Comparative Evaluation of Financial Performance of Pakistan Tobacco Company (PTC) and Philip Morris Pakistan Limited (PMPKL) through Ratio Analysis

Author(s)

Hussain Muhammad , Prof. Dr. Bahadar Shah , Zia ul Islam , M. Waqas , Dawood Khan ,

Download Full PDF Pages: 146-156 | Views: 411 | Downloads: 119 | DOI: 10.5281/zenodo.3445939

Volume 3 - January 2014 (01)

Abstract

Financial ratio’s play a significant role in analyzing firm’s financial performance. These ratio’s are usually used to summarize the information in a firm’s financial statements, analyzing and evaluating its financial position. This study was based on secondary data collected from selected companies of Tobacco Industry in Pakistan for the period of 2008-2012. The main objective of the study was to compare financial performance of two leading companies, Pakistan Tobacco Company (PTC) and Philip Morris Pakistan Limited (PMPKL). Further, this study used various financial ratios like liquidity ratios, activity ratios, leverage ratios, profitability ratios and market value ratios. Moreover, the results of the study indicates that in term of liquidity and leverage ratios, PMPKL ranked first and PTC ranked second, whereas in terms of activity, profitability and market value, PTC ranked first and PMPKL second. Overall, PTC ranked first and secured 26 points, whereas PMPKL ranked second and secured 19 points. Finally, the results revealed that financial performance of PTC was better than in comparison to PMPKL. 

Keywords

Tobacco Industry, Ratios Analysis, Financial Performance

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