FINANCIAL ASSESSMENT USING

RATIO ANALYSIS
No description
by Sasha agarwal on 10 November 2013101

Comments (0)
Please log in to add your comment.
Report abuse

Transcript of FINANCIAL ASSESSMENT USING RATIO ANALYSIS

FINANCIAL ASSESSMENT USING RATIO ANALYSIS
ANALYSIS OF THE RATIOS OF DIFFERENT FIRMS
BALANCE SHEET AND ANNUAL FINANCIAL REPORTS OF 3 COMPANIES AND A
NPO
Step 2
DEBT EQUITY RATIO:
ONGC: 0.05:1
HUL: O.178:1
AMBEY LABS: 0.6511
CURRENT RATIO
ONGC: 0.11
HUL: 19.2%
AMBEY LABS: 1.644
DURGABARI: 92.36
PROPRIETARY RATIO:
ONGC: 0.64
HUL: 23.2%
AMBEY LABS: .225
DURGABARI: NIL
WORKING CAPITAL TURNOVER RATIO:
ONGC: 21.67

HUL: 41.01
AMBEY LABS: 6.25
DURGABARI: 0.89
RETURN ON CAPITAL EMPLOYED
ONGC: 24.74 %
HUL: 128.55 %
AMBEY LABS: 22.3 %
DURGABARI: 28.99 %
ANALYSIS OF 6 PROSPECTIVE
ENTREPRENEURS !
RATIOS
A ratio is an arithmetical expression of relationship between two related or interdependent
items. Ratios, when calculated on the basis of accounting information, are called Accounting
Ratios.
Ratio analysis is a technique of analyzing the financial statements by computing ratios. In
other words, ratio analysis is a process of determining and interpreting relationships between
the items of financial statements to provide a meaningful understanding of the performance
and financial position of an enterprise.
RATIOS BEING USED
DEBT-EQUITY RATIO
WORKING CAPITAL OR CURRENT RATIO
PROPRIETARY RATIO
STOCK TURNOVER RATIO
WORKING CAPITAL TURNOVER RATIO
NET PROFIT RATIO
RETURN ON CAPITAL EMPLOYED
ACCOUNTING POLICIES
AMBEY LABORATORIES PRIVATE LIMITED
1. Basis of Accounting
2. Fixed assets and Depreciation
3. Depreciation
4. Employee benefits
5. Revenue recognition
6. Borrowing Costs
7. Research and development expenditure

8. Miscellaneous Expenditure
1. Basis of preparation
2. Expenditure
3. Tangible assets
4. Investments
5. Inventories
6. Current and deferred tax
7. Foreign currency translations
8. Cash and cash equivalents
9. Use of estimates
DURGABARI, A NON PROFIT ORGANISATION
Section 3064, Goodwill and Intangible Assets, was modified to clarify that expenditures on
mail order catalogues and other similar
documents intended to advertise goods, services, or events to customers are included in
advertising and promotional activities thaSee the full transcript