Page 91 - Pakistan Oilfields Limited - Annual Report 2020

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DUPONT ANALYSIS
Operating efficiency
of the Company measured in terms of profit margins has shown
increasing trends. However, net profit in the current year decreased by 2.9% due to decrease in
sales volume and international crude oil prices as a result of COVID 19.
Asset turnover
decreased from previous years due to decrease in sales as volumes and
international crude prices remained low due to COVID-19.
Equity multiplier
has increased as compared to previous years depicting that the increase in
assets have effectively improve the equity of the company.
POL has posted decreased in Return on Equity (ROE)
mainly because of decrease in
sales volumes and international crude oil prices due to COVID-19 resulting in decrease in net
sales and profit of the Company.
2015
2016
2017
2018
2019
2020
Net Profit Margin
27.39% 29.11% 35.48% 34.85% 38.64% 42.87%
Asset Turnover
0.56
0.45
0.47
0.47
0.54
0.42
Equity Multiplier
1.71
1.85
1.83
2.14
2.14
2.27
Return on Equity
26.14% 23.99% 30.73% 34.74% 44.32% 40.67%
40.67%
Return on
Equity
2.27 Times
Return on
Equity
16,376
Net Income
38,196
Net Sales
91,596
Total
Assets
42%
Assets
Turnover
42.87%
Net Profit
Margin
40,267
Total
Equity
Rs in Million
Rs in Million
Rs in Million
Rs in Million
89
PAKISTANOILFIELDS LIMITED