Liquidity Ratio

1. Current Ratio (Times)

 The ratio measures the ability of a company to discharge its day-to-day bills, or current
liabilities, as and when they fall due, out of the cash or near cash, or current assets that it
possesses.
 Institutional norms, which generally look for a current ratio of 1.33:1.

Formula :

Current Assets, Loans & Advances + Short-term Investments

Current Liabilities and provisions + Short-term debts

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 5714.94 5510.18 4213.69
1.56 Times 1.34 Times 1.23 Times
Cement Ltd. 3715.43 4126.98 3431.69

6581.97 5617.81 4032.50

ACC Ltd. 1.40 Times 1.16 Times 0.99 Times
4694.78 4840.00 4086.21

2. Quick Ratio or Acid test Ratio (Times)

 The ratio measures as to how quick is the ability of a company to discharge its current
liabilities net of working capital limits, as and when they fall due, out of cash, or current
assets net of inventories that it possesses.
 Institutional norms, which generally look for a quick ratio of 1:1.

Formula :

Current Assets, Loans & Advances-Inventories + Short-term Investments

Current Liabilities + provisions + Short-term debt Net of working capital limits

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 4477.18 4457.68 3276.15
1.21 Times 1.08 Times 0.96 Times
Cement Ltd. 3715.43 4126.98 3431.69

4903.41 4213.86 2808.75

ACC Ltd. 1.04 Times 0.87 Times 0.69 Times
4694.78 4840.00 4086.21

3. Collection Period Allowed to Customers (Days)

  The ratio measures the credit period allowed to customers on credit sales or how fast a
company realises its outstanding dues.
 It is also known as Days’ Sales in Receivables Ratio.
 The average collection period, considering most companies collect within 30 days, should
not be more than 90 days.

Formula :

Receivables × 365
Credit Sales

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 470.26 × 365 15.11 307.97 × 365 10.75 3276.15 × 365 15.71
Cement Ltd. 11356.76 Days 10457.1 Days 9196.64 Days

868.26 × 365 21.41 668.20 × 365 18.36 467.73 × 365 15.3

ACC Ltd.
14801.35 Days 13284.6 Days 11158.34 Days

4. Supplier’s credit (Days)

 The ratio measures the average credit period availed by a company from its suppliers on
credit purchases or how much leverage it possesses to settle its outstanding payables.
 It is also known as Days’ Purchases in Payables Ratio.

Formula :

Payables × 365
Credit Purchases

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1109.46 × 365 397.37 1046.53 × 365 420.07 815.34 × 365 383.17
Cement Ltd. 1019.04 Days 909.33 Days 776.68 Days

1922.73 × 365 285.34 1810.49 × 365 445.49 1256.93 × 365 273.50

ACC Ltd.
2459.49 Days 1483.36 Days 1677.43 Days

5. Inventory Holding Period (Days)

 The ratio measures the period of the inventory build up or the number of days that cash is
blocked in inventory or how fast a company is able to convert its inventory into cash or near
cash.
 Institutional norms, which generally look for a less no. of days of inventory holding.
Formula :

Inventory ×365
Cost Of Goods Sold (COGS)

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1277.76 × 365 494.93 1052.5 × 365 453.82 937.54 × 365 458.41
Cement Ltd. 942.32 Days 846.5 Days 746.49 Days

1678.56 × 365 262.44 1403.95 × 365 260.33 1223.75 × 365 263.61

ACC Ltd.
2334.51 Days 1968.46 Days 1699.43 Days

Return on Investment (ROI) Ratios

6. Return on Net Worth (%)

 The ratio measures the net profit earned on the equity shareholder’s funds. It is the measure
of overall profitability of a company after discharging cost of borrowed capital and income
tax payable to the government.
 It is also known as Return on Equity or ROE ratio.
 A high ratio usually means a high dividend, loyal customers, better ability to retain and
attract talented employees and greater contribution to economy and the society.

Formula :

(PAT – Preference Dividend) × 100

Equity Shareholder’s Funds

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1487.01 × 100 1249.57 × 100 932.24 × 100
7.08 % 6.26 % 4.82 %
Cement Ltd. 21012.5 19973.21 19356.87

1506.63 × 100 915.45 × 100 602.4 × 100

ACC Ltd. 14.31 % 9.77 % 6.95 %
10527.66 9365.46 8661.44

7. Earning Per Share (Rs.)

 The ratio measures the overall profitability in terms of per equity share of capital
contributed by the owners.

Formula :
 PAT – Preference Dividend
Weighted average No. of Equity Shares Outstanding

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1487.01 1249.57 932.24
7.49 Rs. 6.29 Rs. 4.69 Rs.
Cement Ltd. 198.56 198.56 198.56

1506.63 915.45 602.4

ACC Ltd. 80.23 Rs. 48.75 Rs. 32.08 Rs.
18.78 18.78 18.78

8. Cash Earning Per Share (Rs.)

 The ratio measures the overall cash profitability in terms of per equity share of capital
contributed by the owners.

Formula :

PAT – Preference Dividend + Non-cash Charges

Weighted average No. of Equity Shares Outstanding

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1487.01 + 548.09 10.25 1249.57 + 572.92 9.18 932.24 + 848.85 8.97
Cement Ltd. 198.56 Rs. 198.56 Rs. 198.56 Rs.

1506.63 + 599.64 112.15 915.45 + 640.12 82.83 602.4 + 605.16 64.30

ACC Ltd.
18.78 Rs. 18.78 Rs. 18.78 Rs.

Solvency Ratios
9. Net Asset Value (Rs.)

 The ratio measures the net worth or net asset value per equity share.
 This ratio indicates the efficiency or otherwise of the company management in building up a
back up of reserves and surplus to fall back upon.
 It is also known as net worth per share or book value per share.

Formula :

Equity Shareholder’s Fund

No. of Equity Shares Outstanding

Company 2018 2017 2016

 Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 21012.5 19973.21 100.59 19356.87
105.82 Rs. 97.48 Rs.
Cement Ltd. 198.56 198.56 Rs. 198.56

10527.66 9365.46 498.69 8661.44 461.21

ACC Ltd. 560.56 Rs.
18.78 18.78 Rs. 18.78 Rs.

10. Debt Equity (Times)

 The ratio measures the proportion of debt and capital – both equity and preference, in the
capital structure of a company.
 The ratio helps in assessing whether a company is more relying more on debt or capital for
financing its assets.
 Institutional norms, which generally take into account a debt equity ratio of 1.5:1.

Formula :

Long term Debt

Total Net Worth

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 458.72 526.65 564.21
0.02 : 1 0.03 : 1 0.03 : 1
Cement Ltd. 21012.5 19973.21 19356.87

802.61 683.39 689.82

ACC Ltd. 0.08 : 1 0.07 : 1 0.08 : 1
10527.66 9365.46 8661.44

Efficiency or Turnover Ratios

11. Fixed Assets Turnover Ratio (Times)

 The ratio measures the extent of turnover or volume of gross income generated by the fixed
assets of a company or in other words the efficiency in their utilisation. Institutional norms,
which generally look for a less no. of days of inventory holding.

Formula :

Net Sales
Net Block of Fixed Assets

Company 2018 2017 2016

 Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 11356.76 10457.1 9196.64
2 Times 1.83 Times 1.55 Times
Cement Ltd. 5663.6 5721.99 5941.61

14801.35 13284.6 11158.34

ACC Ltd. 2.1 Times 1.83 Times 1.5 Times
7049.43 7241.02 7482.38

12. Net Worth Turnover Ratio (Times)

 The ratio measures the extent of turnover or volume of gross income generated by the net
worth of a company or in other words, it is the efficiency in the resource utilisation from the
angle of the residual interest, that is, equity shareholders.

Formula :

Net Sales
Net Worth

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 11356.76 10457.1 9196.64
0.54 Times 0.52 Times 0.48 Times
Cement Ltd. 21012.5 19973.21 19356.87

14801.35 5721.99 11158.34

ACC Ltd. 1.41 Times 0.61 Times 1.29 Times
10527.66 9365.46 8661.44

Profitability Ratios

A. Multi - step Profit Margin to Sales Ratios

 These ratios measure several intermediate profit margin indicators. All these ratios are
computed in relation to net sales.
 These ratios enable study and assessment of business performance at different intermediate
levels starting from GP and finally PAT.

13. Gross Profit Ratio (%)

Formula :

Gross Profit × 100

Net Sales

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
 Ambuja 10414.44 × 100 9610.6 × 100 8450.15 × 100
91.70 % 91.91 % 91.88 %
Cement Ltd. 11356.76 10457.1 9196.64

12466.84 × 100 3753.53 × 100 9458.92 × 100

ACC Ltd. 84.23 % 65.6 % 84.77 %
14801.35 5721.99 11158.34

14. Profit Before Depreciation, Interest and Tax Ratio (%)

Formula :

EBDIT × 100
Net Sales

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 2266.44 × 100 2299.23 × 100 2202.56 × 100
20 % 21.99 % 23.95 %
Cement Ltd. 11356.76 10457.1 9196.64

2183.13 × 100 2040.78 × 100 1529.21 × 100

ACC Ltd. 14.75 % 35.67 % 13.71 %
14801.35 5721.99 11158.34

15. Profit Before Interest and Tax Ratio (%)

Formula :

EBIT × 100
Net Sales

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1718.35 × 100 1726.31 × 100 1353.71 × 100
15.13 % 16.51 % 14.72 %
Cement Ltd. 11356.76 10457.1 9196.64

1583.49 × 100 1400.66 × 100 924.55 × 100

ACC Ltd. 10.7 % 24.48 % 8.29 %
14801.35 5721.99 11158.34

16. Profit Before Tax Ratio (%)

Formula :

EBT × 100
Net Sales
 Company 2018 2017 2016
Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1636.02 × 100 1619.12 × 100 1279.47 × 100
14.41 % 15.48 % 13.91 %
Cement Ltd. 11356.76 10457.1 9196.64

1494.29 × 100 1298.36 × 100 851.68 × 100

ACC Ltd. 10.10 % 22.69 % 7.63 %
14801.35 5721.99 11158.34

17. Net Profit Ratio (%)

Formula :

Net Profit × 100

Net Sales

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 1487.01 × 100 1249.57 × 100 932.24 × 100
13.09 % 11.95 % 10.13 %
Cement Ltd. 11356.76 10457.1 9196.64

1506.63 × 100 915.45 × 100 602.40 × 100

ACC Ltd. 10.18 % 15.99 % 5.39 %
14801.35 5721.99 11158.34

18. Other Income to PBT Ratio (%)

 This ratio seek to measure the extent of Other income and their impact on PBT.
 They help an analyst in ascertaining the quality of earning of a company.

Formula :

Other Income × 100

PBT

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 374.98 × 100 359.09× 100 510.21 × 100
22.91 % 22.18 % 39.88 %
Cement Ltd. 1636.02 1619.12 1279.47

138.5 × 100 131.65 × 100 112.71 × 100

ACC Ltd. 9.27 % 10.14 % 13.23 %
1494.29 1298.36 851.68

Capital Market Ratio

19. Price Earning Ratio (Times)

 The ratio measures as how many times an equity share is priced in the stock markets in
relation to its EPS, or in other words at what rate of expected return the price is being
discounted by the capital market players.
 The ratio reflects the investor’s perception of a company.

Formula :

Market Price of the Equity Share

EPS

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 225.10 271.10 209
30.05 Times 43.11 Times 44.56 Times
Cement Ltd. 7.49 6.29 4.69

1508.10 1731.35 1340

ACC Ltd. 18.8 Times 35.51 Times 41.77 Times
80.23 48.75 32.08

20. Market Capitalisation Ratio (Rs.)

 This ratio measure the total market value of the number of equity shares of the company
outstanding.
 It thus provide macro view of the share price.

Formula :

Number of Equity Shares Outstanding × Market Price

Company 2018 2017 2016

Name (Rs. Crores) Result (Rs. Crores) Result (Rs. Crores) Result
Ambuja 225.10 × 44695.86 271.10 × 53829.62 209 × 41499.04
Cement Ltd. 198.56 Rs. 198.56 Rs. 198.56 Rs.

1508.10 × 28322.12 1731.35 × 32514.75 1340 × 25165.2

ACC Ltd.
18.78 Rs. 18.78 Rs. 18.78 Rs.