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8/8/2019 FM Project of Shell Pakistan
1/18
Shell Pakistan for the year 2008
Liquidity Ratios
Working Capital:
=Current Assets Current Liabilities
=30220209-23307811=6912398
Current Ration:
=Current Assets/Current Liabilities
=30220209/23307811=1.297
Acid Test Ratio:
=(Current Assets-Inventories)/Current Liabilities
=30220209-18095523/23307811=0.520
Solvency Ratios
Debt to Equity Ration:
=Long Term Debt/Shareholders Equity
=2745410/13611638=0.202
Debt to Assets Ration:
=Long Term Debt/Total Assets
=2745410/39664859=0.069
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Debt to Capitalization Ratio:
=Long Term Debt/Total Capitalization
=2745410/16357048=0.168
Total Capitalization= Long Term Debt+ Shareholders Equity
Coverage Ratios
Interest Coverage:
=Earning Before Interest and Taxes/Interest Expenses
=8481359/970267=8.741
Activity Ratios
Inventory Turnover Ratio:
=Cost of Goods Sold/Inventory
=124694471/18095523=6.891
No. ofDays Average Inventory is Sold:ss
=No. of Days in a Year/Turnover Ratio
=365/6.891=53 Days
Total Assets Turnover Ratio:
=Net Sales/Total Assets
=139844689/39664859=3.526
Profitability Ratios
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8/8/2019 FM Project of Shell Pakistan
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Dividend per Share:
=Dividend/No. of Shares Outstanding
=2739516000/54790313= Rs. 50/Share
Dividend Yield Ratio:
=Dividend per Share/Market Value per Share
=50/422=0.118
Book Value of Share:
=Shareholders Equity/No. of Shares Outstanding
=13611638000/54790313=248.431
Total Assets-Total Liabilities= Shareholders Equity
Dividend Pay Out Ratio:
=Dividend per Share/Earning per Share
=50/93.76=0.533
Market Book Value:
=Market Value of Share/Book Value of Share
=422/248.431=1.699
Price Earning Ratio:
=Market Value per Share/Earning per Share
=422/93.76=4.50
8/8/2019 FM Project of Shell Pakistan
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Shell Pakistan for the Year 2007
Liquidity Ratios
Working Capital:
=Current Assets- Current Liabilities
=19713632-19612115=101517
Current Ration:
=Current Assets/Current Liabilities
=19713632/19612115=1.005
Acid Test Ration:
=Current Assets-Inventory/Current Liabilities
=19713632-8244054/19612115=0.584
Solvency Ratios
Debt to Equity:
=Long Term Debt/Shareholders Equity
=139041/9460771=0.015
Debt to Assets:
=Long Term Debt/Total Assets
8/8/2019 FM Project of Shell Pakistan
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=139041/29211927=0.0005
Debt to Capitalization:
=Long Term Debt/Total Capitalization
=1390421/9599812=0.014
Capitalization=Long Term Debt+Shareholders Equity
Coverage Ratios
Interest Coverage Ratio:
=EBIT/Interest Charges
=1134584/878098=1.292
Activity Ratios
Inventory Turnover Ratio:
=Cost of Goods Sold/Inventory
=1086664932/8244054=13.181
Age of Average Inventory:
=No. of Days in a Year/Activity Ratio
=365/13.181=27.691
Assets Turnover Ratio:
=Net Sales/Total Assets
=115045434/29211927=3.938
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Note Credit sales and credit purchases so no receivable and payable
turnover ratios
Profitability Ratios
GP to Net Sales:
=Gross Profit/Net Sales
=6380502/115045434=0.055
Net Profit Margin:
=Net Profit before Taxes/Net Sales
=3781736/115045434=0.033
Return on Investment:
=NP before Taxes/Total Assets
=706659/29211927=0.024
Return on Equity:
=EAT/Sales* Sales/Total Assets* Total Assets/Share Equity
=706659/115045434* 115045434/29211927* 29211927/9460771
=0.006* 3.938* 3.088=0.075
Market Ratios
Earning per Share:
=Earning after Taxes/No. of Shares Outstanding
=706659/54780=12.90
8/8/2019 FM Project of Shell Pakistan
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Dividend per Share:
=Dividend/No. of Shares Outstanding
=876480000/54780000=16
Dividend Yield Ratio:
=Dividend per Share/Market Value per Share
=16/410.22=0.039
Balance Sheet Value of Share:
=Shareholders Equity/No. of Shares Outstanding
=9460771/54780=172.705
Dividend Payout Ratio:
=Dividend per Share/Earning per Share
=16/12.90=1.240
Market Book Value:
=Market Value of Share/Book Value of Share
=410.22/172.705=2.375
Price Earning Ratio:
=Market Value of Share/Earning of Shared
=410.22/12.90=31.80
8/8/2019 FM Project of Shell Pakistan
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InternalComparison
Ratios 2008 2007
iquidity Ratios:
Net Working Capital 6912398 101517
Current Ratio 1.297 1.005
Acid Test Ratio 0.520 0.584
Solvency Ratios:
Long Term Debt to Equity 0.202 0.015
Long Term Debt to Assets 0.069 0.0005
Long Term Debt to Capitalization 0.168 0.014
Coverage Ratio:
Interest Coverage Ratio 8.741 1.292
Activity Ratios:
Inventory Turnover Ratio 6.891 13.181
Average Age ofInventory 53 28
Total Assets Turnover Ratio 3.526 3.938
Profitability:
Gross Profit Margin 0.108 0.055
Net Profit Margin 0.055 0.003
Return on Investment 0.129 0.024
Return on Equity 0.377 0.075
Market Ratios:
Earning per Share 93.76 12.90
Dividend per Share 50 16
Dividend Yield Ratio 0.118 0.039
Book Value of Share 248.431 172.705
Dividend Payout Ratio 0.533 1.240
Market Book Value 1.699 2.375
Price Earning Ratio 4.50 31.80
Now Let US See These One by One
8/8/2019 FM Project of Shell Pakistan
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Working Capital
Findings: From the above diagram we can see that company is in most liquid position as compared
to previous year.
Current Ratio
Findings: From the above diagram we see that the current ratio of this year is more as compared to
previous year. To pay one current liability the company has 1.296 current assets.
Acid Test Ratio
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
2008 2007
Net Working Capital
Net Working Capital
0 0.5 1 1.5
2008
2007
Current Ratio
Current Ratio
8/8/2019 FM Project of Shell Pakistan
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F
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Solve Ratios
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Lon D bt to ot l Ass ts:
0A48
0B5
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0 A 54
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2008 2007
A id st tio
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2008 2007
ol n
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8/8/2019 FM Project of Shell Pakistan
12/18
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Lon Term DebttoC pit li tion:
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Coverage Ratios
InterestCo erage:
Ft u v t u
w
sx y u
ees
c
ve
w
e
e S
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c
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ts
w
e
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ue
t u
e es
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e u se c u y s 8 741 e
t u
w
t
0 0 02 0 04 0 06 0 08
2008
2007
DebttoAssets
e sse s
DebttoCapitali ation
2008
2007
0
24
6
8
10
2008 2007
InterestCo erage
e
es
ve
je
8/8/2019 FM Project of Shell Pakistan
13/18
Activity Ratios
Inventory Turnover Ratio:
Findings: Inventory turnover ratio of the company is less as compared to previous year. Turn over
ratio of this year is 6.891 which means average inventory of the company is sold near about seven
times in a year. But in previous year it was 13.
Average Age ofInventory:
Findings: Average age of inventory means, before selling the average inventory how many days it is
kept in warehouses. Average age of inventory of this year is high which is negative sign, because
inventory is kept many days before selling. Because when inventory is kept company has to bear
many expenses like carrying expenses.
Total Assets Turnover:
0
5
10
15
2008 2007
Inventory Turnover
Inventory Turnover
0
20
40
60
2008 2007
Avg Age ofInventory
Avg Age of Inventory
3
3.5
4
2008 2007
Assets Turnover
Assets Turnover
8/8/2019 FM Project of Shell Pakistan
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Profitabilit Ratios
Gross Profit Margin:
F~ ~
s
ss
~
~
~s ye
~s
e
e
s c
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ev
~ s ye
~c
~s 0
108
~
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ss
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Net Profit Margin:
F ~ ~
s e
~
~ ~ s s ~
e s c e
ev ~ s ye
~ c ~ s 0 055
~ c e s
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s
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~
ReturnonIn estment:
00
05
01
0
15
2008
2007
GP Ratio
0 002 0
04 0
06
2008
2007
Net Profit Ratio
e
8/8/2019 FM Project of Shell Pakistan
15/18
F
s
s c
e
-
e
-ve
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- ves
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- s
e
s c
- e
-
ev - s ye
c s 0 129
e s - e -
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-
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s
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es 0 129 e
-
Returnon Equit :
F
s
e
- e
y
- s
s
-
e
s c
- e
- ev
- s ye
c
s 0
377
e
s
- e
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-
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es 0377
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c
- e
ar etRatios
Earning Per Share:
ROI0
0
02
2008
2007
ROI
ROI
0
0
0 2
03
04
2008 2007
ROE
ROE
8/8/2019 FM Project of Shell Pakistan
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F
sEarning per s
are is muc
higher from las
year , which is9376, it meanseach share of the
companyearns rupees93 76
Di idendper Share:
Findings
ividend per share ratio is also is greater ascompared to last year which is50It means on
each sharecompany pays dividend of rupees fifty
Di idend Yield Ratio:
Findings Dividend yield ratio is also higher ascompared to previousyear which is0 118 it means
If there is one rupee of market value then the dividend is0 118
0
50
100
2008 2007
Earning per Share
Earning per Share
0 10 20 30 40 50
2008
2007
Di idendper Share
Dividend per Share
0
0
05
01
0 15
2008 2007
Di idend Yield Ratio
Dividend Yield Ratio
8/8/2019 FM Project of Shell Pakistan
17/18
Boo Value ofShare:
FindingsBook value ofshare is also is higher ascompared to last year which is248
431 which means
in the books of account thevalue ofeach share is248431
if thecompany is dissolved on book value
amount, per sharevalue will be given 248431
Di idend Payout Ratio:
Findings Dividend payout ratio is less ascompared to previousyear which is0 533, which means if
one rupee isearned, from one rupee0533 is distributed among share holders and remaning 1-
0533=0
467 is kept as retained earnings
MarketBook Value:
0
100
200
300
2008 2007
Book Value ofShare
Book Value of
Share
0
05
1
1 5
2008 2007
Di idend Payout Ratio
Dividend Payout Ratio
8/8/2019 FM Project of Shell Pakistan
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FindingsMarket book value of thecompany is also less ascompared from last year, which is1
699
it means if the book value ofshare is rupee one then the market value is1 699
Pri e Earning Ratio:
FindingsPriceearning ratio of thecompany is higher ascompared to last year which is4
50, which
means if theearning per share is rupee one then the market value is4 50
Market B
k Value0
2
4
200
200
MarketBook Value
Market Book Value
0
10
20
30
40
2008 2007
Pri e Earning Ratio
Price Earning
Ratio