Research and Analysis Project
An analysis of the financial situation of
Pakistan State Oil Co Ltd
By: ABC
March 2005
Mentor: XYZ
4780 Words
Table of Contents
Introduction 3 The company 3 The oil sector in Pakistan 3 Aims and Objectives 4
Information Gathering 5 Books 5 Texts 5 Articles 5 Reports 5 Company Software 6 The Internet 6 Informal interviews 6
Analysis 7 Vertical or trend analysis 7 Analysis using absolute data 7 Ratio Analysis 10 Liquidity Ratios 10 Current Ratio 10 Quick Ratio 10 Operational Cash Flow to Current Liabilities 11 Profitability Ratios 11 Gross Profit Mark-up 11 Net Profit Margin 11 Return on Capital Employed (ROCE) 12 Return on Equity (ROE) 12 Activity Ratios 12 Inventory Turnover 12 Average Collection Period 13 Asset Utilisation 13 Gearing/Leverage Ratios 13 Interest Coverage 13 Capital Gearing 13 Horizontal analysis 14
Conclusion 15
Appendices 16 Appendix 1: Balance Sheets 16 Appendix 2: Profit and Loss Statements 17 Appendix 3: Ratio Definitions 18 Appendix 4: Ratios 19 Appendix 5: Ratio Calculations showing Excel Formulas 20
The Key Skills Statement 21 PREPARING FOR MEETINGS 22 QUESTIONING 22 LISTENING 23 ASSESSMENT OF THE PRESENTATION 24 Outline of the Presentation 25 SELF-ASSESSMENT OF INTERACTION 27
Bibliography 28
Introduction
The topic of this Research and Analysis Project is “An analysis of the financial situation of your choice of organization.”
I enjoy working with numbers. Whenever I have been given a choice, I have been inclined towards numerical topics. This project topic was therefore my obvious choice. However this was not the sole reason. Being a working professional I found it to my advantage to
Bibliography: • Annual Report (2004), Pakistan State Oil Co. • Annual Report (2003), Pakistan State Oil Co. • Wood, F. (1999) Business Accounting II. Financial Times Prentice Hall • Randall, H • Johnston, D. (1992) Oil Company Financial Analysis In Nontechnical Language. Pennwell Books • Venture Line http://www.ventureline.com/SampleOnePrivateCompany.asp 22 January 2005 • Study Text (2003) Paper 2.4 Financial Management and Control. BPP • Study Text (2003) Paper 2.5 Financial Reporting • Study Text (2004) Paper 3.7 Strategic Financial Management. BPP • ACCA Student Accountant Website