Professional Documents
Culture Documents
By: kaushik.V.T
Girish Naidu.J
Surovi S.G
Current ratio
The ratio between all current assets and all current liabilities; another way of expressing
liquidity.
It is a measure of the firms short-term solvency.
It indicates the availability of current assets in rupees for every one rupee of current
liability.
A ratio of greater than one means that the firm has more current assets than current
claims against them.
Current Assets
Sl.no
1.
2006-07
1,612,642,49
7
638,958,266
2.52
Profitability Ratio
A company
should earn profits to survive and grow over a long period of time.
Profit
Profit
is the ultimate 'output' of a company and it will have no future if it fails to make sufficient profits.
The
Generally, two
Gross
profit ratio
Operating
Net
profit ratio
profit ratio
as well as pricing. To analyze the factors underlying the variation in gross profit margin, the proportion of
various elements of cost (Labor, materials and manufacturing overheads) to sale may studied in detail.
Gross profit
Gross profit ratio =-------------------x 100
Net sales
S.NO
Year
GROSS
PROFIT
SALES
2,685,436,0
456,886,268
96
200607
17
Operating profit
Operating profit ratio = --------------------------Net sales
x 100
would be in an advantageous position to survive in the face of falling selling prices, rising costs of production or declining
demand for product
This ratio shows the earning left for share holders as a percentage of net sales.
Net Profit
Net Profit Ratio= --------------------------x 100
Net sales
S.NO
YEAR
PROFIT
AFTER
SALES
NET PROFIT
2006-07
86,900,563
2,685,436,0
96
3.2
Turnover ratio
Turnover ratios also referred to as activity ratios or asset management ratios, measure how efficiently the assets are
employed by a firm.
The improvement turnover ratios are inventory turnover, average collection period, receivable turn over, fixed assets
TURNOVER RATIO
value of fixed assets in computing the fixed assets turnover may render comparison of firm's performance over period or
with other firms.
The ratio is supposed to measure the efficiency with which fixed assets employed a high ratio indicates a high degree of
efficiency in asset utilization and a low ratio reflects inefficient use of assets.
Net sales
Fixed asset turnover ratio = ------------------------- x 100
Fixed assets
S.N
o
YEAR
SALES
NET FIXED
ASSETS
F.A.T
RATIO
2006-07
2,685,436,096
948,631,374
2.83
inventories and vice versa .However, this may not always be true. A high inventory turnover may be caused by a low level of inventory which
may result if frequent stock outs and loss of sales and customer goodwill.
Debt
Ratio
If the firm may be Interested in knowing the proportion of the interest bearing debt in the capital
structure.
Total Debt
Debt ratio = ----------------------------------------Total Debt + Net Worth
S.No
YEAR
TOTAL
DEBT
TOTAL DEBT+NET
WORTH
DEBT RATIO
1.
2006-07
233,058,880
2,039,907,551
0.11
S.No
YEAR
PURCHAS
ES
AVERAGE
CREDITORS
C.T. RATIO
200607
422,358,58
5
192,242,196
7.4
SALES
OPERATING
EXPENSES
RATIO
376,620,609
2,685,436,09 14.02
6
86,900,563
R.O.E
.RATIO(%)
1,806,848,67 4.8
1
sales
Net fixed
assets
2,685,436,09 948,631,374
6
Fixed asset
turn over
ratio
2.83
PAT by investment.
EBIT
RETURN ON INVESTMENT
EMPLOYED
= _______________________
CAPITAL
EBIT
CAPITAL
EMPLOYED
RETURN ON
INVESTMENT
137,257,583
2,170,834,86 0.06
6