Finanlcial Statements Analysis

Riphah School of Management Sciences
Comparative Financial
Statements Analysis
Abbott and GlaxoSmithKline
For the kind consideration of:

Mr. Farhan Shah
Submitted by:
Ahsaan Nadeem
CMS No. 24698 (M.COM)
Table of Contents
A. Industry Introduction
B. Companies Introduction
i. Abbott Pakistan
ii. GlaxoSmithKline Pakistan
C. Ratio Analysis
D. Key Financial Ratios

i. Liquidity Ratios
ii. Profitability Ratios
iii. Activity Ratios
iv. Market Ratios
E. Common Size and Index Analysis of Abbott Pakistan
F. Common Size and Index Analysis of GlaxoSmithKline Pakistan
G. Conclusion
Industry Introduction:
Pakistan has a very vibrant and forward-looking Pharma Industry. At the time of independence in 1947,
there was hardly any pharma industry in the country. Today Pakistan has about 759 pharmaceutical
manufacturing units including those operated by 25 multinationals present in the country. The Pakistan
Pharmaceutical Industry meets around 70% of the country’s demand of Finished Medicine. The
domestic pharma market, in term of share market is almost evenly divided between the Nationals and
the Multinationals.
The National pharma industry has shown a progressive growth over the years, particularly over the last
one decade. The industry has invested substantially to upgrade itself in the last few years and today the
majority industry is following Good Manufacturing Practices (GMP), in accordance with the domestic as
well as international Guidance. Currently the industry has the capacity to manufacture a variety of
product ranging from simple pills to sophisticated Biotech, Oncology and Value-Added Generic
compounds.
Although Pakistan ‘s pharmaceutical and healthcare sectors are expanding and evolving rapidly, about
half the population has no access to modern medicines. Clearly this presents an opportunity, but much
more work needs to be done by the government and industry’s stakeholders. The value of
pharmaceuticals sold in 2007 exceeded US$1.4bn, which equates to per capita consumption of less than
US$ 10 per year and value of medicines sold is expected to exceed US$2.3 B by 2012.
Pakistan is a developing pharmaceutical market, with a large population and economic progress evident,
but per capita drug spending was rather low at around US$9.30 in 2007. Private spending accounts for
65% of total healthcare expenditure sourced through out of pocket payments, international aid and
religious or charitable institutions. Pharmaceutical spending accounts for less than 1% of the country’s
GDP, comparable to levels in some neighboring countries but above that in some of the South Asian
countries. The forecast period is likely to witness the marginal strengthening of the generics sector,
albeit more in terms of volumes than values. The share of generics is also likely to increase further as
major drugs come off-patent in the near term, to the likely benefit of the generics-dominated local
industry.
The Pakistan pharma industry is relatively young in the international markets with an export turnover of
over US$ 100 Million as of 2007. Pakistan Pharma Industry boasts of quality producers and many units
are approved by regulatory authorities all over the world. Like domestic market the sales in international
market have gone almost double during last five years. The pharma industry is focusing to an Export
Vision of USD 500 Million by 2013. In the meantime, exports are also likely to be boosted by new
regional and global opportunities.
The Pakistan Pharmaceutical Industry is a success story, providing high quality essential drugs at
affordable prices to Millions. Technologically, strong and self-reliant National Pharmaceutical Industry is
not only playing a key role in promoting and sustaining development in the vital field of medicine within
the country, but is also well set to take on the international markets.
Companies Introduction:
Abbott:
Abbott has a history of more than 125 years globally and presence in Pakistan almost since its inception.
We employ more than 1,400 people directly while providing indirect employment opportunities to
thousands. The Company was incorporated in 1948 and commissioned its first manufacturing facility in
1962. Currently, the Company operates two state of the art manufacturing facilities and is listed on the
Pakistan Stock Exchange.
Presently, Abbott operates in four different businesses and is the 2nd largest Pharmaceutical company
in the country. It is one of the leading tax payers with contribution to the National Exchequer of Rs. 3.68
billion (2016: Rs. 3.73 billion).
The majority shareholding of the Company is with Abbott Asia Investments Limited, UK with the
ultimate holding company being Abbott Laboratories, USA.
GlaxoSmithKline:
GlaxoSmithKline Pakistan Limited was created on January 1st, 2001, through the merger of SmithKline
and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan)
Limited, and stands today as the largest pharmaceutical company in Pakistan. Group Structure Company
Profile and
GSK is a long-established investor in Pakistan. Our legacy company Glaxo Laboratories Pakistan Ltd. was
the first pharmaceutical company to be listed on the Karachi Stock Exchange in 1951. GSK Pakistan
operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and
consumer healthcare (over-the-counter-medicines, oral care and nutritional care). In Pakistan, the
Company deals in Anti-infective, Respiratory, Vaccines, Dermatological, Gastrointestinal, Analgesics,
Oncology, Urology, Central Nervous System, Allergy, Cardiovascular and Vitamins therapy areas.
Ratios Analysis:
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by comparing information contained in its financial statements. Ratio
analysis is a cornerstone of fundamental analysis.
Outside analysts use several types of ratios to assess companies, while corporate insiders rely on them
less because of their access to more detailed operational data about a company.
Ratio analysis can be used to establish a trend line for one company's results over a large number of
financial reporting periods. This can highlight company changes that would not be evident if looking at a
given ratio that represents just one point in time.
Key Financial Ratios:

1. Liquidity Ratios:
Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they become due
as well as their long-term liabilities as they become current. In other words, these ratios show the cash
levels of a company and the ability to turn other assets into cash to pay off liabilities and other current
obligations.
Liquidity is not only a measure of how much cash a business has. It is also a measure of how easy it will
be for the company to raise enough cash or convert assets into cash. Assets like accounts receivable,
trading securities, and inventory are relatively easy for many companies to convert into cash in the short
term. Thus, all of these assets go into the liquidity calculation of a company.
Company:--> GSK Abbott

Particulars Unit Years Unit Years
Liquidity Ratios: 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
Current ratio Times 1.5 1.7 1.8 1.8 1.9 Times 2.96 4.61 3.73 3.86 3.56
Quick / Acid test ratio Times 0.7 0.8 0.9 0.8 0.8 Times 2.18 3.31 2.81 2.76 2.27
Cash to Current Liabilities Times 0.3 0.6 0.6 0.4 0.4 Times 1.84 2.79 2.51 2.39 1.76
Current Ratio
5
4.61
4.5
3.86
4 3.73
3.56
Times
3.5
2.96
3
2.5
1.9
2 1.8 1.8
1.7
1.5
1.5
0.5
0
2013 2014 2015 2016 2017
Years
Quick Ratio
3.5 3.31
3 2.76 2.81
2.5
Times
2.27
2.18
1.5
0.9
1 0.8 0.8 0.8
0.7
0.5
0
2013 2014 2015 2016 2017
Years
Cash to Current Liabilities
3 2.79
2.51
2.39
2.5
Times
2 1.76 1.84
1.5
1
0.6 0.6
0.4 0.4
0.5 0.3
0
2013 2014 2015 2016 2017
Years
2. Profitability Ratios:
Profitability ratios compare income statement accounts and categories to show a company’s ability to
generate profits from its operations. Profitability ratios focus on a company’s return on investment in
inventory and other assets. These ratios basically show how well companies can achieve profits from
their operations.
Investors and creditors can use profitability ratios to judge a company’s return on investment based on
its relative level of resources and assets. In other words, profitability ratios can be used to judge
whether companies are making enough operational profit from their assets. In this sense, profitability
ratios relate to efficiency ratios because they show how well companies are using their assets to
generate profits. Profitability is also important to the concept of solvency and going concern.

Profitability Ratios: 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
Return on Equity Percent 22.7 19.8 20.2 14.1 9.4 Percent 29.3 27.6 27.7 25.9 28.9
Gross Profit ratio Percent 26.5 28 27.4 26.3 24.7 Percent 38.7 40.1 38.9 38.3 38.5
Net Profit to Sales Percent 9.2 9.6 8.9 6.1 4.2 Percent 16.1 17.2 16.9 14.3 14.7
Return on Equity
35
28.9 29.3
30 27.7 27.6
25.9
25
Percent
22.7
20.2 19.8
20
14.1
15
9.4
10
0
2013 2014 2015 2016 2017
Years
Gross Profit Ratio

45
40.1
38.5 38.3 38.9 38.7
40
35
Percent
30 27.4 28
26.3 26.5
24.7
25
20
15
10
0
2013 2014 2015 2016 2017
Years
Net Profit to Sales Ratio
20
18 16.9 17.2
16.1
16 14.7
14.3
Percent
14
12
9.6
10 8.9 9.2
8
6.1
6
4.2
4
0
2013 2014 2015 2016 2017
Years
3. Activity/Turnover Ratios:
Activity ratios are a category of financial ratios that measure a firm's ability to convert different accounts
within its balance sheets into cash or sales. Activity ratios measure the relative efficiency of a firm based
on its use of its assets, leverage, or other similar balance sheet items and are important in determining
whether a company's management is doing a good enough job of generating revenues and cash from its
resources.
Activity ratios gauge an organization's operational efficiency and profitability. These ratios are most
useful when compared to a competitor or industry to establish whether an entity's processes are
favorable or unfavorable. Activity ratios can form a basis of comparison across multiple reporting
periods to determine changes over time.
Activity / Turnover Ratios: 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
Inventory turnover ratio Times 4 3.4 3.4 3.2 3.3 Times 4.54 4.32 4.52 4.35 4.08
No. of Days in Inventory Days 92 108 107 115 112 Days 80.44 84.41 80.82 83.95 89.38
Debtor turnover ratio Times 22.7 52.5 56.1 63 72.1 Times 29.06 34.48 44.14 38.28 30.94
No. of Days in Receivables Days 17 7 7 6 5 Days 12.56 10.59 8.27 9.54 11.8
Creditor turnover ratio Times 12 8.6 10.6 10.6 10.5 Times 5.45 6.05 6.28 7.4 7.48
No. of Days in Creditors Days 31 43 35 34 35 Days 66.97 60.28 58.13 49.32 48.78
Total Assets turnover ratio Times 1.5 1.32 1.47 1.5 1.4 Times 1.36 1.33 1.28 1.43 1.54
Fixed Assets turnover ratio Times 3.7 3.3 4.1 4.2 4.2 Times 4.8 5.24 5.24 5.82 5.34
Operating Cycle Days 77 73 79 86 82 Days 26.03 34.72 30.96 44.17 52.4
Inventory Turnover Ratio

5
4.52 4.54
4.35 4.32
4.5
4.08 4
4
3.3 3.4 3.4
Times
3.5 3.2
2.5
1.5
0.5
0
2013 2014 2015 2016 2017
Years
No. of days in Inventory
140
112 115
120 107 108
89.38 92
Days
100 83.95 84.41

80.82 80.44
80
60
40
20
0
2013 2014 2015 2016 2017
Years
Debtors Turnover Ratio

80 72.1
70 63
56.1
60 52.5
Times
50 44.14
38.28
40 34.48
30.94 29.06
30 22.7
20
10
0
2013 2014 2015 2016 2017
Years
No. of Days in Receivables

17
18
16
14 12.56
11.8
Days
12 10.59
9.54
10 8.27
7 7
8 6
5
6
4
2
0
2013 2014 2015 2016 2017
Years
Creditors Turnover Ratio
14 12
Times
12 10.5 10.6 10.6

10 8.6
7.48 7.4
8 6.28 6.05
5.45
6
4
2
0
2013 2014 2015 2016 2017
Years
No. of Days in Creditors

80
70 66.97
60.28
58.13
60
Days
48.78 49.32
50
43
40 35 35
34
31
30
20
10
0
2013 2014 2015 2016 2017
Years
Total Assets Turnover Ratio
1.8
1.6 1.54
1.5 1.47 1.5
1.4 1.43
1.33 1.36
1.4 1.32
1.28
Times
1.2
0.8
0.6
0.4
0.2
0
2013 2014 2015 2016 2017
Years
Fixed Assets Turnover Ratio

7
5.82
6
5.34 5.24 5.24
4.8
5
Times
4.2 4.2 4.1

4 3.7
3.3
0
2013 2014 2015 2016 2017
Years
Operating Cycle
100
86
90 82 79 77
80 73
Days
70
60 52.4
50 44.17
34.72
40 30.96
26.03
30
20
10
0
2013 2014 2015 2016 2017
Years
4. Investment/Market Ratios:
Market Value Ratios express how the market evaluates the past activities of the enterprise and its future
outlook. They are especially important for current and future investors, showing them what rate of
return (through dividends or growth in prices of shares) can be expected from the investment. The
indicators reflect different aspects of the management of the enterprise (return, liquidity, financial
stability, activity). They are counted only for enterprises with publicly traded securities.

Investment / Market Ratios 2017 2016 2015 2014 2013 2017 2016 2015 2014 2013
Price earning ratio Times 17.7 28.1 26.6 41.4 40.8 Times 16.24 23.3 17.33 24.7 15.23
Dividend pay out ratio Times 0.7 0.7 0.5 0.9 1 Times 0.93 0.97 0.82 0.27 0.27
Dividend cover ratio Times 1.4 1.4 2.1 1.1 1 Times 1.07 1.03 1.22 3.69 3.69
Price Earning Ratio
45 40.8 41.4
40
35
Times
26.6 28.1
30 24.7 23.3
25
17.33 17.7
16.24
20 15.23
15
10
5
0
2013 2014 2015 2016 2017
Years
Dividend Payout Ratio

1.2
1 0.97
0.9 0.93
1
0.82
Times
0.8 0.7 0.7
0.6 0.5
0.4 0.27 0.27
0.2
0
2013 2014 2015 2016 2017
Years
Dividend Cover Ratio

4 3.69 3.69
3.5
3
Times
2.5 2.1
2
1.4 1.4
1.5 1.1 1.22 1.07
1 1.03
1
0.5
0
2013 2014 2015 2016 2017
Years
Common Size
and
Index Analysis
of
Abbott
Income Statement Common Size Analysis (2013-17)
Abbot Pakistan
Particulars 2017 2016 2015 2014 2013
Profit and Loss Account Rs.000 Percent Rs.000 Percent Rs.000 Percent Rs.000 Percent Rs.000 Percent
Revenue 26,088,233 100.0% 23,387,915 100.0% 21,170,446 100.0% 19,692,354 100.0% 17,217,258 100.0%
Less Cost of sales 15,999,247 61.3% 14,020,416 59.9% 12,943,213 61.1% 12,142,212 61.7% 10,595,612 61.5%
Total Gross Profit 10,088,986 38.7% 9,367,499 40.1% 8,227,233 38.9% 7,550,142 38.3% 6,621,646 38.5%
Less Selling and distribution expenses 3,611,882 13.8% 3,258,175 13.9% 2,876,407 13.6% 2,965,120 15.1% 2,471,404 14.4%
Less General and Administrative 468,172 1.8% 450,297 1.9% 383,612 1.8% 367,379 1.9% 366,938 2.1%
Sub-Total 4,080,054 15.6% 3,708,472 15.9% 3,260,019 15.4% 3,332,499 16.9% 2,838,342 16.5%
Total Operating Income 6,008,932 23.0% 5,659,027 24.2% 4,967,214 23.5% 4,217,643 21.4% 3,783,304 22.0%
Add Other income 445,317 1.7% 420,937 1.8% 476,868 2.3% 475,693 2.4% 273,059 1.6%
Less Other charges 602,244 2.3% 486,064 2.1% 431,721 2.0% 369,995 1.9% 367,184 2.1%
Sub-Total 5,852,005 5,593,900 5,012,361 4,323,341 3,689,179
Less Finance costs 10,060 0.1% 6,759 0.0% 5,884 0.0% 4,774 0.0% 2,956 0.0%
Income Before Income Taxes 5,841,945 22.4% 5,587,141 23.9% 5,006,477 23.6% 4,318,567 21.9% 3,686,223 21.4%
Income Tax Expense 1,636,713 6.3% 1,565,349 6.7% 1,419,741 6.7% 1,502,255 7.6% 1,157,374 6.7%
Total Net Income 4,205,232 16.1% 4,021,792 17.2% 3,586,736 16.9% 2,816,312 14.3% 2,528,849 14.7%
Balance Sheet Common Size Analysis (2013-17)
Abbot Pakistan
Particulars 2017 2016 2015 2014 2013
Rs.000 Percent Rs.000 Percent Rs.000 Percent Rs.000 Percent Rs.000 Percent
EQUITY AND LIABILITIES:
SHARE CAPITAL AND RESERVES:
Authorised capital 2,000,000 10.40% 2,000,000 11.33% 2,000,000 12.13% 2,000,000 14.53% 2,000,000 17.91%
Issued, subscribed and paid-up capital 979,003 5.09% 979,003 5.55% 979,003 5.94% 979,003 7.11% 979,003 8.77%
Add Reserves - capital 459,761 2.39% 414,380 2.35% 381,945 2.32% 339,481 2.47% 300,030 2.69%
Add Reserved - revenue 12,917,071 67.15% 13,199,857 74.81% 11,588,299 70.28% 9,553,116 69.40% 7,468,232 66.87%
Total Equity 14,355,835 74.63% 14,593,240 12,949,247 78.54% 10,871,600 78.98% 8,747,265 78.32%
NON-CURRENT LIABILITY:
Add Deferred taxation 231,147 1.20% 203,477 1.15% 219,144 1.33% 223,953 1.63% 203,562 1.82%
CURRENT LIABILITIES:
Add Trade and other payables 4,649,277 24.17% 2,843,217 16.11% 3,319,884 20.13% 2,670,042 19.40% 2,217,177 19.85%
Taxation - net 5,250 0.03%
Total Liabilities 4,880,424 25.37% 3,051,944 17.30% 3,539,028 21.46% 2,893,995 21.02% 2,420,739 21.68%
TOTAL EQUITY AND LIABILITIES 19,236,259 100.00% 17,645,184 100.00% 16,488,275 100.00% 13,765,595 100.00% 11,168,004 100.00%
ASSETS:
NON-CURRENT ASSETS:
Fixed assets:
Add Property, plant and equipment 5,419,054 28.17% 4,443,019 25.18% 4,017,403 24.37% 3,359,092 24.40% 3,183,735 28.51%
Add Intangible assets 10,650 0.06% 16,250 0.09% 21,983 0.13% 24,395 0.18% 41,615 0.37%
Add Long-term loans and advances 50,988 0.27% 49,654 0.28% 51,712 0.31% 46,204 0.34% 31,896 0.29%
Add Long-term deposits 7,513 0.04% 7,475 0.04% 7,475 0.05% 7,605 0.06% 4,103 0.04%
Add Long-term prepayments 4,117 0.02% 6,635 0.04% 9,610 0.06% 9,171 0.07% 8,065 0.07%
Total Non-current Assets 5,492,322 28.55% 4,523,033 25.63% 4,108,183 24.92% 3,446,467 25.04% 3,269,414 29.27%
CURRENT ASSETS:
Stores and spares 129,521 0.67% 103,766 0.59% 140,069 0.85% 120,158 0.87% 107,238 0.96%
Add Stock-in-trade 3,475,745 18.07% 3,575,927 20.27% 2,908,690 17.64% 2,823,007 20.51% 2,762,690 24.74%
Add Trade debts 914,972 4.76% 880,297 4.99% 476,403 2.89% 482,771 3.51% 546,093 4.89%
Add Loans and advances 159,591 0.83% 160,388 0.91% 100,194 0.61% 81,259 0.59% 172,205 1.54%
Add Trade deposits and short-term prepayments 326,296 1.70% 285,443 1.62% 231,897 1.41% 177,948 1.29% 154,613 1.38%
Add Interest accrued 12,495 0.06% 11,535 0.07% 8,573 0.05% 17,351 0.13% 5,922 0.05%
Add Other receivables 149,206 0.78% 160,366 0.91% 97,495 0.59% 192,610 1.40% 79,269 0.71%
Add Taxation - net 4,390 0.02% 95,858 0.58% 42,643 0.31% 173,509 1.55%
Add Cash and bank balances 8,571,721 44.56% 7,944,429 45.02% 8,320,913 50.47% 6,381,381 46.36% 3,897,051 34.89%
Total Current Assets 13,743,937 71.45% 13,122,151 74.37% 12,380,092 75.08% 10,319,128 74.96% 7,898,590 70.73%
TOTAL ASSETS 19,236,259 100.00% 17,645,184 100.00% 16,488,275 100.00% 13,765,595 100.00% 11,168,004 100.00%
Income Statement Index Analysis (2013-17)
Abbot Pakistan
Particulars 2017 2016 2015 2014 2013 (Base Year)
Revenue 26,088,233 151.5% 23,387,915 135.8% 21,170,446 123.0% 19,692,354 114.4% 17,217,258 100.0%
Less Selling and distribution expenses 3,611,882 146.1% 3,258,175 131.8% 2,876,407 116.4% 2,965,120 120.0% 2,471,404 100.0%
Less General and Administrative 468,172 127.6% 450,297 122.7% 383,612 104.5% 367,379 100.1% 366,938 100.0%
Sub-Total 4,080,054 143.7% 3,708,472 130.7% 3,260,019 114.9% 3,332,499 117.4% 2,838,342 100.0%
Total Operating Income 6,008,932 158.8% 5,659,027 149.6% 4,967,214 131.3% 4,217,643 111.5% 3,783,304 100.0%
Add Other income 445,317 163.1% 420,937 154.2% 476,868 174.6% 475,693 174.2% 273,059 100.0%
Less Other charges 602,244 164.0% 486,064 132.4% 431,721 117.6% 369,995 100.8% 367,184 100.0%
Sub-Total 5,852,005 5,593,900 5,012,361 4,323,341 3,689,179
Less Finance costs 10,060 340.3% 6,759 228.7% 5,884 199.1% 4,774 161.5% 2,956 100.0%
Income Before Income Taxes 5,841,945 158.5% 5,587,141 151.6% 5,006,477 135.8% 4,318,567 117.2% 3,686,223 100.0%
Income Tax Expense 1,636,713 141.4% 1,565,349 135.3% 1,419,741 122.7% 1,502,255 129.8% 1,157,374 100.0%
Total Net Income 4,205,232 166.3% 4,021,792 159.0% 3,586,736 141.8% 2,816,312 111.4% 2,528,849 100.0%
Balance Sheet Index Analysis (2013-17)
Abbot Pakistan
Authorised capital 2,000,000 100.00% 2,000,000 100.00% 2,000,000 100.00% 2,000,000 100.00% 2,000,000 100.00%
Issued, subscribed and paid-up capital 979,003 100.00% 979,003 100.00% 979,003 100.00% 979,003 100.00% 979,003 100.00%
Add Reserves - capital 459,761 153.24% 414,380 138.11% 381,945 127.30% 339,481 113.15% 300,030 100.00%
Add Reserved - revenue 12,917,071 172.96% 13,199,857 176.75% 11,588,299 155.17% 9,553,116 127.92% 7,468,232 100.00%
Total Equity 14,355,835 164.12% 14,593,240 166.83% 12,949,247 148.04% 10,871,600 124.29% 8,747,265 100.00%
Taxation - net 5,250
ASSETS:
NON-CURRENT ASSETS:
Fixed assets:
Add Property, plant and equipment 5,419,054 170.21% 4,443,019 139.55% 4,017,403 126.19% 3,359,092 105.51% 3,183,735 100.00%
Add Intangible assets 10,650 25.59% 16,250 39.05% 21,983 52.82% 24,395 58.62% 41,615 100.00%
Add Long-term loans and advances 50,988 159.86% 49,654 155.67% 51,712 162.13% 46,204 144.86% 31,896 100.00%
Add Long-term prepayments 4,117 51.05% 6,635 82.27% 9,610 119.16% 9,171 113.71% 8,065 100.00%
CURRENT ASSETS:
Add Trade debts 914,972 167.55% 880,297 161.20% 476,403 87.24% 482,771 88.40% 546,093 100.00%
Add Taxation - net 4,390 2.53% 95,858 55.25% 42,643 24.58% 173,509 100.00%
TOTAL ASSETS 19,236,259 172.24% 17,645,184 158.00% 16,488,275 147.64% 13,765,595 123.26% 11,168,004 100.00%
Common Size
and
Index Analysis
of
GSK
Income Statement Common Size Analysis (2013-17)
GSK Pakistan
Particulars 2017 2016 2015 2014 2013
Continuing operations:
Net Sales 32,773,770 100.0% 27,563,533 100.0% 23,821,926 100.0% 22,843,250 100.0% 25,230,878 100.0%
Less Selling, marketing and distribution expenses 3,278,792 10.0% 2,816,163 10.2% 2,787,942 11.7% 2,607,462 11.4% 3,635,914 14.4%
Less Administrative expenses 982,786 3.0% 944,201 3.4% 971,144 4.1% 936,170 4.1% 920,396 3.6%
Less Other operating expenses 439,456 1.3% 372,750 1.4% 255,635 1.1% 230,783 1.0% 153,230 0.6%
Add Other income 1,036,344 3.2% 1,040,556 3.8% 1,159,017 4.9% 488,010 2.1% 454,916 1.8%
Total Operating Profit 5,013,696 15.3% 4,371,913 15.9% 3,568,467 15.0% 2,560,386 11.2% 1,969,089 7.8%
Less Financial charges 88,282 0.3% 19,032 0.1% 54,361 0.2% 20,363 0.1% 159,217
Profit before taxation 4,925,414 15.0% 4,352,881 15.8% 3,514,106 14.8% 2,540,023 11.1% 1,809,872 7.2%
Income Tax Expense 1,898,180 5.8% 1,707,969 6.2% 1,003,380 4.2% 1,005,105 4.4% 747,609 3.0%
Profit after taxation from
Total continuing operations 3,027,234 9.2% 2,644,912 9.6% 2,510,726 10.5% 1,534,918 6.7% 1,062,263 4.2%
Discontinued operations:
(Loss) / profit after taxation from
discontinued operations (46,211) 117,273 132,504 152,153
Items that will not be reclassified to
profit and loss (267,816) 58,831 105,995 (116,163) (81,095)
Remeasurement of staff retirement
benefits 72,071 (17,258) (31,781) 38,187 27,491
Impact of taxation (195,745) 41,573 74,214 (77,976) 53,604
Total (241,956) 158,846 206,718 74,177 (53,604)
Total Total comprehensive income 2,785,278 8.5% 2,803,758 10.2% 2,717,444 11.4% 1,609,095 7.0% 1,008,659 4.0%
Balance Sheet Common Size Analysis (2013-17)
GSK Pakistan
Particulars 2017 2016 2015 2014 2013
Share capital 3,184,672 14.56% 3,184,672 15.05% 3,184,672 15.83% 3,184,672 16.67% 2,895,156 16.14%
Add Reserves 10,277,185 46.98% 10,358,113 48.94% 9,885,539 49.13% 8,760,431 45.86% 8,454,157 47.13%
Total Equity 13,461,857 61.54% 13,542,785 63.99% 13,070,211 64.96% 11,945,103 62.54% 11,349,313 63.27%
Staff retirement benefits 294,031 1.34% 78,014 0.37% 15,861 0.08% 382,253 2.00% 250,977 1.40%
Add Taxation - net 542,221 2.48% 391,727 1.85%
Add Provisions 411,771 1.88% 192,739 0.91% 187,113 0.93% 177,536 0.93% 165,079 0.92%
Liabilities directly associated with
disposal groups
Add classified as held for sale 67,912 0.32% 960,729 4.77%
Add Contingencies and commitments
ASSETS:
NON-CURRENT ASSETS:
Fixed Assets 8,865,334 40.53% 8,318,434 39.30% 7,154,446 35.56% 6,652,251 34.83% 5,973,404 33.30%
Add Intangible assets 1,039,072 4.75% 1,039,072 4.91% 1,039,072 5.16% 955,742 5.00% 955,742 5.33%
Add Long-term loans to employees 91,422 0.42% 49,369 0.23% 49,212 0.24% 65,722 0.34% 70,079 0.39%
CURRENT ASSETS:
Add Trade debts 2,362,703 10.80% 530,413 2.51% 328,948 1.63% 535,116 2.80% 349,950 1.95%
Add Refunds due from Government 30,113 0.14% 54,178 0.26% 109,125 0.54% 56,925 0.30% 46,951 0.26%
Add Held-to-maturity investments 348,810 1.59% 793,873 3.75% 695,586 3.46% 591,667 3.10% 224,269 1.25%
Add Assets held for sale 154,000 0.70% 284,048 1.34% 1,589,416 7.90% 27,147 0.14%
Add Taxation - payments less provision 531,579 2.64% 799,984 4.19% 1,231,588 6.87%
TOTAL ASSETS 21,873,932 100.00% 21,165,107 100.00% 20,120,182 100.00% 19,100,878 100.00% 17,938,810 100.00%
Income Statement Index Analysis (2013-17)
GSK Pakistan
Continuing operations:
Net Sales 32,773,770 129.9% 27,563,533 109.2% 23,821,926 94.4% 22,843,250 90.5% 25,230,878 100.0%
Less Selling, marketing and distribution expenses 3,278,792 90.2% 2,816,163 77.5% 2,787,942 76.7% 2,607,462 71.7% 3,635,914 100.0%
Less Administrative expenses 982,786 106.8% 944,201 102.6% 971,144 105.5% 936,170 101.7% 920,396 100.0%
Less Other operating expenses 439,456 286.8% 372,750 243.3% 255,635 166.8% 230,783 150.6% 153,230 100.0%
Add Other income 1,036,344 227.8% 1,040,556 228.7% 1,159,017 254.8% 488,010 107.3% 454,916 100.0%
Total Operating Profit 5,013,696 254.6% 4,371,913 222.0% 3,568,467 181.2% 2,560,386 130.0% 1,969,089 100.0%
Less Financial charges 88,282 55.4% 19,032 12.0% 54,361 34.1% 20,363 12.8% 159,217
Profit before taxation 4,925,414 272.1% 4,352,881 240.5% 3,514,106 194.2% 2,540,023 140.3% 1,809,872 100.0%
Income Tax Expense 1,898,180 253.9% 1,707,969 228.5% 1,003,380 134.2% 1,005,105 134.4% 747,609 100.0%
Profit after taxation from
Total continuing operations 3,027,234 285.0% 2,644,912 249.0% 2,510,726 236.4% 1,534,918 144.5% 1,062,263 100.0%
Discontinued operations:
(Loss) / profit after taxation from discontinued
operations (46,211) 117,273 132,504 152,153
Items that will not be reclassified to profit and
loss (267,816) 58,831 105,995 (116,163) (81,095)
Remeasurement of staff retirement benefits
72,071 (17,258) (31,781) 38,187 27,491
Impact of taxation (195,745) 41,573 74,214 (77,976) 53,604
Total (241,956) 158,846 206,718 74,177 (53,604)
Total Total comprehensive income 2,785,278 276.1% 2,803,758 278.0% 2,717,444 269.4% 1,609,095 159.5% 1,008,659 100.0%
Balance Sheet Index Analysis (2013-17)
GSK Pakistan
Share capital 3,184,672 110.00% 3,184,672 110.00% 3,184,672 110.00% 3,184,672 110.00% 2,895,156 100.00%
Add Reserves 10,277,185 121.56% 10,358,113 122.52% 9,885,539 116.93% 8,760,431 103.62% 8,454,157 100.00%
Total Equity 13,461,857 118.61% 13,542,785 119.33% 13,070,211 115.16% 11,945,103 105.25% 11,349,313 63.27%
Staff retirement benefits 294,031 117.15% 78,014 31.08% 15,861 6.32% 382,253 152.31% 250,977 100.00%
Add Taxation - net 542,221 391,727
Add Provisions 411,771 249.44% 192,739 116.76% 187,113 113.35% 177,536 107.55% 165,079 100.00%
Liabilities directly associated with
disposal groups
Add classified as held for sale 67,912 960,729
Add Contingencies and commitments
ASSETS:
NON-CURRENT ASSETS:
Fixed Assets 8,865,334 148.41% 8,318,434 139.26% 7,154,446 119.77% 6,652,251 111.36% 5,973,404 100.00%
Add Intangible assets 1,039,072 108.72% 1,039,072 108.72% 1,039,072 108.72% 955,742 100.00% 955,742 100.00%
Add Long-term loans to employees 91,422 130.46% 49,369 70.45% 49,212 70.22% 65,722 93.78% 70,079 100.00%
CURRENT ASSETS:
Add Trade debts 2,362,703 675.15% 530,413 151.57% 328,948 94.00% 535,116 152.91% 349,950 100.00%
Add Refunds due from Government 30,113 64.14% 54,178 115.39% 109,125 232.42% 56,925 121.24% 46,951 100.00%
Add Held-to-maturity investments 348,810 155.53% 793,873 353.98% 695,586 310.16% 591,667 263.82% 224,269 100.00%
Add Assets held for sale 154,000 284,048 1,589,416 27,147
Add Taxation - payments less provision 531,579 43.16% 799,984 64.96% 1,231,588 100.00%
TOTAL ASSETS 21,873,932 121.94% 21,165,107 117.99% 20,120,182 112.16% 19,100,878 106.48% 17,938,810 100.00%

Finanlcial Statements Analysis

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Riphah School of Management Sciences

For the kind consideration of:

D. Key Financial Ratios

E. Common Size and Index Analysis of Abbott Pakistan

F. Common Size and Index Analysis of GlaxoSmithKline Pakistan

Key Financial Ratios:

Company:--> GSK Abbott

Company:--> GSK Abbott

Gross Profit Ratio

Inventory Turnover Ratio

100 83.95 84.41

Debtors Turnover Ratio

No. of Days in Receivables

12 10.5 10.6 10.6

No. of Days in Creditors

Fixed Assets Turnover Ratio

4.2 4.2 4.1

Company:--> GSK Abbott

Dividend Payout Ratio

0.8 0.7 0.7

0.4 0.27 0.27

Dividend Cover Ratio

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