Company Profile Ratio Analysis 2019

i. Liquidity Ratios
a) Current Ratio
Current assets
a) Inventories 3,471.37
b) Financial assets
(i) Investments 55.07
(ii) Trade receivables 3,558.38
(iii) Cash and cash equivalents 22.28
(iv) Other bank balances other than (iii) above 809.15
(v) Other financial assets 112.52
c) Current tax assets (net) 0
d) Other current assets 276.78
Total current asset =7,211.98
Current liabilities
a) Financial liabilities
(i) Borrowings 39.36
(ii) Lease liabilities
(iii) Trade payables
- Total outstanding dues of micro and small enterprises 64.36
- Total outstanding dues of creditors other than micro and small enterprises 2,646.98
(iv) Other financial liabilities 686.33
b) Other Current Liabilities 435.81
c) Provisions 91.63
d) Current tax liabilities (net) 47.57
Total current liabilities = 4,012.04
Current Ratio= Current Asset/Current liabilities = 7,211.98 /4,012.04 =
 b) Cash Ratio
Current Assets=7,211.98
Inventory=2,907.81
Current Liabilities= 4,012.04
Cash Ratio= Current Assets - Inventory/Current Liabilities
= 7,211.98 - 2,907.81 / 4,012.04
= 4,304.17 / 4,012.04
ii. Efficiency ratios
a) Inventory turnover Ratio
Cost of goods sold=Beginning Inventory + Purchases – Closing Inventory
=869.36 + 5,057.38 - 560.96
=5,365.78
Average total inventory= (Beginning Inventory + Ending Inventory)
/2
= 869.36 +560.96 /2
=1,149.84

Inventory turnover=Cost of goods sold/Average total inventory

=5,365.78 / 1,149.84
=

B) Debtor turnover Ratio

 Net Credit Sales=Sales on Credit – Sales Returns – Sales Allowances
=9563.89 -86 -56
=9,421.89
Average Trade Debtors=(Average Accounts Receivable / Annual Total
Sales) * 365 days
=235.69 / 59.36 *365
=1,449.23
Debtor turnover Ratio=Net Credit Sales / Average Trade Debtors
= 9,421.89 /1,449.23
=

iii. Profitability Ratio

a) Net profit ratio
Net profit after tax= Net sale - tax
=15,965.95 -312.25
=15,653.7
Net Sale= 15,965.95
Profitability Ratio=Net profit after tax/Net Sale
= 15,653.7 / 15,965.95
=

b) Earning per share Ratio

​ et Income=14,962.02
N
Preferred Dividends=1203.65
End of period Shares Outstanding= 293.25
Earning per share Ratio= (Net Income – Preferred Dividends)
/ End of period Shares Outstanding
=14,962.02 - 1203.65 /293.25
=13,758.37 / 293.25
=

iv.Solvency Ratio
a) Debt equity
Debt= 508.37
Equity=11,481.49
Debt equity= Debt / Equity
=508.37 / 11,481.49
=
b)Interest coverage ratio
Earning Before interest and tax=14,962.02
Interest Expense=910.68
Interest coverage ratio=Earning Before interest and tax/Interest Expense
= 14,962.02 / 910.68
=
 Company Profile Ratio Analysis 2020
i. Liquidity Ratios
a) Current Ratio
Current assets
a) Inventories 2,907.81
b) Financial assets
(i) Investments 606.77
(ii) Trade receivables 2,393.09
(iii) Cash and cash equivalents 246.77
(iv) Other bank balances other than (iii) above 712.54
(v) Other financial assets 25.59
c) Current tax assets (net) 27.15
d) Other current assets 292.26
Total current asset 7,211.98
Current liabilities
a) Financial liabilities
(i) Borrowings 449.14
(ii) Lease liabilities 44.95
(iii) Trade payables
- Total outstanding dues of micro and small enterprises 53.09
- Total outstanding dues of creditors other than micro and small
enterprises 2,256.07
(iv) Other financial liabilities 435.30
b) Other Current Liabilities 381.77 4
c) Provisions 78.95
d) Current tax liabilities (net) 0
Total current liabilities 3,699.27
Current Ratio= Current Asset/Current liabilities = 7,211.98/3,699.27
=

b) Cash Ratio
Current Assets= 7,211.98
Inventory=2,907.81
Current Liabilities=3,699.27
Cash Ratio= Current Assets - Inventory/Current Liabilities
= 7,211.98 - 2,907.81 / 3,699.27
=

ii. Efficiency ratios

a) Inventory turnover Ratio
Cost of goods sold=Beginning Inventory + Purchases – Closing Inventory
=1245 +4,882.65- 200
=5,927.62
Average total inventory= (Beginning Inventory + Ending Inventory) / 2
=1245 + 200 /2
 =1,345
Inventory turnover=Cost of goods sold/Average total inventory
=5,927.62 / 14,293.36
=

B) Debtor turnover Ratio

Net Credit Sales=Sales on Credit – Sales Returns – Sales Allowances
=10,000 -250 -20
=9,730
Average Trade Debtors=(Average Accounts Receivable / Annual Total
Sales) * 365 days
=6,593/16,067.73*365
=149.76
Debtor turnover Ratio=Net Credit Sales / Average Trade Debtors
=9,730 / 149.76
=

iii. Profitability Ratio

a) Net profit ratio
Net profit after tax = Net sale - tax
=16,067.73 - 133.80
 = 15,933.3
Net Sale=16,067.73
Profitability Ratio =Net profit after tax/Net Sale
= 15,933.3 / 16,067.73
=

b) Earning per share Ratio

​Net Income=16,266.16
Preferred Dividends=435.30
End of period Shares Outstanding= 150.36
Earning per share Ratio = (Net Income – Preferred Dividends) / End of
period Shares Outstanding
= 16,266.16 - 435.30 / 150.36
=

iv.Solvency Ratio
a) Debt equity
Debt= 449.14
Equity=10,705.07
Debt equity = Debt / Equity
=449.14 / 10,705.07
=
b)Interest coverage ratio
Earning Before interest and tax=15,401.99
Interest Expense=765.75
Interest coverage ratio=Earning Before interest and tax/Interest
Expense
=15,401.99 / 765.75
=

Interpretation of Ratio analysis