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Key Strategic issues

COST REDUCTION
• Direct material
• Indirect material
• Power & Fuel
• Employee Cost
• Scrap / Rework
FINANCIAL RATIO (BALANCE SHEET)
NET PROFIT AFTER INTEREST AND
EPS HIGHER SIDE IS BETTER
TAX/NUMBER OF SHARES ISSUED

NET PROFIT BEFORE INTEREST &


ROI (RETURN TAX BUT AFTER DEPRECIATION/
ON CAPITAL EMPLOYED FIXED ASSETS HIGHER SIDE IS BETTER
INVESTMENT) + CURRENT ASSETS – CURRENT
LIABILITIES

CURRENT CURRENT ASSETS / CURRENT


HIGHER SIDE IS BETTER
RATIO LIABILITIES

CURRENT ASSETS – INVESTORS /


LIQUID RATIO HIGHER SIDE IS BETTER
CURRENT LIABILITIES

DEBT / EQUITY LONG TERM DEBTS / EQUITY


HIGHER SIDE IS BETTER
RATIO CAPITAL + RESERVE

PROFIT AFTER TAX + INTEREST


DEBT COVER DEPRECIATION / INTEREST +
HIGHER SIDE IS BETTER
RATIO INSTALMENT OF TERM LOAN DUE
IN 1 YEAR

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