Abbott Project

Project Report of Financial Management

Virtual University of Pakistan

Presented by MUHAMMAD AHMAD RAZA Reg. no. -----------M.B.A

COMPANY INFO
We are a global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health. With over 70,000 employees worldwide and a global presence in more than 130 countries, Abbott is committed to improving people's lives by providing cost effective health care products and services that consistently meet the needs of our customers. Abbott Pakistan is part of the global healthcare corporation of Abbott Laboratories, Chicago, USA. Abbott started operations in Pakistan as a marketing affiliate in 1948; the company has steadily expanded to comprise a work force of over 1500 employees. Currently two manufacturing facilities located at Landhi and Korangi in Karachi continue to use innovative technology to produce top quality pharmaceutical products. On June 29, 2005 Abbott Pakistan Achieved Class 'A' accreditation against the Oliver Wight ABCD Check list. This was an outstanding achievement, which puts Abbott Pakistan amongst some of the best global companies in terms of operational excellence.

PRINCIPAL ACTIVITES
The company s principal activities are to manufacture, import and market research based pharmaceutical, nutritional ,diagnostic, and consumer products and provides toll manufacturing services. It operates through following three segments: Pharmaceutical Nutritional Manufacturing and marketing diagnostic equipment The promise of our company is in the promise that our work holds for health and for life

Abbott laboratories (PAK) ltd. Company Profile Snapshot Company : Abbott laboratories (PAK) ltd. 2008 Sales : 7,05,90,11,000 Major Industry : Drugs , Cosmetics & Health care Sub Industry : Ethical drugs manufacturers Country : PAKISTAN Employees : 1500

General Info. Abbott Laboratories (PAK) Ltd. Opposite radio Pakistan transmission Hyderabad road Karachi , Sindh , Pakistan. www.abbott.com.pk T: 92 21 501 50 45 9

FINANCIAL RATIO ANALYSIS

Ratios year 2006 LIQUIDITY RATIOS Current ratio Quick ratio LEVERAGE / DEBT RATIOS Debt-to-equity ratio Long-term-debt to total capitalization ratio COVERAGE RATIO Interest coverage ratio ACTIVITY / TURNOVER RATIOS Receivable turnover ratio Average collection period Payable turnover ratio Average payment period Inventory turnover ratio Inventory turnover in days Total assets / Capital turnover ratio PROFITABILITY RATIOS Gross profit margin ratio Net profit margin ratio Return on equity (ROE) Return on investments / assets (ROI) % % % % 42.09 16.98 23.57 19.86 41.76 18.48 32.79 25.84 29.72 4.87 9.64 6.86 times days times days times days times 33.07 11 1.07 341 2.78 131 1.17 38.79 9 1.53 239 2.94 124 1.4 52.71 7 1.19 307 3.26 112 1.41 times 393.43 552.48 201.49 % % 18.71 15.76 26.9 21.19 40.56 28.86 4.76:1 3.08:1 3.55:1 2:01 2.54:1 1.28:1 year 2007 year 2008

LIQUIDITY RATIOS
These ratios measure a firm s ability to meet short-term obligations & show it s short-term financial position.

5 4 3 2 1 0 2006 2007 2008 curre nt ratio quick ratio

LEVERAGE / DEBT RATIOS These ratios shows the extent to which the is financed by debt.
50 40 30 20 10 0 2006 2007 2008 De bt-to-Equity ratio Total Capitalization ratio

COVERAGE RATIO These ratios relate the financial charges of a firm to its ability to service or cover them.
600 500 400 300 200 100 0 2006 2007 2008 Interest Coverage ratio

ACTIVITY / TURNOVER RATIOS These ratios measures that how effectively the firm is using its assets.
60 50 40 30 20 10 0 2006 2007 2008 Debtors turnover ratio
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2006 2007 2008

Creditors turnover ratio

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2006 2007 2008

Total as s e ts turnove r ratio

3.3 3.2 3.1 3 2.9 2.8 2.7 2.6 2.5 2006 2007 2008

Inve ntory turnove r ratio

PROFITABILITY RATIOS
These ratios relate the profit to sales & investment.
50 40

20 15

30 20 10 0 2006 2007 2008 GP m argin ratio

10 5 0 2006 2007 2008

NP m argin ratio

35 30 25 20 15 10 5 0 2006 2007 2008 ROE

30 25 20 15 10 5 0 2006 2007 2008 ROI

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