Section 1
PSO
Introduction
• Pakistan State Oil Company Limited (PSO) is serving the nation as an innovative and dynamic
energy Company with a vision of delivering value to the customers since 1976.
• have the largest liquid fuel storage in the country
• PSO is serving its esteemed customers through both retail and consumer sites
• Has 3,487 outlets across Pakistan wherein, more than 2,020 Retail and Consumer Business outlets
• Company Operated sites also supplement PSO’s vision of providing quality customer care
VERTICAL ANALYSIS(BALANCE SHEET)
ASSETS
Non-current assets
Current assets
TOTAL ASSETS
2021 %
70853570
343075216
413928786
Total Equity
Non-current liabilites
Current Liabilites
Total Equity and Liabilities
142,372,937
13,058,474
258,497,375
413,928,786
17.12%
82.88%
100.00%
2020 %
70,629,671
304,600,951
374,046,029
34.40%
3.15%
62.45%
100.00%
113,977,581
17,300,293
243,952,748
375,230,622
18.88%
81.43%
100.00%
2019
56127481
397472392
453,599,873
12.37%
87.63%
100.00%
30.38%
4.61%
65.01%
100.00%
128,445,411
12,177,177
312,977,285
453,599,873
28.32%
2.68%
69.00%
100.00%
s - net
INCOME STATEMENT VERTICAL ANALYSIS
2021
Amount
Percentage
1,223,678,351
100.00%
-1,166,423,044
-95.32%
57,255,307
4.68%
19,415,472
1.59%
0.00%
-12,022,223
-0.98%
-3,715,366
-0.30%
-898,265
-0.07%
-4,053,521
-20,689,375
55,981,404
-11,553,734
574,953
45,002,623
-15,445,368
29,557,255
-0.33%
-1.69%
4.57%
-0.94%
0.05%
3.68%
-1.26%
2.42%
Vertical Analysis
2020
Amount
Percentage
1,121,161,417
100.00%
-1,114,241,883
-99.38%
6,919,534
0.62%
10,385,641
0.93%
0.00%
-11,771,399
-1.05%
-3,682,218
-0.33%
169,215
0.02%
-257,473
-15,541,875
1,763,300
-15,393,332
546,931
-13,083,101
-1,679,384
-14,762,485
-0.02%
-1.39%
0.16%
-1.37%
0.05%
-1.17%
-0.15%
-1.32%
2019
Amount
Percentage
1,185,484,132
100.00%
-1,152,674,631
-97.23%
32,809,501
2.77%
16,922,354
1.43%
0.00%
-10,414,831
-0.88%
-2,900,105
-0.24%
-306,373
-0.03%
-4,377,571
-17,998,880
31,732,975
-9,955,428
199,922
21,977,469
-6,870,536
15,106,933
-0.37%
-1.52%
2.68%
-0.84%
0.02%
1.85%
-0.58%
1.27%
HORZONTAL ANALYSIS(BALANCE SHEET)
2019-2020
2021
2020
ASSETS
Non-current assets
Current assets
TOTAL ASSETS
70,853,570
343,075,216
413,928,786
70,629,671
304,600,951
374,046,029
Total Equity
Non-current liabilites
Current Liabilites
Total Equity and Liabilities
142,372,937
13,058,474
258,497,375
413,928,786
113,977,581
17,300,293
243,952,748
375,230,622
increase/decrease
%
223899
38474265
39882757
28395356
-4241819
14544627
38698164
0.32%
12.63%
10.66%
24.91%
-24.52%
5.96%
10.31%
Gross Profit ( In respect to sales)
• Was Rs 32,809,501 (2.77%) in 2019, decreased to Rs
6,919,534 (0.62%) in 2020, increased to Rs 57,255,307
(4.68%)
Operating profit ( In respect to sales)
INTERPRETATION
VERTICAL ANALYSIS
OF
INCOMESTATEMENT
• Was Rs 31,732,975 (2.68%) in 2019, decreased to Rs
1,763,300 (0.16%) in 2020, increased to Rs 55,981,404
(4.57%)
Financial costs ( In respect to sales)
• Was Rs 6,870,536 (0.58) in 2019, decreased to Rs
1,679,384 (0.15) in 2020, increased to Rs 15,445,368
(1.26%)
Profit/losses ( In respect to sales)
• Was Rs 15,106,933 (1.27%) in 2019, decreased to Rs
14,762,485 (1.32%) in 2020, increased to Rs 29,557,255
(2.42) in 2021
INCOME STATEMENT (HORIZONTAL ANALYSIS)
2019-2020
2019
Net sales
Cost of products sold
Gross profit
Other income
Operating costs
Distribution and marketing expenses
Administrative expenses
(Provision) / reversal of provision for impairment on financial assets - net
Other expenses
Total expenses
Profit from operations
Finance costs
Share of profit of associates - net of tax
Profit / (loss) before taxation
Taxation
Profit / (loss) for the year
Increase/Decrease
Amount
percentages
2020 2019 to 2020
1185484132
-1152674631
32809501
16922354
1121161417
-1114241883
6919534
10385641
64322715
-38432748
25889967
6536713
5.74%
3.45%
374.16%
62.94%
-10414831
-2900105
-306373
-4377571
-17998880
31732975
-9955428
199922
21977469
-6870536
15106933
-11771399
-3682218
169215
-257473
-15541875
1763300
-15393332
546931
-13083101
-1679384
-14762485
1356568
782113
-475588
-4120098
-2457005
29969675
5437904
-347009
35060570
-5191152
29869418
-11.52%
-21.24%
-281.06%
1600.21%
15.81%
1699.64%
-35.33%
-63.45%
-267.98%
309.11%
-202.33%
INTERPRETATION INCOME STATEMENT (HORIZONTAL ANALYSIS)
2019-2020
2019
2020
Sales in 2019 were 5.74% more than the
sales in 2020
Distribution expenses were 11.52% more
in2020 than in 2019
Gross profit in 2019 was 3.45% more than in
2020
Profits in 2019 were changed into losses in
2020 as the profits decreased by 202.3%
2019
2020
RATIOS
Current Position Analysis
2021
2020
2019
current Assets
343075216
304,600,951
397,472,392
current liabilities
258497375
243,952,748
312,977,285
Working Capital
Working capital = Current Assets- Current Liabilities
Working capital
84577841
60648203
84495107
Current Ratio
Current ratio= current assets/ current liabilities
Current Ratio
1.32719
1.248606
1.269972
Quick Ratio
Quick Ratio= Quick Assets/ current Liabilities
Quick Ratio
1.298382
1.200186
1.227852
Account Receivable Analysis
Account Receivable Turnover = sales/ average Account Receivables
2021
2020
2019
Sales
1223678351
1121161417
1185484132
Receivable at start
221931948
280594952
278594706
Receivable at end
243719689
221931948
280594952
Total
465651637
502526900
559189658
Average Account receivable
232825818.5
251263450
279594829
Account Receivable Turnover
5.255767418
4.462095132
4.240007357
Average Daily Sales
3352543.427
3071675.115
3247901.732
Number of Day sales in receivables
69.44751755
81.80013855
86.08475629
INVENTORY ANALYSIS
Inventory Turnover
Inventory Turnover= Cost of goods sold/ average inventory
2021
2020
2019
cost of goods sold
1,166,423,044
1,114,241,883
1,152,674,631
Average Inventory
69100891
74631070.5
88259925.5
Inventory Turnover
16.8800001
14.93
13.06
Number of Days’ Sales in Inventory
Number of Days’ Sales in Inventory = Average Inventory/ Average Daily Cost of Goods Sold
Average Inventory
2021
69100891
2020
74631071
2019
88259926
Average Daily Cost of Goods Sold
3195680
3052717
3158013
Number of days sales in inventory
21.6232
24.4474
27.9479
Solvency Ratios
Fixed Assets
Long term Liabilities
Ratio of Fixed Assets to Long-Term Liabilities
2021
2020
70853570
70629671
13058474
17300293
Ratio of fixed asset to long term
liability
5.425869056
4.082570798
2019
56127481
12177177
4.609235868
Ratio of liabilities stockholder's equity​
2021​
2020​
2019​
Total Liabilities​
271555849​
261253041​
325154462​
Total Stockholder's equity​
142372937​
113977581​
128445411​
Ratio of liabilities
stockholder's equity​
1.907355813​
2.29214411​
2.531460326​
Probability Measures
Asset Turnover
Return on Total Assets
Return on stockholders’ equity
Effect of Leverage
Earnings per share (EPS)
Price-Earnings (P/E) Ratio
Dividend Yield
Dividend Yield
2021
2020
2019
3.11
0.08
0.23
-0.18
62.10
3.60
0.07
0.07
2.71
-0.04
-0.13
0.11
-13.80
-11.50
NONE
NONE
2.77
0.04
0.13
-0.24
22.50
7.20
0.06
0.06
SECTION 2
Attock
• Commenced in 1998
• UK Domiciled company
• 3rd largest OMC on the basis of aggregate market share
• 4th Oil Marketing Company in Pakistan to be granted a
marketing license
Introduction
• Mission Statement
• “to continuously provide quality and environment
friendly petroleum products and related services to
industrial, commercial and retail consumers, and
exceeding their expectations through reliability,
economy and quality of products and services. We
are committed to benefiting the community and
ensuring the creation of a safe, responsible and
innovative environment geared to client satisfaction,
end user gratification, employee’s motivation and
shareholder’s value.”
• Horizontal Analysis 2020-2021
• Net Sales Decrease
• Gross profit increase
• Finance Cost Decrease
• Profit for the Year Increase
• Horizontal Analysis(2020-2019)
• Sales Increase
• Gross Profit Increase
• Finance Cost Decrease
• Profit for the year Increase
Horizontal analysis 20212020
• Share Capital And Reserves Increase
• Non-current Liabilities Increase
• Current liabilities Increase
Horizontal analysis
2021-2020
• Long term investments Increase
• Current Assets decrease
Vertical Analysis 2021
• Sales Tax
• Cost of Goods Sold
• Operating Expenses
• Finance Cost
• Profit for the year
Vertical Analysis 2020
• Sales Tax
• Cost of Goods Sold
• Operating Expenses
• Finance Cost
• Profit for the year
Vertical Analysis 2019
• Sales Tax
• Cost of Goods Sold
• Operating Expenses
• Finance Cost
• Profit for the year
Vertical
Analysis 2021
Vertical Analysis 2021
• Non-current Assets
• Current Assets
Vertical
Analysis 2020
Vertical Analysis 2020
• Non current Assets
• Current Assets
Vertical Analysis 2019
• Share Capital
• Non current Liabilities
• Current Liabilities
Vertical Analysis 2019
• Non current Assets
• Current Assets
RATIOS
Liquidity Ratio
• Better Liquidity in the year 2019 and 2021
• Working Capital improved in 2019 and 2021
• Quick Ratio was better in 2020 and 2019
• Better debt paying ratio
Working Capital
current assets- current liabilities
2021
2020
2019
Current Assets
44,210,980
35,526,138
37,102,945
Current liabilities
31795455
27908728
26682984
result
12,415,525
7,617,410
10,419,961
Current Ratio
current assets/ current
liabilities
2021
2020
2019
Current Assets
44,210,980
35,526,138
37,102,945
current liabilities
31795455
27908728
26682984
results
1.390481124 1.272940064 1.390509585
Quick ratio
current assets-stocks/
liabilities
2021
2020
2019
Current Assets
44,210,980
35,526,138
37,102,945
current liabilities
31795455
27908728
26682984
Stocks
16121539
9464503
12,865,862
Results
0.88344202 0.933816654 0.908334802
Liquidity Ratio
• Efficiency in collecting ratio
• Accounts Receivables turnover improved in
the year 2021
• Number of Days in Sales receivables better in
year 2019 and 2020
Sales
Accounts
Receivables
Average
Receivables
Results
Accounts Receivable
turnover
Sales/Average accounts receivables
2021
2020
2019
188645375 201078720 223054352
11,025,245
13,970,178
2018
16,838,255 16,475,576
12,497,712 15,404,217 16,656,916
15.09439348 13.05348571 13.39109585
Number of days in sales receivables
Average Account receivables/ Average
daily sales
2021
2020
2019
2018
Accounts
Receivables
11,025,245 13,970,178 16,838,255 16,475,576
Average
Receivables
12,497,712 15,404,217 16,656,916
Sales
188645375 201078720 223054352
Average daily
sales
516836.6438 550900.6027 611107.8137
Result
24.18116372 27.96187992 27.25691789
Liquidity Ratio
• Measures Companies efficiency in managing
inventory
• Inventory turnover better in the year 2020
• Number of Day’s sales in inventory better in
the year 2021
Inventory turnover
Cost of Good Sold/Average Inventory
2021
2020
2019
2018
Cost of Goods
sold
178663434 197440830 214833185
Stocks
16121539
9464503 12,865,862 12,460,539
Average
Inventory
12793021 11165182.5 12663200.5
Results
13.96569536 17.6836187 16.96515703
Number of day's sales in inventory
Average inventory/average daily cost of goods sold
2021
2020
2019
2018
16121539
9464503 12,865,862 12,460,539
Stocks
Average
Inventory
12793021 11165182.5 12663200.5 6230269.5
Cost of goods
sold
178663434 197440830 214833185 167,473,443
Average daily
cost of good
sold
489488.8603 540933.7808 588584.0685 458831.3507
Results
26.13546914 20.64057172 21.51468444
Solvency Measure
• Ratio of Fixed Assets to long term liabilities
• Measures Margin of safety available long
term creditors
• Significantly higher in the year 2019
• Ratios of Liabilities to Stockholder’s Equity
• How much of the company is managed
by debt and equity
• Higher in the year 2021 and 2020
Ratio of Fixed Assets to long term liabilites
Fixed Assets(net)/Long term laibilities
2021
2020
2019
Fixed Assets
17,686,905 15,712,914
9,299,767
long term laibilites
7,381,496
4,883,583
792,993
Results
2.3961139 3.2174971 11.7274263
Ratios of liabilites to stockholder's equity
Total liabilities/ total stakeholder's equity
2021
2020
2019
Current liabilities
31,795,455 27,908,728 26,682,984
Non current
liabities
7,381,496
4,883,583
792,993
total stock holders
equity
22,720,934 18,446,021 18,926,735
Results
1.7242667 1.7777444 1.45170189
Solvency Measure
• Times interest Paid
• Measures the Risk that interest payment
will not be made if earning decrease
• Significantly higher in 2019
Times interest earned
(income before tax+ interest tax)/Interest
expense
2021
2020
2019
income
before tax
6939058
1503086
5722857
Finance cost
1418918
1597199
848992
5.8903869
1.9410762
7.7407667
Results
Sales
total Assets
Average total assets
Results
Assets Turnover
Sales/Average total assets
2021
2020
2019
188645375 201078720 223054352
61,897,885 51,238,332 46,402,712
56568108.5
48820522
23201356
3.334836182 4.118733511 9.613849811
Net income
interest expense
total Assets
Average total assets
results
Return on total assets
(net income+interest expense)/average total assets
2021
2020
2019
2018
4919632
1008294
3960606
1418918
1597199
848992
61,897,885 51,238,332 46,402,712 46,131,326
56568108.5
48820522
46267019
0.112051652 0.053368807 0.103953056
Profitably Ratio
• Assets Turnover
• Measures how effectively a company uses its
assets
• Better in the year 2019
• Return on Total Assets
• Measures the profitably of company’s assets
• Better in 2021 and 2019
• Return on stakeholder’s equity
• Measures the profitability of the investment of
stockholder
• Better in 2021 and 2019
Return on stake holder's equity
net income/average total stakeholder's
equity
2021
2020
2019
total stock holders equity
22,720,934 18,446,021 18,926,735 18,417,662
average total stockhoder's
equity
20583477.5
18686378 18672198.5
Net income
4919632
1008294
3960606
results
0.239008788 0.053958771 0.212112462
Profitably Ratio
• Measures the profitability of the investment
by common stockholder
• Return on Common Stock holder’s equity
• Significantly higher in 2021 and 2019
• Earnings Per share(EPS)
• Significantly higher in 2021 and 2019
Net income
preferred
dividends
common shares
rettined earning
Average common
stockholder's
equity
results
Net income
preferred
dividends
common shares
outstanding
results
Return on common stockholder's equity
Net income-preferred dividends/average common
stockholder's equity
2021
2020
2019
2018
4919632
1008294
3960606
0
0
1,500,000 1,500,000
21,505,635 17,230,838
0
1,500,000 1,500,000
17,711,622 17,338,188
19368236.5 17471230
17524905
25.40051594 5.7711678 22.59987144
Earnings Per share (EPS)
(net income-preferred)/ shares of common stock
outstanding
2021
2020
2019
4919632
1008294
3960606
0
0
0
99,533
99,533
99,533
49.42714477 10.13024826 39.79188812
Price earning ratio
Market price/ EPS
Profitably Ratio
• Price Earing Ratio
• Measures future earning prospects based on
the relationship between market value of
common stock earnings
• Better in 2020
• Dividends per share
• Measures the extent to which earnings are
being distributed to common stockholders
• Higher in 2021
• Dividend Yield
• Measures the dividends the company makes by
investing in the company
• Similar in all the years
EPS
market price
results
2021
2020
49.42
10.13
319.2
305.21
6.458923513 30.12931885
2019
39.79
288.47
7.24981151
Dividends pershare
dividends on common stock/ share of
common stock outstanding
2021
2020
2019
Dividends on
common stock
common shares
outstanding
results
2,687,386
895,795
1,990,656
99,533
99,533
99,533
26.99994977 8.999979906 19.99995981
Dividend yeild
Dividend per share of common stock/market
price pershare of common stock
dividends
pershare
market price
results
27
9
319.2
305.21
0.084586466 0.029487894
20
288.47
0.0693313
SECTION 3
COMPANIES
COMPARISON
Horizontal
AnalysisBalance
Sheet
Non-current assets
current assets
Total assets
2021-2020
PSO ATTOCK
%
%
0.32
12.57
12.63
24.45
10.66
20.84
2019-2020
PSO
%
-20.53
30.49
21.27
ATTOCK
%
-68.95
4.44
9.44
Total Equity
Non-current liabilities
Current liabilities
24.91
-24.52
5.96
23.175
51.149
13.926
12.69
-29.61
28.29
2.60
-83.76
-4.392
Total Equity and Liabilities
10.31
20.80
20.89
-9.43
Vertical Analysis - Balance Sheet
Vertical
Analysis Balance
Sheet
2021
PSO ATTOCK
%
%
2020
PSO ATTOCK
%
%
2019
PSO ATTTOCK
%
%
non-current
assets
17.12
28.57
18.88
30.66
12.37
20.04
current assets
Total assets
82.88
100
71.42
100
81.43
100
69.33
100
87.63
100
79.95
100
Total Equity
34.40
36.7
30.38
36
28.23
40.79
Non-current
liabilities
3.15
11.92
4.61
9.53
2.68
1.709
Current liabilities 62.45
51.37
65.01
54.4
69
57.5
Total Equity and
Liabilities
100
100
100
100
100
100
Horizontal Analysis- income statement
2020-21
2019-20
PSO
ATTOCK
PSO
ATTOCK
%
%
%
%
Sales
9.14%
-6.11%
5.74%
-8.15%
Cost of sales
4.68%
-9.51%
3.45%
-8.10%
Gross Profit
727.44%
174.39%
374.16%
-55.75%
Other income
86.95%
41.18%
62.94%
-21.75%
Selling and distribution
cost
2.13%
-209.35%
-11.52%
428.24%
Administraive expenses
0.90%
34.85%
-21.24%
-14.25%
Other expense
1474.35%
331.49%
1600.21%
-62.37%
Operating profit
3074.81%
591.99%
1699.64%
-81.01%
Finance cost
-24.94%
-11.16%
-35.33%
88.13%
profit before taxation
-443.98%
361.65%
-267.98%
-73.74%
Taxation
819.70%
308.14%
309.11%
-71.92%
Profit for the year
-300.22%
387.92%
-202.33%
-74.54%
Vertical Analysis Income statement
Sales
Cost of sales
Gross Profit
Other income
PSO
ATTOCK
PSO
ATTOCK
PSO
ATTOCK
%
%
%
%
%
%
100.00%
95.32%
4.68%
1.63%
100.00%
80.72%
4.51%
0.57%
100%
99.38%
0.62%
0.98%
Selling and distribution cost
0.98%
0.18%
Administrative expenses
Other expense
0.30%
0.40%
Operating profit
Finance cost
profit before taxation
Taxation
Profit for the year
83.76%
1.54%
0.38%
100%
97.23%
2.77%
1.53%
83.70%
3.20%
0.45%
1.05%
0.16%
0.88%
0.03%
1.88%
-0.23%
0.33%
0.01%
1.31%
0.05%
0.24%
0.42%
1.40%
0.12%
4.57%
3.39%
0.16%
0.46%
2.68%
2.22%
0.94%
3.68%
1.26%
2.42%
-0.64%
3.14%
-0.91%
2.22%
1.37%
1.17%
0.15%
1.32%
0.68%
0.64%
0.21%
0.43%
0.84%
1.85%
0.58%
1.27%
0.33%
2.23%
0.69%
1.54%
Ratios
Ratio of fixed assets to long
term liabilities
Ration of liabilities to
stockholder's equity
Times interest earned
A/R turnover
Number of days sales in
receivable
Inventory Turnover
Number of Days Sales in
inventory
PSO
ATTOCK
PSO
ATTOCK
PSO
ATTOCK
5.426
2.396
4.082
3.217
4.609
11.727
1.907
1.724
2.292
1.778
2.531
1.452
5.89
1.941
7.74
5.256
15.094
4.462
13.053
4.24
13.391
69.447
24.181
81.8
27.961
86.085
27.257
16.88
13.965
14.93
17.683
13.06
16.965
21.623
26.135
24.447
20.64
27.947
21.514
2021
PROFITABILITY
MEASURES
2020
2019
PSO
ATTOCK
PSO
ATTOCK
PSO
ATTOCK
Assets Turnover
3.106
3.335
2.709
4.119
2.769
9.614
Return on total assets
0.075
0.112
-0.0357 0.0533
0.0353
0.207
Return on stockholder's
equity
0.2338
0.239
-0.125 0.0539
0.129
EPS on CS
62.1
49.427
-13.8
10.13
22.5
38.792
Price Earnings Ratio
3.6
6.4589
-11.5
30.129
7.2
7.249
Dividend per year
15
26.999
none
8.999
10
19.999
Dividend yield
0.067
0.0845
none
0.0295
0.062
0.0693
Conclusion
• Attock is much better financial position than
PSO
• PSO need to improve its position
• Need more efficiency in account receivable
methods
• It should also increase the return to its
shareholders.