RATIO ANALYSIS

Dr.REDDY’s Laboratories

By
NARENDRA KUMAR.A
BLR1003035004
MBA16(I)
INTRODUCTION
 Involves methods of calculating and implementing
financial ratios to analyze and monitor the firm’s
performance.
 The basic input to the ratio analysis is income statement
and balance sheet.
 We can evaluate firm’s financial performance over time
using financial ratio analysis.
LIQUIDITY RATIO
 Current Ratio
 1.469 for the year 2009

 1.785 for the year 2008

 Quick Ratio/Acid Test Ratio

 1.43 for the year 2009

 1.74 for the year 2008

LEVERAGE RATIO
 Debt Equity ratio
 0.24 for the year 2009

 0.27 for the year 2008

 Debt-Service Coverage Ratio

 4.5 for the year 2009

 5.345 for the year 2008

ACTIVITY RATIO
 Inventory/Stock Turnover Ratio
 39.22 for the year 2009

 25.72 for the year 2008

 Debt Turnover Ratio

 2.94 for the year 2009

 3.48 for the year 2008

 Debt Turnover Period

 124 days for the year 2009

 105 days for the year 2008

 Total Asset Turnover Ratio
 0.48 for the year 2009

 0.3 for the year 2008

 Current Asset Turnover Ratio

 1.08 for the year 2009

 0.75 for the year 2008

PROFITABILITY RATIO
 Gross Profit Margin
 18.95 for the year 2009

 17.4 for the year 2008

 Net Profit Margin

 14.26 for the year 2009

 14.16 for the year 2008

 CGS Ratio

 81.05 for the year 2009

 82.57 for the year 2008

 Administrative Expenses Ratio
 17.86 for the year 2009

 16.7 for the year 2008

 Selling Expenses Ratio

 11.21 for the year 2009

 11.22 for the year 2008

 Operating ratio

 1.2 for the year 2009

 1.02 for the year 2008

PROFITABILITY RATIO RELATED TO
INVESTMENT
 Return on Assets
 5.96 for the year 2009

 4.52 for the year 2008

 Return on Capital Employed

 18.36 for the year 2009

 9.68 for the year 2008

 Return on Shareholders Equity

 11.26 for the year 2009

 8.71 for the year 2008

THANK YOU
QUERIES ?