Interpretation

ANSWER-1

EBITDA Margin PAT Margin

13.76
40 15 10.72 11.51
18.25 24.21
17.55 10
20
5
0 0
Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19
Mar-17 Mar-18 Mar-19   As we see EBITDA margin as well
as PAT margin is increasing in both 2018
& 2019 compared to 2017.
 We can clearly infer that Profitability of the firm is not affected by its decreasing
revenues.

ANSWER-2
ROA
10 ROE
8 7.73 ROCE
6.25
30 23.87 26.99 40 32.7
5 18.62
29.8 26.33  In year 2019 ROE,
20
0 20 ROCE & ROA felled drastically.
10
0
Mar-17 Mar-18 Mar-19
0  But ROE, ROCE &
Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19 ROA should have decreased in
2018 due to decrease in Revenue, but it is increasing.
 The reason is the goods consumed was less in 2018 compared to that in 2017 and
also the tax payable was low in 2018, hence profits increased and thereby increasing
all other values.
 So, we can infer that productivity was affected in 2019, but in 2018 decreased COGS
affected the profit positively and productivity was not affected in 2018 due to
reduced revenues.

ANSWER-3

Interest
Debtcoverage
to Equityratio
20 0 0
14.3  D/E ratio is negligible for all the 3 years.
0 8.42
10 3.980 0
0
0
Mar-17 Mar-18 Mar-19
Mar-17 Mar-18 Mar-19
  Thus, we can say business is capable to finance its operation and leverage from
outside is given to the business.
 Interest coverage ratio is seen increasing which shows interest expenses are
decreasing.

ANSWER-4

YES, the company will be able to overcome its upcoming liabilities.

Justification:
Quick Ratio Inventory Turnover
 Current ratio greater than
1 Current Ratio0.91
0.88 6 4.36
0.8 1.47 1 signs company’s 4 2.2 1.7
0.8
1.5
1.27 1.25 current assets are greater 20
0.6
Mar-17 Mar-18 Mar-19 than current liabilities for Mar-17 Mar-18 Mar-19
1
Mar-17 Mar-18 Mar-19 all three years.
 Thus, it will be able to overcome its upcoming
liabilities.
For a broader view we will also see Quick ratio as well

 Here quick ratio is smaller than all three years. This is a sign of concern
 But doing further analysis we can interpret that inventory turnover ratios are quite
higher than 1 and hence company is able to rollover its inventory more than 1 time
in a year.
 Thus, we can interpret that company will definitely overcome its upcoming liabilities.

ANSWER-5

Asset Turnover Inventory Turnover

0.7 0.61 5 4.36
0.6 0.54 0.5 4
0.5
0.4 3 2.2
0.3 2 1.7
0.2
0.1 1
0 0
Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19

 Asset turnover ratio values are in all

three years are quite satisfying. This shows the times assets are churned over for
generating revenues.
  Increase in asset turnover ratio values in 2018 is very high which shows the assets
were churned highest in 2018 to generate revenue.
 Inventory turnover ratio shows that how many times inventory is rolled over in a
year. Values are greater than 1 which is a good sign.
 Overall, we can conclude that business is efficient in using its assets and inventory to
generate revenue but decreasing value is showing a sign of concern.

ANSWER-6

Accounts Receivable Turnover Accounts Payable Turnover

35 33.1 6 5.64
30 5
25 4
20
3 2.06 2.16
15 9.91
10 2
4.52
5 1
0 0
Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19

 Account payable is increasing in both 2018 & 2019.

 This shows account payable is less compared to other years so there might be two
possibilities company might be having enough cash or else lenders are not allowing
company to take goods on credit.
 So, we cannot conclude anything just by seeing this we need detailed analysis on
this.
 Account receivable of the firm on other hand is decreasing drastically in 2018 & 2019
compared to 2017.
 This shows the bargaining power of the company is decreasing.

ANSWER-7
 Dividend Payout Ratio Cash Ratio
80 2 1.63
64.4
60 1.5
41.52
40 1 0.71
23.6 0.52
20 0.5
0 0
Mar-17 Mar-18 Mar-19 Mar-17 Mar-18 Mar-19

 Dividend payout ratio is increasing in 2018 and 2019, this is a good sign that
company is sharing its profit with its shareholders.
 We can see cash ratio is decreasing in 2018 and 2019 compared to 2017, so we can
say that it has effect of decreasing revenue.