Balance sheet of Tata Steel and calculation of financial ratios

(in Rs. Crore)

Profit and Loss statement of Tata Steel

Ratio Analysis for 2019

s. ratios Particulars (Rs in value remarks

n crores)
o

1 Net working capital = Current assets = -14339.63 Liquidity available is

current assets – current 21,073.33 less.
liabilities
 Current
liabilities =
35,412.96

2. current assetsAs for 1 0.595 Not safe

current ratio=
current liabilities

3. Quick ratio = Quick assets = 0.38 Not safe

13336.49
quick assets
current liabilities

4 long term debtdebt =

Total 0.41 Not good
debt−¿−equity=
s ' equity
shareholder28934.28

Shareholders’
equity =
70454.71

5 operating Operating
profit profit 7.28 Not safe
interest coverage=
interest
= 20562.94

Interest =
2823.58

6 operating
Sales =profit∗100 29.12% It is good.
operating profit margin=
sales
70610.71

7 gross profit∗100
Gross profit = 25.12% It is average.
gross profit margin=
sales
17739.36

8 net profit∗100
Net profit = 14.92% Not good
net profit margin=
sales
10533.19

9 operating profit∗100
Operating profit 21.83% Not good
return on assets=
average assets
= 20562.94

Average assets =
94208.83

10 profit before
Profit tax∗100
before tax 23.04% Not satisfactory
return on investment =
net worth
= 16231.13
 Net worth =
70454.71

11 net profit∗100
Net profit = 15.96% Not good
return on net worth=
averagenet worth
10533.19

Average net
worth =
65984.78

12 Return on capital employed Operating profit 34.38% satisfactory

(ROCE) = 20562.94
operating profit∗100
¿ Average capital
average capital
employed employed =
59807.76

13 Cost of goods sold ratio = Cost of goods 0.36 Not satisfactory

Cost of Goods sold sold = 25688.42

Sales
Sales =
70610.71

14 Operating ratio = Other expenses 0.72 Not good

= 24913.68
Cost of Goods sold+other
expenses
Sales

15 Fixed assets turnover = Sales = 0.82 good

sales 70610.71
¿ assets
Fixed assets =
86110.62