A study to compare the financial performance of PESCO and LESCO in current situation of Pakistan

Abstract

In this project we have conducted an analysis of financial statements of LESCO and PESCO. The data which we have analyzed is acquired from different resources such as such as official websites etc. The period of this analysis ranges from 2007 to 2011. The study included financial ratio analysis (leverage ratio, liquidity ratio, profitability ratio and activity ratio). In first part of this report we have tried to introduce both the organizations, and then we have formulated a framework of our study which includes significance of study, its importance for stakeholders and analysis of the said organizations to have a better understanding of current position as well as future outlook of both organizations. Comparative financial analysis of both organizations (balance sheet, profit and loss account and cash flow statement) has become the part of the study. Horizontal analysis of balance sheet, horizontal analysis of Profit & loss, vertical analysis of balance sheet and vertical analysis of profit & loss was also done to finalize the required analysis.