GRADUATE SCHOOL OF MANAGEMENT

International Islamic University Islamabad

“FINANCIAL ANALYSIS OF GALXO
SMITH KLINE COMPANY PAKISTAN
FROM 2004-2008”
Presented By:
Contact:

Aamir Hayat

+92-314-556-1080

1

ANALYSIS OF FINANCIAL
STATMENT

“GLAXO SMITH KLINE
COMPANY PAKISTAN”

2

CATEGORY OF RATIOS
“GLAXO SMITH CLINE COMPANY”

3

ACTIVITY RATIOS
ANALYSIS

4

CURRENT, QUICK AND CASH RATIOS

RECEIVABLE TURNOVER RATIO

Year 2004
265.42 Times

2005
145.14 times

2006
119.11 times

2007
2008
90.81 times 13.18 times

6

RECEIVABLE TURNOVER IN
DAYS

Year

2004
1.38 Days

2005
2.51 Days

2006
3.06 Days

2007
4.02 Days

2008
27.69 Days

7

INVENTORY TURNOVER
RATIO

Year

2004
3.28 Times

2005
3.09 Times

2006
2.99 Times

2007
2.98 Times

2008
3.31 Times

8

INVENTORY TURNOVER IN
DAYS

Year

2004
111.13 Days

2005
118.12 Days

2006
122.27 Days

2007
122.58 Days

2008
110.32 Days

9

DAY’S SALES IN RECEIVABLE

Year

2004
111.12 Days

2005
129.28 Days

2006
128.79 Days

2007
124.8 Days

2008
133.58 Days

10

OPERATING CYCLE

Year

2004
112.51 Days

2005
120.63 Days

2006
125.33 Days

2007
126.6 Days

2008
138.01 Days

11

WORKING CAPITAL

Year

2004
3877907

2005
5252464

2006
5626548

2007
5759184

2008
6032399

12

SALES TO WORKING CAPITAL

Year

2004
2.29 Times

2005
2.06 Times

2006
1.82 Times

2007
2.87 Times

2008
2.27 Times

13

COVERAGE RATIOS
ANALYSIS

14

DEBT TO TOTAL ASSETS

Year

2004
19.18 %

2005
18.43 %

2006
20.19 %

2007
20.13 %

2008
21.37 %

15

DEBT TO EQUITY RATIO

Year

2004
23.74 %

2005
22.60 %

2006
25.53 %

2007
25.21 %

2008
27.72 %

16

CURRENT LIABILITIES TO
EQUITY RATIO

Year

2004
19.68 %

2005
18.79 %

2006
22.60 %

2007
21.69 %

2008
23.19 %

17

DEBT TO TANGIBLE NET
WORTH

Year

2004
23.74 %

2005
22.60 %

2006
25.53 %

2007
25.21 %

2008
27.72 %

18

INVESTORS RATIOS
ANALYSIS

19

DEGREE OF FINANCIAL
LEVEAGE

Year

2004

2005

2006

2007

2008

1 Times

1 Times

1 Times

1 Times

1 Times

20

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
21

PRICE EARNING RATIO

Year

2004
13.4 Times

2005
11.2 Times

2006
12.9 Times

2007
19.5 Times

2008
6.6 Times

22

PAYOUT RATIO

Year

2004
51.97 %

2005
48.19 %

2006
65.62 %

2007
76.60 %

2008
82.26 %

23

PERCENTAGE OF EARNINGS
RETAINED

Year

2004
51.78%

2005
34.43%

2006
23.37%

2007
17.07%

2008
51.78%

24

DIVIEND YIELD RATIO

Year

2004
3.86 %

2005
4.29 %

2006
5.06 %

2007
3.89 %

2008
12.51 %

25

PROFITABILITY RATIOS
ANALYSIS

26

NET PROFIT MARGIN

Year

2004
16.5 %

2005
19.3 %

2006
16.5 %

2007
15.7 %

2008
14.5 %

27

GROSS PROFIT MARGIN

Year

2004
39.5 %

2005
40.8 %

2006
38.2 %

2007
37.24 %

2008
28.8 %

28

RETURN ON ASSETS RATIO

Year

2004
21.4 %

2005
27 %

2006
18.8 %

2007
17 %

2008
18.8 %

29

TOTAL ASSETS TURNOVER

Year

2004
1.29 Times

2005
1.24 Times

2006
1.14 Times

2007
1.08 Times

2008
1.29 Times

30

DUPONT ANALYSIS

Year

2004
21.3 %

2005
24 %

2006
18.8 %

2007
16.9 %

2008
18.6 %

31

RETURN ON FIXED ASSETS

Year

2004
1.026

2005
1.206

2006
0.94

2007
0.75

2008
0.809

32

RETURN ON INVESTMENT

Year

2004
52.5 %

2005
53.5 %

2006
43.9 %

2007
41.0 %

2008
46.0 %

33

RETURN ON TOTAL EQUITY

Year

2004
26.5 %

2005
26.9 %

2006
22.0 %

2007
21.0 %

2008
23.0 %

34

RETURN ON COMMON EQUITY

Year

2004
26.5 %

2005
26.9 %

2006
22.0 %

2007
21.0 %

2008
23.0 %

35

HORIZONTAL AND
VERTICAL ANALYSIS

36

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

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

& paid up capital

37

VERTICAL ANALYSIS
PROFIT & 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

38

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

 

 

39

HORIZONTAL ANALYSIS
PROFIT & 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

40

THANK YOU

41

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