Professional Documents
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Submitted by-
Sachit Malik(89)
Kriti Katiyar(94)
Aman Shukla(98)
Bikram Sandhu(102)
59.55%
61.37%
61.07%
61.86%
47.82%
47.18%
47.09%
26.42%
26.83%
24.81%
24.48%
14.01%
13.80%
14.71%
12.17%
31.31
%
For HUL we can see that the best year to invest in this company is march
12-13 where the roce is 34.55% and in the year march 12 it was the leas t year
of investment.
33.52%
31.81%
34.55%
25.99%
This share reveals that how much profit the company is earning with the money
of equity shareholders. This ratio is not as good as Roce as it does not considers
the other liabilities.
The best point of investment was for the year ending march 2014 where return
on net worth was 33.45% and the worst case was march 2015 with 31.27%.
Return On Net Worth(%)
31.27%
29.75%
32.98%
24.56%
2.38
1.85
1.78
1.66
The current ratio of HUL is 0.93,0.84,0.81,0.91 which shows that the ratio is
less than 1 so it fails to meet the short term liabilities and the current asset is
less than the current liability
0.93
0.84
0.81
0.91
6. Quick ratios
A stringent indicator that determines whether a firm has enough short-term
assets to cover its immediate liabilities without selling inventory. The acid-test
ratio is far more strenuous than the working capital ratio, primarily because the
working capital ratio allows for the inclusion of inventory assets.
For the years 14,13,12 quick ratio is more than 1 which means that the company
in the first 3 years is not depended upon inventory for paying its liability and in
all four cases its shows that smooth running of the company is there. The ratio
from march 2015 to 2012 as follows(respectively)
Quick Ratio
1.29
0.79
0.76
0.67
For all the year the quick ratio of HUL is less than 1 which means that it
depends upon inventory for paying its liabilities
0.52
0.44
0.41
0.46
Turnover
18.78
27.82
26.91
25.05
From the ratio we can see that in march 2014 the company is most capable of
collecting debts as it has collected its debts around 27.82 times in a year and it
was least efficient in collecting
Debtors in march 2015 which was 18.78 times.
For HUL we can see that in m2015 the company is most capable of collecting
debts as it has collected 38.52 times and the least was in year 2012 which was
33.19
38.52
33.96
34.13
33.19
coverage 261.523
5
4597.28
1
133.76
124.15
From the above data we can see that the company can pay its interest on its
debt. In march 2014 the ratio was highest because the company was successful
in paying its debt. Overall the company is working fine with retain this ratio.
For HUL the interest coverage ratio are
328.366825
191.8349321
172.941551
2701.741935
Which shows that the highest value was in the year 2012 and the lowest was in
2013.
0.55
.50
.44
The mean payout ratio is 2.02 and the highest is .55 the company paid a good
percentage of its dividend here which is very good for shareholders but it is
retaining less so bad for the companys growth but as the company proceeded
year after year its payout ratio decreased and retention ratio increased which
shows a growth of the company and in march 2015 the ratio was .53
For HUL the dividend payout ratio are
0.45
0.41
0.39
0.49
The highest ratio was in the year 2012 and the lowest was in the year 2013.
10. Price earning ratio(Market Value per Share / Earnings per Share
(EPS))
A valuation ratio of a company's current share price compared to its per-share
earnings.
PE ratio
27.14
31.94
29.22
22.22
From the above figures we can say that in march 2014 investors having a
mentality of longterm investments who think of future growth would invest in
this period as the PE ratio is highest at 3194.The company has done well from
march 13 but declined in performance in 2015
For HUL the ratio are
43.82
33.22
26.37
32.97
In a longterm the investmentor who think of future growth would invest in the
current period as the ratio is highest in 2015
THE DATAS ARE GIVEN IN ORDER OF MARCH 15, 14, 13,12
CONCLUSION
We infer that the ITC is growing and the company is not paying at par dividend
to shareholders rather holding it for the growth. The turnover ratios shows a
good reflection of the company and a considerable amount of share is being
done in indirect expenses which is inferred from the difference between gross
profit ratio and net profit ratio. Its competitor HUL is also performing well but
in some cases the working capital is negative. The current ratio of ITC is above
1 so it has the capability to pay short term liability whereas HUL is failing to
pay them. The ITC does not depend upon its inventory to pay the liability
whereas the HUL depends upon the inventory. The EPS of the ITC is less than
HUL so that means ITC is focusing on the growth aspect currently.