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Ratio Analysis of Acc

Ratio Analysis of Acc

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Published by Pratik Jhunjhunwala

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Published by: Pratik Jhunjhunwala on Jun 07, 2012
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INTRODUCTION:
ACC

was formed in 1936 when ten existing cement companies came together under one umbrella in a historic merger.  The merger companies belonged to four prominent business groups Tatas, Khataus, Killick Nixon and F E Dinshaw groups.

.ACC STANDS OUT AS THE MOST UNIQUE AND SUCCESSFUL MERGER IN INDIAN BUSINESS HISTORY Acc changed its name from its original The Associated Cement Companies Limited. 2006. to simply ACC Limited on September 1.

. manufacturer of cement and concrete. ACC is India's foremost .000 persons and a countrywide distribution network of over 9. .000 dealers. ACC's operations are spread throughout the country.ACC IS PIONEER IN RECYCLING HAZARDOUS INDUSTRIAL WASTES LIKE SLAG FROM STEEL PLANTS TO MAKE BLENDED CEMENTS WITH QUALITIES. It has a workforce of about 9.

RATIOS BASED ON INVESTMENT IN THE BUSINESS: .

34 0.LIQUIDITY RATIOS : CURRENT RATIO: CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES Year Current Asset in Cr 2108.05 2060.1701:1 2008-09 2009-10 1740.79 Current Ratio 1.8445:1 .35 Current Liabilities in Cr 1801.

QUICK RATIO: QUICK RATIO = (CURRENT ASSETS-INVENTORY) / CURRENT LIABILITIES Year Current Asset in Cr Inventories in Cr Current Liabilities in Cr Quick Ratio 2008-09 2009-10 2108.34 0.79 2060.98 1801.7278:1 0.09 1740.27 778.05 793.4664:1 .

16 2008 2009 .39 1.55 6932.20 Total assets Total assets in Cr turnover ratio 5745.TURNOVER RATIOS: TOTAL ASSETS TURNOVER RATIO:TOTAL ASSETS TURNOVER RATIO = NET SALES/ TOTAL ASSETS Year Net sales in Cr 7308.62 8027.27 1.

27 times .62 8027.56 6314.50 Fixed Asset turnover ratio 1.20 Fixed assets in Cr 5072.(B)FIXED ASSET TURNOVER RATIO:FIXED ASSET TURNOVER RATIO = NET SALES/FIXED ASSETS Year 2008 2009 Net sales in Cr 7308.44 times 1.

98 Stock Turnover Ratio 6.99 7.70 5547.12 2008 2009 .27 778.53 Average Inventory 793.(C)STOCK TURNOVER RATIO:STOCK TURNOVER RATIO = COST OF GOODS SOLD/ AVERAGE INVENTORY Year Cost of goods sold 5549.

70 Debtors Turnover ratio 23.(D)DEBTORS TURNOVER RATIO:DEBTORS TURNOVER RATIO = NET CREDIT SALES/AVERAGE DEBTORS OR DEBTORS TURNOVER RATIO = NET SALES/CLOSING DEBTOR Year Net Sales in Cr 7282.87 8027.17 203.40 2008 2009 .48 39.20 Closing Debtor in Cr 310.

(E)AVERAGE COLLECTION PERIOD:AVERAGE COLLECTION PERIOD (IN DAYS) = 365/DEBTORS TURNOVER RATIO Year Days Debtors turnover ratio Average collection period (in days) 15.26 days 2008 2009 365 365 23.48 39.40 .54 days 9.

40 Average collection (in months) 0.OR AVERAGE COLLECTION PERIOD (IN MONTHS) = 12/DEBTORS TURNOVER RATIO Year Months Detors turnover ratio 23.48 39.51 months 0.30 months 2008 2009 12 12 .

THEN THE FORMULAE IS CREDITORS TURNOVER RATIO = PURCHASE OR COST OF MATERIAL/ CLOSING CREDITORS RATIO ANALYSIS:.THE COMPANY DOES NOT HAS ANY CREDITORS SO NO CREDITOR TURNOVER OVER RATIO IS TO BE CALCULATED. .CREDITORS TURNOVER RATIO = CREDIT PURCHASE/AVERAGE CREDITORS 2. WHEN CREDIT PURCHASE AS WELL AS OPENING & CLOSING BALANCES OF CREDITORS AND BILLS PAYABLE IS NOT GIVEN.

91 4694.63 7308.62 8284.24 54.PROFITABILITY RATIOS GROSS PROFIT RATIO (GP RATIO): GROSS PROFIT RATIO = (GROSS PROFIT / NET SALES) × 100 Year Gross profit in Cr Net sales in Cr Ratio (%) 2008 2009 3961.20 58.48 .

1212.20 Ratio (%) 16.NET PROFIT RATIO (NP RATIO): NET PROFIT RATIO = (NET PROFIT / NET SALES) × 100 Year 2008 2009 Profit After Tax in Cr.79 1606.73 Net sales in Cr 7308.62 8027.59 20.02 .

86 2009 5973.EXPENSE RATIO: PARTICULAR EXPENSE = (PARTICULAR EXPENSE / NET SALES) × 100 Year 2008 Expenditure in Cr 5909.42 .59 Net sales in Cr 7308.92 8027.20 74.62 Ratio (%) 80.

PROFITABILITY RATIOS BASED ON INVESTMENTS IN THE BUSINESS: I) RETURN ON INVESTMENT RATIO: RETURN ON INVESTMENT (ROI) = INTEREST/DIVIDEND RECEIVED X 100 INVESTMENTS MADE Financial Year 2008 2009 Others incomes Investment in in Cr Cr 288.51 16.11 679.34 .64 ROI (%) 42.08 1475.71 241.

84 36.56 2378.76 6583.69 Capital Empolyed in Cr 5409.14 ROCE (%) 2008 2008 32.13 .II) RETURN ON CAPITAL EMPLOYED: RETURN ON CAPITAL EMPLOYED (ROCE) = PROFIT BEFORE TAXES & INTEREST X 100 CAPITAL EMPLOYED WHERE. CAPITAL EMPLOYED = EQUITY SHARE CAPITAL + PREFERENCE SHARE CAPITAL + RESERVES & SURPLUS + LONG TERM LOANS – ACCUMULATED LOSSES Financial Year Profit before interests & taxes in Cr 1776.

22 24.70 .79 1606.73 6016.73 4927.III) RETURN ON NET/SHAREHOLDERS WORTH: RETURN ON NET WORTH (RONW) = PROFIT AFTER TAXES X 100 (SHAREHOLDERS FUND + GENERAL RESERVES) Financial Year Profit after taxes in Cr (Shareholder’s fund + general Reserves) in Cr RONW (%) 2008 2009 1212.61 26.

88 187.91 .94 ROE (%) 2008 2009 645. share dividend in Cr 1212.IV) RETURN ON EQUITY: RETURN ON EQUITY (ROE) = PAT – PREFERENCE SHARE DIVIDEND X100 EQUITY SHARE CAPITAL Financial Year PATEquity Share preference Capital in Cr.51 854.79 1606.73 187.

73 Total no.41 .90 71.EARNINGS PER SHARE ( EPS): EPS = NET PROFIT AFTER TAX AND PREFERENCE DIVIDEND / TOTAL NUMBER OF OUTSTANDING EQUITY SHARES Year PAT & Preference dividend in cr 1212. of equity Share 225000000 225000000 EPS (Rs) 2008 2009 53.79 1606.

36 173. of equity shares DPS (Rs) 2008 2009 167.15 5.43 325000000 325000000 5.34 .DIVIDEND PER SHARE (DPS): DPS = TOTAL DIVIDEND/ TOTAL NUMBER OF OUTSTANDING EQUITY SHARES Year Total dividend in Cr Total no.

03 566.56 3. DER DER Year Long term Debt in Cr.88 187.CAPITAL STRUCTURE\LEVERAGE RATIO: DEBIT EQUITY RATIO:DEBT CAN BE:1) SHORT TERM 2) LONG TERM DER = CAPITAL LONG TERM DEBT/ EQUITY SHARE = TOTAL DEBT/EQUITY Equity share capital in Cr. 2008 2009 482.94 2.01 .92 187.

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