SUBMITTED TO- SUBMITTED BY-

MRS. RITIKA ARORA RITURAJ BARANWAL(PGP24201)

TANYA AGARWAL(PGP24261)
ABHISAKSHI SINGH(PGP24005)
RONIT YADAV(PGP24207)

1|Page
 Contents
COMPARISON Between BRITANNIA AND NESTLE Ltd............................................................

Ratios:-............................................................................................................................................

CAGR-............................................................................................................................................

COMPARISON BETWEEN ZEE ENTERTAINMENT and BALAJI TELEFILMS.......................

Ratios: -...........................................................................................................................................

CAGR-............................................................................................................................................

2|Page
COMPARISON Between BRITANNIA AND NESTLE
Ltd.

This report is formed for two companies in the same Industry i.e FMCG and the companies
are BRITANNIA and NESTLE ltd. The data of both companies are given in the excel file that
has been taken for the year 2018 to 2022.
We have taken certain ratios for comparison amongst the companies taken in the excel file.
The comparison has been done based on five major ratios for the year 2018 to 2022.

Ratios:-
1) Current Ratio
2) Quick Ratio
3) Gross Profit Ratio
4) Proprietary Ratio
5) Net Profit Ratio

3|Page
 1) CURRENT RATIO- current ratio is that is in line with the industry average or
slightly higher is generally considered acceptable. The ideal industry ratio is 2:1 of
the FMC industry current ratio which is lower than the industry average and may
indicate a higher risk of distress or default. Similarly, if a company has a very high
current ratio compared with its peer group, it indicates that management may not
be using its assets efficiently, here in the case of BRITANNIA their ratio as it
was very high in 2018 and now it is considered as it is 0.933, It denotes that
the capacity to pay off its liabilities is decreasing year on year, on the other
hand the ratio of NESTLE is also declining but it is better than BRITANNIA.
2) QUICK RATIO- This Ratio indicates the company’s ability to instantly use its
near-cash assets (assets that can be converted quickly to cash) to pay down its
current liabilities, it is also called the acid test ratio. An "acid test" is a slang term
for a quick test designed to produce instant results, as the ideal ratio of the FMCG
industry is 2:1, the ratios of BRITANNIA from 2018 to 2022 are decreasing
denoting that the liquidity of the company is decreasing and if we compare
BRITANNIA and NESTLE, the ratios of NESTLE are better indicates its
liquidity to meet its short-term obligations.
3) GROSS PROFIT RATIO- The gross profit margin shows the amount of profit
made before deducting selling, general, and administrative costs, which is the
firm's net profit margin Gross profit margin is a metric analyst use to assess a
company's financial health of the company. In 2022 BRITANNIA had GP ratio

4|Page
 18.31 and NESTLE had 19.71. It denotes that NESTLE has better financial
health in comparison with BRITANNIA on the basis of Gross Profit Ratio.
4) PROPRIETOR’S RATIO- The shareholder-equity ratio shows how much of a
company's assets are funded by issuing stock rather than borrowing money. The
closer a firm's ratio result is to 100%, the more assets it has financed with stock
rather than debt. The ratio is an indicator of how financially stable the company
may be in the long run. The Proprietors ratio of BRITANNIA from the year
2018-2022 is better than that of NESTLE, it shows that BRITANNIA’s Assets
are funded more by shareholder funds than that of NESTLE.
5) NET PROFIT RATIO- Net profit ratio is one of the most important indicators of
a company's financial health. By tracking increases and decreases in its net profit
margin, a company can assess whether current practices are working and forecast
profits based on revenues. For the year 2018 to 2022, NESTLE’s ratio is more
than that of BRITANNIA. It is denoting that on the basis of revenue
NESTLE is making a better profit in comparison with BRITANNIA.

CAGR-
1) The CAGR from investing activities of BRITANNIA was for the year
2018,2019,2020 is negative from the year 2021 it was positive and now it is
positive for the year 2022.
2) The CAGR from investing activities of NESTLE’s was negative for the year
2018 and 2019 then it was positive for 2020, again from 2021 and 2022 it was
negative which means the company is generating negative revenue from
Investing activity.

5|Page
COMPARISON BETWEEN ZEE ENTERTAINMENT
and BALAJI TELEFILMS

This report is formed for two companies in the same Industry i.e Financial Services and the
companies are ZEE ENTERTAINMENT and BALAJI Telefilm’s. The data of both
companies are given in the excel file that has been taken for the year 2018 to 2022.
We have taken certain ratios for comparison amongst the companies taken in the excel file.
The comparison has been done based on five major ratios for the year 2018 to 2022.

Ratios: -
1) Current Ratio
2) Quick Ratio
3) Gross Profit Ratio
4) Proprietary Ratio
5) Net Profit Ratio

6|Page
 1) CURRENT RATIO- A current ratio that is in line with the industry average or
slightly higher is generally considered acceptable. The ideal industry ratio is 2:1 of the
ENTERTAINMENT INDUSTRY current ratio which is lower than the industry
average and may indicate a higher risk of distress or default. Similarly, if a company
has a very high current ratio compared with its peer group, it indicates that
management may not be using its assets efficiently, here in the case of BALAJI
TELEFILMS, they have improved their ratio as it was very high in 2018 and
now it is considered as it is 3.487. On the other hand, ZEE ENTERTAINMENT
Current ratios are better than BALAJI TELEFILMS it denotes that they are
properly using their assets.
2) QUICK RATIO- This Ratio indicates the company’s ability to instantly use its near-
cash assets (assets that can be converted quickly to cash) to pay down its current
liabilities, it is also called the acid test ratio. An "acid test" is a slang term for a quick
test designed to produce instant results, as the ideal ratio of the Entertainment industry
is 2:1, the ratios of BALAJI TTELEFILMS from 2018 to 2022 are decreasing
denoting that the liquidity of the company is decreasing and if we compare
BALAJI TELEFILMS and ZEE ENTERTAINMENT the ratios of BALAJI
TELEFILMS are better which indicates its liquidity to meet its short-term
obligations.
3) GROSS PROFIT RATIO- The gross profit margin shows the amount of profit made
before deducting selling, general, and administrative costs, which is the firm's net
profit margin Gross profit margin is a metric analyst use to assess a company's
financial health of the company. In 2022 BALAJI TELEFILMS had GP ratio 2.68
and ZEE ENTERTAINMENT had 23.81, it denotes that ZEE
ENTERTAINMENT has better financial health in comparison with BALAJI
TELEFILMS on the basis of Gross Profit Ratio.
4) PROPRIETOR’S RATIO- The shareholder-equity ratio shows how much of a
company's assets are funded by issuing stock rather than borrowing money. The closer
a firm's ratio result is to 100%, the more assets it has financed with stock rather than
debt. The ratio is an indicator of how financially stable the company may be in the
long run. The Proprietors ratio of ZEE ENTERTAINMENT from the year 2018-
2022 is better than that of BALAJI TELEFILMS, it shows that ZEE
ENTERTAINMENT Assets are funded more by shareholder funds than that of
BALAJI TELEFILMS.

7|Page
 5) NET PROFIT RATIO- Net profit ratio is one of the most important indicators of a
company's financial health. By tracking increases and decreases in its net profit
margin, a company can assess whether current practices are working and forecast
profits based on revenues. For the year 2018 BALAJI TELEFILMS ratio is more
than that of ZEE ENTERTAINMENT but later from 2019 to 2022 BALAJI
TELEFILMS and ZEE ENTERTAINMENT their both net ratio decreases but
BALAJI TELEFILMS decreases in constant manner weather ZEE
ENTERTAINMENT ratio’s decreases with high margin therefore BALAJI
TELEFILMS is better than ZEE ENTERTAINMENT.

CAGR-

1) The CAGR from investing activities of ZEE ENTERTAINMENT was for the
year 2018,2019 and 2020 is positive for the year 2021 it was negative and now
it is positive for the year 2022.
2) The CAGR from investing activities of BALAJI TELEFILMS was negative
for the year 2018, 2019 and 2020 then it was positive for 2021, again for 2022
it was negative which means the company is generating negative revenue from
Investing activity.

8|Page
9|Page