prb 2 page no 75 Hero motoCorp

31-Mar-16 31-Mar-17
current ratio 0.78 0.71
quick ratio 0.58 0.55
asset turnover 3.45 3.03
inventory turnover 45.62 47.00
Days turnover 8.00 7.77
DSO 15.25 18.4814995
Debt ratio
Debt equity ratio
TIE NA NA
Profitability ratio
ROA
ROE

Mar-18 Mar-19
current rat 0.6593446572 0.64739183
qr 0.3595126016 0.39153306
atr 1.4618848836 1.62896025
10.35069919 14.8440069

₹ 540,156.50

₹ 629,783.72
ero motoCorp

Current ratio is falling which can be considered a good sign, but the contribution to this is from inventory reduction and payab
Same as above
While we have increased our assets base, this is not performing as per the past . Why ? Are we confident that this is only a tee
The inventory perfomance has been good . We are doing well here . Can we split inventory further to see if we can do more ?
Good sign that this is coming down I spite of increase sales and asset base
Matter of serious concern, Have we changed policy? Why cannot this be optimised?
We seem to be having enough to manage our asset expansion without debt

Good sign that we seem to have reduced per capita cost

The fall in ROA is because assets have not been working the same way as before . Need to look into asset turnover ratio
Because there is no debt , This is the same as ROA
prb 4 bajaj auto

Debt equity ratio We have debt that industry . That shoes we are able to finance expansions
with our own funds

Current ratio We r doing well , bttr thn industry

Turnover ratio Both our asset turnover nd inventry turnvr ratios r very gd. We nee to apply
porter 5 forces to see how copmetition can be totally twarted

PRB 5
current Previous
Inventory 785900 913640
Days inventory 134.56 159.58
DSO 50.74 43.12

There is an imprvmnt in invntr positions, DSO gng up is a mttr of conce

but still the fig is high . One can see tht we continue sales have only marginally go
to stock a hugw qnty of raw mtrls stock and fnshd goods r cmmng down only marginally but dso has gne up substanti
WIP has shown a welcome improvement Poor position in this overall

Prb 6
2011/12 2012/13
PBT 809990 1351140 D profitability of d cmpny s g
PAT 631792 1053889 we r able to easily service ou
D expansion of sales has bee
ROA 14.84% 23.60% that asset have not gone up
ROE 29.29% 44.54% SO internakl effeciency has im
Profitability 16.39% 20.00% Good ROE

Prb 7
PAT 116542 PE multiple is an indication o
EPS 1.17 regarding our future prospec
PE 13.17

Profitability 0.2
DSO gng up is a mttr of concern
sales have only marginally gone up,
but dso has gne up substantially.
Poor position in this overall

D profitability of d cmpny s gd
we r able to easily service our debt intrst
D expansion of sales has been dramatic given
that asset have not gone up by that extent.
SO internakl effeciency has imprvd

PE multiple is an indication of the market perception

regarding our future prospects
PRB 3 PG NO 77 TIE TIME INVESTEMENT EARNIN
2008/09 2009/10 2010/11 2011/12 2012/13
TIE xyz ltd
TIE pqr ltd

IN the case of XYZ TIE is falling alarmingly . The debt is going up steadly and profitability
is not going up correspondingly ( infact falling)
so we need to adress issue of cost, or find
TIME INVESTEMENT EARNING