1. Presentation OnRatio Analysis on Maruti Suzuki

2. Maruti Suzuki is India and Nepals leadingautomobile manufacturer and the market leader inthe car segment, both in terms of volume ofvehicles sold and revenue earned. Until recently,18.28% of the company was owned by the Indiangovernment, and 54.2% by Suzuki of Japan. TheBJP-led government held an initial public offeringof 25% of the company in June 2003. As of 10May 2007, the government of India sold itscomplete share to Indian financial institutions andno longer has any stake in Maruti Udyog. 3. CLASIFICATION OF RATIOS The ratios may be classified under various ways, which may use variouscriterions to do the same. However for the convenience purpose, the ratios areclassified under following groups. EPS RNW NAV DEBT EQUITY RATIO CURRENT RATIO QUICK RATIO INVENTORY TURN RATIO NPR 4. RATIO ANALYSIS Earning Par Share =Profit after taxNo of equity share Year Calculation Answer 2012 1633.60 56.54%2889.10 * 100 2011 2307.10 79.86%2889.10 *100 2010 254588.09%2889.10 *100 2009 1232.70 42.63%2889.10 *100 2008 1784.90 61.95%2889.10 *100 5. 100 90 80 70 60 50 40 30 20 1002012 2011 2010 2009 2008 6. Return on Net Worth= Net aftertax profits Share holder capital + Retained earningsYear calculation ans2012 1633.60 11.30 144.502011 2307.10 15.96 144.502010 2545.00 17.62 144.502009 1231.70 8.52 144.502008 1789.90 12.38 144.50 7. 201816141210 8 6 4 2 0 2012 2011 2010 2009 2008 8. Net Annual Value = Equity share holder Fund No of Equity Share *100YearCalculationAnswer2012144.50* 1005%2889.102011144.50* 1005%2889.102010144.50* 1005%2889.102009144.50* 1005%2889.102008144.50* 1005%2889.10 9. 65432102012 2011 2010 2009 2008 10. Debt Equity Ratio = Long Term Debt Total Net worthYearCalculationAnswer20121078.300.07 15187.402011309.30 0.02 13877.502010 822.400.07 1835.102009 698.900.07 9344.902008 900.200.11 8415.40 11. 0.120.1 0.08 0.06 0.04 0.02 02012 2011201020092008 A high debt-equity ratio may indicate that financialstatus of the creditors is more than that of the owners very low debt equity rate may mean that the borrowingcapacity of the Organization is being underutilized. 12. Current Ratio=Current Asset +Loan +AdvanceCurrent Liabilities + ProvisionYearCalculation Answer20127310.301.20 611920116443.101.484300.0020103856.001.013814.9020095570.001.533631.7020083190.501.033088.50 13. 1.8 1.6 1.4 1.21 0.8 0.6 0.4 0.20 2012 20112010 2009 2008ANALYSIS: The ideal level of current ratio is 2:1. Thecurrent asset should be double that of current liability. Thisratio helps to discharge firms short term liabilities. 14. Quick Ratio = Current Asset +Loan & advance-inventories+ ShortTerm investmentCurrent Liabilities+ Provision +short term DebtYearCalculationAnswer20127310.30 -1796.500.906119.0020116443.10-1415.00 1.154362.0220103856.00-1208.80 0.693814.9020095570.00-902.301.28 3631.7020083190.50-1038.00 0.693088.50 15. 1.4 1.21 0.8 0.6 0.4 0.20 20122011 20102009 2008Higher liquid ratio indicates that there are sufficient assetsavailable with the organizationGenerally, the acid test ratio should be 1:1 or higher, howeverthis varies widely by industry. 16. Inventory Turnover Ratio= Cost of Goods Sold Average InventoryyearsCalculation Answer2012 33535.9 20.88 1605.752011 33590.8 25.60 1311.92010 25878.3 24.51 1055.552009 19041.3 19.63 970.152008 15659.1 15.08 1038 17. 30 25 20 15 105020122011 2010 2009 2008It is a ratio which shows relationship between cost of goods soldand avg. stock. If this ratio is high i.e. concern is able to yieldhigh sales with low stock then marketing efficiency will beconsidered good and if its low then its a indication ofslowdown of business or over-investment in stock. 18. Net Profit Ratio =Net Profit *100Net SalesYearCalculation Answer2012 1633.60* 100 4.53% 360612011 2307.10 * 1006.31% 36543.7020102545.00 * 100 8.69%29437.102009 1231.70 * 1005.94% 20715.402008 1789.90 * 1009.91% 28050.70 19. 1210 8 6 4 2 02012 20112010 20092008Net profit ratio shows the overall efficiency of business.Higher the ratio its good for the business. Here we can seethere is decrease in the ratio in the comparison of last year.