TITAN

GROUP 12- Himanshu Agrawal

Prachi Harshey
Pragya Khare
Samrudhi Bhide
SudhanshuPurandare
 LIQUIDITY RATIO
• The solvency ratio examines a company's ability to meet its
long-term obligations.
• This ratio is most often used by prospective lenders when
evaluating a company's creditworthiness.
• A higher ratio percentage result indicates a company's increased
ability to cover its liabilities over the long term.
 CURRENT RATIO

Current Ratio  The current ratio compares all of a

company’s current assets to its current
3.08 3.17 liabilities. These are usually defined as
2.94
assets that are cash or will be turned into
cash in a year or less, and liabilities that
1.9 1.97 will be paid in a year or less.
 Current Ratio=Current Assets
Current Liabilities​​

2015 2016 2017 2018 2019

 QUICK RATIO

• The quick ratio indicates a company's Quick Ratio

capacity to pay its current liabilities
1.82
without needing to sell its inventory or get 1.77

additional financing. 1.55

1.3
1.25

• The higher the ratio result, the better a

company's liquidity and financial health.

• QR= CA−I−PE​
CL 2018 2016 2017 2018 2019
 FIXED ASSET TURNOVER RATIO
• The fixed asset turnover ratio reveals Fixed Asset Turnover Ratio
how efficient a company is at
generating sales from its existing fixed 3.65

assets. 3.3

• A higher ratio result implies that 2.63

2.5
management is using its fixed assets 2.41

more effectively.
• A high FAT ratio does not tell anything
about a company's ability to generate
solid profits or cash flows.
• FAT=Average Fixed Assets 2015 2016 2017 2018 2019

Net Sales​
 ACTIVITY RATIOS

 Activity ratios is defined as a set of financial ratios that

measures how effectively a business uses its operating
assets and convert them into sales or cash .
 Total Assets Turnover
 Fixed Assets Turnover
 Current Assets Turnover
 FORMULAS:
 Total Assets Turnover = Sales/Total Assets
 Fixed Assets Turnover = COGS/Fixed Assets
 Current Assets Turnover = COGS/Current Assets
TITAN:
Mar 19 Mar 18 Mar 17 Mar 16 Mar 15
TOTAL 2.26 2.31 2.09 3.21 3.73
ASSETS
TURNOVER
FIXED ASSETS 14.55 13.95 16.10 8.47 10.00
TURNOVER
CURRENT 1.75 1.94 2.05 1.44 1.52
ASSETS
TURNOVER
 Profitability Ratio
PROFITABILITY RATIO IS USED TO EVALUATE
THE COMPANY’S ABILITY TO GENERATE INCOME
AS COMPARED TO ITS EXPENSES AND OTHER
COST ASSOCIATED WITH THE GENERATION OF
INCOME DURING A PARTICULAR PERIOD. THIS
RATIO REPRESENTS THE FINAL RESULT OF THE
COMPANY.
1. Net Profit Margin: Net Profit is used to calculate the percentage of profit a
company produces from its total revenue.

Net profit margin = Net profit

Total Sales

Net Profit Margin(%)

8
7
6
5
4
3
2
1
0
2015 2016 2017 2018 2019
2. Return on Assets:
• Return on Assets (ROA) is an indicator of how well a company utilizes its
assets, by
determining how profitable a company is relative to its total assets.

• ROA is best used when comparing similar companies or comparing a company

to its
previous performance.
Return on asset = Net Income
Total Asset
Return on Asset
16
14
12
10
8
6
4
2
0
2015 2016 2017 2018 2019
3. Return on Capital Employed:
• Return on capital employed measures how efficiently a company can
generate profits from its capital employed by comparing net operating profit
to capital employed.

• ROCE is a long-term profitability ratio because it shows how effectively

assets are performing while taking into consideration long-term financing.
Return on Capital= Net operating profit
Total Asset- Total Current Liabilities

Return on Capital Employed

35
30
25
20
15
10
5
0
2015 2016 2017 2018 2019
 EPS AND DPS
 Earning per Share (EPS) = Profit after preference
dividend/ Number of equity share.

 Dividend per Share (DPS)= Dividend paid or

Declared/Number of Shares.
 TITAN :

Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

EPS (Rs) 15.48 13.10 8.58 7.95 9.27

DPS (Rs) 50000 per share 37500 per share 26000 per share 22000 per share 23000 per share
ROE OF TITAN COMPANY LTD.
ROE = NET
INCOME/SHARE
HOLDER’S EQUITY
NET INCOME &
SHARE HOLDER’S EQUITY
RETURN ON EQUITY(ROE)
4510.22
4312.01

3408.55
2016 2016
2018 31% 2017
40% 2018
1728.07
1173.78 2017
1009.85
29%

2016 2017 2018

NET INCOME SHARE HOLDER'S EQUITY

THANK YOU!