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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

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

INVENTORY TURNOVER RATIO


Inventory Turnover Ratio = Cost of Goods Sold Average Stock
i.e., Cost of Goods Sold = Opening Stock+ Purchases+ Direct Expenses- Closing Stock.
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
50401287.53
7592158.855
2009
46539530.58
5848511.8
2010
54575345.28
5321788.87
2011
67416940.85
10176860.46
2012
10447532.98
9936112.19

Chart No:

MESCE, Kuttippuram Page 3

ITR
10.47557337
12.74318309
18.490517
12.40099421
12.93606412

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

INFERENCE:
Generally a ratio of 8 times is considered to be satisfactory. The highest value of inventory
turnover is in the year 2010 which is 18.49 while the lowest value is in the year 2008 which is
10.47.

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
928735.71
79532217.15
2009
1278383.065 74528656.68
2010
1116250.555 98402627.58
2011
503347.295
126203187.6
2012
542914.65
128534184.4

DEBTORS TURN
OVER RATIO
85.63492961
58.2991583
88.15460574
250.727855
236.7484178
Chart No:

MESCE, Kuttippuram Page 4

AVERAGE COLLECTION
PERIOD
4.262279442
6.260810801
4.14045298
1.455761666
1.541720969

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

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 250.72 and the lowest
value is in the year 2011 which is 58.29.

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
928735.71
2009
1278383.065
2010
1116250.555
2011
503347.295
2012
542914.65

SALES
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

DEBTORS TURN
OVER RATIO
85.63492961
58.2991583
88.15460574
250.727855
236.7484178
Chart No:

MESCE, Kuttippuram Page 5

AVERAGE COLLECTION
PERIOD
4.262279442
6.260810801
4.14045298
1.455761666
1.541720969

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

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 1.45

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
13205440.76
2009
14719082.68
2010
14324837.5
2011
6973986.075

SALES
79532217.15
74528656.68
98402627.58
126203187.6

MESCE, Kuttippuram Page 6

CREDITORS TURNOVER
RATIO
6.022685543
5.063403632
6.869371301
18.09627754

AVERAGE PAYABLE
PERIOD
60.6041935
72.08589844
53.13441129
20.16989401

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
2012

1482775.05

128534184.4

86.68488478

4.210653344

Chart No:

The highest value of creditors turnover ratio is in the year 2009 which is 72.08 and the lowest
value is in the year 2011 which is 4.21

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
13205440.76
2009
14719082.68
2010
14324837.5
2011
6973986.075
2012
1482775.05

SALES
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

MESCE, Kuttippuram Page 7

CREDITORS TURNOVER
RATIO
6.022685543
5.063403632
6.869371301
18.09627754
86.68488478

AVERAGE PAYABLE
PERIOD
60.6041935
72.08589844
53.13441129
20.16989401
4.210653344

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
Chart No:

inference
The highest value of average payable period is in the year 2012 which is 86.68 and the lowest
value is in the year 2009 which is 5.06

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
12038807.33
9632011.26
7545730.12
8036099.52
7886786.34

MESCE, Kuttippuram Page 8

SALES
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

FIXED ASSET TURNOVER RATIO


6.606320292
7.73760066
13.04083581
15.70453269
16.29740921

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

Chart No:

Inference
The highest value of fixed asset turnover ratio is in the year 2012 which is 16.29 and the lowest
value is in the year 2008 which is 6.60

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
97410200.73
129159013.3

79532217.15
74528656.68
98402627.58
126203187.6

MESCE, Kuttippuram Page 9

EXPENSES TURNOVER
RATIO
0.74994412
0.721680201
1.01018812
0.977114832

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
2012

153500619.7

128534184.4

0.837352869

Chart No:

Inference
The highest value of expense turnover is in the year 2009 which is 0.72 and the lowest value is in
the year 2010 which is 1.01

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, Kuttippuram Page 10

DEBT
349592267.2
367392722.2
382585052.2
19602232.02

DEBT EQUITY RATIO


5.885391704
6.185062663
6.440825794
0.330003906

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
2012

59400000

59128547.02

0.995430085

Chart No:

Inference
The highest value of debt-equity ratio is in the year 2011 which is 0.33 and the lowest value is in
the year 2009 which is 6.18

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
-20857257.45
-15375175.23
4244118.13

MESCE, Kuttippuram Page 11

INTEREST
10990630.18
13747534.88
967840.13

INTEREST
RATIO

COVERAGE
-1.897730804
-1.11839507
4.385143784

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
2011
2012

8695326.35
-24871721.34

2568435.19
2869850

3.385456789
-8.666557953

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 4.38 which indicates the prompt
payment of interest and the value in the year 2012 which is -8.66 indicates the decrease in the
promptness in the payment of the interest.

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
59501383.6
22149961.77
2.68629735
2009
59501383.6
19399578.98
3.067148192
2010
59501383.6
31846853.54
1.868359884
2011
59501383.6
29023372.96
2.050119525
2012
59501383.6
46532319.52
1.278710888
Chart No:

MESCE, Kuttippuram Page 12

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

Inference
The highest value of proprietors ratio is in the year 2009 which is 3.06 and the lowest value is in
the year 2012 which is 1.27

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


50401287.53
46539530.58
54575345.28
67416940.85
10447532.98

MESCE, Kuttippuram Page 13

Sales
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

Gross Profit
29130929.62
27989126.1
43827282.3
58786246.74
118086651.4

Gross profit Ratio


0.366278354
0.375548512
0.445387317
0.465806355
0.918717865

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
Chart No:

inference
The highest value of gross profit ratio is in the year 2012 which is 0.91 and the lowest value is in
the year 2008 which is 0.36

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
-23544920.48
-15544128.62
3547606.13
8134178.62
-24871721.34

MESCE, Kuttippuram Page 14

SALES
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

NET PROFIT RATIO


-0.296042551
-0.208565796
0.036051945
0.064453036
-0.193502775

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
Chart No:

The net profit ratio shows that there is favourable figures only in the years 2010 and 2011.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

29130929.62
27989126.1
43827282.3
58786246.74
118086651.4

OPERATING EBIT/
EXPENSE
OPERATING
PROFIT
106050857.7
-76919928.07
103271028.6
-75281902.48
97410200.73
-53582918.43
129159013.3
-70372766.56
153500619.7
-35413968.32

MESCE, Kuttippuram Page 15

SALES
79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

OPERATING
PROFIT
RATIO
-0.967154328
-1.010106794
-0.544527313
-0.557614811
-0.275521788

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

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
-15544128.62
3547606.13
8134178.62
-24871721.34

MESCE, Kuttippuram Page 16

NO. OF SHARES
600000
600000
600000
600000
600000

Earnings Per Share


-39.24153333
-25.90688103
5.912676883
13.55696437
-41.4528689

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
Chart No:

Inference
The value of the year 2010 shows a favourable figure of 5.91 ,other figures shows an
unfavourable relationship between net profit equity and no. of shares.

CAPITAL TURNOVER RATIO


Capital Turnover Ratio = Sales Capital Employed
Table No:
PERIOD

SALES

CAPITAL EMPLOYED

2008
2009
2010
2011
2012

79532217.15
74528656.68
98402627.58
126203187.6
128534184.4

-13286969.77
-7765331.69
9747490.49
7944614.09
18911522.65
Chart No:

MESCE, Kuttippuram Page 17

CAPITAL
RATIO
-5.98573027
-9.597614069
10.09517554
15.8853767
6.796606849

TURNOVER

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.

The figures of capital turnover ratio shows negative figures in the year 2008 and 2009.Other
figures are satisfactory figures.

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

12038807.33
9632011.26
7545730.12
8036099.52

Current Asset Current


Liabilities
10111154.44 35436931.54
9767567.72 27164910.67
24301123.42 22099363.05
20987273.44 21078758.87

MESCE, Kuttippuram Page 18

Capital
Employed
-13286969.77
-7765331.69
9747490.49
7944614.09

EBIT

ROI

-76919928.07
-75281902.48
-53582918.43
-70372766.56

5.78912494
9.69461518
-5.497098816
-8.857921324

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
2012

7886786.34

38645533.18 27620796.87

18911522.65

-35413968.32

-1.872613273

Chart No:

The return on investment figures of the years 2008 and 2009 shows satisfactory figures of
5.78 and 9.69 respectively.The figures of 2010 ,2011 and 2012 shows negative relation
between between EBIT and capital employed.

DU PONT CHART
ROI
5.78912494
9.69461518
-5.497098816
-8.857921324
-1.872613273
SALES
79532217.15

OPERATING
PROFIT
RATIO
-0.967154328
-1.010106794
-0.544527313
-0.557614811
-0.275521788
OPERATING
EXPENSE
106050857.7

MESCE, Kuttippuram Page 19

CAPITAL
TURNOVER
RATIO
-5.98573027
-9.597614069
10.09517554
15.8853767
6.796606849
CGS
50401287.53

EBIT/
CAPITAL
OPERATING EMPLOYED WORKING
PROFIT
CAPITAL
-76919928.07
-13286969.77
-25325777.1
-75281902.48
-7765331.69
-17397342.95
-53582918.43
9747490.49
2201760.37
-70372766.56
7944614.09
-91485.43
-35413968.32
18911522.65
11024736.31
FIXED
CURRENT Current
ASSET
ASSET
Liabilities
12038807.33 10111154.44 35436931.54

A STUDY ON THE FINANCIAL PERFORMANCE WITH SPECIAL REFERENCE TO


SITHARAM TEXTILE MILL, THRISSUR.
74528656.68
98402627.58
126203187.6
128534184.4

103271028.6

46539530.58

97410200.73

54575345.28

129159013.3

67416940.85

153500619.7

10447532.98

9632011.26

9767567.72 27164910.67

7545730.12 24301123.42 22099363.05


8036099.52 20987273.44 21078758.87
7886786.34 38645533.18 27620796.87

RETURN ON
INVESTMENT=5.7

OPERATING PROFIT
RATIO=

OPERATING
PROFIT

SALES

SALES

COST OF GOODS

CAPITAL TURNOVER
RATIO

SALES

OPERTIN
G
EXPENS

CURRENT
ASSET

MESCE, Kuttippuram Page 20

CAPITAL
EMPLOYED

FIXED
ASSETS

WORKIN
G
CAPITAL

CURRENT
LIABILITY