EARNING PER SHARE=

NPAT- PREFERENCE DIVIDEND NUMBER OF EQUITY SHARE. Emami 14.65

YearEARNING PER SHARE

Dabur 3.39

COMMENTS: Earnings per share are calculated to find out overall profitability of the company. Earnings per share represent the earning of the company whether or not dividends are declared. In other words the Dabur shareholder earned Rs. 3.39 per share and Emami shareholder earned Rs. 14.65 per share. Shareholder is getting more return on the investment in that Emami. . It is beneficial to the shareholders and prospective investor to invest the money in this Emami Company.

RETURN ON CAPITAL EMPLOYED:=

NPAT CAPITAL EMPLOYED

YearRETURN ON CAPITAL EMPLOYED COMMENTS:

Dabur 41.82

Emami 34.20

The return on capital employed shows the relationship between profit & investment. Its purpose is to measure the overall profitability from the total funds made available by the owner & lenders. This amount of Rs.41.82 for dabur and RS, 34.29 for emami is available to take care of interest, tax, & appropriation. Dabur indicates a very high profitability on each rupee of investment & has a great scope to attract large amount of fresh fund.

 PRICE EARNING RATIO:= MARKET PRICE PER SHARE EARNING PRICE PER SHARE

YearPRICE EARNING RATIO

Dabur 54.12

Emami 21.22

COMMENTS: P/E Ratio not an indicator of good and bad but only a data. P/E Ratio find out whether company park money for short term. If P/E Ratio is low, company potential is high. The customers of Dabur are speculating heavily on the potential for future growth as compared to Emami. So investor will think about potential but indicator of financial soundness and expertise of company.

NET PROFIT RATIO:= NET PROFIT NET SALE

*100

YearNET PROFIT RATIO

COMMENTS:

Dabur 13.32

Emami 13.16

This is the ratio of net profit to sales. The greater the ratio, the more profitable the Business will be. Net profit ratio Dabur is 13.32% and Emami is 13.16%. The financial position of Emami is better than the Dabur in terms of net profit.