A

Research Project report

On
RATIO ANALYSIS
Prepared by: Guided by :
GHELANI PARESH Ms. Sheta Shah
!.". #.#.A. $acu%ty & #.#.A.
'.P.E.S. (OLLEGE '.P.E.S. (OLLEGE
Acade)ic "ear *+,+&,,
A project report submitted in partial fulfillment of the requirement
for T.Y.B.B.A. at Bhavnagar University of Bhavnagar.
#.#.A. -epart)ent.
!he '.P.E.S. (o%%e/e.
'a%0ibid. #ha0na/ar.
PREFACE
BBA is professional course, hich helps the student to develop their
!noledge and s!ill in the field of an industrial environment and business it
means management of the company.
As a part of our T.Y. BBA syllabus e are supposed to visit an one
particular industry and ma!e research project report on it in "# days training.
Based on the information this is provided by the authorities of the concerned
industry, on that e have to prepare a research project report.
The main purpose of to ma!e a project is to become a sharp in
practical as ell as theoretical !noledge and any other field. $ith the help of
practical % theoretical !noledge e can get clear idea about the
management and other aspect of the organi&ation.
'n a comparison of practical as ell as theoretical !noledge the
practical study is to be proved very important and necessary for the student to
understand the e(act position of entrepreneur and the manager in the mar!et.
'n this ay after completing studies, a person can be a successful business
man.
'n this project report ' have made an effort on the )*'+ ,A-.A/'0/ pvt.ltd.
ACKNOWLEDGEMENT
1an2s quest for !noledge never ends. Theory and practical
!noledge are essential and complimentary to each other. ' am indebted and
than!ful for the assistance received from various individuals in ma!ing this
project success. ' find no ords to e(press my gratitude toards those ho
are constantly involved ith me throughout my tenure in )hiv ,ac!aging.
3irst of all ' ould li!e to than! /45 because of him ' am able to doing
this project. Than ho can forget my ,A670T), their arm guidance and
motivation help throughout of journey of developing my project.
' am also very than!ful to 1r. U,70 B*ATT and his partner of )hiv
,ac!aging pvt.ltd for giving me the !ind permission to ma!e a project or! in
the organi&ation. The hole staff of the )hiv pac!aging pvt.ltd. as highly co8
operative and ' am than!ful for the support they e(tended to me.
' ould li!e to than! our principal 9AY ,A05YA for giving me such a
nice opportunity by providing not only educational guidance but also providing
moral support. ' am also than!ful to my project guider )*$7TA )*A* and
also my sincere than!s to our library, and librarian.
:ast but not the least ' li!e to than! my friends and classmates ho
have alays been there to inspire and help to me.
3inally, ' ould be grateful to all readers of this project.
STUDENT DECLARATION
' undersigned PARESH GHELANI, the student of !.".##A. *ereby
declare that the project or! presented in this report is my on or! and has
carried it out under the guidance of 1A" PAN-"A % SH2E!A SHAH of T*7
'.P.E.S. (OLLEGE of B*A+0A/A6.
PLA(E: B*A+0A/A6
-A!E:
SIGNA!3RE:
;<<<<<<<<<<<<<<<<<<<<<<<=
$3LL NAME: ,A67)* /*7:A0'
T.Y.BBA.
T*7 ..,.7.). -4::7/7
FACULTY DECLARATION
THE K.P.E.S. COLLEGE
$e certify that 1r. GHELANI PARESH )tudying in !.".#.#.A. having
roll number #> is bonafide student of our college and has prepared this project
report under the guidance of SH2E!A SHAH
5ate : ????????...
,lace : ????????...
/uide2s 0ame : SH2E!A SHAH
)ignature : ????????..
INDEX
CHAPTER
NO.
PARTICULARS
PAGE
NO.
1
.
General in!r"a#i!n
1.1 Company profle
1.2 History and development of the unit
1.3 Size and form of the organization
1.4 Organization structure
1. !anufacturing process
1." #ime$ %eeping system
$
Conceptual frame work Ratio
Analysis
2.1 &ntroduction
2.2 'dvantages of ratio analysis
2.3 (imitation of ratio analysis
2.4 Classifcation of ratio analysis
%
.
Re&ear'( an) "e#(!)!l!*+
3.1 )esearch o*+ective
3.2
!eaning of research and
methodology
3.3 #ypes of research
3.4 Scope of ,or%
3. )esearch process
3." (imitation of study
,
.
C!"-.#a#i!n ! Ra#i! anal+&i&
4.1 -rofta*ility )atios
4.2
-rofta*ility )atios .ased on
&nvestment
4.3 (i/uidity )atios
4.4 Capital 0earing )atios
4. #urn$over )atios
/
.
Da#a In#er-re#a#i!n 0 anal+&i&
1
.
Fin)in* 0 S.**e&#i!n&
2
.
C!n'l.&i!n
Sr. n! General in!r"a#i!n
Pa*e
n!.
#.# -ompany profile
#." *istory and development of the unit
#.@ )i&e and form of the organi&ation
#.A 4rgani&ation structure
#.B 1anufacturing process
#.C Time8 !eeping system
0121)'(
&23O)!'#&O2
COMPANY PROFILE
NAME O$ 3NI! : )*'+ ,A-.A/'0/ ,vt. :td.
LO(A!ION : .;#= D@@E#,/.'.5.-. -hitra
BE*, ).T $or! )hop, opp.
/anesh tyre 6e8Trader,
B*A+0A/A6 F @CA>>A
PAR!NERS : 1r. Upen Bhatt
1rs. +ibhuti Bhatt
1rs. *emangi Bhatt
1rs. 0alini Bhatt
A3-I!OR : 1r. )arju 1ehta
!ELEPHONE : 1.GD"BAGH>G>
;>"HD8@>G#A">=
#3SINESS !"PES : 1anufacturing unit
PRO-3(!S : -orrugated )heets % Bo(es
#AN'ERS : U-4 BA0., Bhavnagar.
S(ALE O$ 3NI! : )mall scale industries
E&)ai% : shivpac!agingIrediffmail.com
HISTORY 0 DE3ELOPMENT OF UNIT
The most popular for bo(es )*'+ ,A-.A/'0/ pvt. :td. as
established by the Upen Bhatt and his partners in the year of #GGD. They ere
started firm ith "> lacs capital and H employees, no a day they have a
healthy financial position and mar!eting. 'n present its capital is more than C>
lacs and employees of the firm are @B.
'n the starting of the firm they ere supply bo(es only PARAG
PER$3MES. GORAN$ARMA P4!. L!-. and MI(ROSIGN PRO-3(!S. To
improve the quality of the bo( and reduce the cost of production they
purchase high sophisticated machinery. 'n the year of ">>> they ere
convince PARLE hich is popular for his glucose biscuit to supply bo(es and
then they convince SHASHI IN-3S!RIES and 'A"AM (H3RN for the supply
of bo(es.
0o, they have tremendous mar!et in all over /ujarat as ell as
1aharashtra because they produce and maintain quality of bo(es as per
parties requirement. They purchase ra material from the vapi, morbi and
Ahmedabad.
'n the history of )*'+ ,A-.A/'0/ pvt. :td they didn2t ma!e any !ind
of loss. They are still groing in the field of corrugated sheets and bo(es.
SI4E AND FORM OF THE
ORGANI4ATION
There are several measures to determine the si&e of the organi&ation.
)ome si&e can be measured on the basis of total investment or total turnover.
According to industrial policy #GG# there are three scales of industries.
,5 SMALL S(ALE IN-3S!RIES
A small scale industry is a unit in hich total investment on fi(ed assets
beteen upto to Bcrore.
*5 ME-I3M S(ALE IN-3S!RIES
A medium scale industry is a unit in hich investment on fi(ed assets
beteen Bcrore to #> crore.
65 LARGE S(ALE IN-3S!RIES
A large scale industry is a unit in hich total investment on fi(ed assets
more than #> crore.
'n concerned ith )*'+ ,A-.A/'0/ ,+T.:T5 in the stating of firm it
comes in to the cottage industry because it investment is up to #> lacs. 0o it
considered as small scale industries ;))'= because it investment is more than
D> lacs. And its total capacity of production per day is @ ton.
$ORM O$ !HE ORGANI7A!ION:
5epending upon the oner ship, the business organi&ation can be
classified into three forms and these three forms are presented as under.
PRI4A!E SE(!OR:& The unit started and manages by the individual come
into the privet sector.
P3#LI( SE(!OR:& The unit started and manages by the government
come into the public sector
1OIN! SE(!OR:& The unit that is joint venture of the individual and
government come into this sector.
Or*ani5a#i!n &#r.'#.re
/enerally, organi&ational structure E management can be classified into
folloing three categories. And it also depends upon si&e of the organi&ation.
,5 !OP LE4EL :&
'n this level of management there is board of director, managing
directorJ general manager and chairman of the company are included. This
level is very important for the organi&ation because in this level important
decisions are to be ta!en and also determined objectives and goal of the
organi&ation.
*5 MI--LE LE4EL :&
This level is a bridge beteen top level and bottom level because it
connects both levels. 'n this level sales manager, production manager,
purchase manager etc and e(perts are included.
65 #O!!OM LE4EL :&
The actual or! of the company or production process is done
under this level. 3or giving the guidance to employee supervisors are
available at this level and it also includes or!ers, jobbers and foreman.
Oner
Production
Mana/er
Mar8etin/
Mana/er
$inancia%
Mana/er
Hu)an resource
Mana/er
Auditor
2or8ers
STRUCTURE OF SHI3 PACKAGING
Man.a'#.rin* -r!'e&&
ROLL OF PAPER
CUTTING 0 PRINTING
CORRUGATION 0 PASTING
SLOTTING 0 PINNING
6UNDLING 0 DISPATCH
TIME KEEPING SYSTEM
Time is an important element of every type of business. 'n )*'+
,A-.A/'0/ pvt. ltd they have their on time table and employees of the firm
must follo it seriously. 'f any employee doesn2t follo the time table than he
has punishable by the manager.
)hiv pac!aging2s or!ing hours starting in the morning G:>> a.m. and
ends to C:>> p.m. and they have # hours lunch time beteen #:>> p.m. to ":>>
p.m.
The manager ta!es attendance in the morning hen employees are
come and if any employees coming late than he has to give necessary reason
otherise his salary are cut don.
'f any or!er ants to ta!e holiday during their or!ing days, he has to
ta!e the permission from manager.
Conceptual
frame work
Sr.2o Conceptual frame work -age
no
".# 'ntroduction
"." Advantages of ratio analysis
".@ :imitation of ratio analysis
".A -lassification of ratio analysis
INTRODUCTION
,5 HIS!OR" O$ RA!IO ANAL"SIS:
6atio analysis as introduced by Ale(ander ell in the year #G#G. *e
critici&ed ban! for the lopsided development of ban!ing system oing to their
decision regarding the grant of credit based upon current ratio only.
$ell pointed out that in order to gate a complete picture it is necessary
to consider the rest of the relationship in the financial statement other than
current assets to current liabilities.
*5 MEANING O$ RA!IO ANAL"SIS:
6atio analysis is the process of determining and interpreting numerical
relationship based on financial statement. This analysis provides information
about company2s past performance.
6atio analysis is useful to not only company but it is also useful for
investors, creditors, lenders, management and other person related ith
company
6atio analysis is based on financial statement Analysis, here annual
report of company is given to e(pert to calculate the ratio of the company for
the previous year and earlier previous year. 6atio analysis is one of the
poerful analyses for company to measure their past performance ith
standard ratio.

6atio analysis is idely used tool for financial analysis. 't is defined as
Kas a systematic use of ratio to interpret the financial statement so that the
strengths and ea!ness of a firm as ell as its historical performance and
current financial condition can be determineL. )o in order to ma!e such
statement more meaningful the user resorts to the technique of ma!ing
special calculation in form ofJ
-omparative balance sheet %income statement
-ommon si&e percentage
6atio e(pressing the relationship of item selected from the
balance sheet, the income statement, and both statement.
The relationship of the ratio may be e(pressed in folloing to ays:
!IMES:
$hen one is divided by another.unit used to quotient is termed
as times. 3or e(ample if out of #>> student in a class D> student are present.
The attendance ratio can be e(pressed as D>E#>> M >.D times.
PER(EN!AGE:
The unit is multiplied by #>>. The e(pression is termed as
percentage. 'n above e(ample it is multiplied by >.D N#>>MD>O than it ill be
converted in to percentage.
AD3ANTAGES OF RATIO ANALYSIS
The use of ratio as started by ban!s ascertaining the liquidity and
profitability of company for the purpose of advancing them loans. 't gradually
become popular and other creditors began to use them profitably. 0o even
the investors calculate ratio from the publish accounts of the company in order
to have an ideas about solvency and profitability of the company before
investing their savings.
,. PRO$I!A#IL!"
Useful information is available about the trend of profitability is
available from profitability ratio. The net profit ratio, gross profit ratio and 6ate
of return on investment give good idea of the profitability of business.
*. LI93I-I!"
'f fact the use of ratio as made initially to ascertain the liquidity of
business the current ratio liquid ratio and acid test ratio ill tell hether the
business ill be able to meet it2s current liabilities as and hen they mature.
6. E$$I(IEN("
The turnover ratios are the e(cellent guide to measure the
efficiency of the manager e.g. the debtor turn8over ratio ill indicate the
efficiency of the collection department.
:. IN!ER $IRM (OMPARISION
The ratios of the firm are useless if they are not compared ith the
other firm2s ratio. $ith the help of comparing the ratio of other firm e may
find solution of the problem.
;. IN-I(A!E !REN-
6atio of last three to five years ill indicate trend in the respective field.
e.g. 'f the current ratio of the firm is loer than average of the industry but it is
shoing improvement since last three to five years, than it can be
encouraging trend.
<. 3SE$3L $OR -E(ISION MA'ING
6atio guides the management in ma!ing some of the important
decision. )uppose the liquidity ratio of the firm shos unsatisfactory position
than the management may decide hether to raise more capital or not.
6eturn on investment ill guide the management hile ta!ing decision about
investment.
LIMITATION OF RATIO ANYLISIS
6atio can be only as correct as the data on hich they are based. 3or
instance, if the inventory values are inflated, not only ill one have an
e(aggerated vie of profitability of the concern, but also if it2s financial
position. The basic data must be absolutely reliable, if the ratio or! out on its
base are to be relied upon.
,. SINGLE "EAR RA!IO HA4E LIMI!E- 3!ILI!"
The utility of ratio computed from the financial statement of one year
only is obviously limited they must be compared ith past result of the
company as also ith the result of the other company.
*. O!HER $A(!OR M3S! #E (ONSI-ERE-
$hile comparing the ratio of different firm, it must be remembered that
different firm follos different accountancy plan and policy. 7.g. some firm
may used straight line method of depreciation, hile the other firm may ta!e
diminishing balance method.
6. LIMI!E- 3!ILI!" O$ HIS!ORI(AL RA!IO
$hile comparing ratio of past several years, it should be
remembered that change in price level may rendered such comparison
useless
:. 3SE O$ RA!IO MILEA-ING
'f one ratio is used ithout reference to other ratio may be
misleading. 'f some conclusion are to be dran than combined effect of a fe
related ratio must be consider.
;. LA(' O$ S!AN-ER- RA!IO
There is particularly no standard ratio against hich the actual
performance can be compared. The satisfactory level of various ratio may be
one industry to another industry.
<. INA((3RA!E #ASE
'f the accounting data is not accurate than the ratio computed
based on this figure may give rong result.
= . IN4ES!IGA!ION NE(ESSAR"
't must be remembered that accounting ratio must be
investigated because. 't suggests area here inquiry is necessary.
>. RA!IO O$ !2O IRRELE4EN! $A(!OR
6elation must be established beteen related matters. 't is
useless if the ratios are found hich have no relation ith each other. 7.g.
ratio of factory e(penses to selling e(penses.
CLASIFICATION OF RATIO ANALYSIS
Accounting ratio are classified in to to parts, hich are as folloing:
1) T6A5'T'40A: -:A))'3'-AT'40
2) 3U0-T'40A: -:A))'3'-AT'40
This accounting ratio are again divided in to different parts
,5 !RA-I!IONAL (LASSI$I(A!ION
The traditional ratio is divided in to three categories2 on the basis of the
statement from hich the figures are for computing the ratio. The ratio are
divided as follo,
a5 #ALAN(E SHEE! RA!IO :
$hen ratio is calculated, by ta!ing information from balance sheet, it is
!non as balance sheet ratio e.g. ratio, of current assets to current liabilities.
3olloing are the balance sheet ratio hich are covered in my project or!
-urrent ratio
:iquidity ratio
,roprietary ratio
5ebt8 equity ratio
-apital gearing ratio
b5 RE4EN3E S!A!EMEN! RA!IO
The ratios hich are calculated by ta!ing information from
revenue statement it means from profit and loss AP- than it is !non as
revenue statement ratio. 3olloing are the revenue statement ratio:
/ross profit ratio
4perating ratio
4perating profit ratio
0et profit ratio
'nterest coverage ratio
c5 (OMPOSI!E RA!IO
$hen ratio shos relationship beteen one item from ,%: aQc
and another from balance sheet than it is composite ratio. 3olloing are the
composite ratios:
-apital turnover ratio
'nventory turnover ratio
5ebtors turnover ratio
-reditors2 turnover ratio
$or!ing capital ratio
3i(ed assets turnover ratio
6eturn on capital employed
6eturn on investment
6eturn on share holder fund
*5 $3N(!IONAL (LASSI$I(A!ION:
3unctional classification of ratio divides ratio in to different parts
according to their utility. 3olloing are the functional ratio,
a5 LI93I-I!" RA!IO:
This ratio is useful for outside person or investors of the
business. :iquidity ratio shos hether the firm ill be able to meet it2s liability
as and hen they mature. :iquidity ratios are as follo:
-urrent ratio
:iquidity ratio
Acid8 test ratio
b5 LE4ERAGE RA!IO:
The composition of capital of business and the proportion of
oner2s are capital and -apital provided by outsiders are related to measure
the firms ability to meet its interest cost and repayment its liabilities. :everage
ratios are as follo:
,roprietary ratio
5ebt F equity ratio
'nterest coverage ratio
-apital gearing ratio
5ebt to total capital ratio
c5 E$$I(IEN(" !3RNO4ER RA!IO:
7fficiency turnover ratio shos efficiency of the or! done.
7fficiency turnover ratio is useful to measure efficiency of different
department. These ratios are useful to ta!e decision for top management. this
ratio are as follo:
'nventory turnover ratio
5ebtor turnover ratio
-reditors2 turn over ratio
3i(ed assets turn over ratio
d5 PRO$I!A#ILI!" RA!IO:
A various number of ratios are design to indicate the profitability
ratio of the business and are grouped into the category of profitability ratio.
,rofitability ratios are as follo:
/ross profit ratio
0et profit ratio
4perating profit ratio
7(pense ratio
4perating ratio
6eturn on investment
6eturn on equity
6eturn on capital employed
)esearch
and
methodology
)r. no Particu%ar ,age no.
@.# 1eaning of research and methodology
@." 4bjectives of research
@.@ Types of research
@.A )cope of or!
@.B 6esearch process
@.C :imitation of study
MEANING OF RESEARCH 0
METHODOLOGY
6esearch in common plan parlance refers to a search for !noledge.
4nce can also defined research as a scientific and systematic search for
pertinent information on a specific topic. 'n fact research is an art of scientific
investigation
6edman and moray defines research as a,L systemati&ed effort to gain
ne !noledge2.
6esearch methodology is a ay to systematically solve the problem. 't
may be understand as science of studying ho research is done scientifically.
There is a difference beteen research methods and research
methodology. 6esearch method refers to methods the researchers used in
performing research operation. in other ord all those method hich are used
by the researcher during course of study his research problem are termed as
research methods since the object research particularly the applied research,
it to arrive at a solution for a given problem, the available data and the
un!non aspects of the problem have to be related to each other to ma!e a
solution possible.
O67ECTI3ES OF RESEARCH
There must an objective behind any research. $ithout objective there
is no meaning of research. The purpose of research is to discover ansers to
questions through the application of scientific procedures. The main aim of
research is to find out the truth hich is hidden and hich has not been
discovered yet. As each research has some or the other objectives the
folloing are the objectives of this research:
To study the mechanism of ratio prevailing in the company and its
effect on the financial condition of the company.
To get the meaningful !noledge about ratio hich are considered ith
the company, hich helps us to clear the aspects of ratio analysis ith the
reference to )*'+ ,A-.A/'0/.
To ta!e decision regarding long term finance ratio analysis is very
useful tool.
't helps investors to !no efficiency of the company hile ta!ing
investment decision.
't helps management to !no efficiency of the different department.
$e can !no the level of profit, e(penses, dividend pay8out ratio etc.
T+-e& ! re&ear'(
#= 5escriptive vs. analytical
"= Applied vs. fundamental
@= Ruantitative vs. qualitative
A= -onceptual vs. empirical
4ut of these all research methods the research method hich as
most suitable to my research as descripti0e research because it provides
me all the opportunities to cover the all the aspect that ' require to conduct the
research and get an appropriate out come.
-escripti0e: 5escriptive research includes surveys and fact F finding
enquires of different !inds. The major purpose of descriptive research is
description of the state of affairs as it e(its at present. 'n social science and
business research e often use the term 7( post facto research for
descriptive research studies. The main characteristic of this method is that the
researcher has no control over the variablesJ he can only report hat has
happened or hat is happening.
S'!-e ! 8!r9
'n this project report my research is based on secondary data of S)*'+
,A-.A/'0/2 industry of last three financial years.
'n my research a have amylase ratio of organi&ation, but they are
useless if they are not compared ith ratio of other firm.
$ith help of this ratio any person can !no the profitability ratio,
balance sheet ratio, leverage ratio etc
'f these ratios are compared ith past ratio of the organi&ation or ith
other organi&ation, management can ma!e future decision.
'f present ratios of last three to five years are compared, they ill
indicate the trend and it ill sho hether the financial position and
performance of the organi&ation has improved or deteriorated or
remain constant, then on the basis of this management can ta!e
necessary steps if any required.
Analysis and interpretation of the ratio may some time may not sho
actual position of the business e.g. the gross profit ratio shos more
than B>O profit but net profit ratio is very less than management can
ta!e decision to reduce e(penses li!e office e(penses, administrative
ratio etc.
PROCESS OF RESEARCH
Before embar!ing on the details of research methodology and
techniques, it seems appropriate to present a brief overvie of the research
process. 6esearch process consists of series of actions or steps necessary to
effectively carry out research and the desired sequencing of these steps are
as under.
3ormulating the research pro*lem
14tensive literature survey
5eveloping the hypothesis
-reparing the research design
Collecting data
'nalyze data
&nterpret and report
ME!HO- O$ -A!A (OLLE(!ION
There are the different types of method of data collection. The tas! of
data collection begins after a research problem has been defined and
research designE plan chal!ed out. $hile deciding the methods of data
collection to be use for the study, the researcher should !eep in mind to
types of data vi&., primary and secondary. The primary data are those hich
are collected afresh and for the time, and thus happen to be original in
character.
The secondary data on the other hand are those hich have already
been collected by someone else and hich have already been passed
thought the statistical process. The researcher ould have to decide hich
sort of data he ould be using ;thus collecting= for his study and according to
him he ill have to select one or the other method of data collection. The
method of collecting primary and secondary differ since primary data are
originally collected, hile in case of secondary data the nature of data
collection or!s is merely that of compilation, e describe the different of data
collection, ith the pros and cons of each method.
,. PRIMAR" -A!A:
The primary data are those hich are collected afresh and for the time,
and thus happen to be original in character. $e collect primary data during
the course of doing e(periments research but in case e do research of the
descriptive type and perform surveys, hether sample surveys or census
surveys, then e can obtain primary data either through observation or
through direct communication ith respondent in one form or another or
through personal intervie.
'n respect or concern ith my project ' have used only secondary data
so my project report is based on secondary data from the folloing sources of
firm,
#= ,rofit and loss account "= Balance sheet
*. SE(ON-AR" -A!A:
)econdary data means data that are already available i.e., they refer
to the data hich have already been collected and analy&ed by someone
else. $hen the research utili&ed secondary data, then he has to loo! into
various sources form here he can obtain them. 'n this case he is certainly
not confronted ith the problems that are usually associated ith the
collection of original data. )econdary data may either be published data or
unpublished data.
1y project is based on the secondary data, all the data hich are '
have used is based on the available or published data vi&. balance sheet.
Li"i#a#i!n ! &#.)+
7very coin has to sides it means there are merits and demerits of
each and every method and research. 3olloing are the limitation of my
project report,
As my project report is based on secondary data only provided by
company so there must be primary data also be collected before ta!ing
any decision based on this project.
:ac!s of advanced scientific techniques for analysis and interpretation.
't means that ' have amylase data by ratio analysis method as my
project report is on ratio analysis but there are many other method
hich are not used my in project report.
'n such cases respondents ere not able to give all information in such
cases as much as possible information as ta!en.
' can2t meet each and every user because of *uman :imitations and
other problems so e select some sample.
-onclusion is derived by oneself ;5ecision 1a!er=.
Time constrain.
CO!-6#'#&O2
O3
)'#&O '27(&S&S
Sr.n!. Ra#i!& Anal+&i&
Pa*e
n!.
A.# ,rofitability 6atios
A."
,rofitability 6atios Based on
'nvestment
A.@ :iquidity 6atios
A.A -apital /earing 6atios
A.B Turnover 6atios
5'#' &nterpretation 8
'2'(7S&S
:; PROFITA6ILITY RATIOS ;:
GROSS PROFIT RATIO;
/ross ,rofit
/ross ,rofit 6atio M T #>>
)ales
Gross Pro?it Ratio o? the "ear *++@&,+
MMMMMMMMMMM
/ross ,rofit 6atio M T #>>
MMMMMMMM
M
Gross Pro?it Ratio o? the "ear *++>&+@
#B,A",@C@
/ross ,rofit 6atio M T #>>
#,@#,G>,@#B
M ##.CGO
Gross Pro?it Ratio o? the "ear *++=&+>
##,@B,CG@
/ross ,rofit 6atio M T #>>
D",@#,AD"
M #@.HGO
Sl .N!. Year
Gr!&& Pr!<#
Ra#i!&
# ">>G8#>
" ">>D8>G ##.CGO
@ ">>H8>D #@.HGO
NET PROFIT RATIO;
0et ,rofit after ' % T
0et ,rofit 6atio M T #>>
)ales
Net Pro?it Ratio o? the "ear *++@&,+
MMMMMMMMMMM
0et ,rofit 6atio M T #>>
MMMMMMMM
M
Net Pro?it Ratio o? the "ear *++>&+@
H,>H,AAD
0et ,rofit 6atio M T #>>
#,@#,G>,@#B
M B.@CO
Net Pro?it Ratio o? the "ear *++=&+>
B,#C,DAG
0et ,rofit 6atio M T #>>
D",@#,AD"
M C."HO
Sl .N!. Year
Ne# Pr!<#
Ra#i!&
# ">>G8#>
" ">>D8>G B.@C O
@ ">>H8>D C."H O
E=PENSE RATIO;
7(penses
7(pense 6atio M T #>>
)ales
EApense Ratio o? the "ear *++@&,+
MMMMMMMMMMM
7(pense 6atio M T #>>
MMMMMMMM
M
EApense Ratio o? the "ear *++>&+@
MMMMMMMMMMM
7(pense 6atio M T #>>
MMMMMMMM
M
EApense Ratio o? the "ear *++=&+>
MMMMMMMMMMM
7(pense 6atio M T #>>
MMMMMMMM
M
Sl .N!. Year E>-en&e Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
:; PROFITA6ILITY RATIOS 6ASED
ON IN3ESTMENT ;:
RETURN ON CAPITAL EMPLOYED RATIO
?ROCE@;
0et ,rofit before ' % T
64-7 6atio M T #>>
)hares cap. U 6eserves U :.:
RO(E Ratio o? the "ear *++@&,+
MMMMMMMMMMM
64-7 6atio M T #>>
MMMMMMMM
M
RO(E Ratio o? the "ear *++>&+@
H,>H,#AD
64-7 6atio M T #>>
A>,@D,>CG
M #H.B" O
RO(E Ratio o? the "ear *++=&+>
B,#C,DAG
64-7 6atio M T #>>
@D,>G,GG"
M #@.BC O
Sl .N!. Year ROCE Ra#i!&
# ">>G8#>
" ">>D8>G #H.B" O
@ ">>H8>D #@.BC O
:; LIAUIDITY RATIOS ;:
CURRENT RATIO;:
-urrent assets
-urrent 6atio M
-urrent liabilities
(urrent Ratio o? the "ear *++@&,+
MMMMMMMMMMM
-urrent 6atio M
MMMMMMMM
M
(urrent Ratio o? the "ear *++>&+@
A#,CG,AH@
-urrent 6atio M
#G,"",@HH
M ".#C : #
(urrent Ratio o? the "ear *++=&+>
MMMMMMMMMMM
-urrent 6atio M
"",#>,"HD
M
Sl .N!. Year C.rren# Ra#i!&
# ">>G8#>
" ">>D8>G ".#C : #
@ ">>H8>D
LIAUID RATIO;:
:iquid assets
:iquid 6atio M
:iquid liabilities
LiBuid Ratio o? the "ear *++@&,+
">,DA,#>>
:iquid 6atio M
#G,"",@HH
M #.>D : #
LiBuid Ratio o? the "ear *++>&+@
MMMMMMMMMMM
:iquid 6atio M
MMMMMMMM
M
LiBuid Ratio o? the "ear *++=&+>
MMMMMMMMMMM
:iquid 6atio M
MMMMMMMM
M
Sl .N!. Year LiB.i) Ra#i!&
# ">>G8#>
" ">>D8>G #.>D : #
@ ">>H8>D
ACID:TEST RATIO;:
Ruic! assets
Acid8Test 6atio M
:iquid liabilities
Acid&!est Ratio o? the "ear *++@&,+
MMMMMMMMMMM
Acid8Test 6atio M
MMMMMMMM
M
Acid&!est Ratio o? the "ear *++>&+@
@,>@,@B>
Acid8Test 6atio M
#G,"",@HB
M >.#B : #
Acid&!est Ratio o? the "ear *++=&+>
MMMMMMMMMMM
Acid8Test 6atio M
MMMMMMMM
M
Sl .N!. Year A'i):Te&# Ra#i!&
# ">>G8#>
" ">>D8>G >.#B : #
@ ">>H8>D
:; CAPITAL GEARING RATIOS ;:
PROPRIETARY RATIO;:
,roprietors2 funds
,roprietary 6atio M
Total real assets
Proprietary Ratio o? the "ear *++@&,+
MMMMMMMMMMM
,roprietary 6atio M
MMMMMMMM
M
Proprietary Ratio o? the "ear *++>&+@
"D,>",#AD
,roprietary 6atio M
AD,#H,AG"
M BD.#H O
Proprietary Ratio o? the "ear *++=&+>
"A,GB,AAH
,roprietary 6atio M
MMMMMMMM
M
Sl .N!. Year
Pr!-rie#ar+
Ra#i!&
# ">>G8#>
" ">>D8>G BD.#HO
@ ">>H8>D
DE6T:EAUITY RATIO;:
:ong term liabilities
5ebt87quity 6atio M T #>>
4ners2 funds
-ebt&EBuity Ratio o? the "ear *++@&,+
MMMMMMMMMMM
5ebt87quity 6atio M T #>>
MMMMMMMM
M
-ebt&EBuity Ratio o? the "ear *++>&+@
#",@B,G"#
5ebt87quity 6atio M T #>>
"D,>",#AD
M AA O
-ebt&EBuity Ratio o? the "ear *++=&+>
#@, #A,B#B
5ebt87quity 6atio M T #>>
"A,GB,AHH
M B@ O
Sl .N!. Year
DeC#:EB.i#+
Ra#i!&
# ">>G8#>
" ">>D8>G AAO
@ ">>H8>D B@O
LONG:TERM FUNDS TO FI=ED ASSETS
RATIO;:
:ong Term funds
:T33A 6atio M T #>>
3i(ed assets
Lon/ ter) ?unds to $iAed Assets Ratio o? the "ear *++@&,+
@D,>G,GG"
:T33A 6atio M T #>>
C AD,>#G
M
Lon/ ter) ?unds to $iAed Assets Ratio o? the "ear *++>&+@
MMMMMMMMMMM
:T33A 6atio M T #>>
MMMMMMMM
M
Lon/ ter) ?unds to $iAed Assets Ratio o? the "ear *++=&+>
MMMMMMMMMMM
:T33A 6atio M T #>>
MMMMMMMM
M
Sl .N!. Year LTFFA Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
INTEREST CO3ERAGE RATIO;:
,rofit before ' % T
'nterest -overage 6atio M
'nterest
Interest (o0era/e Ratio o? the "ear *++@&,+
MMMMMMMMMMM
'nterest -overage 6atio M
MMMMMMMM
M
Interest (o0era/e Ratio o? the "ear *++>&+@
H,>H,AAD
'nterest -overage 6atio M
#,>@,DHB
M C.D# times
Interest (o0era/e Ratio o? the "ear *++=&+>
B,#C,DAG
'nterest -overage 6atio M
C",@A#
M D."G times
Sl .N!. Year
In#ere&# C!Dera*e
Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
:; TURN:O3ER RATIOS ;:
STOCK TURN:O3ER RATIO;:
-ost of /oods )old
)toc! Turn8over 6atio M
Average stoc!
Stoc8 !urn&o0er Ratio o? the "ear *++@&,+
MMMMMMMMMMM
)toc! Turn8over 6atio M
MMMMMMMM
M
Stoc8 !urn&o0er Ratio o? the "ear *++>&+@
#,@#,G>,@#B
)toc! Turn8over 6atio M
#H,D>,BB>
M H.A# times
Stoc8 !urn&o0er Ratio o? the "ear *++=&+>
D",@#,AD"
)toc! Turn8over 6atio M
MMMMMMMM
M
Sl .N!. Year
S#!'9 T.rn:!Der
Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
DE6TORSE RATIO;:
5ebtor U bills receivable
5ebtors2 6atio M T @CB
-redit sales
-ebtorsC Ratio o? the "ear *++@&,+
MMMMMMMMMMM
5ebtors2 6atio M T @CB
MMMMMMMM
M
-ebtorsC Ratio o? the "ear *++>&+@
MMMMMMMMMMM
5ebtors2 6atio M T @CB
MMMMMMMM
M
-ebtorsC Ratio o? the "ear *++=&+>
MMMMMMMMMMM
5ebtors2 6atio M T @CB
MMMMMMMM
M
Sl .N!. Year DeC#!r&E Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
CREDITORSE RATIO;:
-reditors U bills payable
-reditors2 6atio M T @CB
-redit purchases
(reditorsC Ratio o? the "ear *++@&,+
MMMMMMMMMMM
-reditors2 6atio M T @CB
MMMMMMMM
M
(reditorsC Ratio o? the "ear *++>&+@
MMMMMMMMMMM
-reditors2 6atio M T @CB
MMMMMMMM
M
(reditorsC Ratio o? the "ear *++=&+>
MMMMMMMMMMM
-reditors2 6atio M T @CB
MMMMMMMM
M
Sl .N!. Year
Cre)i#!r&E
Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D
TOTAL ASSETS TURN:O3ER RATIO;:
)ales
Total Assets Turn8over 6atio M
Total assets
!ota% Assets !urn&o0er Ratio o? the "ear *++@&,+
MMMMMMMMMMM
Total Assets Turn8over 6atio M
MMMMMMMM
M
!ota% Assets !urn&o0er Ratio o? the "ear *++>&+@
MMMMMMMMMMM
Total Assets Turn8over 6atio M
MMMMMMMM
M
!ota% Assets !urn&o0er Ratio o? the "ear *++=&+>
MMMMMMMMMMM
Total Assets Turn8over 6atio M
MMMMMMMM
M
Sl .N!. Year
T!#al A&&e#& T.rn:
!Der Ra#i!&
# ">>G8#>
" ">>D8>G
@ ">>H8>D