Total Avg .

industry Total

Current ratio 1.50 1.17 S

Quick ratio 1.20 0.89 S

Debt to asset ratio 0.21 0.31 S

Debt to equity ratio 45.98 98.30 S

Long term debt to equity ratio 36.25 40.67 S

Time interest earned ratio 6.86 8.46 W

Inventory turnover 9.02 12.1 S

Fixed asset turnover 0.94 12.66 W

Total asset turnover 0.61 1.60 W

Account receivable turnover 10.01 36.85 S

Average collection period 36.45 23.35 W

Gross profit margin 33.32 15.28 S

Operating profit margin 7.06 5.37 W

Net profit margin 5.56 3.63 S

Return on total Asset 3.42 5.40 S

Return on stockholder equity 7.27 14.88 S

EPS 3.35 27.77 W

Price earning ratio 0 64.11 W

Growth in sale 16.55 23.38 W

Growth in dividend 33.66 6.18 S

Growth in Eps 1.08 49.20 w

 TOTAL PARCO
Management
That management of oil and gas should make use of debt finance in the performance of their
companies’ growth.
That management should maintain their creditor’s turnover ratio at a zero point because
neither too high nor too low is good for the company, so a creditor’s turnover ratio should be
at a point where the creditors and purchases (cost of sales) are equal. In this point, the
company will make the advantage of credit facility and any discount associated with prompt
payment of goods to increase their profitability index.
That the management of the oil and gas companies should maintain a high debtor’s turnover
ratio because it will help in increasing their investment by reinvesting the funds collected from
their customers.
That the management should utilize its cost efficiently in generating more income for the
company. The oil and gas companies should expand its business in order to make more sales
and more profits.
That the management should utilize its assets efficiently in generating more income for the
company. The oil and gas companies should expand its business in order to make more sales
and more profits.

Marketing : Total Parco marketing need to those type strategies improve in sales through
advertisement etc..

Research and development : Total parco research department look the who’s place
open the new plant and what kind of factor impact on plant .
Human Resource department: Total Parco HRM department apply the method of straight line
depreciation and double decline method reason for manage tax.
Some time use the lifo fifo weighted average method.
Weakness of Total parco in Pakistan:
1.Eps very low.
2.ROI :
3.Time interest earned Ratio
Need to must improve it otherwise investor cannot invest in this company.