Financial analysis of Pakistan state oil LTD (1999-2003)

Abstract

The research study is a comprehensive analysis of the common size and trend analysis of the Balance Sheet and the Income Statement Items selected for the years 1999-2003 of Pakistan State Oil. In the year 2000, sales revenue increased by 17% to Rs.135,040 million. Gross Profit increased from Rs.5,570.493 millions to Rs .6,202.999 million in the year 2000. In the year 2001, the company's sales revenue rose to Rs.169,726 million showing a growth of 26% over the preceding year . It earned an all time record Gross Profit of Rs.6,400 il lion up by 12% over the year 200Q. For the fiscal year 2002 , despite the revenue drop and a record provision of Rs.2,000 million made for taxes (an increase of Rs.800 million), PSO earned a Profit (before Tax) of Rs .510 million, up by 49%. Sales Revenue during 2003 surged to Rs.206,376 million up by 13.2%, the company earned highest ever Gross Profit of Rs.6,204 million . After analyzing the Sales Revenue, Gross Profit and Net Income of PSO, it is realized that the above-mentioned profitability measures have shown an increasing trend over the past five years. The company continued to invest heavily and spent an all time record Capital Expenditure of Rs.1,254 million primarily on New Vision Development Program .