Gsk Ratio Analysis

Topics: Financial ratio, Financial ratios, P/E ratio Pages: 16 (4301 words) Published: February 10, 2013
Through this we would like to thanks Almighty ALLAH, The most merciful, for providing us the skills and strength to fulfill a task, which could not have seen and achieved without His blessings.

Now, we can move forward but with great thanks and appreciation to those who have supported and encouraged us in this project. This report would not have seen its completion without the guidance from our senior teacher, MR. Ali Dhamani. We can never forget your support and advices that you have given us.

We also like to thank our seniors who gave us their responses, and helped us to accomplish this task.


MR. Ali Dhamani
Course Instructor
Defense view

Dear Sir,
This is the final analysis report based on the company “GLAXOSMITHKLINE”, as requested it is being submitted to you on JULY 16, 2012. In this report we have tried to find and give our interpretations on the ratios of the company and its overall position for the last three yearWe hope that the material we collected and presenting satisfies the purpose of the report which is given to us.

__________________ ______________________ Muhammad Ali Jafri Muhammad Ammar Alam

__________________ ______________________ Nazish Minhas Syed Jaffer Abbas Abidi

__________________ ______________________ Ayesha Nadeem Saba Aslam

GlaxoSmithKline (GSK)


GlaxoSmithKline (GSK) is a world leading research-based pharmaceutical company with a powerful combination of skills and resources that provides a platform for delivering strong growth in today's rapidly changing healthcare environment.

GSK's mission is to improve the quality of human life by enabling people to do more, feel better and live longer.

Strategic Intent
GSK's strategic intent is to be the indisputable leader in the industry.

Spirit of GSK
Our company spirit describes how we need to behave if we are to achieve our goal.

"We undertake our quest with the enthusiasm of entrepreneurs, excited by the constant search for innovation. We value performance achieved with integrity. We will attain success as a world class leader with each and every one of our people contributing with passion and an unmatched sense of urgency." Headquartered in the UK and with operations based in the US, the company is one of the industry leaders, with 6.3% per cent of the world's pharmaceutical market.

GSK has a leadership position in anti-infectives, respiratory and vaccines and has a growing portfolio of oncology products. The company also has a Consumer Healthcare portfolio comprising over-the-counter (OTC) medicines, oral care products and nutritional healthcare drinks, all of which are among the market leaders.

Question 1

No Accounting standards difference was being found in three of the companies, all of them are following IFRS and IASB standards. Question 2
| | | | |
GSK| 2009| 2010| 2011| Indus. Avg 2011|
Account receivable turnover (Days)| 25.5| 15.7| 5.4| 5.17| (By comparing from 2009 to 2011 you can see the very positive trend as it is reduce from 25.5 to 5.4 which is very closely in line with the industry average)

GSK| 2009| 2010| 2011| Indus. Avg 2011|
Inv. Turnover (days)| 66| 68| 67| 66.89|
(Inventory Turnover went a little high in 2010 as compare to 2009 but in 2011 it has taken the other way round and has gone with the industry avg. so it’s a positive sign)

GSK| 2009| 2010| 2011| Indus. Avg 2011|
Payable turnover (days)| 33| 34| 30| 24.92|
Payable turnover is higher the better as it is easy payoff the debt more quickly so in comparing with the...
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