Telecom Sector of Pakistan

Financial ratios analysis (FY 08-09) Fixed Line Telecommunication sector look out over Asiya Shirazi Introduction to Business Finance Submitted By Table of Contents Pak Datacom special2 Worldcall Telecom Limited6 Telecard Limited10 Pakistan Telecommunication Company Limited11 Year 2009 for Pak Datacom proved much better than the preliminary year as the party posted a higher EPS of PKR 20.64 against PKR 14.53 last fiscal year. check assets also change magnitude in the year 2009 to PKR 1001 million from PKR 833 million. The boilers suit condition and standing of the company has improved from 2008 to 2009. The major potence has been in utilization of funds in the proper and in effect(p) approach. The profit for the company has change magnitude to for more than 40 pct during the year. The company has not only performed well as compared to its previous year but also stand out from its industry and competitors. Liquidity Ratios The current ratio improved from 1.65 in 2008 to 1.75 in 2009. The current assets increased by 25.4% where as the current liabilities increased by 18.5%. This resulted in a much improved runniness position of Pak Datacom, as now Rs. 1.75 to cover its Re. 1 liability.

Pak Datacom has managed to lionise a higher current ratio than the industry averages (1.16). ameliorate current ratio in 2009 was primarily because of increase in short shape investments and cash and bank balances. Short term investments and cash and bank balances increased by 142% and 54% respectively. In current liabilities customer deposits grew by 41.6%, provision for taxation increased by 78.89% while the trade creditors decreased by 5.5%. The officious ratio also improved in year 2009 to 1.36 from 1.23 in year 2008. This shows that Pak Datacom is allocating most of its current assets in very exceedingly liquid assets, which could easily converted into cash. From a creditors point of sentiment Pak datacom improved liquidity is a healthy sign, and the risk of nonremittal of dues is... If you want to get a full essay, order it on our website: Orderessay

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