Trend and common analysis of shell Pakistan LTD

Abstract

The present research is designed and conducted to analyze the financial performance of "Shell Pakistan Limited. As it's an analytical type of study so data consists of the financial reports of Shell Pakistan limited of the period 1998-2003 .financial reports include Balance Sheet and Profit and loss statement. Trend and common size analysis were the tools used for analyzing the financial performance of a company. Their percentages were compared . Incase of trend analysis, the percentages of balance sheet and profit and loss statement were compared with base year. In case of common size analysis net sales were taken equal to 100 percent and compare the remaining items with that o f a particular year. The devices used to enhance the workability of the project show, whether the company has been earning normal profits for the proposed periods, her past and present financial conditions and the geo-economic effects on the performance of the company and lastly what were the short and long run effects. In the research by analyzing its financial statements it was found that company is generating low profit comparatively due to the bad economic conditions of a country and low margins on the fueled products as prescribed by the Government. The company can earn more profits than they are earning in past years . They have the potential and that entire thing needed to grow up and set standards.