ratio analysis for ptcl
TRANSCRIPT
Pakistan Telecommunication Company Limited (“PTCL”)
Financial Management
Submitted To:
Mr. Sanaullah Ansari
Submitted BY:
Syeda Zainab Rizvi (Reg# 081158)
Shumaila Khan (Reg# 081152)
TABLE OF CONTENTS
Financial Analysis of PTCL as at June 30, 2010
Section Description Page
1 EXECUTIVE SUMMARY of PTCL 2
2 Ratio Analysis 3
3 Balance Sheet 4
4 Income Statement 6
5 Cash Flow Statements 7
6 Fund Flow Statement 8
7 Combined Balance Sheet and Income Statement for Working 9
1. EXECUTIVE SUMMARY
1
Financial Analysis of PTCL as at June 30, 2010
Pakistan Telecommunication Company Limited (“the Company”) was incorporated in Pakistan on December 31, 1995 and commenced business on January 01, 1996. The Company is listed on Karachi, Lahore and Islamabad stock exchanges. The Company was established to undertake the telecommunication business formerly carried on by Pakistan Telecommunication Corporation (PTC). The business was transferred to the Company on January 01, 1996 under the Pakistan Telecommunication (Re–organization) Act, 1996 at which date the Company took over all the properties, rights, assets, obligations and liabilities of PTC except those transferred to National Telecommunication Corporation (NTC), Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust (PTET). The registered office of the Company is situated at PTCL Headquarters, G–8/4, and Islamabad.
The Company provides telecommunication services in Pakistan. It owns and operates telecommunication facilities and provides domestic and international telephone services and other communication facilities throughout Pakistan. The Company has also been licensed to provide such services to territories of Azad Jammu and Kashmir and Gilgit Baltistan.
2. Ratio Analysis
2.1 OBJECTIVE
In an effort to evaluate the Financial Position and the Financial Structure of PTCL, a
ratio analysis has been taken out to evaluate the Performance of PTCL in
Monetary terms and able to analyze the current position and future concerns.
Ratio Analysis
2
Financial Analysis of PTCL as at June 30, 2010
Financial AnalysisPTCL Annual Ratio Report
Year ended June 30 Current Year Prior YearJune 30, 2010 Change % Change June 30, 2009 Definition
Liquidity Ratios
Current Ratio Times 1.505 0.003 0.002 1.503 See comment
Quick Ratio Times 0.997 -0.214 -0.177 1.211 See comment
Cash Ratio Times 0.213 -0.117 -0.355 0.330 See comment
Working Capital Ratio Times 0.101 -0.017 -0.140 0.118 See comment
Operating Ratios
Times 0.409 -0.003 -0.008 0.412 See comment
Times 38.885 -11.436 -0.227 50.321 See comment
Times 59.584 -2.265 -0.037 61.848 See comment
Working Capital Turnover Times 0.824 0.120 0.171 0.703 See comment
Profitability Ratios
% 0.386 -0.020 -0.049 0.406 See comment
% 0.236 0.001 0.002 0.235 See comment
% 0.143 0.002 0.017 0.141 See comment
% 0.023 -0.062 -0.733 0.085 See comment
% 0.150 -0.020 -0.120 0.171 See comment
Leverage Ratios
% 0.179 0.016 0.099 0.163 See comment
% 0.511 -0.039 -0.070 0.550 See comment
Asset Turnover Days in Inventory Days in Receivables
Gross Margin EBIT Margin Return on Equity Return on Assets Operating Expense/Sales
Long-Term Debt/Equity Total Debt/Equity
3
Financial Analysis of PTCL as at June 30, 2010
3. Balance Sheet
4
Financial Analysis of PTCL as at June 30, 2010
5
Financial Analysis of PTCL as at June 30, 2010
4. Income Statement
6
Financial Analysis of PTCL as at June 30, 2010
5. Cash Flow Statement
7
Financial Analysis of PTCL as at June 30, 2010
6. Fund Flow Statements
PTCLFund Flow Statement
As at June 30, 2010Current Year Prior Year
BALANCE SHEET 6/30/2010 6/30/2009 Ins/Dec Sources Uses
Cash 6,422,144,000 11,906,448,000 Decrease 5,484,304,000 Marketable Securities 13,493,865,000 21,017,790,000 Decrease 7,523,925,000 Accounts Receivable (net) 10,171,530,000 10,760,974,000 Decrease 589,444,000
QUICK ASSETS 30,087,539,000 43,685,212,000
Inventory 4,075,863,000 5,201,991,000 Decrease 1,126,128,000 Prepaid Assets 0 0 -Other Current Assets 11,286,834,000 5,333,038,000 Increase 5,953,796,000
TOTAL CURRENT ASSETS 15,362,697,000 54,220,241,000
Property, Plant & Equipment (net) 88,219,285,000 87,567,351,000 Increase 651,934,000 Intangible Assets 3,079,031,000 3,320,670,000 Decrease 241,639,000 Investment in Shares 6,681,965,000 5,607,439,000 Increase 1,074,526,000 Other Long-Term Assets 7,337,210,000 3,332,378,000 Increase 4,004,832,000
TOTAL ASSETS 150,767,727,000 154,048,079,000
Trade Payables 24,922,197,000 26,114,171,000 Decrease 1,191,974,000 Other Current Liabilities 5,270,581,000 9,972,151,000 Decrease 4,701,570,000 Long-Term Debt (excl. Dfd. Taxes) 17,866,468,000 16,193,198,000 Increase 1,673,270,000 Defferd tax 2,949,770,000 2,379,000,000 Increase 570,770,000
TOTAL LIABILITIES 51,009,016,000 54,658,520,000
Preferred Stock 0 0 -Common Equity or Paid in Capital 83,613,704,000 83,183,074,000 Increase 430,630,000 Retained Earnings 16,145,007,000 16,206,485,000 Decrease 61,478,000
TOTAL EQUITY 99,758,711,000 99,389,559,000
TOTAL LIABILITIES & EQUITY 150,767,727,000 154,048,079,000 17,640,110,000 17,640,110,000
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Financial Analysis of PTCL as at June 30, 2010
7. Combined Balance Sheet and Income Statement for Working
PTCL
Statement of Financial Position
As at June 30, 2010
Current Year Prior Year
BALANCE SHEET 6/30/2010 6/30/2009
Cash 6,422,144,000 11,906,448,000 46.1% (5,484,304,000)
Marketable Securities 13,493,865,000 21,017,790,000 35.8% (7,523,925,000)
Accounts Receivable (net) 10,171,530,000 10,760,974,000 5.5% (589,444,000)
QUICK ASSETS 30,087,539,000 43,685,212,000 31.1% (13,597,673,000)
Inventory 4,075,863,000 5,201,991,000 21.6% (1,126,128,000)
Prepaid Assets 0 0 - -
Other Current Assets 9,124,926,072 5,333,038,000 71.1% 3,791,888,072
TOTAL CURRENT ASSETS 43,288,328,072 54,220,241,000 20.2% (10,931,912,928)
Property, Plant & Equipment (net) 88,219,285,000 87,567,351,000 0.7% 651,934,000
Intangible Assets 3,079,031,000 3,320,670,000 7.3% (241,639,000)
Investment in Shares 6,681,965,000 5,607,439,000 19.2% 1,074,526,000
Other Long-Term Assets 7,337,210,000 3,332,378,000 120.2% 4,004,832,000
TOTAL ASSETS 148,605,819,072 154,048,079,000 3.5% (5,442,259,928)
Trade Payables 24,922,197,000 26,114,171,000 4.6% (1,191,974,000)
Other Current Liabilities 5,270,581,000 9,972,151,000 47.1% (4,701,570,000)
Long-Term Debt (excl. Dfd. Taxes) 17,866,468,000 16,193,198,000 10.3% 1,673,270,000
Defferd tax 2,949,770,000 2,379,000,000 24.0% 570,770,000
TOTAL LIABILITIES 51,009,016,000 54,658,520,000 6.7% (3,649,504,000)
Preferred Stock 0 0 - -
Common Equity or Paid in Capital 83,613,704,000 83,183,074,000 0.5% 430,630,000
Retained Earnings 16,145,007,000 16,206,485,000 0.4% (61,478,000)
TOTAL EQUITY 99,758,711,000 99,389,559,000 0.4% 369,152,000
TOTAL LIABILITIES & EQUITY 150,767,727,000 154,048,079,000 2.1% (3,280,352,000)
Difference %
Difference Amount
9
Financial Analysis of PTCL as at June 30, 2010
Current Year % of Net Prior Year % of Net
INCOME STATEMENT 6/30/2010 Sales 6/30/2009 Sales
Net Revenue / Sales 62,309,173,000 100% 63,506,173,000 100% 1.9% (1,197,000,000)
Cost of Sales / Cost of Goods Sold (38,258,711,000) -61% (37,732,282,000) -59% 1.4% (526,429,000)
GROSS PROFIT 24,050,462,000 39% 25,773,891,000 41% 6.7% (1,723,429,000)
Administration (7,223,780,000) -12% (8,935,261,000) -14% 19.2% 1,711,481,000
Selling and Marketing (2,142,324,000) -3% (1,817,071,000) -3% 17.9% (325,253,000)
Other Operating Expenses 0 0% (92,118,000) 0% 100.0% 92,118,000
Depreciation / Amortization 0 0% 0 0% - -
OPERATING INCOME 14,684,358,000 24% 14,929,441,000 24% 1.6% (245,083,000)
Interest Expense (403,240,000) -1% (908,524,000) -1% 55.6% 505,284,000
INCOME BEFORE TAXES 14,281,118,000 23% 14,020,917,000 22% 1.9% 260,201,000
Income Taxes (4,986,966,000) -8% (4,869,732,000) -8% 2.4% (117,234,000)
NET INCOME 9,294,152,000 15% 9,151,185,000 14% 1.6% 142,967,000
Difference %
Difference Amount
10