Now I am going to share some of the Ratio values of the company which I obtained from the financial reports of last five years i.e Current Ratio, Quick Ratio, Cash Ratio, Return on Asset Ratio and Return on Equity Ratio.

2. TREND ANALYSIS WITH HELP
OF RATIO ANALYSIS
PRESENTED TO
SIR ATHAR IKRAM
PRESENTED BY
MUHAMMAD SALMAN KHAN
NOOR-US-SABAH
HM JAHANZAIB QURESHI

3. COMPANY PROFILE
 SITARA CHEMICALS INDUSTRIES LIMITED

 Introduction:
 Sitara Chemical Industries Ltd. Located at 32 KM,
Sheikhupura Road, Faisalabad Sitara Chemical enterprises
Limited was incorporated in 1981. Its starting was began
by producing caustic soda in 1985. Today its producing
capacity is over 600 metric tons a day. Sitara Chemical
industry expanded which include sodium hypochlorite,
bleaching powder, hydrochloric acid, and liquid chlorine and
others.
 Market Share Price:
 Market share price of Sitara chemical industries limited for the
year 2023 is PKR 207.00 approx.

4. COMPANY PROFILE
Governance
 Board of Directors:
 Chairman Mr. Abdul Awal
 Chief Executive officer Mr. Muhammad
Adrees
 Directors: Mr. Haseeb
Ahmad
 Mr. Haroon Ahmad Zuberi
 Mr. Ahmad Nawaz
 Mr. Ashraf Shahzad Ahmad
 Mrs. Shala Waheed Sher
CHAIRMAN JAMEEL YUSUF
S.ST

5. VISION:
of the company is to Strive to develop
and employ innovation technological
solutions to add value to business with
progressive and proactive approach.
CEO ALI JAMEEL

6.  MISSION: of the company is to Continuing growth and
diversification for bottom line results with risk well
contained.

7. RATIO ANALYSIS
 We will discuss following ratios for TPL Properties in
order to analyze its trend in PSX during last five years
1) Current Ratio
2) Quick Ratio
3) Cash Ratio
4) Effective Tax Rate
5) Return on Assets Ratio
6) Return on Equity Ratio
7) Debt Ratio
8) Debt-Equity Ratio
9) Fixed Asset Turnover Ratio
10)Sales/Revenue Per Employee
Ratio
11)Operating Cash Flow
Ratio
12)Cash Flow Coverage
Ratio
13)Dividend Payout Ratio
14)Price/Earning Ratio
15)Price/Earning to Growth
Ratio

8. 1. CURRENT RATIO
 Formula
 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
CURRENT RATIO
YEARS CURRENT
ASSESTS
CURRENT
LIABILITIES
CURRENT
RATIO
2018 974,371,917 808,635,175 1.20
2019 830,201,050 918,414,123 0.90
2020 569,242,103 1,055,122,152 0.54
2021 4,555,771,407 870,903,706 5.23
2022 2,583,453,255 1,560,239,422 1.66
0
1
2
3
4
5
6
2018 2019 2020 2021 2022
CURRENT
RATIO
YEARS
CURRENT RATIO
 Analysis
• During years 2018 to 2020
company is losing its ability to pay
off its liabilities.
• During 2021 the ratio increases
• But after the year 2021 it
decreases again.

9. 2. QUICK RATIO
 Formula
 𝑄𝑢𝑖𝑐𝑘 𝑅𝑎𝑡𝑖𝑜 =
𝑄𝑢𝑖𝑐𝑘 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
 Analysis
• In year 2018 and 2022 the quick ratio of
TPL Properties is normal which means TPL
is fully equipped to meet its current
liabilities,
• But in year 2019 & 2020 the ratio shows
that the company did not have enough
assets to meet its current liabilities.
QUICK RATIO
YEAR
S
CASH AND
EQUIVALENTS
SHORT TERM
INVESTMENT
ACCOUNT
RECEIVABLES
CURRENT
LIABILITIES
QUICK
RATIO
2018 558,786,594 100,000,000 153,705,805 808,635,175 1.00
2019 217,035,018 45,898,517 96,863,705 918,414,123 0.39
2020 231,668,157 49,857,359 120,040,829 1,055,122,15
2
0.38
2021 2,953,383,782 784,808,221 551,975,863 870,903,706 4.93
2022 1,891,882,181 362,231 253,904,786 1,560,239,42
2
1.38
0
2
4
6
2018 2019 2020 2021 2022
QUICK
RATIO
YEARS
QUICK RATIO

10. 3. CASH RATIO
 Formula
 𝐶𝑎𝑠ℎ 𝑅𝑎𝑡𝑖𝑜 =
𝐶𝑎𝑠ℎ & 𝑐𝑎𝑠ℎ 𝑒𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡+𝑀𝑎𝑟𝑘𝑒𝑡𝑎𝑏𝑙𝑒 𝑆𝑒𝑐𝑢𝑟𝑖𝑡𝑖𝑒𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
 Analysis
• The CR% of TPL properties in 2018 to 2020
is less than 1% which shows that the
company cannot pay off its current
liabilities with only cash and cash
equivalents.
• But in year 2021 & 2022 cash ratio
percentage of TPL properties is more than
1 % that shows that the company has the
same amount of cash and equivalents as it
has current liabilities.
CASH RATIO
YERA
S
CASH & CASH
EQUIVALENTS
INVESTED
FUNDS
CURRENT
LIABILITIES
CASH
RATIO
2018 558,786,594 100,000,000 808,635,175 0.81
2019 217,035,081 45,898,517 918,414,123 0.29
2020 231,668,157 49,857,359 1,055,122,152 0.27
2021 2,953,383,782 784,808,221 870,903,706 4.29
2022 1,891,882,181 362,231 1,560,239,422 1.21
0
1
2
3
4
5
2018 2019 2020 2021 2022
CASH
RATIO
YEARS
CASH RATIO

11. 4. EFFECTIVE TAX RATE
 Formula
 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑇𝑎𝑥 𝑅𝑎𝑡𝑒 (%) =
𝐼𝑛𝑐𝑜𝑚𝑒 𝑇𝑎𝑥 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
𝑃𝑟𝑒𝑡𝑎𝑥 𝐸𝑥𝑝𝑒𝑛𝑠𝑒
 Analysis
• TPL properties effective tax rate is
erratic over the period of 2018 to
2022 in income statements of TPL
properties this tax provision volatility
makes an objective judgment of its
true, or operational, net profit
performance.
EFFECTIVE TAX RATE
YEAR
S
INCOME TAX EXPENSE PRETAX INCOME EFFECTIVE TAX RATE
2018 29,417,078 1,215,868,674 2.42%
2019 36,431,290 702,305,926 5.19%
2020 -6,035,990 218,447,305 -2.76%
2021 4,970,431 59,191,900 8.40%
2022 47,347,971 5,016,353,131 0.94% -4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
2018 2019 2020 2021 2022
EFFECTIVE
TAX
RATE
YEARS
EFFECTIVE TAX RATE

12. 5. RETURN ON ASSETS RATIO
 Formula
 𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐴𝑆𝑆𝐸𝑇𝑆 𝑅𝐴𝑇𝐼𝑂 =
𝑁𝐸𝑇 𝐼𝑁𝐶𝑂𝑀𝐸
𝐴𝑉𝐸𝑅𝐴𝐺𝐸 𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
 Analysis
• TPL Properties ROA ratio is at 10% in year 2018 and
it gradually decreases as per data given in the table
till 2021 which indicates that TPL Properties have
over-invested in assets it is a sign that the TPL
Properties was in difficult situation and it shows
negative impact on the investors.
• But at the end of year 2022 TPL Properties ROA
Ratio increased to a 33% hike as a result of huge
increase in Net Income of the company.
Return on Assets Ratio
Year
Net
Income
Total Assets
for Current
Year
Total Assets
for last year
Average
total Assets
Return
on
Assets
2018
1,195,583,
241
8,624,392,839
6,716,907,7
49
11,982,846,
714
10%
2019
676,253,9
22
9,377,673,658
8,624,392,8
40
13,689,870,
078
5%
2020
113,206,6
79
10,097,557,52
1
9,377,673,6
58
14,786,394,
350
1%
2021
70,030,14
4
7,501,141,207
10,097,557,
521
12,549,919,
968
1%
2022
5,342,855,
002
12,517,526,55
2
7,501,141,2
07
16,268,097,
156
33%
0%
10%
20%
30%
40%
2018 2019 2020 2021 2022
ROA
RATIO
YEARS
Return on Assets Ratio

13. 6. RETURN ON EQUITY RATIO
 Formula
 𝑅𝐸𝑇𝑈𝑅𝑁 𝑂𝑁 𝐸𝑄𝑈𝐼𝑇𝑌 𝑅𝐴𝑇𝐼𝑂 =
𝑁𝐸𝑇 𝐼𝑁𝐶𝑂𝑀𝐸
𝐴𝑉𝐸𝑅𝐴𝐺𝐸
𝑆𝐻𝐴𝑅𝐸𝐻𝑂𝐿𝐷𝐸𝑅′𝑆 𝐸𝑄𝑈𝐼𝑇𝑌
 Analysis
• TPL properties ROE is above 20% in year 2018
& 2022 that means the company uses its
capital efficiently invested by the shareholder
• but the trend from 2019 to 2021 show that its
ROE is decreases gradually which indicates that
the company did not uses its capital efficiently.
Return on Equity Ratio
Ye
ar
Net
Income
Shareholder's
equity
current year
Shareholder'
s equity
previous
year
Average
Shareholder
s’ equity
Return on
Equity
Ratio
20
18
1,195,583,
241
5,857,818,38
1
5,482,586,8
53
5,670,202,6
17
21.09%
20
19
676,253,9
22
6,397,178,32
6
5,857,818,3
81
6,127,498,3
54
11.04%
20
20
113,206,6
79
6,510,385,00
5
6,397,178,3
26
6,453,781,6
66
1.75%
20
21
70,030,14
4
6,333,462,04
3
6,510,385,0
05
6,421,923,5
24
1.09%
20
22
5,342,855,
002
11,687,317,0
45
6,333,462,0
43
9,010,389,5
44
59.30%
0.00%
20.00%
40.00%
60.00%
80.00%
2018 2019 2020 2021 2022
ROE
RATIO
YEARS
Return on Equity Ratio

14. 7. DEBT RATIO
 Formula
 𝐷𝐸𝐵𝑇𝑅𝐴𝑇𝐼𝑂 =
𝑇𝑂𝑇𝐴𝐿 𝐿𝐼𝐴𝐵𝐼𝐿𝐼𝑇𝐼𝐸𝑆
𝑇𝑂𝑇𝐴𝐿 𝐴𝑆𝑆𝐸𝑇𝑆
 Analysis
• TPL properties Debt ratio
ranges from 20% to 40%
which indicates that the
company has low debt ratio as
most of their Assets are fully
owned and indicates low level
of risk.
Debt Ratio
Year
Total
Liabilities
Total Assets Debt Ratio
(Rs) (Rs) = (2/3) X100
(Rs)
201
8
2,766,574,45
8
8,624,392,8
39
32%
201
9
3,049,426,11
6
9,446,604,4
42
32%
202
0
3,728,368,26
7
10,238,753,
272
36%
202
1
3,212,053,70
1
9,545,515,7
44
34%
202
2
3,480,955,42
0
15,168,272,
465
23%
0%
10%
20%
30%
40%
1 2 3 4 5
DEBT
RATIO
YEARS
Debt Ratio

15. 8. DEBT-EQUITY RATIO
 Formula
 𝐷𝐸𝐵𝑇 − 𝐸𝑄𝑈𝐼𝑇𝑌 𝑅𝐴𝑇𝐼𝑂 =
𝑇𝑂𝑇𝐴𝐿 𝐿𝐼𝐴𝐵𝐼𝐿𝐼𝑇𝐼𝐸𝑆
𝑆𝐻𝐴𝑅𝐸𝐻𝑂𝐿𝐷𝐸𝑅′𝑆 𝐸𝑄𝑈𝐼𝑇𝑌
 Analysis
• TPL properties Debt-Equity ratio ranges
above 40% from year 2018 to 2021
which indicates that the company’s
debt-equity ratio is critical in terms of
investment.
• But in year 2022 the company’s debt-
equity ratio decreases below which is
excellent.
Debt-Equity Ratio
Yea
r
Net
Income
Total
Assets
Total
Liabilities
Shareholder
's equity
Debt-Equity
Ratio
201
8
1,195,583,
241
8,624,392,
839
2,766,574,4
58
5,857,818,3
81
47.23%
201
9
676,253,9
22
9,446,604,
442
3,049,426,1
16
6,397,178,3
26
47.67%
202
0
113,206,6
79
10,238,753
,272
3,728,368,2
67
6,510,385,0
05
57.27%
202
1
70,030,14
4
9,545,515,
744
3,212,053,7
01
6,333,462,0
43
50.72%
202
2
5,342,855,
002
15,168,272
,465
3,480,955,4
20
11,687,317,
045
29.78%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
2018 2019 2020 2021 2022
DER
YEARS
Debt-Equity Ratio

16. 9. FIXED ASSET TURNOVER RATIO
 Formula
 𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 =
𝑅𝑒𝑣𝑒𝑛𝑢𝑒
𝑃𝑟𝑜𝑝𝑒𝑟𝑡𝑦,𝑃𝑙𝑎𝑛𝑡,𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡
 Analysis
• During the year 2018 to 2021 the fixed asset
turnover ratio for TPL Properties ranges below 1
which indicates that they over-invested in their
fixed assets and it is not good for the company.
• But in 2022 it increase and reached at
approximately 3.3 which is good for the company
as it shows that TPL has effectively used their
investments in fixed assets to generate
sales/revenue.
FIXED ASSET TURNOVER
YEAR
S
REVENUE
(RS)
PROPERTY, PLANT, AND
EQUIPMENT
FIXED ASSET
TURNOVER
2018
553,192,53
9
6,949,277,254.5 0.080
2019
597,206,25
0
8,090,391,228.5 0.074
2020
678,368,21
9
4,992,680,326.5 0.136
2021
438,390,84
5
2,418,019,266.0 0.181
2022
6,397,111,
167
1,942,876,930.0 3.293
0.000
1.000
2.000
3.000
4.000
2018 2019 2020 2021 2022
FIXED
ASSET
TURNOVER
YEARS
FIXED ASSET TURNOVER

17. 10.SALES/REVENUE PER EMPLOYEE
RATIO
 Formula
𝑆𝐴𝐿𝐸/𝑅𝐸𝑉𝐸𝑁𝑈𝐸 𝑃𝐸𝑅 𝐸𝑀𝑃𝐿𝑂𝑌𝐸𝐸
=
𝑅𝐸𝑉𝐸𝑁𝑈𝐸
𝑁𝑈𝑀𝐵𝐸𝑅 𝐸𝑀𝑃𝐿𝑂𝑌𝐸𝐸𝑆 (𝐴𝑉𝐸𝑅𝐴𝐺𝐸)
 Analysis
• Ideally, a company wants the highest ratio of
revenue per employee possible because a higher
ratio indicates greater productivity. In this case the
trend for last five years of TPL PROPERTIES shows
that the revenue per employee increases every
year. So, it is a good sign for the company that
they are using their resources wisely and their
productivity becomes better year by year
SALES/REVENUE PER EMPLOYEE
YEAR
S
REVENUE (in
Pkr)
NO. OF
EMPLOYEES
SALES/REVENUE PER
EMPLOYEE
2018
553,192,539
140 3,951,375
2019
597,206,250
142 4,205,678
2020
678,368,219
143 4,743,834
2021
438,390,845
17 25,787,697
2022
6,397,111,167
36 177,697,532
-
50,000,000
100,000,000
150,000,000
200,000,000
SALES/REVENUE
PER
EMPLOYEE
YEARS
SALES/REVENUE PER
EMPLOYEE

18. 11.OPERATING CASH FLOW RATIO
 Formula
 𝑂𝐶𝐹 𝑅𝐴𝑇𝐼𝑂 =
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑐𝑎𝑠ℎ 𝑓𝑙𝑜𝑤
𝑁𝑒𝑡 𝑠𝑎𝑙𝑒𝑠(𝑅𝑒𝑣𝑒𝑛𝑢𝑒)
 Analysis
OPERATING CASH FLOW/SALES RATIO
YEAR
S
OPERATING
CASH FLOW
NET SALES
(REVENUE)
OPERATING CASH FLOW/SALES
RATIO
2018 -152,031,347
553,192,5
39
-0.274825375
2019 -119,460,135
597,206,2
50
-0.200031622
2020 298,127,485
678,368,2
19
0.439477376
2021 -864,860,903
438,390,8
45
-1.972807856
2022 3,348,967,261
6,397,111,
167
0.523512438
-3
-2
-1
0
1
2018 2019 2020 2021 2022
OPERATING
CASH
FLOW/SALES
RATIO
YEARS
OPERATING CASH
FLOW/SALES RATIO

19. 12.CASH FLOW COVERAGE RATIO
 Formula
 𝐶𝐴𝑆𝐻 𝐹𝐿𝑂𝑊 𝐶𝑂𝑉𝐸𝑅𝐴𝐺𝐸 𝑅𝐴𝑇𝐼𝑂 =
𝑂𝑃𝐸𝑅𝐴𝑇𝐼𝑁𝐺 𝐶𝐴𝑆𝐻 𝐹𝐿𝑂𝑊
𝑇𝑂𝑇𝐴𝐿 𝐷𝐸𝐵𝑇
 Analysis
• In years 2018 to 2021 the cash flow coverage
ratio of TPL Properties is less than 1, while in
2022 the ratio increases by 1
• A higher ratio – greater than 1.0 – is preferred
by investors, creditors, and analysts, as it
means a company can cover its current short-
term liabilities and still have earnings left over.
CASH FLOW COVERAGE RATIO
YEAR
S
OPERATING
CASH FLOW (In
Pkr)
TOTAL
DEBTS (In
Pkr)
CASH FLOW
COVERAGE RATIO
2018 -152,031,347
3,081,386,3
16 -0.0493
2019 -119,460,135
3,034,068,8
60 -0.0394
2020 298,127,485
3,701,320,4
52 0.0805
2021 -864,860,903
2,650,685,7
48 - 0.3263
2022 3348967261 1829282329 1.8308
-0.5000
-
0.5000
1.0000
1.5000
2.0000
2018 2019 2020 2021 2022
CASH
FLOW
COVERAGE
RATIO
YEARS
CASH FLOW COVERAGE RATIO

20. 13.DIVIDEND PAYOUT RATIO
 Formula
 𝐷𝐼𝑉𝐼𝐷𝐸𝑁𝐷 𝑃𝐴𝑌𝑂𝑈𝑇 𝑅𝐴𝑇𝐼𝑂 =
𝑇𝑂𝑇𝐴𝐿 𝐷𝐼𝑉𝐼𝐷𝐸𝑁𝐷
𝑁𝐸𝑇 𝐼𝑁𝐶𝑂𝑀𝐸
 Analysis
DIVIDEND PAYOUT RATIO
YEAR
S
DIVIDEND
PER
SHARE
EARNINGS
PER SHARE
DIVIDEND PAYOUT
RATIO
2018 - 4.37 -
2019 - 2.07 -
2020 - 0.35 -
2021 1 0.22 4.55
2022 - 13.19 -
-
1.0000
2.0000
3.0000
4.0000
5.0000
2018 2019 2020 2021 2022
DIVIDEND
PAYOUT
RATIO
YEARS
DIVIDEND PAYOUT RATIO

21. 14.PRICE/EARNING RATIO
 Formula
 𝑃𝑅𝐼𝐶𝐸/𝐸𝐴𝑅𝑁𝐼𝑁𝐺 𝑅𝐴𝑇𝐼𝑂 =
𝑆𝑡𝑜𝑐𝑘 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒(𝐸𝑃𝑆)
 Analysis
• The relationship of EPS with stock
price is not consistent as it is
indicative that the company has
been involved in issuing of shares
resulting in dilution of EPS over
the years.
PRICE/EARNINGS RATIO
YEAR
S
STOCK PRICE
PER SHARE
EARNINGS
PER SHARE
(EPS)
PRICE/ EARNINGS
RATIO
2018 10 4.37 2.29
2019 10 2.07 4.83
2020 10 0.35 28.57
2021 10 0.22 45.45
2022 10 13.19 0.76
0
10
20
30
40
50
2018 2019 2020 2021 2022
P/E
RATIO
YEARS
PRICE/ EARNINGS RATIO

22. 15.PRICE/EARNING TO GROWTH RATIO
 Formula
• 𝑃𝐸𝐺 𝑅𝐴𝑇𝐼𝑂 =
𝑃/𝐸 𝑅𝐴𝑇𝐼𝑂
𝐸𝑃𝑆 𝐺𝑅𝑂𝑊𝑇𝐻
 Analysis
• TPL properties P/E to growth ratio is more than 1
which is unfavorable for the investor suggesting that
the stock is overvalued.
• During year 2019 to 2021 TPL Properties reported
negative EPS it means the TPL made no money over
these years.
• But in 2022 PEG ratio increases but it is less than 1
which means that the stock is fairly priced.
PRICE/ EARNING TO GROWTH RATIO
YEAR
S
PRICE/EARNING
RATIO
EPS
GROWTH
P/E TO GROWTH
RATIO
2018 2.29 1.77 1.2959
2019 4.83 - 0.53 - 9.1787
2020 28.57 - 0.83 - 34.3854
2021 45.45 - 0.37 - 122.3776
2022 0.76 58.95 0.0129
-140.0000
-120.0000
-100.0000
-80.0000
-60.0000
-40.0000
-20.0000
-
20.0000
2018 2019 2020 2021 2022
P/E
TO
GROWTH
RATIO
YEARS
P/E TO GROWTH RATIO

23. CONCLUSION