Ratio Analysis for United Spirits

After analysing the Profitability ratios for 5 years from the year 2014 – 2018 we can observe that
from 2013-2015, the negative values indicate that the company wasn’t performing well. But from
2016 -2018, the ratio had positive values which indicate that the company’s performance was
consistent.

The Asset Turn Over ratios has been consistent over the years indicating that its asset usage
efficiency increased.

We can say that short-term liquidity ratio has been consistent over the years. It is same for the cash
ratios, after analysing the Liquidity ratios for 5 years.

The company is able to meet its long-term obligations as the cash coverage ratio is positive for all
years and the debt-to-equity ratios has been consistent.

Market ratios indicate that the company’s earnings have been decreasing till 2015 but it started to
increase and had positve ratio in the year 2018 which shows that the company does have good
scope for development in the market.