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Michael Born and Decreto 1772 Analysis

The document analyzes various financial ratios for a company from 2007-03 to 2011-03. It discusses trends in the company's gross profit ratio, net profit ratio, cash EPS, dividend per share, and return on capital employed over this period. The gross profit ratio saw a drastic decrease in 2011-03 compared to previous years, but the net profit ratio increased compared to 2010-03, possibly due to lower interest rates or expenses. The cash EPS declined from 2010-03, which could be due to lower depreciation or more shares outstanding. The dividend per share has increased each year, and the return on capital employed was up in 2011-03, indicating good company efficiency.

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Shankar Prakash
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38 views3 pages

Michael Born and Decreto 1772 Analysis

The document analyzes various financial ratios for a company from 2007-03 to 2011-03. It discusses trends in the company's gross profit ratio, net profit ratio, cash EPS, dividend per share, and return on capital employed over this period. The gross profit ratio saw a drastic decrease in 2011-03 compared to previous years, but the net profit ratio increased compared to 2010-03, possibly due to lower interest rates or expenses. The cash EPS declined from 2010-03, which could be due to lower depreciation or more shares outstanding. The dividend per share has increased each year, and the return on capital employed was up in 2011-03, indicating good company efficiency.

Uploaded by

Shankar Prakash
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Gross Profit Ratio: (Gross Profit/SALES)*100

Year Gross Profit Ratio

2011-03 -5.97

2010-03 1.31

2009-03 9.60

2008-03 11.83

2007-03 13.31

Analysis : As we can see that the gross profit ratio has a drastic decrease as compared to the previous year we say it as a bad sign to the company . this may be hike in the rawmaterials

Net Profit Ratio: (Net Profit/SALES)*100

Year Net Profit Ratio

2011-03 20.57

2010-03 20.39

2009-03 13.31

2008-03 13.17

2007-03 13.42

Analysis : Though there is a difference in the gross profit, the net profit is increased Compared to the previous year. This is a good sign for the company. This might be Because of a low interest rate of that year or less operating expences or a lees rate of taxes .

Cash EPS: (Net Profit to Equity owners+Depreciation+Non-Cash exp/ No of equity shares outstanding)*100

Year

2011-03

2010-03 46.67

2009-03 29.34

2008-03 23.85

2007-03 22.09

Adjusted Cash 33.06 EPS Ratio

Analysis : here we can see that there is a decline from the previous year. There could be a less depreciation as compared to the last year or the company has a large amount of the equities amount that is outstanding.

Dividend Per Share: (Dividend Paid to Ordinary Shareholders/ No of Ordinary shareholders outstanding)*100

Year Dividend Per Share

2011-03 6.25

2010-03 5.00

2009-03 4.50

2008-03 4.50

2007-03 4.00

Analysis: as we can see the company ios gradually increasing the dividend value year by year . The reason of giving high dividend rate this year could be because of the company have reached to its value share .

Return on Capital Employed: (EBIT/Average Total Capital Employed)*100

Year ROCE

2011-03 27.47

2010-03 26.4

2009-03 19.99

2008-03 20.32

2007-03 20.95

Analysis : The roce of the current year is raised as compared to the previous year. This shows the company effiency and we can say that the company is running in good condition

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