Income Statement

Particulars Amount
Revenue from Operations (Sales/Turnover) XX
Other Income XX
Total Revenue XX

Operating Expenses:
Cost of Material Consumed XX
Employees Benefit expenses XX
Operating and Other Expenses XX
EBITDA (Earning before interest, tax, depreciation and amortisation) XX

Add: Share of profit/(loss) joint venture and associates XX (Will only come if Consolidated Financials received)
Less: D&A XX
EBIT (Earning before interest and Tax) XX

Less: Finance Cost (interest) XX

EBT (Earning before tax/Profit before tax) XX

Less: Tax XX
NI/PAT (Net Income/Profit after tax) XX

Effective Tax Rate (Current Tax/PBT) XX For current tax consider current tax in tax expense, tax expense of JV and associates wont come
EBIT (Operating Income)/Core earning XX
NOPAT (Net Operating profit after tax)(EBIT*(1-t)) XX

Common Size Statement

Particulars Formula
Revenue from Operations (Sales/Turnover) Revenue / Total Revenue
Other Income Other Income / Total Revenue
Total Revenue 100%
Operating Expenses:
Cost of Material Consumed Cost of Material Consumed/ Total Revenue
Employees Benefit expenses Employees Benefit expenses / Total Revenue
Operating and Other Expenses Operating and Other Expenses/ Total Revenue
EBITDA Margin EBITDA Margin/ Total Revenue
Add: Share of profit/(loss) joint venture and associates Share of profit/(loss) joint venture and associates/ Total Revenue
Less: D&A D&A/ Total Revenue
EBIT Margin EBIT Margin/ Total Revenue
Less: Finance Cost (interest) Finance Cost (interest)/ Total Revenue
EBT Margin EBT Margin/ Total Revenue
Less: Tax Tax/ Total Revenue
Net Profit Margin Net Profit Margin/ Total Revenue

Ratios
Overall Performance Ratio For all overall performance ratios, higher the better
ROA/ROTA (Before Tax) EBIT/TA
ROA/ROTA (After Tax) EBIT*(1-t)/TA
ROE NI/Equity
ROCE (Before Tax) EBIT/TA-CL
ROCE (After Tax) EBIT(1-t)/TA-CL
Profit Margin Ratios For all Profit margin ratios, higher the better
EBITDA Margin EBITDA/Sales
EBIT Margin/OPM EBIT/Sales
EBT Margin EBT/Sales
Net Profit Margin NI/Sales
Asset Turnover Ratio Sales/Total Assets

Two Factor Dupont Analysis Higher the better

ROA EBIT margin * Asset Turnover

Three Factor DuPont Higher the better

NPM NP/Sales
ATR Sales/Total Assets
Total Leverage Total Assets/Equity
ROE NPM*ATR*TL

Five Factor Dupont Higher the better

Tax Factor NI/EBT
Interest Factor EBT/EBIT
EBIT Margin EBIT/Sales
ATR Sales/TA
TL TA/Equity
ROE TF*IF*EM*ATR*TL

Turnover or Efficiency Ratios Higher the better

Non-Current Asset Turnover Ratio Sales/NCA
PPE Utilisation Ratio/ Capital Intensity Ratio Sales/PPE
Current Asset Turnover Ratio Sales/CA
Equity Turnover Ratio Sales/Equity

Working Capital Ratio Reasoning / notes

Working Capital Turnover Ratio
Inventory Turnover Ratio (ITR)
Day's Inventory
Debtors Turnover Ratio (DTR)
Day's receivable or Average Collection Period
Creditor Turnover Ratio (CTR)
Day's Creditors/Average Payment Period
Cash Cycle (Days)
Sales/Working Capital (CA-CL)
Sales/Inventory
365/ITR Decreasing means beneficial, means inventory sold out faster
Sales/Debtors
365/DTR Decreasing means beneficial, means debtors paying on time
Mateiral Consumed/Creditors
Decreasing better, paying creditors faster, but the same should not be less than debtor as it would
365/CTR indicate that we pay creditors faster than debtors
Decreasing ratio or lower ratio better. Means that company is converting cash faster, negative is
Days inventory + Days debtors - Days Payable beneficial as it would mean ideal cash for a long time which can be used in other activities

Insolvency Ratio Reasoning / notes

Debt All interest bearing liabilites are debt Consider, financial liabilities - borrowing and lease liability - both for current and non current
Shows financial leverage, ideal is less than 1. More than 2 is risky. Negative ratio is extremely risky.
Debt/Equity Ratio Total Debt/ Equity
Debt Ratio /Debt Capitalisation Ratio Debt/ (Debt + Equity) Debt ratio + Equity ratio = 1
Equity Ratio/ Equity Capitalisation Ratio Equity/(Debt + Equity) Debt ratio should be less than equity ratio
Shows how many times interest can be paid from earning left before interest payment. Higher the
Interest Coverage Ratio EBIT/ Interest better
Shows how many times interest and loan can be paid from earning left before loan payment.
Total Debt Service Ratio EBIT/ (Interest + Debt) Higher the better
Test of Dividend Policy Reasoning / notes
Dividend Per Share Dividend Declared/ No. of share outstanding
Earning Per Share NI/ No of share outstanding
Current Market Price
Dividend Yeild Ratio Divident/ Current Market Price
Retension Ratio 1- D/P Ratio
Dividend Payout Ratio (D/P Ratio) DPS/EPS Higher the better, but always high not good as company doesn’t invest in own operations

Liquidity Ratios Reasoning / notes

Current Ratio Current Assets/ Current Liabilities Ideal ratio 2:1
Quick Ratio/ Acid Test Ratio (CA-Inventory)/ CL Ideal ratio 1:1

Valuation Ratios
Book Value per Share Total Equity/ No. of Share Outstanding
Market Value Per Share (on balance sheet date) market value of share
Earning Per share NI/ No of share outstanding
Price Earning Ratio (P/E) MPS/EPS
Price to Book Value Ratio (P/B) MPS/BVPS
No. of share outstanding Equity/Face Value
Face Value Per Share
Top Line Growth (YoY) CY/PY -1
Bottome Line Growth
Compound Annual Growth Rate (CAGR) nth root of current year/base year -1