Income Statement

2021 2020
Rs. Rs.
Revenues 120,000 107,000
Cost of Sales (69,000) (66,000)
Gross Profit 51,000 41,000
Operating Expenses (20,000) (17,000)
Profit before interest and tax 31,000 24,000
Interest Expense (3,000) (2,000)
Profit before Tax 28,000 22,000
Income Tax Expense (9,000) (7,000)
Profit After Tax 19,000 15,000

Dividend Paid During the Year 6,000 5,000

Balance Sheet
2021 2020
Rs. Rs.
Assets
Non-Current Assets 47,000 28,000
Current assets - -
Inventory 28,000 27,000
Trade Receivables 11,000 10,000
Cash and Bank 13,000 14,000
52,000 51,000
Total Assets 99,000 79,000

Equity and Liabilities - -

Equity Shares of Rs. 10 Each 15,000 13,000
Retained Earnings 45,000 32,000
60,000 45,000
Non-Current Liabilities - -
Debentures 19,000 17,000
Current Liabilities - -
Trade Payables 20,000 17,000
Total Equity and Liabilities 99,000 79,000

Other Information
Market Price Per Share 52 40
S.No Ratio Category Unit Industry Benchmark
1 Inventory Turnover Ratio Activity Ratios Days 90
2 Receivable Turnover Ratio Activity Ratios Days 60
3 Payable Turnover Ratio Activity Ratios Days 120
4 Cash Conversion Cycle Activity Ratios Days 30
5 Current Ratio Liquidity Ratios times 2
6 Quick Ratio Liquidity Ratios times 1
7 Debt to Equity Ratio Solvency Ratios % 25%
8 Financial Leverage Ratio Solvency Ratios times 1
9 Interest Coverage Solvency Ratios times 5
10 Return on Capital Employed Profitability Ratios % 25%
11 Return on Equity Profitability Ratios % 20%
12 Return on Assets Profitability Ratios % 15%
13 Earnings per Share Valuation Ratios Rs. Per Share 10
14 Dividend per Share Valuation Ratios Rs. Per Share 8
15 Dividend Payout Ratio Valuation Ratios % 40%
16 P/E Ratio Valuation Ratios times 4
37,500 70,000

27,500
10,500
13,500
51,500
89,000
-
-
14,000 1,400
38,500
52,500
-
18,000
-
18,500
89,000
-
-
46
 - -
- -
Compnay
145
32
96
81
2.78
2.22
34%
2
(10)
44%
36%
21%
14
4
32%
3
1. Inventory Turnover Ratio:

Definition: Inventory Turnover Ratio measures how efficiently a company manages its inventory.
Industry Benchmark: 90 days
Company Ratio: 145 days
Analysis:
Favorable/Unfavorable: The company's inventory turnover ratio is unfavorable, as it takes longer to turn over its inv
Factors Contributing: Possible factors include slow-moving inventory, production inefficiencies, or a product portfol

2. Receivable Turnover Ratio:

Definition: Receivable Turnover Ratio assesses the efficiency of collecting accounts receivable.
Industry Benchmark: 60 days
Company Ratio: 32 days
Analysis:
Favorable/Unfavorable: The company's receivable turnover ratio is favorable, indicating efficient collection of accou
Factors Contributing: Efficient credit policies, a strong customer base, or streamlined collection procedures may con

3. Payable Turnover Ratio:

Definition: Payable Turnover Ratio assesses how quickly a company pays its suppliers.
Industry Benchmark: 120 days
Company Ratio: 96 days
Analysis:
Favorable/Unfavorable: The company's payable turnover ratio is favorable, implying efficient management of trade
Factors Contributing: Effective supplier relationships, negotiated payment terms, and well-managed payables may b

4. Cash Conversion Cycle:

Definition: The Cash Conversion Cycle measures the time it takes for a company to convert its investments in inven
Industry Benchmark: 30 days
Company Ratio: 81 days
Analysis:
Favorable/Unfavorable: The company's cash conversion cycle is unfavorable, signifying longer cash conversion time
Factors Contributing: Extended collection periods, inefficient inventory management, or delayed payment to suppli

5. Current Ratio:

Definition: The Current Ratio measures a company's ability to cover short-term obligations with its current assets.
Industry Benchmark: 2 times
Company Ratio: 2.78 times
Analysis:
Favorable/Unfavorable: The company's current ratio is favorable, indicating strong liquidity.
Factors Contributing: Efficient working capital management, strong cash flow, or higher cash reserves may contribu
Please let me know if you would like an analysis for the remaining ratios in your dataset.

6. Quick Ratio:

Definition: The Quick Ratio assesses a company's ability to cover short-term obligations with its most liquid assets (
Industry Benchmark: 1 times
Company Ratio: 2.22 times
Analysis:
Favorable/Unfavorable: The company's quick ratio is favorable, indicating strong liquidity without reliance on inven
Factors Contributing: High levels of cash, marketable securities, or accounts receivable that can be quickly converte

7. Debt to Equity Ratio:

Definition: The Debt to Equity Ratio measures the proportion of a company's financing that comes from debt and e
Industry Benchmark: 25%
Company Ratio: 34%
Analysis:
Favorable/Unfavorable: The company's debt to equity ratio is unfavorable, indicating a higher reliance on debt fina
Factors Contributing: Financing decisions and debt management may be contributing to the higher ratio.

8. Financial Leverage Ratio:

Definition: The Financial Leverage Ratio indicates the extent to which a company uses financial leverage to amplify
Industry Benchmark: 1 times
Company Ratio: 2 times
Analysis:
Favorable/Unfavorable: The company's financial leverage ratio is unfavorable, indicating a higher reliance on levera
Factors Contributing: Increased use of debt to finance operations or investments may be contributing to the ratio.

9. Interest Coverage:

Definition: Interest Coverage measures a company's ability to cover its interest expenses with earnings.
Industry Benchmark: 5 times
Company Ratio: (10) times
Analysis:
Favorable/Unfavorable: The company's interest coverage ratio is unfavorable, indicating an inability to cover intere
Factors Contributing: Inadequate earnings to cover interest expenses may result from high debt levels or operation

10. Return on Capital Employed:

Definition: Return on Capital Employed (ROCE) measures the profitability of a company in relation to its invested ca
Industry Benchmark: 25%
Company Ratio: 44%
Analysis:
Favorable/Unfavorable: The company's ROCE is favorable, indicating efficient use of capital.
Factors Contributing: Effective allocation of capital, higher net income, or optimized asset utilization contribute to t
Please let me know if you'd like an analysis for the remaining ratios in your dataset.

11. Return on Equity:

Definition: Return on Equity (ROE) measures a company's profitability in relation to shareholders' equity.
Industry Benchmark: 20%
Company Ratio: 36%
Analysis:
Favorable/Unfavorable: The company's ROE is favorable, signifying strong profitability in relation to shareholders' e
Factors Contributing: Strong net income and efficient management of shareholders' equity may contribute to this r

12. Return on Assets:

Definition: Return on Assets (ROA) assesses a company's profitability concerning its total assets.
Industry Benchmark: 15%
Company Ratio: 21%
Analysis:
Favorable/Unfavorable: The company's ROA is favorable, indicating efficient use of assets to generate profits.
Factors Contributing: Effective asset management and cost controls may be contributing to this ratio.

13. Earnings per Share (EPS):

Definition: Earnings per Share (EPS) measures a company's profit allocated to each outstanding share of common st
Industry Benchmark: Rs. 10 per share
Company Ratio: Rs. 14 per share
Analysis:
Favorable/Unfavorable: The company's EPS is favorable, reflecting higher earnings per share.
Factors Contributing: Strong financial performance and efficient cost management contribute to higher earnings av

14. Dividend per Share:

Definition: Dividend per Share represents the dividend amount distributed to each outstanding share of common st
Industry Benchmark: Rs. 8 per share
Company Ratio: Rs. 4 per share
Analysis:
Favorable/Unfavorable: The company's dividend per share is unfavorable, indicating a lower dividend distribution.
Factors Contributing: The company may be retaining more earnings for reinvestment or other capital allocation prio

15. Dividend Payout Ratio:

Definition: The Dividend Payout Ratio measures the proportion of earnings distributed as dividends.
Industry Benchmark: 40%
Company Ratio: 32%
Analysis:
Favorable/Unfavorable: The company's dividend payout ratio is favorable, indicating a more conservative approach
Factors Contributing: A strategic decision to retain earnings or allocate them differently may contribute to this ratio

16. P/E Ratio:

Definition: The Price-to-Earnings (P/E) Ratio measures the valuation of a company's shares in relation to its earning
Industry Benchmark: 4 times
Company Ratio: 3 times
Analysis:
Favorable/Unfavorable: The company's P/E ratio is favorable, indicating that the company's shares are valued lowe
Factors Contributing: Investor perception, industry-specific factors, or expectations of future earnings growth may b
s inventory.

akes longer to turn over its inventory compared to the industry benchmark.
fficiencies, or a product portfolio with a longer shelf life.

ng efficient collection of accounts receivable.

collection procedures may contribute to this performance.

efficient management of trade payables.

well-managed payables may be factors.

nvert its investments in inventory and accounts receivable into cash.

ng longer cash conversion times.

or delayed payment to suppliers may contribute to this.

tions with its current assets.

er cash reserves may contribute to this ratio.

 ns with its most liquid assets (excluding inventory).

dity without reliance on inventory.

e that can be quickly converted into cash may contribute to this ratio.

g that comes from debt and equity.

a higher reliance on debt financing.

to the higher ratio.

s financial leverage to amplify returns.

ting a higher reliance on leverage.

be contributing to the ratio.

ses with earnings.

ting an inability to cover interest expenses with earnings.

m high debt levels or operational challenges.

ny in relation to its invested capital.

 sset utilization contribute to this ratio.

hareholders' equity.

y in relation to shareholders' equity.

equity may contribute to this ratio.

sets to generate profits.

ting to this ratio.

utstanding share of common stock.

ntribute to higher earnings available for each share.

utstanding share of common stock.

a lower dividend distribution.

or other capital allocation priorities.

d as dividends.
a more conservative approach to dividend distribution.
tly may contribute to this ratio.

hares in relation to its earnings.

pany's shares are valued lower in relation to earnings.

f future earnings growth may be contributing to the lower P/E ratio.