01
Revenue
Revenue is the money a company earns from sales.
WHAT TO LOOK FOR
Sales over the last five years and whether they grow steadily
ASK YOURSELFIs growth consistent? Does it depend on one customer or product?
LEARN TO RESEARCH
Understand a company before you invest.
Learn six simple ways to study a PSX-listed company, understand its financial numbers and practise with a fictional example.
COMPANY RESEARCH
Look beyond the share price.Read. Compare. Ask questions.
Annual reportFinancial statements
Understand the business
Start Learning 6 Research Steps · One fictional case study
BUILD YOUR RESEARCH HABIT
Six questions. A clearer picture.
Start with the business, then explore the numbers.
0 of 6 research steps completed
Take one topic at a time. Every question adds context.
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02
Profitability
Profit is what remains after the company's costs.
WHAT TO LOOK FOR
Net profit and profit margin over time
ASK YOURSELFIs profit growing along with sales? Why did margins change?
03
Debt
Borrowing can fund a business, but creates repayment obligations.
WHAT TO LOOK FOR
Debt compared with equity, and interest cost compared with profit
ASK YOURSELFCould the company still pay its interest if earnings fell?
04
Dividend history
A dividend is a payment a company may make to its shareholders.
WHAT TO LOOK FOR
Dividend per share in each year
ASK YOURSELFIs the dividend stable and covered by profit, or has it been cut?
05
Valuation
Valuation helps you understand the price relative to a business's earnings.
WHAT TO LOOK FOR
P/E ratio compared with the company's own history and similar companies
ASK YOURSELFWhat am I paying for each rupee of earnings, and why?
06
Business risks
Every business faces uncertainty. Learn what could go wrong.
WHAT TO LOOK FOR
The risk section of the annual report, industry trends and regulation
ASK YOURSELFWhat could hurt this business, and can I explain it in one sentence?
Where to look: the company's annual and quarterly reports, and company announcements published through PSX.
PRACTISE WHAT YOU LEARN
Let's research a fictional company.
Explore the numbers and learn what questions investors should ask.
IC
Illustrative Co. Ltd
Illustrative Co. Ltd is made up for practice. The numbers are not real.
Revenue (PKR m)
1,650PKR million · 2026
Net profit (PKR m)
105PKR million · 2026
Debt-to-equity
1.1ratio · 2026
Dividend per share (PKR)
1.5PKR per share · 2026
View exact fictional figures · 2022–2026
| Measure | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue (PKR m) | 1000 | 1150 | 1320 | 1480 | 1650 |
| Net profit (PKR m) | 120 | 138 | 150 | 128 | 105 |
| Debt-to-equity | 0.4 | 0.5 | 0.7 | 0.9 | 1.1 |
| Dividend per share (PKR) | 4 | 4.5 | 5 | 3 | 1.5 |
Valuation (illustrative): share price PKR 60, latest earnings per share PKR 4.2, so a P/E of about 14.3 and a dividend yield of about 2.5%. Risks noted: relies on one industry, imports raw materials, and borrowing costs are rising.
What do these numbers tell us?
Revenue vs Profit
Rising sales do not always mean rising profit. In this example, profit falls in 2025 and 2026 while revenue rises. Look for changes in costs and margins.
Understanding Debt
Increasing debt-to-equity can mean a greater reliance on borrowing. Review interest costs and whether earnings could cover them if business slows.
Dividend Changes
A dividend can change. Review it alongside profit and cash flow, and read why payments changed before drawing a conclusion.
Takeaway: numbers raise questions. They do not give a buy or sell answer.
YOUR TURN
Turn numbers into better questions.
Use the fictional report above. There are three questions, with an explanation after each answer.
123
For learning only. Financial indicators do not automatically determine whether a stock is a good investment.