Benchmarks

Trends
With Direct Competition

P & L reporting

Gross Sales
- All Direct Costs

Gross Profit / Contribution

- Indirect Expenses / Overheads

EBITDA / PBDITA
- Depreciation & Amortization

EBIT / PBIT

- Interest

EBT / PBT
+ Other Income
- Taxes

PAT

Profitability Ratios

Operating Profit / Business Profit

 Return on Equity (RoE) =

Return on Capital Employed (ROCE) =

Operating efficiency Ratios

Receivables Turnover =

Receivable days =

Inventory Turnover =
JIT

SHIT
Jugaad Inventory days =
 Net Working Capital days

Net Working Capital =

Liquidity Ratios

Current Ratio =

Acid Test Ratio =

Quick Ratio

Interest Coverage Ratio =

Debt Service Coverage Ratio =

Interest to be paid + (Principal Due / (1 - I

Leverage Ratios

Debt Equity Ratio =

 Market ratios

EPS =

PE ratio =
Price to Earnings ratio
 COGS / COP R/m - Direct labour - manufacturing

Operating Profit / Business Profit

Gross Profit % = Gross Profit

Gross Sales

EBIT / PBIT % = EBIT

Gross Sales
 PAT % = PAT
Gross Sales

PAT = cost of equity

Total Equity

Operating profit or use PAT + Interest

Total Equity + all loans outstanding

Gross Sales
Average Receivables

Avg Receivable X 365 DSO

Gross Sales

Raw Material
COGS (Sales) Work In Progress
Average Inventory Finished Goods
Spares / Stores / Consumables
Bought outs
Avg Inventory X 365
COGS (Sales)
 Avg Working Capital X 365 Working Capital Cycle
Gross Sales

Current Assets - Current Liabilities

CA - Receivable + Inventory + Cash and Bank

Current Assets between 1.5 to 2

Current liabilities

Liquid Current Assets between 0.3 to .5

Current liabilities

PBDITA Should be higher than 3

Interest to be paid

PBDITA Should be higher than 1.5

Interest to be paid + (Principal Due / (1 - Inc Tax rate)

Debt
 Equity

PAT
Number of shares

Mkt Price of share

EPS
anufacturing
sumables
+ Cash and Bank