Brittania Industries

Profitability ratios
The net sales and the profitability ratios have been increasing throughout the last 10 years ,
The operating profit has increased 46.7% in the year 2016.
A manufacturing company utilizes its fixed assets—primarily inventory and equipment—to
produce revenue. For this reason, an important financial measurement is a return on net
assets. From the year 2015 there has a dip year on year in the return on total assets.

Leverage ratios
It has a higher return on equity because the debt is also higher. The total non-current liabilities
have increased by 19.8% in the year 2020.
It has 1582 Billion worth to be settled in 12 months as current liabilities in the year 2020.
To offset these liabilities Britannia has cash of 40 Billion, and receivables that is due in 12 month
for 350 Billion as well as short term loan of 1121 Billion.

The interest coverage ratio is 30.28 times in the year 2020 whereas it was 1115 times in the
year 2019. Thus suggests that the finance cost for Brittania has increased more than 4000% in
the year 2020.
The Debt equity ratio has been between 0.3-0.9 for the past 6 years.
Britannia Industries’ interest cover suggests it can handle its debt easily.
As Britannia Industries shares are worth ₹846.7b, it seems unlikely that this level of liabilities
would be a major threat.