Comparative Ratio Analysis of Shell Pakistan and Pakistan State Oil Limited

Abstract

This research conducts a comparative ratio analysis of two major oil and gas companies in Pakistan, Shell Pakistan Limited and Pakistan State Oil Limited (PSO), over a five-year period from 2019 to 2023. The study evaluates the companies' liquidity, leverage, activity, profitability, and market performance using financial and market ratios. Secondary data was collected from the State Bank of Pakistan's audited financial statements. According to the findings, PSO typically maintained higher liquidity and inventory turnover ratios, whereas Shell performed better in terms of gross profit margins and asset utilization. Based on the patterns that were identified, the analysis offers management and investors insightful information about the two companies' operational effectiveness, financial stability, and investment appeal.