FSA ASSIGNMENT

CEAT TYRES LTD.

ROLL NO. :
NAME: HARMEET KAUR

INTRODUCTION OF THE COMPANY

Balance sheet

Balance Sheet of Ceat (in Rs. Cr.)

2021 2020 2019 2018 2017 2016
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 40.45 40.45 40.45 40.45 40.45 35.96
Total Share Capital 40.45 40.45 40.45 40.45 40.45 35.96
Reserves and Surplus 3,124.29 2,720.15 2,710.59 2,506.37 2,265.70 931.14
Total Reserves and Surplus 3,124.29 2,720.15 2,710.59 2,506.37 2,265.70 931.14
Total Shareholders Funds 3,164.74 2,760.60 2,751.04 2,546.82 2,306.15 967.1
NON-CURRENT LIABILITIES
Long Term Borrowings 1,341.04 1,640.78 1,002.72 272.3 703.51 422.49
Deferred Tax Liabilities [Net] 265.6 261.11 207.71 178.15 134.59 109.1
Other Long Term Liabilities 79.57 164.47 4.61 12.91 27.16 1.42
Long Term Provisions 44.94 40.08 36.83 33.8 34.18 20.21
Total Non-Current Liabilities 1,731.15 2,106.44 1,251.87 497.16 899.44 553.22
CURRENT LIABILITIES
Short Term Borrowings 0.53 215.59 214.31 143.64 57.99 574.78
Trade Payables 1,943.60 1,191.12 1,033.93 848.54 749.58 669.26
Other Current Liabilities 957.42 736.77 710.86 694.19 475.44 546.91
Short Term Provisions 107.58 122.02 99.85 50.14 54.6 66.4
Total Current Liabilities 3,009.13 2,265.50 2,058.95 1,736.51 1,337.61 1,857.35
Total Capital And Liabilities 7,905.02 7,132.54 6,061.86 4,780.49 4,543.20 3,377.67
ASSETS
NON-CURRENT ASSETS
Tangible Assets 4,664.64 4,059.35 2,785.74 2,409.81 2,340.62 1,412.96
Intangible Assets 98.54 100.17 60.57 65.44 68.25 61.25
Capital Work-In-Progress 702.88 983.94 718.89 161.86 48.77 30.23
Other Assets 0 0 0 0 0 0
Fixed Assets 5,491.06 5,161.27 3,595.75 2,637.11 2,457.64 1,504.44
Non-Current Investments 118.11 110.83 313.01 279.99 194.39 124.34
Deferred Tax Assets [Net] 0 0 0 0 0 0
Long Term Loans And Advances 7.57 4.73 4.08 3.04 1.95 75.29
Other Non-Current Assets 104.2 93.52 184.34 112.27 65.65 10.05
Total Non-Current Assets 5,720.94 5,370.35 4,097.18 3,032.41 2,719.63 1,714.11
CURRENT ASSETS
Current Investments 0 0 0 40.06 64.27 0
Inventories 1,112.50 911.35 965.15 754.96 923.44 718.28
Trade Receivables 922.26 664.3 726.46 712.15 592.05 715.84
Cash And Cash Equivalents 25.51 28.92 59.74 73.01 17.47 102.96
Short Term Loans And Advances 0 0 58 49.02 50.02 93.21
OtherCurrentAssets 123.81 157.62 155.33 118.88 176.32 33.27
Total Current Assets 2,184.08 1,762.19 1,964.68 1,748.08 1,823.57 1,663.56
Total Assets 7,905.02 7,132.54 6,061.86 4,780.49 4,543.20 3,377.67
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 938.51 849.31 1,738.22 1,459.67 555.2 503.51
CIF VALUE OF IMPORTS
Raw Materials 0 0 0 0 0 1,590.55
Stores, Spares And Loose Tools 0 0 0 0 0 33.39
Trade/Other Goods 0 0 0 0 0 33.39
Capital Goods 0 0 0 0 0 21.98
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 1,365.19 1,797.45 2,009.43 1,385.56 1,442.52 23.86
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency -- -- -- -- -- 0.71
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 1,072.41 872.4 847.09 760.9 775.89 1,074.94
Other Earnings -- -- -- -- -- 16.04
BONUS DETAILS
Bonus Equity Share Capital 4.04 4.04 4.04 4.04 4.04 4.04
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value -- -- -- -- -- --
Non-Current Investments Unquoted Book Value 118.11 110.83 313.01 279.99 194.39 124.34
CURRENT INVESTMENTS
Current Investments Quoted Market Value -- -- -- 40.06 64.27 --
Current Investments Unquoted Book Value -- -- -- -- -- --
Source : Dion Global Solutions Limited
 profit & loss account
Profit & Loss account of Ceat (in Rs. Cr.)
2021 2020 2019 2018 2017
INCOME
Revenue From Operations [Gross] 7,541.69 6,680.37 6,800.06 6,244.28 6,333.04
Less: Excise/Sevice Tax/Other Levies 0 0 0 168.91 674.79
Revenue From Operations [Net] 7,541.69 6,680.37 6,800.06 6,075.37 5,658.25
Total Operating Revenues 7,572.79 6,747.86 6,831.30 6,161.34 5,701.73
Other Income 31.8 30.72 55.3 56.81 41.46
Total Revenue 7,604.59 6,778.58 6,886.60 6,218.15 5,743.19
EXPENSES
Cost Of Materials Consumed 4,173.76 3,872.96 4,273.64 3,650.33 3,308.88
Purchase Of Stock-In Trade 10.09 19.57 60.92 59.88 142.55
Changes In Inventories Of FG,WIP And Stock-In T 67.43 12.77 -194.25 93.32 -76.15
Employee Benefit Expenses 667.13 534.09 491.95 413.11 383.85
Finance Costs 173.05 149.05 64.52 86.45 79.47
Depreciation And Amortisation Expenses 339.58 277.11 174.3 161.68 142.01
Other Expenses 1,680.59 1,590.82 1,561.51 1,317.32 1,282.60
Total Expenses 7,111.63 6,456.37 6,432.59 5,782.09 5,263.21
Profit/Loss Before Exceptional, ExtraOrdinary It 492.96 322.21 454.01 436.06 479.98
Exceptional Items -34.06 -29.84 -44.24 -26.4 -13.33
Profit/Loss Before Tax 458.9 292.37 409.77 409.66 466.65
Tax Expenses-Continued Operations
Current Tax 36.6 74.01 90.09 104.08 114.45
Deferred Tax 8.66 -6.25 30.77 26.86 -10.53
Total Tax Expenses 45.26 67.76 120.86 130.94 103.92
Profit/Loss After Tax And Before ExtraOrdinary I 413.64 224.61 288.91 278.72 362.73
Profit/Loss From Continuing Operations 413.64 224.61 288.91 278.72 362.73
Profit/Loss For The Period 413.64 224.61 288.91 278.72 362.73
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 102.26 55.53 71.42 68.9 89.67
Diluted EPS (Rs.) 102.26 55.53 71.42 68.9 89.67
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0 97.08 46.52 46.52 0
Tax On Dividend 0 17.87 8.29 5.53 0
Equity Dividend Rate (%) 180 120 120 115 115
]

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Vertical analysis Horizontal analysis

2021 2020 2019 2018 2017 2021 2020 2019 2018 2017 analysis of balance sheet

1% 1% 1% 1% 1% 0% 0% 0% 0% 0%
1% 1% 1% 1% 1% 0% 0% 0% 0% 0%
40% 38% 45% 45% 50% 38% 20% 20% 10% 0%
40% 38% 45% 45% 50% 38% 20% 20% 10% 0%
40% 39% 45% 45% 51% 37% 20% 19% 9% 0%
0% 0% 0% 0% 0%
17% 23% 17% 17% 15% 91% 133% 43% -158% 0%
3% 4% 3% 3% 3% 97% 94% 54% 24% 0%
1% 2% 0% 0% 1% 193% 506% -83% -110% 0%
1% 1% 1% 1% 1% 31% 17% 8% -1% 0%
22% 30% 21% 21% 20% 92% 134% 39% -81% 0%
0% 0% 0% 0% 0%
0% 3% 4% 4% 1% -99% 272% 270% 60% 0%
25% 17% 17% 17% 16% 159% 59% 38% 12% 0%
12% 10% 12% 12% 10% 101% 55% 50% 32% 0%
1% 2% 2% 2% 1% 97% 123% 83% -9% 0%
38% 32% 34% 34% 29% 125% 69% 54% 23% 0%
100% 100% 100% 100% 100% 74% 57% 33% 5% 0%

59% 57% 46% 50% 52% 99% 73% 19% 3% 0%

1% 1% 1% 1% 2% 44% 47% -11% -4% 0%
9% 14% 12% 3% 1% 1341% 1918% 1374% 70% 0%
0% 0% 0% 0% 0%
69% 72% 59% 55% 54% 123% 110% 46% 7% 0%
1% 2% 5% 6% 4% -39% -43% 61% 31% 0%
0% 0% 0% 0% 0%
0% 0% 0% 0% 0% 288% 143% 109% 36% 0%
1% 1% 3% 2% 1% 59% 42% 181% 42% 0%
72% 75% 68% 63% 60% 110% 97% 51% 10% 0%
0% 0% 0% 0% 0%
0% 0% 0% 1% 1% -100% -100% -100% -60% 0%
14% 13% 16% 16% 20% 20% -1% 5% -22% 0%
12% 9% 12% 15% 13% 56% 12% 23% 17% 0%
0% 0% 1% 2% 0% 46% 66% 242% 76% 0%
0% 0% 1% 1% 1% -100% -100% 16% -2% 0%
2% 2% 3% 2% 4% -30% -11% -12% -48% 0%
28% 25% 32% 37% 40% 20% -3% 8% -4% 0%
100% 100% 100% 100% 100% 74% 57% 33% 5% 0%

12% 12% 29% 31% 12% 69% 53% 213% 62% 0%

17% 25% 33% 29% 32% -5% 25% 39% -4% 0%

14% 12% 14% 16% 17% 38% 12% 9% -2% 0%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

1% 2% 5% 6% 4% -39% -43% 61% 31% 0%

1% 1% -60% 0%
 vertical analysis Horizontal analysis
2021 2020 2019 2018 2017 2021 2020 2019 2018 2017

100% 100% 100% 100% 100% 19% 5% 7% -1% 0%

0% 0% 0% 3% 11% -100% -100% -100% -75% 0%
100% 100% 100% 97% 89% 33% 18% 20% 7% 0%
100% 101% 100% 99% 90% 33% 18% 20% 8% 0%
0% 0% 1% 1% 1% -23% -26% 33% 37% 0%
101% 101% 101% 100% 91% 32% 18% 20% 8% 0%

55% 58% 63% 58% 52% 26% 17% 29% 10% 0%

0% 0% 1% 1% 2% -93% -86% -57% -58% 0%
1% 0% -3% 1% -1% -189% -117% 155% -223% 0%
9% 8% 7% 7% 6% 74% 39% 28% 8% 0%
2% 2% 1% 1% 1% 118% 88% -19% 9% 0%
5% 4% 3% 3% 2% 139% 95% 23% 14% 0%
22% 24% 23% 21% 20% 31% 24% 22% 3% 0%
94% 97% 95% 93% 83% 35% 23% 22% 10% 0%
7% 5% 7% 7% 8% 3% -33% -5% -9% 0%
0% 0% -1% 0% 0% 156% 124% 232% 98% 0%
6% 4% 6% 7% 7% -2% -37% -12% -12% 0%
0% 0% 0% 0%
0% 1% 1% 2% 2% -68% -35% -21% -9% 0%
0% 0% 0% 0% 0% -182% -41% -392% -355% 0%
1% 1% 2% 2% 2% -56% -35% 16% 26% 0%
5% 3% 4% 4% 6% 14% -38% -20% -23% 0%
5% 3% 4% 4% 6% 14% -38% -20% -23% 0%
5% 3% 4% 4% 6% 14% -38% -20% -23% 0%

1% 1% 1% 1% 1% 14% -38% -20% -23% 0%

1% 1% 1% 1% 1% 14% -38% -20% -23% 0%
0% 1% 1% 1% 0%
0% 0% 0% 0% 0%
2% 2% 2% 2% 2% 57% 4% 4% 0% 0%
analysis of balance sheet co. needs to increase ir current assets as current assets are less than current liab. Which is not good for the company
co. short term provisions are so less as because co. may not getting better return from it
also, co. needs to increases it equity sh. As because it is constant for all the year & need to take debt. As they are less risker than equity
co. needs oncrease its investment as compared to other compititors of it as they have investment but returns on it are not as per the market
also company have no current investment in these 5 years as they need to do so for the groth of the company by evaluating best alternatives.

if I compared it with apollo then apollo have more assets than CEAT also return of apollo is higher so, apollo is growing far better than CEAT.
for the growth CEAT needs to do more investment to get better returns.
ey are less risker than equity
rns on it are not as per the market
any by evaluating best alternatives.

o is growing far better than CEAT.

Balance Sheet of Apollo Tyres (in Rs. Cr.)
2021 2020
EQUITIES AND LIABILITIES EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS SHAREHOLDER'S FUNDS
Equity Share Capital 63.51 57.21 Equity Share Capital
Total Share Capital 63.51 57.21 Total Share Capital
Reserves and Surplus 9,409.05 7,634.94 Reserves and Surplus
Total Reserves and Surplus 9,409.05 7,634.94 Total Reserves and Surplus
Total Shareholders Funds 9,472.56 7,692.15 Total Shareholders Funds
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Long Term Borrowings 3,660.43 3,208.32 Long Term Borrowings
Deferred Tax Liabilities [Net] 673.37 531.27 Deferred Tax Liabilities [Net]
Other Long Term Liabilities 978.71 907.44 Other Long Term Liabilities
Long Term Provisions 49.48 50.33 Long Term Provisions
Total Non-Current Liabilities 5,361.99 4,697.37 Total Non-Current Liabilities
CURRENT LIABILITIES CURRENT LIABILITIES
Short Term Borrowings 100.49 1,118.07 Short Term Borrowings
Trade Payables 1,929.26 1,610.72 Trade Payables
Other Current Liabilities 2,106.82 1,183.50 Other Current Liabilities
Short Term Provisions 192.34 180.19 Short Term Provisions
Total Current Liabilities 4,328.90 4,092.48 Total Current Liabilities
Total Capital And Liabilities 19,163.45 16,481.99 Total Capital And Liabilities
ASSETS ASSETS
NON-CURRENT ASSETS NON-CURRENT ASSETS
Tangible Assets 10,196.54 9,253.16 Tangible Assets
Intangible Assets 37.6 32.04 Intangible Assets
Capital Work-In-Progress 1,029.96 1,272.07 Capital Work-In-Progress
0
Fixed Assets 11,264.09 10,557.26 Fixed Assets
Non-Current Investments 2,409.72 2,409.52 Non-Current Investments
0
0
Other Non-Current Assets 592.07 597.66 Other Non-Current Assets
Total Non-Current Assets 14,265.88 13,564.44 Total Non-Current Assets
CURRENT ASSETS CURRENT ASSETS
Current Investments 90.07 0 Current Investments
Inventories 2,076.60 1,808.25 Inventories
Trade Receivables 732.04 445.08 Trade Receivables
Cash And Cash Equivalents 1,400.25 236.58 Cash And Cash Equivalents
0
OtherCurrentAssets 598.62 427.63 OtherCurrentAssets
Total Current Assets 4,897.57 2,917.55 Total Current Assets
Total Assets 19,163.45 16,481.99 Total Assets
OTHER ADDITIONAL INFORMATION OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 1,486.39 2,704.89 Contingent Liabilities
CIF VALUE OF IMPORTS CIF VALUE OF IMPORTS
Raw Materials 2,062.05 2,126.61 Raw Materials
Stores, Spares And Loose Tools 0 0 Stores, Spares And Loose Tools
Trade/Other Goods 0 0 Trade/Other Goods
Capital Goods 376.77 1,335.18 Capital Goods
EXPENDITURE IN FOREIGN EXCHANGE EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 388.84 458.53 Expenditure In Foreign Currency
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency -- -- Dividend Remittance In Foreign Currency
EARNINGS IN FOREIGN EXCHANGE EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 1,013.24 1,116.99 FOB Value Of Goods
Other Earnings 84.6 74.02 Other Earnings
BONUS DETAILS BONUS DETAILS
Bonus Equity Share Capital 6.31 -- Bonus Equity Share Capital
NON-CURRENT INVESTMENTS NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market V 0.12 0.04 Non-Current Investments Quoted Marke
Non-Current Investments Unquoted Book V 2,409.60 2,409.48 Non-Current Investments Unquoted Boo

--
--
Profit & Loss account of Apollo Tyres (in Rs. Cr.)
INCOME 2021 2020 INCOME
Revenue From Operations [Gross] 11,354.51 10,832.70 Revenue From Operations [Gross]
Less: Excise/Sevice Tax/Other Levies 0 0 Less: Excise/Sevice Tax/Other Levies
Revenue From Operations [Net] 11,354.51 10,832.70 Revenue From Operations [Net]
Total Operating Revenues 11,733.40 11,062.03 Total Operating Revenues
Other Income 121.52 34.9 Other Income
Total Revenue 11,854.92 11,096.93 Total Revenue
EXPENSES EXPENSES
Cost Of Materials Consumed 6,238.32 6,072.95 Cost Of Materials Consumed
Purchase Of Stock-In Trade 694.83 651.73 Purchase Of Stock-In Trade
Operating And Direct Expenses 0 0 Operating And Direct Expenses
Changes In Inventories Of FG,WIP And Stock 6.92 112.83 Changes In Inventories Of FG,WIP And St
Employee Benefit Expenses 910.9 826.12 Employee Benefit Expenses
Finance Costs 379.41 225.7 Finance Costs
Depreciation And Amortisation Expenses 713.38 620.71 Depreciation And Amortisation Expense
Other Expenses 1,848.11 2,005.52 Other Expenses
Total Expenses 10,791.87 10,515.54 Total Expenses
Profit/Loss Before Exceptional, ExtraOrdin 1,063.06 581.39 Profit/Loss Before Exceptional, ExtraOr
Exceptional Items -11.02 0 Exceptional Items
Profit/Loss Before Tax 1,052.04 581.39 Profit/Loss Before Tax
Tax Expenses-Continued Operations Tax Expenses-Continued Operations
Current Tax 190.44 102.66 Current Tax
Less: MAT Credit Entitlement 0 0 Less: MAT Credit Entitlement
Deferred Tax 138.78 -29.9 Deferred Tax
Tax For Earlier Years 0 0 Tax For Earlier Years
Total Tax Expenses 329.22 72.76 Total Tax Expenses
Profit/Loss After Tax And Before ExtraOrdi 722.82 508.62 Profit/Loss After Tax And Before ExtraO
Profit/Loss From Continuing Operations 722.82 508.62 Profit/Loss From Continuing Operations
Profit/Loss For The Period 722.82 508.62 Profit/Loss For The Period
OTHER ADDITIONAL INFORMATION OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE EARNINGS PER SHARE
Basic EPS (Rs.) 11.72 8.89 Basic EPS (Rs.)
Diluted EPS (Rs.) 11.72 8.89 Diluted EPS (Rs.)
VALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES, SPARES AND LOOSVALUE OF IMPORTED AND INDIGENIOUS RAW MATERIALS STORES
Imported Raw Materials 1,953.03 2,247.13 Imported Raw Materials
Indigenous Raw Materials 4,285.29 3,825.82 Indigenous Raw Materials
STORES, SPARES AND LOOSE TOOLS STORES, SPARES AND LOOSE TOOLS
Imported Stores And Spares 7.18 6.41 Imported Stores And Spares
Indigenous Stores And Spares 76.61 83.69 Indigenous Stores And Spares
DIVIDEND AND DIVIDEND PERCENTAGE DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 0 357.53 Equity Share Dividend
Tax On Dividend 0 73.49 Tax On Dividend
Equity Dividend Rate (%) 350 300 Equity Dividend Rate (%)
Source : Dion Global Solutions Limited
vertical analysis Horizontal analysis

0% 11%
0% 11%
49% 23%
49% 23%
49% 23%

19% 14%
4% 27%
5% 8%
0% -2%
28% 14%

1% -91%
10% 20%
11% 78%
1% 7%
23% 6%
100% 16%

53% 10%
0% 17%
5% -19%

59% 7%
13% 0%

3% -1%
 74% 5%

0%
11% 15%
4% 64%
7% 492%

3% 40%
26% 68%
100% 16%

OMMITMENTS
8% -45%

11% -3%

2% -72%
#DIV/0!
2% -15%
URRENCIES FOR DIVIDENDS
ign Currency

5% -9%
0% 14%

0%

0% 200%
13% 0%
vertical analysis Horizontal analysis
100% 5%

100% 5%
103% 6%
1% 248%
104% 7%

55% 3%
6% 7%

0% -94%
8% 10%
3% 68%
6% 15%
16% -8%
95% 3%
9% 83%
0%
9% 81%

2% 86%

1% -564%

3% 352%
6% 42%
6% 42%
6% 42%

0% 32%
0% 32%
NDIGENIOUS RAW MATERIALS STORES, SPARES AND LOOSE TOOLS
17% -13%
38% 12%

0% 12%
1% -8%
0%
0% -100%
0% -100%
3% 17%
 KEY RATIOS ANALYSIS
Liquid ratios

current ratio = current assets/ current liabilities quick ratio = current assets- inventories - prepaid expenses/

CEAT
year 2021 2020 2019 2018 2017
current ratio 0.73 0.78 0.95 1.01 1.36 quick assets
quick ratio 0.36 0.38 0.49 0.57 0.67
cash ratio 0.01 0.01 0.03 0.04 0.01
APOLLO
year 2021 as all the liquid ratio of apollo is greater than CEAT it means that APOLLO have more liquity tha
current ratio 1.13 Hence, more capable of paying it current liab.
quick ratio 0.65
cash ratio 0.32
interpretation:
current ratio shows how much current assets company have to pay it current liab. The ideal current ratio is 1.44 but it varies on co. to co.
as we can in the year 2017 co. have 1.36 rs to pay liab. Of re 1 which means co. have sufficient current assets to pay pff its liab. But as this ratio is decreasing
it means that co. decreasing it current assets to pay off its current liab. & from 2018 co. have rs 1.1 to pay off re. 1 liab. Which is okay but in 2019 , 2020 onwards copa

quick ratio: in this we have deducted the inventories as because it can be slowly converted into cash so we excuded it from current assets
if this ratio is greater than 1 it means co have sufficent quick assets to pay off its liab. But here quick ratio is decreasing as ypu can see in graph which means either co.

cash ratio : we find out this ratio as to know how much cash company have which can be converted eaisly without any risk into cash to pay off its current liab.
as in the graph it shows that co. have very less cash to pay of it current liab. We can say that co. have 0.01 average cash to pay off re 1 liab.

Profitability ratio:
CEAT APOLLO
year 2021 2020 2019 2018 2017 year
gross margin 39% 38% 36% 34% 35% gross margin
ebitda margin 11% 9% 9% 9% 10% ebitda margin
operating margin 6% 4% 6% 7% 7% operating margin
net profit margin 5% 3% 4% 4% 6% net profit margin
ROE 13% 8% 11% 11% 16% ROE
ROA 6% 4% 7% 9% 10% ROA
ROI 10% 6% 11% 14% 15% ROI
COGS
interpretation: all the profitability ratio if increases than good for the company
gross margin ratio : it shows of a company sales its inventory or marchandise . The ratio increases it means the co. is more effectively gene
as we can see the every year this ratio is increasing by 1-2 % which means company is effectively generating revenue from each re 1 sales.
than APOLLO.
EBITDA margin: it indicates that how much profit company is earing by increasing or minimizing the operating cost if this ratio increases it
as we can see that is constant for 3 year I.e in 2018-19-20 it is constant which means operating cost of the company is constant for all thre
& in 2021 this ratio increases it means that the operating cost of the company decreases or co. minimises it so profit increases. This ratio

operating margin ratio: it indicates income to net sales in the percentage it shows what we have in return on sales if company done sales
the difference between gross & operating margin is that gross margin ratio includes direct cost involve in production & operating cost in
2017 this ratio is 7 % it means company earn 7 % on sales which is done 2017 as this ratio decreases in year 2019 it means that co.'s return
this ratio is greater of apollo it means CEAT making less revenue from sales as compare to APOLLO.

net profit margin ratio: it indicated what profit co. is earning after deducting all expenses if this ratio increases it means that the business i
starts decreasing which means that company net profit declined but in 2021 it starts coming on level again. APOLLO BUSiness is running m

ROE: it indicates how company manages the shareholders capital or what shareholders financed company assets ROE needs to be betwee
as we can see that ROE is 16 % in 2017 it means shareholders funds managed good by the company as compare to other years but this ra
shareholders. But in 2021 it starts increasing which means company is coming on track but if I compare to apollo then CEAT ROE ratio is

ROA : in indicates what return company is getting on its assets. As co. is having less assets in 2017 as compered to other year then aslso re
& after this year company returen starts declining even when company increases its investment. Apollo have lower this ratio as CEAT whic

ROI: it indicates what return co. is getting on investment. If this ratio is higher in 2017 it means that the co. is earning more even smaller a
decreasing it means that whith small amount of investment co. is not earning more but in 2021 company ROI ratio increases it means aga
apollo is getting more return with smaller amount of investment as compared to the CEAT.

1 EBITDA MARGIN
0.9 1
0.9
0.8
0.8
0.7 0.7
0.6 0.6
 1 EBITDA MARGIN
0.9 1
0.9
0.8
0.8
0.7 0.7
0.6 0.6
0.5 0.5
0.4
0.4
0.3
0.3 0.2
0.2 0.1
0
0.1 2021 2020 2019 2018 2017
0
2021 2020 2019 2018 2017

Solvency ratio
CEAT APOLLO
year 2021 2020 2019 2018 2017 year
debt to assets 0.17 0.26 0.20 0.09 0.17 debt to assets
debt to equity 0.42 0.67 0.44 0.16 0.33 debt to equity
equity ratio 0.40 0.39 0.45 0.53 0.51 equity ratio

interpretation: debt to assets: if this ratio is greater then 1 it means that co. as we can see debt to assets ratio of APOLLO is low
have more assets than debt but as we can see in all the year debt to than APOLLO & have less assets than Apollo
assets ratio is less than 1 it means that co. have more assets than debt & in debt to equity ratio as this ratio of apollo is le
& have more equity than CEAT
debt to equity: it indicates how much debt co. have for 1 re equity as this ratio is 0.42 in 2021 it means that
co.have . 42 re debt foe re 1 equity as this ratio higher in year 2020 it means that co. have more debt then equity
as this ratio is .33 in year 2017 it means that co. have 33 % debt as compared to equity

equity ratio: it means the proprtion of total assets financed by the shareholders for equity ratio as it is higher of apollo it means m
as this ratio is decreasing it is not good for the company. financed by equity as compared ton apollo

Efficiency ratio
CEAT
year 2021 2020 2019 2018 2017 year
debtors turnover ratio 9.5 9.6 9.5 9.6 9.7 average debtors
collection period 38 38 39 38 38 average creditors
average inventories
year 2021 2020 2019 2018 2017 purchase
creditors turnover ratio 2.79 3.78 4.37 5.37 5.49
storage period 131 97 83 68 66

year 2021 2020 2019 2018 2017

inventory turnover ratio 4.52 4.43 5.03 4.91 4.99
payment period 81 82 73 74 73

APOLLO
year 2021 year 2021 year
debtors turnover ratio 19 creditors turnover ratio4 inventory turnover rati
collection period 19 payment period 83 storage period

creditors turnover ratio
debtors turnover ratio
inventory turnover ratio
interpretation:
as this ratio is lower of CEAT it means that APOLLO IS paying to its creaditors more oftently as compared to CEAT with in shorter period as
as this ratio is lower of CEAT it means that more debtors of apollo is converted in to cash as compared to CEAT with in shorter collection p
apollo have this ratio lower it means it has more stock as compared to CEAT in as storage & they able to clear it in longer period as compa
debtors turnover ratio: it indicates no. debtors convered into cash , if collection period of the company decreases it means that more no. o
doing delay in payment
internal analyst compares days sales in recievables with the company company's credit term as an indication of how efficiently the co. ma
as this ratio 9.7 & collection period is 38 in 2017 it means payment received by more debtors as compared to 2018 like wise for year 2020

creditors tirnover ratio: it indicates how often co. pay off debts as this ratio is higher in starting years it means that copany is good in clear
& also payment period period is increasing it means that the co. taking more time to clear its debts

inventory turnover ratio : it indicated how efficiently co. is clearing it stock as this ratio decreases in 2018 it me
as storage period is increasing it means co. is taking time to clear its stocks also this r
or for longer period stored in wharehouse
CEAT
year 2021 2020 2019 2018 2017 formula:
fixed assets turnover ratio 1.37 1.29 1.89 2.37 2.58 fixed assets turnover ra
assets turnover ratio 0.95 0.94 1.12 1.31 1.39 assets turnover ratio
capital turnover ratio 1.63 1.45 1.79 2.18 2.06 capital turnover ratio
fixed assets turnover ratio it indicates how efficiently co. is earning revenue from it fixed assets as this ratio is decreasing it means
that co. is gerenating low revenue from it fixed assets as compared to perivious years
assets turnover ratio it indicates how efficiently co. is earning revenue from it assets as this ratio is decreasing it means
that co. is gerenating low revenue from it total assets as compared to perivious years even if total assets are
increasing
capital turnover ratio it indicate how efficiently capital employeed been utilize
as we can this ratio is decreasing it means that the capital employeed not been utlilize in effective
way by the company

APOLLO
year 2021 fixed assets turnover ratio as we can see APOLLO fixed assets ratio is lower than the CEAT it means that apollo is getting low
fixed assets turnover ratio 1.01 return on fixed assets as compared to CEAT.
assets turnover ratio 0.59 assets turnover ratio this ratio of apollo is lower then the CEAT it means that POLLO is getting lower return than CEAT
capital turnover ratio 1.20 capital turnover ratio this ratio of apollo is lower then the CEAT it means that POLLO is utilizing it capital employeed les
TIOS ANALYSIS

ssets- inventories - prepaid expenses/ current liab.

liquid ratio
2021 2020 2019 2018 2017 1
1,071.58 850.84 999.53 993.12 900.13
0.9

0.8

0.7
ns that APOLLO have more liquity than CEAT. 0.6

0.5

0.4

0.3

0.2
But as this ratio is decreasing
0.1
okay but in 2019 , 2020 onwards copany have shortage as they don’t have sufficient current assets to pay off its liab.
0
year 2021 2020 2019

n see in graph which means either co. increasing their current liab. Or co. decreasing their quick assets. current ratio quick ratio cash rati

cash to pay off its current liab.

2021 FORMULA: 2021 2020 2019 2018 2017

29% Gross margin = sales-COGS/sales COGS 4,574.76 4,152.78 4,325.37 4,119.12 4,099.45
16% EBITDA margin = EBITDA/ sales EBITDA 798.48 569.48 584.07 571.34 608.66
9% operating maegin = EBIT/ sales EBIT 458.9 292.37 409.77 409.66 466.65
6% net profit margin = PAT/ sales equity 3,164.74 2,760.60 2,751.04 2,546.82 2,306.15
 8% Return on assets = EBIT / total assets capital emplo4,630.29 4,605.93 3,795.20 2,865.83 3,071.00
5% ROI = EBIT / capital employeed
28% ROE = PAT / equity note: as no interest paid by the company as we have not included
8,093.35

means the co. is more effectively generation revenue from each re 1 sales
nerating revenue from each re 1 sales. This ratio of apollo is lower than CEAT it means CEAT is revenue more effectively

operating cost if this ratio increases it means that companyh minimizes its operating cost & vice verca
of the company is constant for all three years so there is no impact or canstant impact on the profit of the company
imises it so profit increases. This ratio of the apollo is greater it means that apollo operating cost is less than CEAT.

return on sales if company done sales of 100 rs so what co. get as a revenue on it
olve in production & operating cost includes the operating expenses like overheads
in year 2019 it means that co.'s return on sales decreases by 1 % as compared to 2018 but from2021 again it gear up.

o increases it means that the business is going successful. As we can see that it is higher in 2017 after that it that
l again. APOLLO BUSiness is running more effectively than CEAT.

mpany assets ROE needs to be between 15- 20 % it is good for the company
y as compare to other years but this ratio starts decreases from 2018 it means co. is less effectively manages the funds of the
pare to apollo then CEAT ROE ratio is better CEAT IS managing shareholder funds in better way.

s compered to other year then aslso return is more as we can see that this ratio is higher in the year 2017
ollo have lower this ratio as CEAT which means CEAT is getting more return on assets as compared to apollo

the co. is earning more even smaller amount of investmentr in 2017 but after this it starts
mpany ROI ratio increases it means again which smaller investment co. is earning more.

ARGIN OPERATING MARGIN NET PROFIT MARGIN

1
1 0.8
0.8
0.6
ARGIN OPERATING MARGIN NET PROFIT MARGIN
1
1 0.8
0.8
0.6
0.6
0.4
0.4
0.2
0.2
0
0 2021 2020 2019 2018 2017
2021 2020 2019 2018 2017
019 2018 2017

formula
2021 debt to assets ,= debt / assets debt to equity
0.06 debt to equity ,= debt / equity 1
0.11 equity ratio ,= shareholders funds / total assets 0.8
0.49 0.6
0.4
0.2
ee debt to assets ratio of APOLLO is lower thwn CEAT it means that CEAT have more debt 0
O & have less assets than Apollo 2021 2020 2019 2018 2017
o equity ratio as this ratio of apollo is less then CEAT it means APOLLO have less debt than CEAT
e equity than CEAT
debt to
bt then equity equity ratio 1
1
0.8
0.8
0.6 0.6
atio as it is higher of apollo it means more profortion of assets are
0.4 0.4
equity as compared ton apollo
0.2 0.2
0
2021 2020 2019 2018 2017 0
2021 2020 20

2021 2020 2019 2018 2017

1

0.9

0.8
 1
793 695 719 652 654
1567 1113 941 799 709 0.9
1012 938 860 839 821
4,373.61 4,206.58 4,115.18 4,287.60 3,894.29 0.8

0.7

0.6

0.5

0.4
2021 year 2021
4.17 average debtor 588.56 0.3
88 average credito1769.99
average invento1942.425 0.2

ared to CEAT with in shorter period as compare to apollo

0.1
ed to CEAT with in shorter collection period
e to clear it in longer period as compared to CEAT.
0
any decreases it means that more no. of debtors are 2021 2020 2019 2018 20

ndication of how efficiently the co. manages its recievable debtors turnover ratio creditors turnover ratio
inventory turnover ratio
mpared to 2018 like wise for year 2020 & 2021

s it means that copany is good in clearing its debt oftently in starting

ck as this ratio decreases in 2018 it means inventory clear slowly this year as storage period also increases
aking time to clear its stocks also this ratio starts declining from the year 2019 it means that inventory clears slowly and it is more

turn over ratios

,= sales/ fixed assets
,= sales/ total assets 1
,= sales/ capital employeed
0.9
0.8
0.7 fixed assets turnover ratio
0.6 capital turnover ratio
 turn over ratios

1
0.9
0.8
0.7 fixed assets turnover ratio
0.6 capital turnover ratio
assets turnover ratio
0.5
0.4
0.3
0.2
0.1
0
2021 2020 2019 2018 2017
CEAT it means that apollo is getting lower

OLLO is getting lower return than CEAT on fixed assets.

OLLO is utilizing it capital employeed less effectively than the CEAT
iquid ratio

2020 2019 2018

quick ratio cash ratio

 1

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2
 0.6

0.5

0.4

0.3

0.2

0.1

0
2021 2020 2019 2018 2017

ROE ROA ROI

ty

2018 2017

debt to assets
1
0.8
0.6
0.4
0.2
0
2021 2020 2019 2018 2017
 1

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

2019 2018 2017 0

2021 2020 2019 2018 2017
creditors turnover ratio