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  • Du Point Ratios

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    Shakeel Shemna
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    The document compares financial ratios for two pharmaceutical companies, Cipla and Dr. Reddy's. It provides ratios related to profitability, liquidity, and returns. For profitability, Dr. Reddy's had higher gross and net profit ratios and operating margin. Cipla had higher return on equity and return on investment ratios. For liquidity, Cipla's current and quick ratios were higher but Dr. Reddy's debt to equity ratio was lower.

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    The document compares financial ratios for two pharmaceutical companies, Cipla and Dr. Reddy's. It provides ratios related to profitability, liquidity, and returns. For profitability, Dr. Reddy's had higher gross and net profit ratios and operating margin. Cipla had higher return on equity and return on investment ratios. For liquidity, Cipla's current and quick ratios were higher but Dr. Reddy's debt to equity ratio was lower.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    49 views3 pages

    Du Point Ratios

    Uploaded by

    Shakeel Shemna
    The document compares financial ratios for two pharmaceutical companies, Cipla and Dr. Reddy's. It provides ratios related to profitability, liquidity, and returns. For profitability, Dr. Reddy's had higher gross and net profit ratios and operating margin. Cipla had higher return on equity and return on investment ratios. For liquidity, Cipla's current and quick ratios were higher but Dr. Reddy's debt to equity ratio was lower.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    DU-POINT RATIOS

    RATIOS CIPLA DR.REDDYs

    RETURN ON EQUITY
    RETURN ON INVESTMENT

    14.52
    59.54

    18.31
    52.87

    14.84
    58.41

    14.30
    30.65

    Return on Equity =

    Net Income Shareholders equity

    ROI =

    NET PROFIT AFTER TAX Cost of investment

    LIQUIDITY RATIOS
    RATIOS CURRENT RATIO QUICK RATIO DEBT TO EQUITY RATIO CIPLA 3.45 2.08 0.07 DR REDDYs 1.66 1.91 0.24

    Current ratio = Current assets Current liabilities Quick ratio = Current assets Inventories Current liabilities DEBT TO EQUITY = Total liabilities Shareholders equity

    Profitability ratios
    RATIOS GROSS PROFIT RATIO NET PROFIT RATIO OPERATING MARGIN CIPLA 13.98 -17.71 DR Reddys 18.72 16.84 23.50

    Gross profit ratio = Gross profit net sales Net profit ratio = Net profit Net sales

    x 100 x 100

    Operating margin = operating profit Net sales

    x 100

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