the years to come.


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PROFITABILITYPROFITABILITYRATIO ANALYSISRATIO ANALYSIS


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Ratio 2005 2006 2007 2008 2009DuPont Returnon Assets

26.78% 36.28% 34.03% 30.68% 33.63%

DuPont Returnon O.A

39.83% 52.10% 46.09% 54.55% 49.56%

Return onInvestment

30.09% 40.21% 36.89% 34.34% 38.24%

Return on Total

Equity

36.65% 47.83% 43.43% 40.80% 46.95%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2005 2006 2007 2008 2009

DUPONTRETURN ON ASSETS

DUPONTRETURN ON OPERATINGASSETS

RETURN ON INVESTMENT

RETURN ON TOTAL EQUITY


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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009

TOTAL ASSETSTURNOVER

OPERATINGASSETSTURNOVER

Ratio 2005 2006 2007 2008 2009

Total AssetsTurnover

60.72% 77.08% 75.75% 87.12% 79.22%

OperatingAssetsTurnover

60.72% 77.08% 75.75% 87.12% 79.22%


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0.00%

10.00%

20.00%

30.00%

40.00%50.00%

60.00%

70.00%

80.00%

2005 2006 2007 2008 2009

NET PROFIT MARGIN OPERATING INCOME MARGIN

GROSS PROFIT MARGIN

Ratio 2005 2006 2007 2008 2009

Net ProfitMargin

44.10% 47.07% 44.93% 35.21% 42.45%

OperatingIncome Margin

65.60% 67.59% 60.84% 62.62% 62.57%

Gross ProfitMargin

67.31% 71.53% 69.04% 69.50% 69.92%


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148.02%

189.03%

176.40%

187.49%

159.90%

100%

120%

140%

160%

180%

200%

2005 2006 2007 2008 2009

FIXED ASSETS TURNOVER

Ratio 2005 2006 2007 2008 2009

Fixed AssetsTurnover

148.02% 189.03% 176.40% 187.49% 159.90%


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The company is profitable and have been able tomaintain its profitability throughout these 5 years.

If we compare the 2 years 2005 and 2009, all the ratios

have increased with an exception of operating incomemargin and net profit margin.

But have not decreased considerably. This bears the

testimony to companys good profitability position.


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INVETORSSINVETORSSRATIO ANALYSISRATIO ANALYSIS


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7.68

20.94

10.65

23.59

10.61

24.86

11.54

25.67

12.91

29.34

0.00

5.00

10.00

15.00

20.00

25.00

30.00

2005 2006 2007 2008 2009

EARNING PER SHARE BOOK VALUE PER SHARE

Ratio 2005 2006 2007 2008 2009

Earning perShare

7.68 10.65 10.61 11.54 12.91

Book Valueper Share

20.94 23.59 24.86 25.67 29.34


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0.00

0.50

1.00

1.50

2.00

2.50

2005 2006 2007 2008 2009

DIVIDEND PAYOUT RATIO

DEGREE OF FINANCIAL LEVERAGE

Ratio 2005 2006 2007 2008 2009

DividendPayout Ratio

0.98 0.85 0.86 0.92 0.64

Degree ofFinancialLeverage

1.00 1.00 1.01 1.01 1.01


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2.3%

15.5% 14.4%

7.9%

36.1%

11.6%

6.6% 7.5% 7.6%10.5%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

2005 2006 2007 2008 2009

%OF RETAINED EARNING DIVIDEND YIELD

Ratio 2005 2006 2007 2008 2009

% of RetainedEarning

2.28% 15.49% 14.45% 7.86% 36.10%

DividendYield

11.63% 6.58% 7.51% 7.64% 10.49%


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0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2005 2006 2007 2008 2009

PRICE EARNING RATIO

Ratio 2005 2006 2007 2008 2009

Price EarningRatio

8.40 12.84 11.39 12.06 6.09


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As per the investors analysis this company holds muchattraction for the investors.

It is using its borrowed money if any, or no matter howsmall nicely, its earning per share is also on the rise,dividend payout is also reasonable, dividend yield is alsoincreasing.

So taking into account all ratios we come to theconclusion that the company is profitable one and theinvestors would be better advised if they invest in thiscompany.


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CONCLUSION


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We have come to the conclusion that the company inquestion holds great attraction for the investors.

The reason being that its short term liquidity is goodto say the least.

Its long term debt paying ability looks very good.


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It is also doing reasonably well on its profitabilityfront because it is not running a huge risk by financingits assets by excessively putting the borrowed money touse.

So, the future of the company looks promising given its performance and its track record on all fronts, be itshort term liquidity, long term debt-paying ability, or onprofitability front.


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?ANY

HANKYOU

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Afs Final Presentation