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TOTAL ASSETS TURNOVER:

This ratio shows the relationship between the values of total assets held by a company to the value of its annual revenues (turnover). An efficient company can attain its desired level of sales with a lower investment in assets. Total assets turnover is calculated as follows: = Revenue Total assets YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 NET REVENUE 620407 664266 672025 741242 759720 690850 652770 610856 592390 571745 T.ASSETS 1401987 1301851 1307789 1415945 1358846 1360780 1528209 1401037 1540481 1507677 T.ASSETS TURNOVER 0.442 0.510 0.513 0.523 0.559 0.507 0.427 0.436 0.384 0.379

Return on assets of the company shows a mixed trend. It starts from 0.44 from year 2001 to 0.379 in financial year 2010 which is minimum as compare to all other years. So, the maximum return was in financial year 2005 which is 0.559, higher return of PTCL. But before privatization there is continuous decline in return on assets of the company. This downward trend is happened due to decrease in the revenues of the company. The company assets are increasing but on the other hand revenue is decreasing every year.

CURRENT (OPERATING) ASSET TURNOVER:


Operating or current assets are closely linked to volume of business. A high operating assets turnover ratio indicates efficient use of the funds invested in current assets, a low operating assets turnover ratio indicates the opposite. YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 NET REVENUE 620407 664266 672025 741242 759720 690850 652770 610856 592390 571745 OPERATING ASSETS 420482 331221 332774 482936 394626 501682 535608 426112 542202 454502 TATO 1.475 2.005 2.019 1.534 1.925 1.377 1.218 1.433 1.092 1.257

The operating assets turnover as shows increasing trend till 2003 which start from 1.475 times from financial year 2001 and goes to 2.019 times in 2003. After year 2003, there was a mix trend. The above table shows that the operating assets turnover of the company is decreasing every year due to decrease in the revenues of the company. If we saw the period of three years before privatization there was a reasonable turnover from utilization of the operating assets but on the other hand after privatization there is decreasing trend in operating assets turnover.

OPERATING PROFIT AS % OF REVENUE:


The main purpose of this ratio is to know that how much profit a company is earning from its operations. In this ratio earnings before interest and tax is calculated as percentage of the revenue of the company.

Operating profit ratio: (EBITD Margin) YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EBITD 30587615 31932292 35107488 41938257 36363724 27397518 18397518 18712687 15021559 14684358 REVENUE EBITD AS % OF SALE 62040708 49.302 66426624 48.071 67202531 52.241 74124229 56.578 75972363 47.864 69085436 39.657 65277025 28.183 6108561 306.335 59239001 25.357 57174527 25.683

The operating profit of the PTCL was 49.30% in 2001 and till financial year 2004 there was increase in the return but after that there was a continuous decrease in operating profit before ratio of the company. If we talk about the period of before privatization, the company was earning good operating profit and on the other hand after privatization operating profit was decrease due to decrease in company revenues and due to increase in operating expenses.

NET PROFIT RATIO:


This ratio tells us about that how much profit a company earns after paying all expenses direct and indirect expenses. Normally this profit called shareholders or equity holders profit. Company dividend to its shareholders and also transfer to reserve and reinvest into business from net profit.

=Net profit * 100 Revenues

YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

NET PROFIT 181547 198119 230810 2916964 26605657 2077743 15638753 -282489 9151185 9294152

REVENUE NP % OF REVENUE 620407 29.262 664266 29.825 672025 34.345 741242 393.523 759720 3502.034 690850 300.751 652770 2395.752 610856 -46.244 592390 1544.790 571745 1625.576437

The financial year 2004 net profit was increased as compare to previous two year. But 2004 there was a continuous decrease in net profit of the company. In year 2004 net profit of the company was increased 4%as compare to year 2003. But after year 2004 the performance of the company showing downward trend.

RETURN ON EQUITY (ROE):


It is a measure of a corporation's profitability. It is calculated as: ROE = Net Profit after Taxes Total Equity x 100

Essentially, ROE shows how much profit a company generates with the money shareholders have invested in it.
YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 T.EQUITY 6889676 7468368 79922815 10909996 100014031 10547546 11091326 9788837 9938955 9975871 EAT 18154 19811 23081 29169 26606 20777 15639 -2825 9151 9294 R0E 0.263 0.265 0.028 0.267 0.026 0.196 0.141 -0.028 0.092 0.093

RETURN ON ASSETS (ROA):


Return on assets (ROA) is a financial ratio that shows the percentage of profit that a company earns in relation to its overall resources. It is commonly defined as:

ROA = Net Profit before Taxes Average Total Assets

x 100

It provides information about management's performance in using the assets of the small business to generate income.

YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

TOTAL ASSET 1401987 1301851 1307789 1415945 1358846 1360780 1528209 1401037 1540481 1507677

EBT 30587 31932 35107 41938 39296 30974 23774 -4463 14021 14281

ROA 2.181 2.452 2.684 2.961 2.891 2.276 1.555 -0.318 0.910 0.947

This ratio tells about that how much a company is earning profit from the utilization of its total assets. The above table shows that the return of assets of the PTCL was increase till financial year 2003 but after that there was a continuous decrease every year except financial year 2010 in which there was a slight increase as compared to year 2009. There was increase in year 2004 as compared to year 2003 but that there was a continuous decrease even after privatization there was still decrease except year 2010. So, decrease in return on assets was happened due to decrease in the net profit of the company which was decrease due to increase in operating cost and decrease revenue of the company.

RETURN ON CAPITAL EMPLOYEED:


This ratio is calculated by expressing net profit (before interest, tax and dividend) as a percentage of capital employed .capital employed is the amount of total long term fund; it is sum of equity and long term loans. The main purpose of ROCE is to know about that how well a company has used its long term funds.

YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

EBIT 181547 198119 230810 2916964 26605657 2077743 15638753 -282489 9151185 9294152

CAPITAL EMPLOYEE 93102128 96928943 96467038 124226 115272 121964 128373 115534 116901 118942

ROCE 0.001 0.002 0.002 23.481 230.807 17.035 121.822 (2.445) 78.281 78.140

EARNING PER SHARE:


This ratio is effectively a restatement of ROE ratio. An earnings per share ratio shows that how much profit has been earned by each ordinary share in the year.
YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 NP 181547000 198119000 230810000 29169640000 266056570000 20777430000 156387530000 -2824890000 91511850000 92941520000 T.SHARE 5100000000 5100000000 5100000000 5100000000 5100000000 5100000000 5100000000 5100000000 5100000000 5100000000 EPS 3.559 3.884 4.525 5.719 5.216 4.074 3.066 -0.553 17.943 1.822

The above table shows that the company earning per share was increase from financial year 2001 to 2004. After financial year 2004 there was a continuous decrease in every year. In year 2004 the EPS was increased as compare to financial year 2003 but year 2004 due to decrease in net profit tax the earning per share shows a downward trend. In year 2008 there was a loss Rs. O.533 per share was beard by the company and that there was a positive return of per share but it was

lower as compared to the year 2008. Overall EPS low in year after privatization as compare to the year before privatization.

DIVIDEND AS % OF NET PROFIT:


This ratio shows that what portion of the available profit is distributed away as dividend. It is also indicates what portion is being reinvested in the company.
YEAR DIVIDEND Profit after tax 18154 19811 23081 29169 26606 20777 15639 -2825 9151 9294 DIVIDEND % OF net profit 6.742 70.794 7.733 0.874 0.383 1.227 0.652 0 8.359 96.029

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1224 14025 1785 255 102 255 102 765 8925

The year except 2005 and 2008 the company declares a high dividend to its shareholders. The company declared low dividend in 2005 because there was already a dividend payable for year 2004. In year 2008 there was no dividend due to loss. In year 2008 company payout the dividend which was payable for year 2007 and in this year there was a loss due to heavy payment. In financial year 2006 company declared dividend more as compare to its net profit because there was reasonable retained earnings held by company. For the year 2010 company declare 96.029 of its profit as dividend.

DIVIDEND PAYOUT RATIO:


YEAR 2001 2002 2003 2004 2005 2006 2007 DIVIDEND PER 2.4 2.75 3.5 5 2 5 2 1.5 1.75 EARNING PER 3.56 3.88 4.53 5.72 5.2168 4.074 3.0664 DIVIDEND PAYOUT 67.415 70.876 77.262 87.412 38.337 122.729 65.223

2008
2009 2010

-0.5539
1.7944 1.8224

0
83.593 96.027

The dividend payout ratio is going upward and downward due to increase or decline in the earning per share. In 2004 company paid more of its net profit means earning per share as dividend. But in 2005 company declare only 38.337% of its net profit or earning per share as dividend because in this year company utilize its un- appropriated profit for the payment of accrued dividend. In year 2006 company declare more dividends per share as compare to earning per share because in last year there was low dividend and also the retained earnings of the last year was utilized for the purpose of dividend payment. In year 2007 company also declared 65.22% dividend, company declared low dividend because due to decrease in unappropriated profit company held 34.78% as retained earnings. In year 2008 there was no dividend due to loss. In year 2009 and 2010 respectively 83.593% and 96.027% was declared as dividend which was higher as compare to previous year.

CURRENT RATIO:
The main purpose of this ratio is to check the liquidity position of the company.
YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 CA 42048241 33122085 33277423 48293558 39462575 50168177 5356084 42611233 54220241 45450236 CL 47096525 33256182 34311837 17368723 20612564 29845702 24447741 24569795 36086322 30192778 CURRENT RATIO 0.892 0.995 0.969 2.780 1.914 1.680 0.219 1.734 1.502 1.505

In financial year 2004 there were 2.780 times more assets as compare to current liabilities. But in year 2005 the company liquidity position was decreased as compare to year 2004. This decreased was happened due to more decrease in current assets as compare to less decrease into current liabilities.

QUICK RATIO:
YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 QUICK ASSETS 54161003 53542453 65535608 46374490 36202358 46624319 50362346 37591786 49077397 41364105 CL 47096525 33256182 34311837 17368723 20612564 29845702 24447741 24569795 36086322 30192778 1.149 1.609 1.909 2.669 1.756 1.562 2.059 1.529 1.359 1.369