5.
1 GROSS PROFIT RATIO
TABLE NO. 5.1
Year
Gross profit
Net sales
Ratio
2008-09
59931765
800505334
7.49
2009-10
71548914
796603759
8.98
2010-11
37568096
1075791642
8.49
2011-12
65744071
1552284622
7.23
2012-13
62766513
1414771304
8.44
CHART NO. 5.1
10
8.98
9
8
8.49
7.49
8.44
7.23
7
6
5
4
3
2
1
0
2009
2010
2011
2012
2013
Interpretation:
In the year 2008-09 the gross profit ratio is 7.49, Compared to the previous
year, in 2009 -10 the ratio raise to 8.98. Followed by 8.49 in 2010-11. In 2011-12
the gross profit reach to 7.23. By upgrading in 2012-13 it reaches to 8.44.
5.2 NET PROFIT RATIO
TABLE NO. 5.2
Year
Net profit
Net sales
Ratio
2008-09
66784806
800505334
8.34
2009-10
71548914
796603759
8.98
2010-11
37568096
1075791642
8.49
2011-12
43058461
1552284622
7.77
2012-13
48259473
1414771304
9.41
CHART NO. 5.2
12
10
8.34
8.98
9.41
8.49
7.77
8
6
4
2
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
Net profit was 8.34 in the year 2008-09. But in 2009-10 with a slight raise it
reaches to 8.98. In 2010-11 net profit ratio was 8.49. In the year 2011-12 it
decreases to 7.77. It becomes 9.41 in the year 2012-13 with a progress.
. 5.3 OPERATING RATIO
TABLE NO. 5.3
Year
Operating cost
Net sales
Ratio
2008-09
664986324
800505334
83.07
2009-10
659198875
796603759
82.75
2010-11
853803417
1075791642
79.36
2011-12
1246695656
1552284622
80
2012-13
1121600202
1414771304
79.10
CHART NO. 5.3
84
[VALUE]
83
83.07
82
81
80
80
79.36
79
79.1
78
77
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
In 2008-09, the operating ratio was 83.07. But compared to the previous
year, in 2009-10 it reaches to 82.75. In 2010-11 operating ratio becomes 79.36.
With a slight change it reaches to 80 in the year 2011-12. In 2012-13 it becomes
79.1.
.
5.4 ADMINISTRATIVE EXPENSE RATIO
TABLE NO. 5.4
Year
Administrative Expenses
Net sales
Ratio
2008-09
162129131
800505334
20%
2009-10
160101349
796603759
20%
2010-11
184744972
1075791642
17%
2011-12
198299496
1552284622
18%
2012-13
197954321
1414771304
18%
18%
18%
CHART NO. 5.4
20%
20%
17%
2008-09
Interpretation:
2009-10
2010-11
2011-12
2012-13
Administrative ratio is 20% in the year [Link] is same for the exceeding
year 2009-10. But as compared to previous two years it reaches to 17% in the year
2010-11. In 2011-12 it becomes 18% and in the year 2012-13 it doesnt make any
change in percentage of administrative ratio.
5.5 CURRENT RATIO
TABLE NO. 5.5
Year
Current assets
Current liabilities
Ratio
2008-09
314010676
109580995
2.8
2009-10
253952210
60543051
2010-11
318275041
65334919
2011-12
278974492
95891117
2.9
2012-13
133041072
38011735
3.5
CHART NO 5.5
16%
21%
2008-09
23%
17%
2009-10
2010-11
2011-12
2012-13
23%
Interpretation:
Ideal ratio of current ratio is 2:1, here in this case in 2008-09 the current
ratio
is 2.8. In the year 2009-10 it rises to 4. It is same in the year 2010-11. In
the year 2011-12 it again decreases to 2.9. In the next year it increases to 3.5.
5.6 ABSOLUTE LIQUID RATIO
TABLE NO 5.6
Year
Cash at bank
Current liabilities
Ratio
2008-2009
36160488
109580995
0.32
2009-2010
479377497
60543051
0.79
2010-2011
3987251
65334919
0.06
2011-2012
6882609
95891117
0.71
2012-2013
2661185
38011735
0.07
CHART NO. 5.6
0.9
0.79
0.8
0.71
0.7
0.6
0.5
0.4
0.32
0.3
0.2
0.07
0.06
0.1
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
Absolute liquid ratio in the year 208-09 is 0.32. But in the next accounting
year it rise to 0.79. In the year 2010-11 it comes down to 0.06. The next year it
again rise to 0.71 and finally in the year 2012-13 it decreases as 0.07.
5.7 LIQUID RATIO
TABLE NO. 5.7
Year
Liquid assets
Current liabilities
Ratio
2008-09
127518530
109580995
2009-10
145543661
60543051
2010-11
128932566
65334919
2011-12
907991891
95891117
2012-13
79186070
38011735
CHART NO. 5.7
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
Ideal ratio is 1:1 i.e., for every current liability of rs.1 is have to maintain
liquid asset of rs.1. Here in this case in the year 2008-09 quick ratio is 1. In the
year 2009-10 it is 2, same for the year 2010-11. It comes to 1 in the year 2011-12.
Again in the year 2012-13 it came as 2.
5.8 INVENTORY TURNOVER RATIO
TABLE NO. 5.8
Year
Sales
Average stock
Ratio
2008-09
800505334
26199670
2009-10
796603759
2873349
2.7
2010-11
1075791642
3613897767
2.9
2011-12
1552284622
64841135
2.3
2012-13
1414771304
3414730
CHART NO. 5.8
4
3.5
3
2.5
2
1.5
1
0.5
[VALUE]
2.9
2.3
2010-11
2011-12
2012-13
0
2008-09
2009-10
Interpretation:
In the year 2008-09 the inventory turnover ratio is 3 times by dividing the
sales with average stock of the company. But in 2009-10 it reduces by 2.7 times. In
the year 2010-11 it made a slight change by 2.9 times. In 2011-12 it decreases by
2.3 times. But as compared to all the previous years it reaches to 4 times in 201213.
5.9 WORKING CAPITAL RATIO
TABLE NO 5.9
Year
Net Sales
Working capital
Ratio
2008-09
800505334
204429681
3.9
2009-10
796603759
193409159
2010-11
1075791642
252940122
4.2
2011-12
1552284622
183083375
4.8
2012-13
1414771304
1292398337
4.3
CHART NO. 5.9
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
3.9
2008-09
2009-10
4.2
4.8
4.3
2010-11
2011-12
2012-13
Interpretation:
Working capital ratio is an essential factor in every company for the current
financial meetings. In 2008-2009 it is 3.9 times. In 2009-2010 it does not make any
high variation, it is 4 times. In 2010-2011 it makes a slight change [Link] the
year 2011-2012 it increased by 4.8,but in 2012-2013 it decrease by 4.8.
5.10 DEBTORS TURNOVER RATIO
TABLE NO. 5.10
Year
Net credit sales
Average debtors
Ratio
2008-2009
288364241
116400960
2009-2010
546031683
94482103
2010-2011
124975291
27369124
2011-2012
83909282
26340329
2012-2013
90282681
43693212
CHART NO. 5.10
6
4
3
3
2
1
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
In 2008-09 debtors turnover ratio is 2 times which is derived by dividing net
credit sales with average debtors .But in 2009-10 it increases to 5 times. In 201011 it decreases as 4 times. In the year 2011-12 it again decreases by 3 times. In
2012-13 it becomes 2.5 times.
5.11 FIXED ASSETS TURNOVER RATIO
TABLE NO. 5.11
Year
Net Sales
Net Fixed assets
Ratio
2008-2009
800505334
82121342
2009-2010
2010-2011
796603759
1075791642
85061326
94856114
9.3
11.3
2011-2012
1552284622
89031776
17
2012-2013
1414771304
95697337
14
CHART NO 5.11
14
2008-09
9.3
2009-10
2010-11
17
11.3
2011-12
2012-13
Interpretation:
Fixed assets turnover ratio is derived by dividing by net sales and net fixed
assets. In 2008-09 it is 9 times. It doesnt make any change in the year 2009-10.
But in 2010-11 it increases to 11.3 times. In the year 2011-12 it increases with a
high rise to 17 times. It is 14 times during the year 2012-13.
5.12 CURRENT ASSETS TURNOVER RATIO
TABLE NO 5.12
Year
Net Sales
Current assets
Ratio
2008-09
800505334
314010676
2.5
2009-10
796603759
253952210
3.1
2010-11
1075791642
318275041
3.3
2011-12
1552284622
278974492
2012-13
1414771304
133041072
5.6
CHART NO.5.12
5.6
5
4
3.1
3.3
2009-10
2010-11
2.5
3
2
1
0
2008-09
2011-12
2012-13
Interpretation:
Current assets are those assets which can easily convert into cash form.
Current assets turnover ratio is obtained with the elements like net sales and
current assets. In 2008-09 it shows the ratio with 2.5 times. In the year 2009-10 it
becomes 3.1 times. It doesnt make any drastic change in the year 2010-11. In
2011-12 it rises to 5 times. In the year 2012-13 it is 5.6 times.
5.13 TOTAL ASSETS TURNOVER RATIO
TABLE NO.5.13
Year
Net Sales
Total Assets
Ratio
2008-09
800505334
396132018
2.02
2009-10
796603759
339013536
2.34
2010-11
1075791642
413131155
2.60
2011-12
1552284622
368006268
4.2
2012-13
1414771304
228738409
4.18
CHART NO.5.13
4.5
4.2
4.18
4
3.5
3
2.5
2.6
2.02
2.34
2
1.5
1
0.5
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
In the year 2008-09 the total assets turnover ratio is 2.02. It comes to 2.34 in
2009-10. In the next year total assets turnover ratio is 2.6. But in 2011-12 it rises to
4.2. It is a huge change. Finally in the year 2012-13 it comes to 4.18.
5.14 AVERAGE COLLECTION PERIOD
TABLE NO 5.14
Year
Debtor Turnover Ratio
Ratio
2008-2009
182.5
2009-2010
73
2010-2011
91.25
2011-2012
121.6
2012-2013
146
CHART NO 5.14
182.5
146
121.6
91.25
73
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
In 2008-09 average collection period ratio is 182.5 which is derived by
dividing 365 with debt turnover ratio. But in 2009-10 it decreases to 73. In 201011 it increases to 91.25. In the year 2011-12 it again increases to [Link] 2012-13
it becomes 146.
5.15 INVENTORY HOLDING PERIOD
TABLE NO 5.15
Year
Inventory Turnover Ratio
Ratio
2008-09
121.6
2009-10
2.7
135.18
2010-11
2.9
125.8
2011-12
2.3
158.6
2012-13
91.25
CHART NO 5.15
91.25
121.6
2008-09
2009-10
158.6
135.18
2010-11
2011-12
2012-13
125.8
Interpretation:
Inventory holding period for the year 2008-09 is 121.6 days. In 2009-10 it
became 135.18days. In 2010-11 inventory holding period comes to 125.8. In 201112 it has increased to 158.6 days. But in 2012-13, it decreased to 91.25days.
5.16 DEBT TO EQUITY RATIO
TABLE NO 5.16
Year
Long term loans Shareholders Fund
Ratio
2008-09
109788647
20000000
5.5
2009-10
59446874
20000000
2.9
2010-11
95785711
20600000
4.6
2011-12
73000000
20600000
3.5
2012-13
56500000
20800000
2.7
CHART NO 5.16
6
5.5
4.6
2008-09
4
3
3.5
2009-10
2.9
2.7
2010-11
2011-12
2012-13
1
0
Interpretation:
Debt equity ratio shows the percentage of debt and equity rate of the
company. In the year 2008-09 it is 5.5 times. In the next year it decreases to 2.9
times. In the year 2010-11 it increases to 4.6 times. It is 3.5 times during the year
2011-12. In the year 2012-13 it reaches to 2.7 times.
5.17 PROPRIETARY RATIO
TABLE NO 5.17
Year
Proprietors Fund
Total assets
Ratio
2008-09
88284806
396132018
0.22
2009-10
135429927
339013536
0.39
2010-11
160062994
413131155
0.38
2011-12
203121455
368006268
0.55
2012-13
251580929
228738409
1.0
CHART NO 5.17
1
1
0.9
0.8
0.7
0.55
0.6
0.38
0.39
0.5
0.4
0.22
0.3
0.2
0.1
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
Proprietary ratio is derived by dividing the proprietors ratio by total assets.
In 2008-09 it is 0.22 and in the year 2009-10 is 0.39. It doesnt make much
difference in the year 2010-11 i.e. 0.38. In the year 2011-12 it increases to 0.55. In
the year 2012-13 I increases to 1.0.
5.18 TOTAL ASSETS TO DEBT RATIO
TABLE NO 5.18
Year
Total assets
Long term loans
Ratio
2008-2009
396132018
109788647
2.86
2009-2010
339013536
59446874
4.2
2010-2011
413131155
95785711
3.32
2011-2012
368006268
73000000
5.2
2012-2013
228738409
56500000
3.28
CHART NO.5.18
6
5.2
5
4.2
4
3.32
3.28
2.86
3
2
1
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
In the year 2008-2009 the total assets to debt ratio was [Link] the year
2009-2010 it increased to [Link] 2010-2011 it decreased to [Link] the year 20112012 it has increased to [Link] it comes down to 3.28 in the year 2012-2013.
5.19 FIXED ASSETS RATIO
TABLE NO. 5.19
Year
Net Fixed assets
Capital employed
Ratio
2008-09
82121342
20000000
4.10
2009-10
85061326
20000000
4.25
2010-11
94856114
20600000
4.6
2011-12
89031776
20600000
4.32
2012-13
95697337
20800000
4.6
CHART NO. 5.19
5
4.6
4.5
4.1
4.6
4.32
4.25
4
3.5
3
2.5
2
1.5
1
0.5
0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Interpretation:
Fixed assets ratio is derived dividing fixed assets by capital employed. It is
4.10 in the year 2008-09 and it became 4.25 in the year 2009-10. In 2010-11 it
comes to 4.6 and 4.32 in the year 2011-12. It again become 4.6 in the year 201213.
5.20 CURRENT ASSETS TO FIXED ASSETS RATIO
TABLE NO.5.20
Year
Current assets
Fixed assets
Ratio
2008-2009
314010676
82121342
3.82
2009-2010
253952210
85061326
2.98
2010-2011
318275041
94856114
3,35
2011-2012
278974492
89031776
3.13
2012-2013
133041072
95697337
2.39
CHART NO 5.20
4
3.5
3
2.5
2
1.5
1
0.5
0
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Interpretation:
Current assets to fixed assets ratio was 3.82 in the year 2008-09. But it
became 2.98 in the year 2009-10. In the year 2010-11 it rises to 3.35 and 3.13 in
2011-12. But gradually it became 2.39 in the year 2012-13.
