RATIO ANALYSIS OF ARVIND LTD.

Ratios Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

Short term debt

to Total Asset
Ratio 0.167014 0.21904 0.2358
0.09354 7 3 6 0.266136

Short term debt

to Net worth
Ratio 0.398828 0.54557 0.5260
0.210145 9 5 6 0.571067

Long term debt

to Net worth 0.366162 0.34415
0.392429 3 8 0.2457 0.201063

Long term debt

to Net worth +
long term debt
ratio 0.268022 0.1972
0.28183 5 0.25604 4 0.167404

Long term
borrowings to
short term
borrowings
Ratio 0.918093 0.63081 0.4670
1.867417 7 7 6 0.352082

Total Debt to
Total Assest
Ratio
1 1 1 1 1

Total liabilities
to total asset 0.554983 0.581235 0.59849 0.5516 0.533967
Ratio
7 3 5

Total debt to
net worth Ratio
2.25 2.39 2.49 2.23 2.15

total DEBT to
net worth +
debt Ratio
0.69 0.70 0.71 0.69 0.68

Total liability
to net worth
Ratio
1.25 1.39 1.49 1.23 1.15

PROFITABI
LITY
RATIOS
Operating
profit margin
Ratio
1.24 3.73 3.72 4.54 2.26

Net profit
margin Ratio
2.02 2.53 3.05 3.85 0.31

Earning before
interest and Tax
to total assests
1.70 7.34 6.93 8.28 4.17
Earning after
tax to total
assests
2.80 5.03 6.09 7.10 0.57

Return on
networth
(Return on
equity) 21.64 96.65 93.96 112.76 52.11

ANALYSIS OF THE RATIOS

Short term debt to Total Asset

Ratio
0.3
0.25
0.2 Ratio

0.15
0.1
0.05
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
This ratio indicates the proportion of short term funds used to support the total assets of the
firm. From the above graph we can understand that the short term debt used to support the
total assets have been decreasing over the years.
 Short term debt to Net worth
Ratio
0.6

0.5

0.4 Ratio

0.3

0.2

0.1

0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
The ratio is used by investors to figure out how much of a company's funding comes from
debt. From the above graph we can interpret that, the short term debt used for company’s
funding has been consistent in the initial two years and have gradually declined in the next
three years.

Long term debt to Net worth

Ratio
0.5
0.4
Ratio
0.3
0.2
0.1
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
Long term debt to net worth ratio is a metric used to compare the level of long term
debt of a company to its net worth. From this graph we can analyze that the ratio is
increasing over the years but it is less than 0.5 which is a healthy sign for a company.
 Long term debt to Net worth +
long term debt Ratio
0.3
0.25
0.2 Ratio

0.15
0.1
0.05
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyse that the ratio is increasing over the years and it is the
highest in the year 2021.

Long term borrowings to

short term borrowings Ratio
2
1.8
1.6
1.4 Ratio
1.2
1
0.8
0.6
0.4
0.2
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the ratio has increased from 0.3 in 2016-17 to 1.8
in the year 2020-21.
 Total Debt to Total Assest
Ratio
1.2
1
Ratio
0.8
0.6
0.4
0.2
0
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the ratio was consistent throughout the 5 years.

Total liabilities to total

asset Ratio
0.62
0.6
0.58 Ratio

0.56
0.54
0.52
0.5
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the ratio increased gradually till 2018-19 and it
started falling in the upcoming years.
 Total debt to net worth Ratio
2.60
2.50
2.40
2.30 Ratio

2.20
2.10
2.00
1.90
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the ratio gradually increased till 2018-19 and then
it started falling down in the upcoming years. It was the highest in the year 2019 (2.49).

Total DEBT to net worth + debt

Ratio
0.72
0.71
0.70 Period

0.69
0.68
0.67
0.66
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the ratio was the lowest in the year 2016-17 as
compared to other years. It was the highest in the year 2018-19 (0.71)
 Total liability to net worth Ratio
1.60
1.40
1.20
1.00 Ratio
0.80
0.60
0.40
0.20
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
From the above graph we can analyze that the graph has been quite stable over the 5 years.
The ratio was highest in the year 2018-19 and it started declining in the upcoming years.

Operating profit margin Ratio

5.00
4.50
4.00
3.50
3.00 Ratio
2.50
2.00
1.50
1.00
0.50
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
This ratio measures the efficiency with which the firm sells its goods and services. From the above
graph we can analyze that the ratio has been unstable throughout the years. It was the lowest in the
year 2020-21 which means that the firm did not sell its goods and services as effectively as it did in
other years.
 Net profit margin Ratio
4.50
4.00
3.50
3.00
Ratio
2.50
2.00
1.50
1.00
0.50
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
This ratio shows management’s efficiency in manufacturing, administering and selling the
products. This ratio was the highest in the year 2017-18 but gradually started galling down in the
upcoming years which means the company was not as efficient in manufacturing, administering and
selling the products as it was in the year 2017-18.

Earning before interest and

Tax to total assests
9.00
8.00
7.00
Period
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
Investors can use this ratio to ascertain how effective a company is at using assets to generate
profits. This ratio has been unstable throughout the years. It was the lowest in the year 2020-
21 which means that the company was not as effective at using assets to generate profits as it
was before.
 Earning after tax to total as-
sests
8.00
7.00
6.00
Period
5.00
4.00
3.00
2.00
1.00
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
This ratio measures the overall efficiency of the management in generating profits on the
investments in total asset. From the above graph we can analyze that the ratio started declining
from the year 2017-18 which represents inefficient utilization of total assets in generating
revenues.

Return on networth (Return on

equity)
120.00
100.00
80.00 Net Trade Cycle

60.00
40.00
20.00
0.00
Mar-21 Mar-20 Mar-19 Mar-18 Mar-17

Analysis:
This ratio measures the returns that a company earns on its net worth. From this graph we can
analyze that the return earned in all the years is different. It was the lowest in the year 2020-21 and
highest in the 2017-18.