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A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO

SITHARAM TEXTILE MILL, THRISSUR.”
LIQUIDITY RATIOS
CURRENT RATIO:
Current ratio = Current asset ÷ Current Liabilities
The following table and chart shows the current ratio of last five years.
Table No:

Period
2008
2009
2010
2011
2012

Current Assets Current Liabilities
10111154.44
35436931.54
9767567.72
27164910.67
24301123.42
22099363.05
20987273.44
21078758.87
38645533.18
27620796.87

Current Ratio
0.285328159
0.359565612
1.099630038
0.995659828
1.399146207

Chart No:

INFERENCE:
Generally a current ratio of 2:1 is considered ideal or satisfactory. The current ratio of the
company for the last year is 1.399. The current ratio fluctuates year to year
MESCE, Kuttippuram Page 1

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO
SITHARAM TEXTILE MILL, THRISSUR.”

QUICK RATIO:
QUICK RATIO = Quick assets ÷ Current Liability
i.e., Quick asset = Current asset – (inventory + Prepaid expenses)
The following table and chart shows the Quick Ratio of last 5 years
Table No:
Period
2008
2009
2010
2011
2012

Quick Assets
Current Liabilities
Quick Ratio
1045485.27
35436931.54
0.029502703
1848753.63
27164910.67
0.06805668
16435446.47
22099363.05
0.743706795
4042935.56
21078758.87
0.191801405
33933187.48
27620796.87
1.2285376
Chart No:

INFERENCE:
A quick ratio of 1:1 is considered to be satisfactory or ideal. The ratio shows fluctuation
trend. The quick ratio shows a highest position in the period from 2011- 2012. The
liquidity position shows a fluctuating trend.

MESCE, Kuttippuram Page 2

93606412 .53 7592158..490517 12.e.Closing Stock.58 5848511.46 2012 10447532.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.85 10176860.19 Chart No: MESCE.87 2011 67416940.28 5321788.8 2010 54575345.855 2009 46539530.” INVENTORY TURNOVER RATIO Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Stock i.98 9936112.40099421 12. Kuttippuram Page 3 ITR 10. Cost of Goods Sold = Opening Stock+ Purchases+ Direct Expenses. Average Stock = Opening stock + Closing Stock 2 The following table and chart shows the Inventory Turnover Ratio of last 5 years Table No: PERIOD COST OF GOODS SOLD AVERAGE STOCK 2008 50401287.47557337 12.74318309 18. THRISSUR.

71 79532217.63492961 58.065 74528656.15460574 250.727855 236.49 while the lowest value is in the year 2008 which is 10. The highest value of inventory turnover is in the year 2010 which is 18.7484178 Chart No: MESCE. DEBTORS TURNOVER RATIO Debtors Turnover Ratio = Sales ÷ Average Debtors Average Debtors = (Opening Debtors + Closing Debtors) ÷ 2 Average Collection Period = 365 ÷ Debtors Turnover Ratios The following table and chart shows the Debtors Turnover Ratio of last 5 years Table No: PERIOD AVERAGE22222 SALES DEBTORS 2008 928735.541720969 .” INFERENCE: Generally a ratio of 8 times is considered to be satisfactory.58 2011 503347.2991583 88. THRISSUR.295 126203187.6 2012 542914.455761666 1.555 98402627.260810801 4.14045298 1.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.65 128534184.262279442 6.68 2010 1116250.47.4 DEBTORS TURN OVER RATIO 85.15 2009 1278383. Kuttippuram Page 4 AVERAGE COLLECTION PERIOD 4.

” DEBTORSTURN OVERRATIO 300 200 100 0 2008 2009 2010 2011 2012 Inference The highest value of debtors’ turnover ratio is in the year 2011 which is 250.14045298 1.2991583 88.555 2011 503347.58 126203187.541720969 .6 128534184.29.15 74528656.455761666 1.15460574 250.63492961 58.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL. AVERAGE COLLECTION PERIOD Average Collection Period = 365 ÷ Debtors Turnover Ratios The following Table and Chart shows the Average collection period (in days) of the last five years Table No: PERIOD AVERAGE DEBTORS 2008 928735.72 and the lowest value is in the year 2011 which is 58.71 2009 1278383.262279442 6. THRISSUR.65 SALES 79532217.7484178 Chart No: MESCE.260810801 4.065 2010 1116250. Kuttippuram Page 5 AVERAGE COLLECTION PERIOD 4.295 2012 542914.727855 236.4 DEBTORS TURN OVER RATIO 85.68 98402627.

09627754 AVERAGE PAYABLE PERIOD 60. Kuttippuram Page 6 CREDITORS TURNOVER RATIO 6.5 2011 6973986.16989401 .68 98402627.869371301 18.15 74528656.08589844 53.6041935 72.58 126203187. THRISSUR.68 2010 14324837.6 MESCE.022685543 5.45 CREDITORS TURNOVER RATIO Creditors Turnover Ratio = Sales ÷ Average Creditors Average Creditors = (Opening Creditors + Closing Creditors) ÷ 2 Average Payable Period = 365 ÷ Creditors Turnover Ratio The following table and chart shows the Creditors Turnover Ratio of last 5 years Table No: PERIOD AVERAGE CREDITORS 2008 13205440.13441129 20.” Inference The highest value of average collection period is in the year 2009 which is 6.26 and the lowest value is in the year 2011 which is 1.063403632 6.76 2009 14719082.075 SALES 79532217.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.

08589844 53.13441129 20.15 74528656.4 MESCE.5 2011 6973986.76 2009 14719082.68488478 4.063403632 6.869371301 18.6 128534184.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL. Kuttippuram Page 7 CREDITORS TURNOVER RATIO 6.21 AVERAGE PAYABLE PERIOD Average Payable Period = 365 ÷ Creditors Turnover Ratio The following table and chart shows the Average Payable Period (in days) of last 5 years Table No: PERIOD AVERAGE CREDITORS 2008 13205440.05 128534184.4 86.16989401 4.08 and the lowest value is in the year 2011 which is 4.” 2012 1482775.68488478 AVERAGE PAYABLE PERIOD 60.022685543 5.68 2010 14324837.58 126203187.6041935 72.05 SALES 79532217.09627754 86.68 98402627.210653344 Chart No: The highest value of creditors’ turnover ratio is in the year 2009 which is 72. THRISSUR.075 2012 1482775.210653344 .

29740921 .06 FIXED ASSET TURNOVER RATIO Fixed Asset Turnover Ratio = Sales ÷ Fixed Assets The following table and chart shows the Fixed Asset Turnover Ratio of last 5 years Table No: PERIOD 2008 2009 2010 2011 2012 FIXED ASSET 12038807.58 126203187.04083581 15.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.73760066 13.” Chart No: inference The highest value of average payable period is in the year 2012 which is 86.606320292 7.4 FIXED ASSET TURNOVER RATIO 6.15 74528656.52 7886786. Kuttippuram Page 8 SALES 79532217.6 128534184.68 and the lowest value is in the year 2009 which is 5.12 8036099.34 MESCE.70453269 16.68 98402627.26 7545730. THRISSUR.33 9632011.

977114832 .68 98402627.” Chart No: Inference The highest value of fixed asset turnover ratio is in the year 2012 which is 16.60 EXPENSES TURNOVER RATIO Expenses Turnover Ratio = Sales ÷ Expenses The following table and chart shows the Expenses Turnover Ratio of last 5 years Table No: PERIOD EXPENSES SALES 2008 2009 2010 2011 106050857.7 103271028.6 97410200.721680201 1.58 126203187. Kuttippuram Page 9 EXPENSES TURNOVER RATIO 0. THRISSUR.15 74528656.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.6 MESCE.01018812 0.29 and the lowest value is in the year 2008 which is 6.3 79532217.74994412 0.73 129159013.

Kuttippuram Page 10 DEBT 349592267.01 DEBT EQUITY RATIO Debt Equity Ratio = Debt ÷ Shareholders Equity The following table and chart shows the Debt Equity Ratio of last 5 years Table No: PERIOD 2008 2009 2010 2011 EQUITY 59400000 59400000 59400000 59400000 MESCE.72 and the lowest value is in the year 2010 which is 1.7 128534184.2 367392722.185062663 6.” 2012 153500619.2 19602232.2 382585052.4 0. THRISSUR.837352869 Chart No: Inference The highest value of expense turnover is in the year 2009 which is 0.885391704 6.440825794 0.02 DEBT EQUITY RATIO 5.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.330003906 .

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.23 4244118.13 MESCE.18 13747534.385143784 .33 and the lowest value is in the year 2009 which is 6. Kuttippuram Page 11 INTEREST 10990630.897730804 -1.88 967840. THRISSUR.13 INTEREST RATIO COVERAGE -1.” 2012 59400000 59128547.995430085 Chart No: Inference The highest value of debt-equity ratio is in the year 2011 which is 0.18 INTEREST COVERAGE RATIO Interest Coverage Ratio = Profit before Interest and Tax ÷ interest The following table and chart shows the Interest Coverage Ratio of last 5 years Table No: PERIOD 2008 2009 2010 PROFIT BEFORE INTEREST & TAX -20857257.11839507 4.45 -15375175.02 0.

6 19399578. PROPRIETORY RATIO PROPRIETORS RATIO = Shareholders Fund ÷ Total Asset The following table and chart shows the Proprietary Ratio of last 5 years Table No: PERIOD SHAREHOLDERS FUND TOTAL ASSET PROPRIETORS RATIO 2008 59501383.19 2869850 3.96 2.98 3.34 2568435.6 29023372.6 31846853.35 -24871721.385456789 -8.52 1.” 2011 2012 8695326.067148192 2010 59501383.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.666557953 Chart No: INTERESTCOVERAGERATIO 6 4 2 0 -2 2008 2009 2010 2011 2012 -4 -6 -8 -10 Inference The value of Interest coverage ratio in the year 2010 which is 4.54 1.66 indicates the decrease in the promptness in the payment of the interest.278710888 Chart No: MESCE.77 2.68629735 2009 59501383. THRISSUR.868359884 2011 59501383.6 22149961.050119525 2012 59501383. Kuttippuram Page 12 .38 which indicates the prompt payment of interest and the value in the year 2012 which is -8.6 46532319.

375548512 0.27 GROSS PROFIT RATIO Gross Profit Ratio = Gross Profit ÷ Sales The following table and chart shows the Gross Profit Ratio of last 5 years Table No: PERIOD 2008 2009 2010 2011 2012 Cost of Goods Sold 50401287.74 118086651. Kuttippuram Page 13 Sales 79532217.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.4 Gross profit Ratio 0.6 128534184.3 58786246.15 74528656. THRISSUR.366278354 0.98 MESCE.28 67416940.4 Gross Profit 29130929.918717865 .62 27989126.06 and the lowest value is in the year 2012 which is 1.58 126203187.465806355 0.1 43827282.” Inference The highest value of proprietors ratio is in the year 2009 which is 3.58 54575345.53 46539530.445387317 0.68 98402627.85 10447532.

208565796 0.036051945 0.4 NET PROFIT RATIO -0.34 MESCE. Kuttippuram Page 14 SALES 79532217.296042551 -0.193502775 .36 NET PROFIT RATIO Net Profit Ratio = Net profit ÷ Sales The following table and chart shows the Net Profit Ratio of last 5 years Table No: PERIOD 2008 2009 2010 2011 2012 NET PROFIT -23544920.91 and the lowest value is in the year 2008 which is 0.48 -15544128.62 3547606.58 126203187.064453036 -0.13 8134178.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.68 98402627. THRISSUR.6 128534184.” Chart No: inference The highest value of gross profit ratio is in the year 2012 which is 0.62 -24871721.15 74528656.

6 128534184.7 -35413968.The figures of years 2008 . 2009 and 2012 shows unfavourable relation between netprofit and sales OPERATING PROFIT RATIO Operating Profit Ratio = Operating Profit ÷ Sales Operating profit = Gross Profit – Operating Expenses The following table and chart shows the Operating Profit Ratio of last 5 years Table No: PERIOD GROSS PROFIT 2008 2009 2010 2011 2012 29130929.967154328 -1.58 126203187.73 -53582918.6 -75281902.1 43827282.010106794 -0.275521788 .74 118086651.3 -70372766.4 OPERATING PROFIT RATIO -0.62 27989126.557614811 -0.4 OPERATING EBIT/ EXPENSE OPERATING PROFIT 106050857.32 MESCE. THRISSUR.07 103271028.544527313 -0.15 74528656. Kuttippuram Page 15 SALES 79532217.7 -76919928.48 97410200.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.56 153500619.” Chart No: The net profit ratio shows that there is favourable figures only in the years 2010 and 2011.43 129159013.68 98402627.3 58786246.

THRISSUR. OF SHARES 600000 600000 600000 600000 600000 Earnings Per Share -39.24153333 -25.55696437 -41.4528689 .912676883 13.62 -24871721.13 8134178.62 3547606.34 MESCE.90688103 5. Kuttippuram Page 16 NO.” Chart No: Inference The figures of the five years shows an unfavourable relationship between the operating profit and sales EARNINGS PER SHARE EPS = Net Profit to the Equity shareholders ÷ Number of Equity shares The following table and chart shows the Earnings Per Share of last 5 years Table No: PERIOD 2008 2009 2010 2011 2012 NET PROFIT EQUITY -23544920 -15544128.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.

8853767 6.65 Chart No: MESCE.91 .68 98402627.6 128534184. Kuttippuram Page 17 CAPITAL RATIO -5.98573027 -9.69 9747490.” Chart No: Inference The value of the year 2010 shows a favourable figure of 5.49 7944614.09517554 15. CAPITAL TURNOVER RATIO Capital Turnover Ratio = Sales ÷ Capital Employed Table No: PERIOD SALES CAPITAL EMPLOYED 2008 2009 2010 2011 2012 79532217.09 18911522. of shares.58 126203187.77 -7765331.15 74528656.other figures shows an unfavourable relationship between net profit equity and no.796606849 TURNOVER .597614069 10.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL. THRISSUR.4 -13286969.

87 MESCE.54 9767567.33 9632011.Other figures are satisfactory figures.52 Current Asset Current Liabilities 10111154. Kuttippuram Page 18 Capital Employed -13286969.44 35436931.69 9747490.07 -75281902.” The figures of capital turnover ratio shows negative figures in the year 2008 and 2009.05 20987273.09 EBIT ROI -76919928.26 7545730.12 8036099.43 -70372766.497098816 -8.44 21078758.77 -7765331. THRISSUR.56 5.48 -53582918.72 27164910.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.857921324 .49 7944614.67 24301123.42 22099363.78912494 9.69461518 -5. RETURN ON INVESTMENT ROI = Earnings Before Interest and Tax ÷ Capital Employed Capital Employed = Fixed Asset + Working Capital Working Capital = Current Asset – Current Liability The following table and chart shows the Return On Investment of last 5 years Table No: PERIOD Fixed Asset 2008 2009 2010 2011 12038807.

32 18911522.857921324 -1.32 -1.95 -53582918. Kuttippuram Page 19 CAPITAL TURNOVER RATIO -5.” 2012 7886786.69 -17397342.65 11024736.497098816 -8.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.275521788 OPERATING EXPENSE 106050857.69 respectively.53 EBIT/ CAPITAL OPERATING EMPLOYED WORKING PROFIT CAPITAL -76919928.31 FIXED CURRENT Current ASSET ASSET Liabilities 12038807.597614069 10.18 27620796.The figures of 2010 .8853767 6.65 -35413968.78912494 9.15 OPERATING PROFIT RATIO -0.09 -91485.796606849 CGS 50401287.49 2201760.54 .87 18911522. DU PONT CHART ROI 5.56 7944614.44 35436931.2011 and 2012 shows negative relation between between EBIT and capital employed.43 9747490.77 -25325777.1 -75281902.7 MESCE.78 and 9.967154328 -1.98573027 -9.872613273 SALES 79532217.557614811 -0.37 -70372766. THRISSUR.07 -13286969.33 10111154.48 -7765331.010106794 -0.43 -35413968.544527313 -0.34 38645533.872613273 Chart No: The return on investment figures of the years 2008 and 2009 shows satisfactory figures of 5.69461518 -5.09517554 15.

26 9767567.3 67416940. Kuttippuram Page 20 CAPITAL EMPLOYED FIXED ASSETS WORKIN G CAPITAL CURRENT LIABILITY .4 103271028.52 20987273.58 97410200.42 22099363.58 126203187.72 27164910.34 38645533.73 54575345.12 24301123.” 74528656.7 OPERATING PROFIT RATIO= OPERATING PROFIT SALES SALES COST OF GOODS CAPITAL TURNOVER RATIO SALES OPERTIN G EXPENS CURRENT ASSET MESCE.6 46539530.44 21078758.A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO SITHARAM TEXTILE MILL.7 10447532.05 8036099.18 27620796. THRISSUR.87 7886786.85 153500619.68 98402627.28 129159013.6 128534184.98 9632011.87 RETURN ON INVESTMENT=5.67 7545730.