RATIO ANALYSIS FOR

AIRTEL
PREPARED BY:
JAYESH SEN
AMITABH SEN
V.C.VENKATESH
Profitability Ratio
Net profit margin:-
- it increasing with increase in sales.
- Cost has also increased with increase in sales.
- Both employee cost and manufacturing,
administrative and selling expenses has increased
hugely.
Profitability Ratios
Asset turnover ratio:-
- From 2008-2009 financial year to 2009-2010 the
ratio has increased. This implies that added assets did
not give enough return.
Return on Equity:-
- It has increased. But company has invested a huge
amount of money in investment which generates other
income.
Profitability Ratio
Therefore after taking into account the NOPAT we see
that the two ratios does increase hugely so the
company is managing its core business any how in a
profitable way.
Return on Equity has increased in the current year
Liquidity Ratio
Current Ratio
- It is more than one which implies that company is
generating more current asset with the help of outsiders’
money, company’s cash position is very healthy.
Quick Ratio
- Quick ratio is very less. So company is not very liquid
position.
Debtors’ Turnover Ratio: It does not increase in last two
years.
Average Debtors’ collection period has increased slightly.
RATIO ANALYSIS FOR
TVS
PREPARED BY:
RAKESH REDDY
SATEESH KUMAR
SREEJITH MOHAN
Liquidity Ratio
Inventory turnover ratio: Does not increase in last two
years
Average inventory holding period has increased in
2009-2010.
Solvency ratio
Debt/Equity Ratio:- It is decreasing because company
is more depending on equity fund than loan fund, this
is increasing the company’s cost. Still company is
paying higher interest in each year. Because company
is paying interest to its’ supplier for not paying dues
timely.
Interest coverage ratio:- company has enough money
for this purpose.
Profitability Ratio
Net profit margin:-
- it increasing with increase in sales.
- Cost has also increased with increase in sales.
- Both employee cost and manufacturing,
administrative and selling expenses has increased
hugely.
Profitability Ratios
Asset turnover ratio:-
- From 2008-2009 financial year to 2009-2010 the
ratio has increased. This implies that added assets did
not give enough return.
Return on Equity:-
- It has increased. But company has invested a huge
amount of money in investment which generates other
income.
Profitability Ratio
Therefore after taking into account the NOPAT we see
that the two ratios does increase hugely so the
company is managing its core business any how in a
profitable way.
Return on Equity has increased in the current year
Liquidity Ratio
Current Ratio
- It is more than one which implies that company is
generating more current asset with the help of outsiders’
money, company’s cash position is very healthy.
Quick Ratio
- Quick ratio is very less. So company is not very liquid
position.
Debtors’ Turnover Ratio: It does not increase in last two
years.
Average Debtors’ collection period has increased slightly.
Liquidity Ratio
Inventory turnover ratio: Does not increase in last two
years
Average inventory holding period has increased in
2009-2010.
Solvency ratio
Debt/Equity Ratio:- It is decreasing because company
is more depending on equity fund than loan fund, this
is increasing the company’s cost. Still company is
paying higher interest in each year. Because company
is paying interest to its’ supplier for not paying dues
timely.
Interest coverage ratio:- company has enough money
for this purpose.