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PROJECT REPORT
FINANCIAL RATIO ANALYSIS: ABBOTT LABORATORIES
PAKISTAN
(2003-2007)
Ticker: ABOT
Exchanges: BOM
Country: PAKISTAN
Employees: 1350
General Information
Abbott Laboratories(Pakistan) Limited
www.abbott.com.pk
T: 92 21 501 50 45 9
F: 92 21 501 32 45
Company Overview:
Abbott Laboratories (Pakistan) is a subsidiary of Abbott Laboratories, and focuses on
manufacturing and marketing pharmaceutical products. The company also manufactures
diagnostic equipment; diabetes cares products, molecular devices, related testing kits, and
consumer health and hospital products. In addition, it markets pediatrics and medical
nutritional products. The company operates primarily in Pakistan. It is headquartered in
Karachi, Pakistan and employs 1,500 people.
The company recorded revenues of PKR5, 887.7 million (approximately $98 million)
during the fiscal year ended November 2006. The net profit of the company was PKR
1, 000 million (approximately $16.7 million) in fiscal year 2006.
Principal Activities:
The Company's principal activities are to manufacture, import and market research based
pharmaceutical, nutritional, diagnostic, hospital and consumer products and provides toll
manufacturing services. It operates through three segments:
• Pharmaceutical,
• Nutritional and
• Others
The financial information regarding Abbott laboratories was collected and analysed and
the significant ratios were calculated in order to determine the financial situation of thee
company during last 5 years, a report is presented below.
(All calculations are done on MS-Excel using formuals, sheets are attached)
2003
Rs. 1233297
2004
Rs. 1809510
2005
Rs. 2211893
2006
Rs. 2814730
2007
Rs. 2247448
0.8911
2004
2.1108
2005
1.8971
2006
2.4253
2007
0.7088
Current Ratio
2003
2.6523
2004
4.2611
2005
4.1774
2006
4.7558
2007
3.5490
2003
2.27%
2004
1.91%
2005
2.85%
2006
3.55%
2007
1.97%
2003
2005
2006
2007
2003
30.52%
2004
34.84%
2005
33.16%
2006
28.67%
2007
37.86%
PROFITABILITY RATIOS
2003
12.30%
2004
16.25%
2005
18.59%
2006
16.98%
2007
18.48%
2003
28.20%
2004
32.15%
2005
33.16%,
2006
28.67%
2007
37.86%
Rate of Profit on Owner's Equity (%) = Net Profit/ Owner's Equity * 100
2003
24.09%
2004
26.78%
2005
28.20%
2006
23.57%
2007
32.79%
40
35
30
25
Net Profit Margin
20
Earning Power
15
Profit on Equity
10
5
0
2003 2004 2005 2006 2007
Rate of Profit on Paid-up Capital (%) = Net Profit/ Paid-up capital * 100
2003
111.45%
2004
131.87%
2005
141.52%
2006
102.15%
2007
123.55%
2003
164.18
2004
224.23
2005
194.50
2006
294.64
2007
275.35
300
250
Rate on paidup
200
capital
150 Rate on
Investments
100
50
0
2003 2004 2005 2006 2007
SHARE PRICES
(All calculations are done on MS-Excel using mathematical formulas, sheets are
attached)
2003
$9.9999
2004
$9.9999
2005
$9.9999
2006
$10.00
2007
$10.00
2003
11.15
2004
10.99
2005
14.15
2006
10.21
2007
12.36
2003
Rs. 3.00
2004
Rs. 3.00
2005
Rs. 3.50
2006
Rs. 3.55
2007
Rs. 3.99
2003
26.99%
2004
27.30%
2005
24.73%
2006
34.77%
2007
32.28%
2003
0.53%
2004
0.34%
2005
0.27%
2006
0.21%
2007
1.20%
35
Bookvalue of
30 share
25 EPS
20
DPS
15
10 Payout
5
Dividend Yield
0
2003 2004 2005 2006 2007
(All calculations are done on MS-Excel using mathematical formulas, sheets are
attached)
2003
1.6393%
2004
0.1040%
2005
0.1055%
2006
0.0811%
2007
0.1013%
Total Debt to Total Capital = Total Debt/ Total debt+ total equity
2003
26.1640%
2004
17.1887%
2005
17.3699%
2006
15.7591%
2007
21.1924%
Long term debt to equity ratio = Long term debt/ total common equity
2003
0.93%
2004
0.87%
2005
0.62%
2006
1.04%
2007
2.99%
2.5
2
Debt to Equity
1.5
Debt to Capital
1 LTD to Equity
0.5
0
2003 2004 2005 2006 2007
2003
2004
2005
2007
2003
2004
2005
2006
2007
2003
2005
2006
2007
700
600
500 Tangible Asset Debt
Coverage
400
Times Interest
300 earned
200 Cash flow times
interst earned
100
0
2003 2004 2005 2006 2007
Asset Relation Ratios
(All calculations are done on MS-Excel using mathematical formulas, sheets are
attached)
Plant & Equipment to Total Assets = Net Plant + Net Equipment/ Total
Assets
2003
805219/2958071 = 27.22%
2004
972968/3368623 = 28.89%
2005
1187749/4129055 = 28.76%
2006
2007
2003
791608/2958071 = 0.2676
2004
837784.5/3368623 = 0.2487
2005
1067760.5/4129055 = 0.2586
2006
1237020.5/5035425 = 0.2457
2007
1309824.5/4681368 = 0.2798
2003
97057/2958071= 0.0328
2004
92553.5/3368623 = 0.0275
2005
117673.5/4129055 = 0.0285
2006
178019.5/5035425 = 0.0353
2007
0.3
0.25
Plant&Equipment
0.2
to totalAssets
0.15 Inventory to total
assets
0.1
Receivable to total
0.05 asset
0
2003 2004 2005 2006 2007