Financial and Growth Analysis: A Comparative Study of Economic Sectors of Pakistan

Abstract

performance across the sectors. Taking economic group of an economy the unit of analysis, this research presents a comparative financial ratios analysis of economic groups composed of listed companies at Pakistan Stock Exchange (PSE). The analysis is based on the profitability, liquidity, efficiency, leverage, growth and trends over a period of time using 5 years data of non-financial listed companies. The results show that profitability ratios for Food, Chemicals, Cement, Motor vehicle, Fuel & energy sector and Coke sectors are performing above the overall average R.O.A and NPM while the Textile, Sugar, Manufacturing, Minerals, Information and Communication, Electric machinery and Other Services economic groups are performing below the overall averages. Sales growth of Manufacturing, Mineral product, Cement and Other services activities economic groups are performing above 50%. While Textile, Sugar, Food, Chemicals products, Motor vehicle, Fuel & energy, Info. & transport services, Coke and refined pet., Paper products and Electric machinery economic groups are performing below 50%. Sugar economic group has liquidity and total asset turnover ratio above overall average but the profitability of this economic group is below overall average. It means that the economic group is not properly utilizing its liquidity for generation of profits. Similarly, Textile sector has profitability, efficiency and liquidity below the overall average of economic groups.