CHANGE IN RETURN ON INVESTMENT

MATERIAL COST
ORIGINAL VALUE DECREASE BY 5% DECREASE BY 10%
2019-2020 23.38% 26.33% 29.27%
2018-2019 21.87% 24.88% 27.88%
2017-2018 18.71% 21.29% 23.87%

INVENTORY COST
ORIGINAL VALUE DECREASE BY 5% DECREASE BY 10%
2019-2020 23.38% 23.63% 23.89%
2018-2019 21.87% 22.09% 22.32%
2017-2018 18.71% 18.88% 19.05%

Findings:
1.The strategic profit model lends itself to a visual format, making it an excell
2.It also provides a simple way to see and evaluate changes over time.
3.with decrease in material cost, the ROI increased by certain percentage
4.with decrease in Inventory cost, the ROI increased by certain percentage
5.The strategic business model suffers from the problem that the results only p

Name: R.sai rohith

class: MBA 2nd Year
TMENT

DECREASE BY 15%
32.21%
30.89%
26.45%

DECREASE BY 15%
24.15%
22.55%
19.21%

ormat, making it an excellent tool for demonstrating how changes in profit margins an
uate changes over time.
by certain percentage
d by certain percentage
blem that the results only prove as reliable as the original data. If the business does no
profit margins and asset turnover impact the business.

business does not maintain accurate records, the numbers you get from the calculations
et from the calculations provide little value.
STRATEGIC PROFIT MODEL
FY 2019-2020

ORIGINAL DATA
MATERIAL SALES
9506.2 17194.1 NET INCOME
3778.6
OVERHEAD COST OF GOODS SOLD
3830.9 13337.1 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3389.81 CURRENT ASSETS
7580.11
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 16154.77
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.219761429792778
In % 21.9761429792778

RETURN ON INVESTEMENT
0.23389995648344
In % 23.3899956483441

ASSET TURNOVER RATIO

1.06433579679562
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

MATERIAL COST DECREASE BY 5%

MATERIAL SALES
9030.89 17194.1 NET INCOME
4253.91
OVERHEAD COST OF GOODS SOLD
3830.9 12861.79 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3389.81 CURRENT ASSETS
7580.11
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 16154.77
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.24740521457942
In % 24.740521457942

RETURN ON INVESTEMENT
0.26332222619078
In % 26.3322226190778

ASSET TURNOVER RATIO

1.06433579679562
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

MATERIAL COST DECREASE BY 10%

MATERIAL SALES
8555.58 17194.1 NET INCOME
4729.22
OVERHEAD COST OF GOODS SOLD
3830.9 12386.48 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3389.81 CURRENT ASSETS
7580.11
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 16154.77
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.275048999366062
In % 27.5048999366062

RETURN ON INVESTEMENT
0.29274449589812
In % 29.2744495898116

ASSET TURNOVER RATIO

1.06433579679562
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

MATERIAL COST DECREASE BY 15%

MATERIAL SALES
8080.27 17194.1 NET INCOME
5204.53
OVERHEAD COST OF GOODS SOLD
3830.9 11911.17 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3389.81 CURRENT ASSETS
7580.11
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 16154.77
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.302692784152704
In % 30.2692784152703

RETURN ON INVESTEMENT
0.32216676560545
In % 32.2166765605453

ASSET TURNOVER RATIO

1.06433579679562
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

INVENTORY COST DECREASE BY 5%

MATERIAL SALES
9506.2 17194.1 NET INCOME
3778.6
OVERHEAD COST OF GOODS SOLD
3830.9 13337.1 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3220.319 CURRENT ASSETS
7410.619
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 15985.279
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.219761429792778
In % 21.9761429792778

RETURN ON INVESTEMENT
0.23637998435936
In % 23.637998435936

ASSET TURNOVER RATIO

1.07562088844367
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

INVENTORY COST DECREASE BY 10%

MATERIAL SALES
9506.2 17194.1 NET INCOME
3778.6
OVERHEAD COST OF GOODS SOLD
3830.9 13337.1 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
3050.829 CURRENT ASSETS
7241.129
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 15815.789
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.219761429792778
In % 21.9761429792778

RETURN ON INVESTEMENT
0.2389131519142
In % 23.8913151914204

ASSET TURNOVER RATIO

1.08714778630393
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2019-2020

INVENTORY COST DECREASE BY 15%

MATERIAL SALES
9506.2 17194.1 NET INCOME
3778.6
OVERHEAD COST OF GOODS SOLD
3830.9 13337.1 SALES
17194.1
OTHER COSTS
78.4

SALES
INVENTORIES 17194.1
2881.338 CURRENT ASSETS
7071.638
ACCOUNT RECEIVABLES TOTAL ASSETS
1795.22 15646.298
FIXED ASSETS
CASH 8574.66
1544.31

OTHER
850.77
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.219761429792778
In % 21.9761429792778

RETURN ON INVESTEMENT
0.24150121645389
In % 24.1501216453886

ASSET TURNOVER RATIO

1.09892448680193
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

ORIGINAL DATA
MATERIAL SALES
9410.6 16391.8 NET INCOME
3426.2
OVERHEAD COST OF GOODS SOLD
3476.4 12887 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
3149.86 CURRENT ASSETS
7634.05
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15661.33
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.2090191437182
In % 20.9019143718201

RETURN ON INVESTEMENT
0.21876813782738
In % 21.8768137827375

ASSET TURNOVER RATIO

1.04664163260719
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

MATERIAL COST DECREASE BY 5%

MATERIAL SALES
8940.07 16391.8 NET INCOME
3896.73
OVERHEAD COST OF GOODS SOLD
3476.4 12416.47 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
3149.86 CURRENT ASSETS
7634.05
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15661.33
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.237724349979868
In % 23.7724349979868

RETURN ON INVESTEMENT
0.24881220177341
In % 24.8812201773413

ASSET TURNOVER RATIO

1.04664163260719
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

MATERIAL COST DECREASE BY 10%

MATERIAL SALES
8469.54 16391.8 NET INCOME
4367.26
OVERHEAD COST OF GOODS SOLD
3476.4 11945.94 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
3149.86 CURRENT ASSETS
7634.05
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15661.33
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.266429556241535
In % 26.6429556241535

RETURN ON INVESTEMENT
0.27885626571945
In % 27.885626571945

ASSET TURNOVER RATIO

1.04664163260719
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

MATERIAL COST DECREASE BY 15%

MATERIAL SALES
7999.01 16391.8 NET INCOME
4837.79
OVERHEAD COST OF GOODS SOLD
3476.4 11475.41 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
3149.86 CURRENT ASSETS
7634.05
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15661.33
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.295134762503203
In % 29.5134762503203

RETURN ON INVESTEMENT
0.30890032966549
In % 30.8900329665488

ASSET TURNOVER RATIO

1.04664163260719
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

INVENTORY COST DECREASE BY 5%

MATERIAL SALES
9410.6 16391.8 NET INCOME
3426.2
OVERHEAD COST OF GOODS SOLD
3476.4 12887 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
2992.367 CURRENT ASSETS
7476.557
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15503.837
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.2090191437182
In % 20.9019143718201

RETURN ON INVESTEMENT
0.22099045545951
In % 22.099045545951

ASSET TURNOVER RATIO

1.05727375745759
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

INVENTORY COST DECREASE BY 10%

MATERIAL SALES
9410.6 16391.8 NET INCOME
3426.2
OVERHEAD COST OF GOODS SOLD
3476.4 12887 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
2834.874 CURRENT ASSETS
7319.064
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15346.344
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.2090191437182
In % 20.9019143718201

RETURN ON INVESTEMENT
0.22325838649258
In % 22.3258386492574

ASSET TURNOVER RATIO

1.06812410825666
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2018-2019

INVENTORY COST DECREASE BY 15%

MATERIAL SALES
9410.6 16391.8 NET INCOME
3426.2
OVERHEAD COST OF GOODS SOLD
3476.4 12887 SALES
16391.8
OTHER COSTS
78.6

SALES
INVENTORIES 16391.8
2677.381 CURRENT ASSETS
7161.571
ACCOUNT RECEIVABLES TOTAL ASSETS
1907.33 15188.851
FIXED ASSETS
CASH 8027.28
1797.19

OTHER
779.67
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.2090191437182
In % 20.9019143718201

RETURN ON INVESTEMENT
0.22557334982087
In % 22.5573349820865

ASSET TURNOVER RATIO

1.07919947335055
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

ORIGINAL DATA
MATERIAL SALES
7982.7 14153.7 NET INCOME
2899.4
OVERHEAD COST OF GOODS SOLD
3250.5 11233.2 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2658.31 CURRENT ASSETS
6914.08
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15488.74
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.20485102835301
In % 20.485102835301

RETURN ON INVESTEMENT
0.18719405193709
In % 18.7194051937085

ASSET TURNOVER RATIO

0.91380577116021
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

MATERIAL COST DECREASE BY 5%

MATERIAL SALES
7583.565 14153.7 NET INCOME
3298.535
OVERHEAD COST OF GOODS SOLD
3250.5 10834.065 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2658.31 CURRENT ASSETS
6914.08
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15488.74
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.233051074983927
In % 23.3051074983927

RETURN ON INVESTEMENT
0.2129634172954
In % 21.2963417295403

ASSET TURNOVER RATIO

0.91380577116021
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

MATERIAL COST DECREASE BY 10%

MATERIAL SALES
7184.43 14153.7 NET INCOME
3697.67
OVERHEAD COST OF GOODS SOLD
3250.5 10434.93 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2658.31 CURRENT ASSETS
6914.08
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15488.74
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.261251121614843
In % 26.1251121614843

RETURN ON INVESTEMENT
0.23873278265372
In % 23.8732782653721

ASSET TURNOVER RATIO

0.91380577116021
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

MATERIAL COST DECREASE BY 15%

MATERIAL SALES
6785.295 14153.7 NET INCOME
4096.805
OVERHEAD COST OF GOODS SOLD
3250.5 10035.795 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2658.31 CURRENT ASSETS
6914.08
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15488.74
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.289451168245759
In % 28.9451168245759

RETURN ON INVESTEMENT
0.26450214801204
In % 26.450214801204

ASSET TURNOVER RATIO

0.91380577116021
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

INVENTORY COST DECREASE BY 5%

MATERIAL SALES
7982.7 14153.7 NET INCOME
2899.4
OVERHEAD COST OF GOODS SOLD
3250.5 11233.2 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2525.39 CURRENT ASSETS
6781.16
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15355.82
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.20485102835301
In % 20.485102835301

RETURN ON INVESTEMENT
0.18881440391982
In % 18.8814403919817

ASSET TURNOVER RATIO

0.921715675229327
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

INVENTORY COST DECREASE BY 10%

MATERIAL SALES
7982.7 14153.7 NET INCOME
2899.4
OVERHEAD COST OF GOODS SOLD
3250.5 11233.2 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2392.479 CURRENT ASSETS
6648.249
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15222.909
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.20485102835301
In % 20.485102835301

RETURN ON INVESTEMENT
0.19046293977058
In % 19.0462939770579

ASSET TURNOVER RATIO

0.929763161561302
VESTEMENT
STRATEGIC PROFIT MODEL
FY 2017-2018

INVENTORY COST DECREASE BY 15%

MATERIAL SALES
7982.7 14153.7 NET INCOME
2899.4
OVERHEAD COST OF GOODS SOLD
3250.5 11233.2 SALES
14153.7
OTHER COSTS
21.1

SALES
INVENTORIES 14153.7
2259.56 CURRENT ASSETS
6515.33
ACCOUNT RECEIVABLES TOTAL ASSETS
1730.63 15089.99
FIXED ASSETS
CASH 8574.66
1797.19

OTHER
727.95
 ASIAN PAINTS

*ALL VALUES ARE IN Rs./- in CRORES (EXCEPT RATIOS AND PERCENTAGES)

PROFIT MARGIN
0.20485102835301
In % 20.485102835301

RETURN ON INVESTEMENT
0.19214061772075
In % 19.2140617720754

ASSET TURNOVER RATIO

0.93795290785481
VESTEMENT