Ratio Analysis

LIQUIDITY RATIOS
Working capital
=current assets-current liabilities.
2007=35770-43326=-7556(in millions)
2008=33048-33223=175
2009=39870-36083=3787
2010=38997-30146=8851
2011=33324-35232=-1908
Analysis
It indicates the shot term solvency of the business.in
2007 and 2011 the business can be solvent.In 2007
current assets are less than current liabilities and in
2008 there is a little increase in current assets.in 2009
there is a increase in current assets as compared to
previous year and in 2010 it again increases but in
2011 it goes down and again assets are less than to
meet the liabilities

Current ratio

Current ratio=current assets/current liabilities

2007=35770/43326=0.82
2008=33048/33223=0.99
2009=39870/36083=1.104
2010=38997/30146=1.29
2011=33324/35232=0.94
Analysis
It indicates the short term debt paying ability of the firm .in 2009
and 2010 the debt paying ability is greater but in 2007,2008 and
2011 it is less.it also concludes that operating cycle is longer in 2009
and 2010 as compared to other years.in 2009 and 2010 it is
showing the positive trend considering liquidity but in other years it
is showing the negative trend

Quick ratio

Quick ratio=current assets inventory /current liabilities

2007=35770-9272/43326=0.611
2008=33046-9342/33223=0.713
2009=39870-7734/36083=0.89
2010=38997-7925/30146=1.03
2011=33324-9255/35232=0.68
Analysis
it relates the most liquid assets to current liabilities and
inventory is removed because it is slow moving.From 2007
to 2008 ratio is showing the positive trend .same as from
2008 to 2009 and from 2009 to 2010 but it shows the
negative trend from 2010 to 2011

Cash ratio

Cash ratio=cash +cash equivalents+invested funds/current liabilities

2007=6594+2902/43326=0.219
2008=5835+1296/33223=0.214
2009=2734+2585/36083=0.147
2010=8057+8189/30146=0.538
2011=4938+3050/35232=0.226
Anaylsis
The cash ratio is an indicator of a company's liquidity that further refines
both the current ratio and the quick ratio by measuring the amount of
cash, cash equivalents or invested funds there are in current assets to
cover current liabilities.
Cash ratio decreased from 2007 to 2008 and then 2008 to 2009 but it
increases from 2009 to 2010 and again goes down from 2010 to 2011

LEVERAGE RATIO
Debt-to-asset ratio= total liabilities / total
assets
2007=60425/114659=0.526=52.6%
2008=51299/106215=0.482=48.2%
2009=57285/110916=0.516=51.6%
2010=49043/111641=0.439=43.9%
2011=55817/114091=0.489=48.9%