Activity Ratio:

Items Involved:
Property plant and equipment, Development and decommissioning cost, Exploration and
evaluation assets, Store and spares, Stock in trade, Trade debts, Cash and bank balances
advances deposit, prepayments and other receivables, Net sales.

Inventory Turnover Ratio

For 2016
𝐶𝐺𝑆 74,977,039
Formula = = 246.08 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 304690

For 2015
𝐶𝐺𝑆 78,657,997
Formula = = 213.14 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 369051

For 2014
𝐶𝐺𝑆 80941450
Formula = = 236.73 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 341915

For 2013
𝐶𝐺𝑆 64933010
Formula = = 274.00 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 236864

For 2012
𝐶𝐺𝑆 59,532,473
Formula = = 252.07 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 236179

For 2011
𝐶𝐺𝑆 52,902,800
Formula = = 243.84 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 216959.5

For 2010
𝐶𝐺𝑆 41,948,928
Formula = = 299.22 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 140193
For 2009
𝐶𝐺𝑆 39352049
Formula = = 302.61 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 130042

For 2008
𝐶𝐺𝑆 38406147
Formula = = 312.79 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 122785

For 2007
𝐶𝐺𝑆 30,462,762
Formula = = 382.29 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 79698

2016 246.08 times

2015 213.14 times
2014 237.76 times
2013 274.00 times
2012 252.07 times
2011 243.84 times
2010 299.22 times
2009 302.61 times
2008 312.79 times
2007 382.29 times
Comment…
As we analyzed that turnover of inventory has been decreased in 2014 which shows that
inventory in this year is generated and sold in less time than previous year.

Accounts Receivable Turnover Ratio

For 2016
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 162,866,578
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056
For 2015
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 210,624,908
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2014
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 257014254
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2013
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 223365490
Formula = = 3.7 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 55874924

For 2012
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 197,838,726
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2011
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 155,631,290
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2010
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 142,571,863
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2009
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 130829579
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056
For 2008
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 125908304
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

For 2007
𝐶𝑟𝑒𝑑𝑡 𝑆𝑎𝑙𝑒𝑠 100,261,191
Formula = = 0.33 𝑡𝑖𝑚𝑒𝑠
𝐴𝑣𝑔 𝐴/𝑅 782807056

2014 2.9 times

2013 4.6times
Comment…
As we determined that ogdcl is recovering its receivables in less times in 2014 as compared to
previous year, which do not shows company’s efficiency regarding this matter. It is because
company is creating its sales less than previous year as a result its debtors has been decreased
which affects the recovery of receivables.

Total Assets Turnover Ratio

For 2016
𝑆𝑎𝑙𝑒𝑠 162866578
Formula = = 0.28 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 589565539

For 2015
𝑆𝑎𝑙𝑒𝑠 210624908
Formula = = 0.38 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 553791319

For 2014
𝑆𝑎𝑙𝑒𝑠 257014254
Formula = = 0.52 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 496232680

For 2013
𝑆𝑎𝑙𝑒𝑠 223365490
Formula = = 0.54 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 413928864
For 2012
𝑆𝑎𝑙𝑒𝑠 197,838,726
Formula = = 0.58 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 338,321,073

For 2011
𝑆𝑎𝑙𝑒𝑠 155,631,290
Formula = = 0.59 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 261,777,528

For 2010
𝑆𝑎𝑙𝑒𝑠 142,571,863
Formula = = 0.62 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 228,867,651

For 2009
𝑆𝑎𝑙𝑒𝑠 130829579
Formula = = 0.73 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 177992396

For 2008
𝑆𝑎𝑙𝑒𝑠 125908304
Formula = = 0.83 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 152309463

For 2007
𝑆𝑎𝑙𝑒𝑠 100,261,191
Formula = = 0.78 𝑡𝑖𝑚𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 129,338,172

2016 0.28 times

2015 0.38 times
2014 0.52 times
2013 0.54 times
2012 0.58 times
2011 0.59 times
2010 0.62 times
2009 0.73 times
2008 0.83 times
2007 0.78 times

Comment…
After analyzing total assets turnover ratio we have been conclude that there is little bit difference
of turnover on the total assets in two years, it is important to discuss that company is earning half
penny by investing one penny in total assets. As company is exploring oil so it is not surprise
that company have heavy amounts of drilling and exploring machineries.

Fixed Assets Turnover Ratio

For 2016
𝑆𝑎𝑙𝑒𝑠 162,866,578
Formula = = 0.76 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 215,367,442

For 2015
𝑆𝑎𝑙𝑒𝑠 210,624,908
Formula = = 1.07 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 196,383,862

For 2014
𝑆𝑎𝑙𝑒𝑠 257014254
Formula = = 1.65 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 155771255

For 2013
𝑆𝑎𝑙𝑒𝑠 223365490
= = 1.67 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 134532015

For 2012
𝑆𝑎𝑙𝑒𝑠 197,838,726
Formula = = 1.70 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 116,044,102

For 2011
𝑆𝑎𝑙𝑒𝑠 155,631,290
Formula = = 1.47 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 106,034,676

For 2010
𝑆𝑎𝑙𝑒𝑠 142,571,863
Formula = = 1.38 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 103,181,149
For 2009
𝑆𝑎𝑙𝑒𝑠 130829579
Formula = = 1.52 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 86319659

For 2008
𝑆𝑎𝑙𝑒𝑠 125908304
Formula = = 1.86 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 67710116

For 2007
𝑆𝑎𝑙𝑒𝑠 100,261,191
Formula = = 1.77 𝑡𝑖𝑚𝑒𝑠
𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡𝑠 56,715,900

2016 0.76 times

2015 1.07 times
2014 1.65 times
2013 1.67 times
2012 1.70 times
2011 1.47 times
2010 1.38 times
2009 1.52 times
2008 1.86 times
2007 1.77 times

Comment…
OGDCL’s turnover on fixed sets have been decreased in 2014, it is because that amount
investing in fixed assets has been increased with increasing rate and it is not surprise that sales
have been increased with decreasing rate, which affects turnover on the fixed assets.

Table Of Analysis
Ratios 2013 2014 Fav/unfav Reason of
change
Inventory 274 times 118.36 times Unfavorable Due to increase
turnover ratio in inventory
Accounts 3.7 times 0.33 times Unfavorable Due to increase
receivables in accounts
turnover ratio receivables
Total assets 0.54 times 0.52 times Unfavorable Due to increase
turnover ratio in total assets
Fixed assets 1.67 times 1.65 times unfavorable Due to increase
turnover ratio in fixed assets

Interpretation
Activity ratios of ogdcl is indicating unfavorable position of the company which shows that
company is not using its assets with the extent in 2013. It means that company used its assets in
previous year more efficiently as in the current.
In the current year company’s average inventory, average accounts receivables, total and fixed
assets have been increased and on the other hand sales and cost of goods sold of the company
also increased but with decreasing rates. It is because company’s performance remained poor as
compared to previous year. But as we see that there is no extraordinary difference in the results
of two years but company should repay its attention towards utilization of assets.
The impacts that company may have to face, regarding whether it is using its assets and
resources in proper way or not, are its investors. It is because before investing in the company
every investor investigates the potential of using the assets of company. Moreover other
stakeholders like banks and other financial institutions can also get bad image by the results. As
a result it is suggested that management should focus on the utilization of assets and they also
should recover company’s receivables as early as possible.