MARICO

•Industry: consumer goods

•Founded: 1991
•Headquarter: Santacruz,mumbai
•Chairman: harsh Mariwala
•Key products: edible oil, hair oils,skin care
,fabric care etc.
•Revenue: 5733.3 crore.
 MISSION,2020

• The marico innovation foundation’s mission is

to provide the nation with first; a belief that
innovation is possible and is the way to
leapfrog india into the center stage of global
business leadership .
• A framework to leverage innovation for
quantum growth.
OPERATING MARGIN=OPERATING
INCOME/SALES*100
YEAR OPERATING MARGIN RATIO

2012 11.46

2013 11.49

2014 13.97

2015 12.67
 interpretation
• The operating margin ratio, also known as the
operating profit margin, is a profitability ratio that
measures what percentage of total revenues is made
up by operating income. In other words, the operating
margin ratio demonstrates how much revenues are left
over after all the variable or operating costs have been
paid. Conversely, this ratio shows what proportion of
revenues is available to cover non-operating costs like
interest expense.
• There has been positive growth in operating margin
from .11 in year 2012 to .12 in year 2015. This change
is due to the positive growth in operating income of
the company over an year.
GROSS PROFIT MARGIN=(SALES –
COSTOF GOOD)/SALES
YEAR GROSS PROFIT MARGIN
RATIO
2012 .3664

2013 .3728

2014 .3851

2015 .3932
 interpretation
• Gross margin ratio is the ratio of gross profit of a
business to its revenue. It is a profitability ratio
measuring what proportion of revenue is converted
into gross profit (i.e. revenue less cost of goods sold).
Gross margin ratio measures profitability. There has
been increase in gross margin ration from .36 in 2012
to .39 in 2015 . Higher values indicate that more cents
are earned per dollar of revenue which is favorable
because more profit will be available to cover non-
production costs. But gross margin ratio analysis may
mean different things for different kinds of businesses.
RETURN OF EQUITY= NET INCOME
/AVG.STOCK HOLDER EQUITY
YEAR ROE

2012 .2071

2013 .2135

2014 .2393

2015 .2063
 interpretation
• This ratio indicates how profitable a company is by
comparing its net income to its average shareholders'
equity. The higher the ratio percentage, the more
efficient management is in utilizing its equity base and
the better return is to investors. When ROE has a
negative value means the firm is of financial distress
since ROE is a profitability indicator because ROE
comprises aspects of performance.
• As we have seen that there has been considerably
increase in ROE from year 2012 which was 20.73%.
and then it decrease in in year 2015 to 20.63%. This
result indicates that organization have faced loss in
current year.
RETURN ON ASSETS=DE-LEVERED NET
INCOME/AVG. TOTAL ASSETS
YEAR ROA

2012 .1616

2013 .1423

2014 .1592

2015 .1335
 interpretation
• The return on assets ratio, often called the
return on total assets, is a profitability ratio
that measures the net income produced by
total assets during a period by comparing net
income to the average total assets.
• There was a decline in ROA from 16.16% in
2012 to 13% in year 2015.. The company is not
efficientlymanaging its assets to produce
greater amounts of net income.
ASSET TURNOVER RATIO=SALES/AVG.
TOTAL ASSETS
YEAR RATIO

2012 1.73

2013 1.53

2014 1.50

2015 1.48
 interpretation
• Asset turnover is a financial ratio that measures the efficiency of a
company's use of its assets to product sales. It is a measure of how
efficiently management is using the assets at its disposal to
promote sales. The ratio was 1.73 in 2012. And 1.48 which mean
asset are not used efficiently.
• If a company can generate more sales with fewer assets it has a
higher turnover ratio which tells it is a good company because it is
using its assets efficiently. A lower turnover ratio tells that the
company is not using its assets optimally. The higher the number,
the better. If there is a low turnover, it may be an indication that the
business should either utilize its assets in a more efficient manner
or sell them. But it also indicates pricing strategy: companies with
low profit margins tend to have high asset turnover, while those
with high profit margins have low asset turnover
 CURRENT RATIO=CA/CL
YEAR CURRENT RATIO

2012 1.09

2013 1.39

2014 1.46

2015 1.19
 interpretation
• Current ratio is one of the most fundamental liquidity
ratio. It measures the ability of a business to repay
current liabilities with current assets.
• Current assets are assets that are expected to be
converted to cash within normal operating cycle, or
one year. A current ratio of 1 or more means that
current assets are more than current liabilities and the
company should not face any liquidity problem. The
company is maintaining its current ratio at around 1.19
over year which turns out to be favorable for the
company.
 QUICK RATIO=CURRENT ASSET-
INVENTORIES/CURRENT LIABILTY
YEAR QUICK RATIO

2012 .32

2013 .48

2014 .73

2015 .55
 interpretation
• Quick ratio is a liquidity ratio which measures the
dollars of liquid current assets available per dollar of
current liabilities. Liquid current assets are current
assets which can be quickly converted to cash without
any significant decrease in their value. Liquid current
assets typically include cash, marketable securities and
receivables. Quick ratio is expressed as a number
instead of a percentage.
• The company’s quick ratio has increased from 0.32 in
year 2014 to 0.55 in year 2015. Still the company’s
overall quick ratio is well and it has better overall
liquidity particularly in a crunch situation.