Britannia Industries Limited Is an Indian Food Products Corporation.

It is one of the India’s

oldest existing companies, and was founded in 1882 headquartered in Kolkata. The company
is now a part of the Wadia Group headed by Nusli Wadia. The company sells Britannia and
Tiger brands of biscuits, breads and dairy products throughout India and in more than 60
countries across the world.

Liquidity

Current Asset Ratio

2
Quick Assets Ratio
1.5
1.5
1 1

0.5 0.5
0 0
1 2 3 4 5 6 7 1 2 3 4 5 6 7

Liquidity of the company is determine by the current assets and the current liabilities of the
companies, the company should able to pay the liabilities and the debts , as we can see that
the current ratio is around 1 and the current ratio is improving from the past periods , so the
company is in good liquidity position.

The trends of from 2013-19 of current and quick ratios are increasing as initially the ratios
were around 0.66 and 0.33 and now the ratios have increased around 1, which is a good sign
for the company.
 Accounts Receivable Turnover Inventory Turnover Ratio
140 Ratio
120
14
100
12
80 10
60 8
6
40
4
20 2
0 0
1 2 3 4 5 6 1 2 3 4 5 6

Accounts Receivable Turnover ratio has decreased from previous years , so it a good sign for
the company as the company can generate good amount of cash and as we can see that the
inventory turnover ratio has also decreased from years previous year, which is also a good
sign for the company.

ASSET MANAGEMENT

The trend analysis of the sales to the company shows that there is continuous increase in the
sales and the fixed assets are increasing and paid of with time. The current ratio has also
increased from years. According to the industry average Britannia has maximum share and
the company is doing good.

FINANCING OF ASSETS

Interest Coverage Ratio

Debt to Assets Ratio
1200
1000 0.01
0.01
800 0.01
600 0.01
400 0.01
0
200 0
0 0
1 2 3 4 5 6 1 2 3 4 5 6 7

Interest Coverage Ratio has increased from time in the past years, which is a good sign for
the company, as higher the interest coverage ratio the better is for the company as it is the
relationship of net income which the interest of the company. The Debt to Assets ratio should
be lower as it shows that the assets that we are gaining are from debt, so lower the debt and
lower the ratio, it is better for the company. The debt to equity ratio of the company has been
lower in previous years and in the current years is not that certain. The lower the debt ratios
for the companies, the better for the company.

PROFITABILITY

Operating Profit Ratio

Return On Equity
20
18
16 0.6
14
12 0.5
10 0.4
8 0.3
6
0.2
4
2 0.1
0 0
1 2 3 4 5 6 1 2 3 4 5 6 7

Return On Assets
1.2

0.8

0.6

0.4

0.2

0
1 2 3 4 5 6 7

The operating profit ratio, return on assets and return on equity should be higher as these are
in the profitability of the business so the higher are the ratios higher the better and we can see
that the operating profit ratio , return on assets and return on equity doesn’t have a much
higher values so company is not gaining much profit due to competition in the consumer
industry due to upcoming new industries and many higher end companies like nestle.
 EPS
90
80
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7

The earning per share has also decreased from previous years so the company has many
competitors and the value has decreased from the starting years.

CASH FLOW

The Cash flow from operating activities is positive for both the years and negative in case of
cash flow from investing activities and cash flow from financing activity, which indicate that
company is buying fixed assets and investments and there is no profit generated on the sale of
old fixed assets as well. The financing activity is negative because the company is taking
loans and paying dividend in huge amount which indirectly means that there is profit so the
company is paying dividends.

OVERALL EVALUATION

The liquidity position of the company is good and the company is earning moderate amount
of profits. The profitability situation of the company is not that good as only operating profit
is increasing and that too with not higher margins.

The cash flow condition is moderate according to the 2018 and 2019 analysis. The share price
of the company is not on a hike. The reasons would be there are many competitors in the
market, as Britannia is an old and established company that is the reason that it is sustaining
in the market, but the competition is very high due to new brand and company entrants and
other competitors Cadbury, Parle etc.