Documentos de Académico
Documentos de Profesional
Documentos de Cultura
ANKUR SHARMA
APARNA UPADHYAY
BHAVIK JAIN
DEEPALI SRIVASTAVA
GURJOT KAUR
MOHIT KAPOOR
RATIOS
FINANCIAL RATIOS
CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES
2009
=6040.04/5968.06
=1.01
2010
=5818.89/6935.52
=.83
Interpretation- From the above ratios we can see that ratio in the
year 2010 is less than 2009 as current assets are decreasing by
221.16 and current liabilities are increasing by 967.46 in 2010. So
its important for the co to control upon the current liabilities to
improve financial position.
Quick Ratio/Liquid Ratio= Quick Assets/Current Liabilities
2009
=5818.89-2179.93
=3638.96
=3638.96/6935.52
=.52
2010
=6040.05-2528.86
=3511.19
=3511.19/5968.06
=.59
Interpretation- In the year 2010 the quick ratio of the co. is .59 which is
higher than 2009 i.e a positive sign. This is happening as current liabilities
are decreasing. Thus to have good financial position co. shoul follow the
same trend or necessary steps can be taken by the co. to increase quick
assets for sound position.
Debt Equity Ratio= Long Term Outside
Liabilities/Tangible Net worth
2009
=144.65+277.30+4440.08
=4862.03
=4862.03/2061.51
=2.35
2010
=5493.97/2583.52
=2.13
2009
G.P=20504.28-11380.05-301.97-1152.12-297.34
=7372.8
=7372.8/20504.28*100
=35.96
2010
G.P=17769.12-9003.97-244.34-936.30-254.40
=7330.11
=7330.11/17769.12
=41.25
Interpretation- In 2010 Gross Profit Ratio of the co.has increased by 5.29 which
is a positive sign, it is happening as net sales of the co.is decreasing bt to make
profitalility of the co.more sound efforts shoud be done by the co.to improve
profit also in coming year
Operating Profit Ratio=Operating profits/netsales x 100
2009
=2964.94/20504.28*100
=14.46
2010
=2797.70/17769.12*100
=15.74
2009
=2500.71/20504.28*100
=12.20
2010
=2202.03/17769.12*100
=12.39
Interpretation- the net profit ratio of the co. is increasing but with very low rate
by just 0.19.As in this profit of the company has decreased by 298.68 and the
sales has also decreased by 2735.16.To grow fast co. should try to decrease the
expenses and increase the sales..
Inventory Turnover Ratio= Average Inventory/Sales*365
2009
=1953.60+2528.86/2
=2241.23
=2241.23/20504.28*365
=39.90days
2010
=2528.86+2179.93/2
=2354.39
=2354.39/17769.12*365
=48.36days
2009
=443.37+536.89/2
=490.13
=490.13/20504.28*365
=8.72days
2010=536.89+678.44/2
=607.66
=607.66/17769.12*365
12.48days
2009
=20504.28/1606.78
=12.76
2010
=17769.12/2162.11
=8.22
Interpretation- In the above case the fixed asset turnover ratio has
decreased by 4.54 resultant of increase in fixed assets by 555.33 and
decrease in net sales by 2735.16. It is positive as per financial position is
concern but co. should try to improve its sales for sound liquidity position.
Current Asset Turnover Ratio= Net Sales/Current Assets
2009
=20504.28/5818.89
=3.52
2010
=17769.12/6040.05
=2.94
2009
=1606.78+2528.86+536.89+190.59+1196.95+1586.76
=7646.83
2500.71/7646.83
=.33
2010
=2162.11+2179.93+678.44+231.37+1068.31+1660.84
=7981
=2202.03/7981
=.27
Interpretation-For more sound position of the co. return on assets
should be more. As we above to do the same co. should try to improve
the net profit.
Return On Capital Employed=Net Profit before Interest and
Tax/Average Capital Employed*100
2009
=1439.24+2061.51/2
=1750.37
=3241.48/1750.37*100
=185.18
2010
=2061.51+2583.52/2
2322.51
=2997.43/2322.51*100
=129.05
Interpretation- In the above ratio we can see net profit of the co has
decreasedby 55.13 resultant of decrease in N/P before interest and tax
by 244.05 and increase in avg capital employedby 572.14 which is not a
positive sign so co should take care of the same by reducing indirect
expenses.
Return on Equity Capital= Net Profit after Taxes/Tangible
Net Worth
2009
=2500.71/2061.51
=1.21
2010
=2202.03/2583.52
=.85