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    The annual report of Sitara Peroxide Limited analyzes the company's profitability, short-term financial position, long-term financial position, and activity ratios for the years 2022, 2021 and 2020. Most ratios show a decline in 2022 compared to previous years, indicating weaker profitability, liquidity, and operations. The net income ratio, return on assets, earnings per share and interest coverage ratio were all negative in 2022, while current ratios fell below 1, suggesting financial difficulties. Only the inventory turnover improved slightly in 2022.

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    Sitara Peroxide limited is a pakistani natinational

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    The annual report of Sitara Peroxide Limited analyzes the company's profitability, short-term financial position, long-term financial position, and activity ratios for the years 2022, 2021 and 2020. Most ratios show a decline in 2022 compared to previous years, indicating weaker profitability, liquidity, and operations. The net income ratio, return on assets, earnings per share and interest coverage ratio were all negative in 2022, while current ratios fell below 1, suggesting financial difficulties. Only the inventory turnover improved slightly in 2022.

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    5 views14 pages

    Sitara Peroxide Limited

    Uploaded by

    kumailsyed067
    The annual report of Sitara Peroxide Limited analyzes the company's profitability, short-term financial position, long-term financial position, and activity ratios for the years 2022, 2021 and 2020. Most ratios show a decline in 2022 compared to previous years, indicating weaker profitability, liquidity, and operations. The net income ratio, return on assets, earnings per share and interest coverage ratio were all negative in 2022, while current ratios fell below 1, suggesting financial difficulties. Only the inventory turnover improved slightly in 2022.

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    of 14

    Sitara Peroxide Limited

    Annual Report 2022


    Profitability Ratios
    1. Gross Profit Ratio
    𝑮𝒓𝒐𝒔𝒔 𝑷𝒓𝒐𝒇𝒊𝒕
    ×𝟏𝟎𝟎
    𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔

    2022 2021 2020

    =(3.63)% =10.25% =18.52%

    Conclusion
    2. Net Operating Income Ratio
    𝑵𝒆𝒕 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒊𝒏𝒄𝒐𝒎𝒆
    ×𝟏𝟎𝟎
    𝑵𝒆𝒕 𝑺𝒂𝒍𝒆𝒔

    2022 2021 2020

    =(22.20%) =0.73% =0.73%

    Conclusion
    3.Net Income Ratio
    𝐍𝐞𝐭 𝐈𝐧𝐜𝐨𝐦𝐞
    ×𝟏𝟎𝟎
    𝐍𝐞𝐭 𝐒𝐚𝐥𝐞

    2022 2021 2020

    = (19.58%) = 1.86% = 4.25%

    Conclusion
    4. Return on Assets Ratio

    𝐏𝐫𝐨𝐟𝐢𝐭 𝐚𝐟𝐭𝐞𝐫 𝐓𝐚𝐱


    × 𝟏𝟎𝟎
    𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬

    2022 2021 2020

    =(8.74%) =0.85% =2.06%

    Conclusion
    5. Earning per Share
    𝐍𝐞𝐭𝐈𝐧𝐜𝐨𝐦𝐞
    𝐀𝐯𝐞𝐫𝐚𝐠𝐞𝐧𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐨𝐫𝐝𝐢𝐧𝐚𝐫𝐲 𝐬𝐡𝐚𝐫𝐞𝐬

    2022 2021 2020

    = Rs. (6.19) = Rs. 0.63 = Rs. 1.35

    Conclusion
    2. Short-Term Financial Position
    1. Current Ratio
    𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕𝒔
    𝑪𝒖𝒖𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔

    2022 2021 2020

    = 0.91 =1.55 =1.49

    Conclusion
    2. Quick Ratio
    𝑸𝒖𝒊𝒄𝒌 𝑨𝒔𝒔𝒆𝒕𝒔
    𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
    2022 2021 2020

    =0.68 =1.08 = 0.85

    Conclusion
    3. Working Capital
    Current Assets Current Liabilities

    2022 2021 2020

    1099,067 (in million) 1040, 285 75 1074, 487722, 785


    = (103 , 669) =370, 210 =351, 702

    Conclusion
    3. Long-Term Financial Position
    1. Debt Ratio
    𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
    ×𝟏𝟎𝟎
    𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔
    2022 2021 2020

    =45.32% =39.56% =43.70%

    Conclusion
    2. Interest Coverage Ratio

    𝑵𝒆𝒕 𝑶𝒑𝒆𝒓𝒂𝒕𝒊𝒏𝒈 𝒊𝒏𝒄𝒐𝒎𝒆


    𝑨𝒏𝒏𝒖𝒂𝒍 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 𝑬𝒙𝒑𝒆𝒏𝒔𝒆

    2022 2021 2020

    = (6.44) Times =1.28 Times =2.24 Times

    Conclusion
    4. Activity Ratios
    1. Inventory Turnover Ratio
    𝑪𝒐𝒔𝒕 𝒐𝒇 𝑮𝒐𝒐𝒅 𝒔𝒐𝒍𝒅
    𝑨𝒗𝒆𝒓𝒂𝒈𝒆 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚
    2022 2021 2020

    =6.10 Times =4.31 Times = 2.89Times


    60 Days 84 Days 126 Days

    Conclusion

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