ratio analysis- jitendra nainani

8/14/2019 Ratio Analysis- Jitendra Nainani

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COMPARATIVE ANALYSIS

PRESENTED BY- GROUP 5


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How a Ratio is expressed?

As Percentage - such as 25% or 50%. For example if net profit is Rs.25,000/-and the sales is Rs.1,00,000/- then the

net profit can be said to be 25% of thesales.

As Proportion -The above figures maybe expressed in terms of the relationshipbetween net profit to sales as 1 : 4.

As Pure Number /Times - The samecan also be expressed in an alternativelyway such as the sale is 4 times of the netprofit or profit is 1/4th of the sales.


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Classification of RatiosBalance Sheet RatioP&L Ratio or

Income/RevenueStatement Ratio

Balance Sheet and

Profit & Loss Ratio

Financial Ratio Operating Ratio Composite Ratio

Current RatioQuick Asset RatioProprietary RatioDebt Equity Ratio

Gross Profit RatioOperating RatioExpense Ratio

Net profit RatioStock Turnover Ratio

Fixed Asset TurnoverRatio, Return on TotalResources Ratio,Return on Own FundsRatio, Earning per

Share Ratio, DebtorsTurnover Ratio,


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Assets

Current

Liabilities Tata Power1.123

Reliance Power

0.334

.uisite for the very survival of a firm A proper balance bet


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Quick Ratio = Quick

Current Assets

Current Liabilities

0.812

0.335

it is a measurement of a firms ability to convert its assets

quickly into cash in order to meet its current liabilities. Acid test ratio is a rigorous measure of firm s.ability to service short term liabilities The

usefulness of the ratio lies in the fact that itis widely accepted as the best available test of

.liquidity position of a firm


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Interval Measure = CurrentAsset Inventory/ Avg. Daily

Cash Opt. Exp.

99 Days

Nil


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Total debt ratio = totaldebt/Capital employed

0.598

0.0031

l


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DEBT EQUITY RATIO = TotalDebt

Net Worth

0.64

0.0032


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Capital equity ratio = Capitalemployed /Net worth

1.07

2.158


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Inventory Turnover= COGS /Inventory

12.94

NA


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Debtor Turnover Ratio = CreditSales / Debtors

4.56

NA


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Assets turnover = Sales /Net assets

0.83

NA


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Net Margin = Profit After Tax /Sales

0.13

0.75


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Gross Margin = GrossProfit / Sales

0.14

0.50


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PAT to EBIT Ratio = PAT /EBIT

0.84

0.97


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ROI before Tax = EBIT / NetAsset

0.13

0.018


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Return on Equity = PAT / NetWorth

0.114

0.018


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EPS = PAT / No. of Shares

4.06

1.04


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DPS = Profit Distributed / No.of Shares

4.26

NA


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Price To Earning Ratio = MarketValue of Share / EPS

325.23

138.5

Mkt Value to Book Value Ratio


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Mkt. Value to Book Value Ratio= Mkt. Value of Sh. / Book

Value of Sh.

ratio analysis- jitendra nainani

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