Financial analysis with the

help of ratios of Ultra tech

cement & India cement
Semester VI
Group 8
 Introduction of Ultratech cement.

• Indian Cement Company.

• Largest manufacturer of cement.
• Catering the need of Individual
House Builders.

Jeba 36
 Objectives
Indian Cement ltd Ultratech cement ltd

• To create value of an • To actively

sustainable basis for contribution to social
and economic
all stakeholders. development.
• To innovate and • To mainly focuses on
leadership in cement. education, healthcare,
Manufacturer infrastructure, and
social causes
Tamil selvi 89
 WORKING CAPITAL RATIO
The working capital ratio shows the ratio of assets to
liabilities, i.e. how many times a company can pay off its
current liabilities with its current assets.  
The working capital ratio calculation is: 
Year 22 21 20 19
 Working capital ratio = current assets / current
liabilities  Quick 0.72 0.98 0.77 0.61
Working 0.99 1.17 1.03 0.87
QUICK RATIO capital
The quick ratio, also called an acid-test ratio, measures a
company’s short-term liquidity against its short-term obligations.
Essentially, the ratio seeks to figure out if a company has enough
liquid assets (cash or things that can easily be converted into cash) to
cover its current liabilities and impending debts.
Quick ratio = quick assets / current liabilities

Manisha 31
 Earning Per Share(EPS)
• Earning Per Share is an important
financial measure, which
indicates the profitability of a
company.
Price Earning Ratio (P/E)
PE ratio is the ratio for valuing a
Year 22 21 20 19
company that measures its current 245 185.20 189.15 84.33
EPS
share price relative to its per share PE ratio 38.2 34.7 35.2 39.2
earnings. Change in 32.29% (2.09%) 124.29% 3.77%
%

Priya 40
Debt Equity Ratio
Debt equity ratio indicates how
much debt the company is using to
finance its assets relative to the value
of shareholders equity.

Return on equity ratio Year 22 21 20 19

Debt equity ratio 0.31 0.45 0.54 0.64
Return on Equity ratio shows how Return on equity 14.34% 12.32% 14.24% 8.64%
much money is returned to the
owners as a percentage of the money
they have invested or retained in the
company. Shilpa 41
 Introduction to India cement
• India cements Ltd is the largest producer of cement in south India.
• India cements Ltd was founded in the year 1946 by two men:
Shri SNN Sankar Linga Iyer
Shri TS Narayanaswami
• India cements has ventured into related fields like shipping, captive
power and coal mining that have purposeful synergy to the core business.
• India cements has now 8 integrated cements plants in Tamil nadu,
Telangana, Andra Pradesh and Rajasthan and two grinding units one each
in Tamil nadu and Maharashtra.

Jasmine 23
Financial Analysis with the help of ratios of India Cement
Consolidated Balance Sheet Statement (in crores)

Nisha 38
 Current Ratio
Current Ratio is also known as ‘Working Capital Ratio’,
‘Solvency Ratio’ or 2 to 1 ratio’. This ratio expresses the
relationship between Current assets and current liabilities.
March 2021 March 2022
Current Ratio = Total of Current Assets = 1838.37 = 2541.54
Total of Current Liabilities 2492.73 2730.75
= 0.74 = 0.93

Liquid Ratio
Liquid Ratio is also known as’ quick ratio’ or ‘quick assets ratio’
or ‘acid test ratio ‘ or near-money ratio’.or ‘1 to 1 ratio ‘.
March 2021 March 2022
Quick Ratio = Current Assets – Inventory – Prepaid Expenses = 1222.35 = 1670.91
Current Liabilities 249273 2730.75
= 0.50 = 0.62
 EPS RATIO OF INDIAN
CEMENT
Earnings Per Share (EPS)
Ratio is a valuation metric
measures how much money
a company makes on a per
share basis.This metric
indicates the company's
ability to generate net profits
for common shareholders.

Ancy 34
 P/E RATIO OF INDIAN
CEMENT
• P/E Ratio indicates the multiple of
earnings investors are willing to pay
to own one share of the company.
Thus, for THE INDIA CEMENTS ,
the investors are currently willing to
pay -119.11 times earnings to own 1
share of the company
Return on Equity :
Return on Equity (ROE) is the measure of a company’s annual return
(net income) divided by the value of its total shareholders’ equity, expressed as
a percentage.

Return on Investment = Net Profit

Shareholder’s Equity Parameshwari 13
 Conclusion
• FINANCIAL RATIOS OFFER
ENTREPENEURS A WAY TO
EVALUATE THEIR COMPANY’S
PERFORMNACE AND COAMPARE IT
OTHER SIMILAR BUSINESSES IN
THEIR INDUSTRY ….
• RATIOS MEASURE THE
RELATIONSHIP BETWEEN TWO OR
MORE COMPONENTS OF
FINANCIAL STATEMENTS . THIS
ALLOWS YOU TO FOLLOW YOUR
COMPANY
THANK
YOU