Liquidity Ratios 2012 2011 Current Ratio 20‚025/24‚025=0.83 17‚003/27‚075=0.63 Quick Ratio (7‚138+10‚744)/24‚025=0.74 (6‚252+9‚259)/27‚075=0.57 Activity Ratios Receivable Turnover 46‚417/((10‚744+9‚259)/2)=4.6 45‚884/((9‚259+8‚784)/2)=5.1 Inventory Turnover 31‚546/((486+537)/2)=61.7 30‚814/((537+433)/2)=63.5 Profitability Ratios Rate of Return on Assets 7‚003/((139‚576+151‚220)/2)=4.8% 7‚870/((151‚220+156‚985)/2)=5.1% Rate of Return on (7‚003-56)/((78
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Provisions 1.92 1.67 1.56 1.45 Net Current Assets -0.88 -1.09 -0.63 0.09 Miscellaneous Expenses 0 0 0 0 Total Assets 3.27 3.61 4.61 5.88 Contingent Liabilities 1.3 1.3 1.31 1.31 Book Value (Rs) -23.01 -26.19 -25.62 -25.09 Comparison & Ratio Analysis of two FMCG (Fast-Moving Consumer Goods) Companies. 1. Tarai Foods Limited. 2. Tata Global Beverages. Tata Global Beverage (Rs. In Crores) Mar ’13 Mar ’12 Mar ’11 Mar ’10 Sources Of Funds Total Share Capital 61
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Receivables Turnover Ratio interpretation Receivables Turnover Ratio is one of the efficiency ratios and measures the number of times receivables are collected‚ on average‚ during the fiscal year. Receivables Turnover Ratio formula is: Receivables Turnover Ratio formula Receivables turnover ratio measures company’s efficiency in collecting its sales on credit and collection policies. This ratio takes in consideration ONLY the credit sales. If the cash sales are included‚ the ratio will be affected
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Accounting ratios are relationships expressed in mathematical terms between the figures which are connected with each other in some manner. Obviously‚ no purpose is served by comparing two sets of figures which are not at all connected with each other. Moreover‚ absolute figures are also unfit for comparison. The following are the different classification of ratios: 1. Traditional classification: The traditional classification has been on the basis of the financial statement to which the determinants
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RATIO ANALYSIS (ALL VALUES IN Rs. MILLION) 1. GROSS PROFIT MARGIN (%): GROSS PROFIT = NET SALES – COGS = TOTAL REVENUE – (Employee Benefit Expense + Operating and Other Expenses + Finance Costs) = 53107 – (22510+21598+1025) = 7974 GROSS PROFIT MARGIN = (NET SALES – COGS)/NET SALES = (7974/ 53107)*100 = 15.01497% 2. RETURN ON ASSET(RoA) RETURN ON ASSET = (PAT/TOTAL ASSET)*100 = (4606/63454)*100 = 7.258% This indicates that around 7.3% of all assets have been utilized
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Ratio | Industry benchmark ratio | Woolworths’ ratio | Brief Comment | Current Ratio | 1.2:1 | 0.80:1 | The current ratio ofWoolworth is considerablybelow industry average themovement from it is 33.33% (1.2-0.8)/1.2*100) Which is not really good for business | Liquid ratio | 0.7:1 | 0.34:1 | The Liquid ratio of Woolworth is considerably below industry average. The movement is 51.43 %. It is showed that the business may have problem in paying their debt.(0.7-0.34/0.7*100) | Gross Profit ratio
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rates have been observed to depend on aspect ratio ~ depth/width ! rather than the absolute feature size. 1 Several mechanisms have been invoked to explain the ‘‘rule’’ of aspect-ratio-dependent etching ~ ARDE ! ‚ but no general theory has emerged that captures the variety of seemingly conflicting experimental observations reported in the literature. 1‚2 For example‚ while an ion-neutral synergy model with pure neutral flux shadowing appears to be con- sistent with a wealth of
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FINANCIAL RATIOS Gross Profit to Sales (Gross Profit Ratio): profitability ratio that shows the relationship between gross profit and total net sales revenue. Gross margin/Net sales The gross margin is not an exact estimate of the company’s pricing strategy but it does give a good indication of financial health. Without an adequate gross margin‚ a company will be unable to pay its operating and other expenses and build for the future. In general‚ a company’s gross profit margin should be stable
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The Golden Ratio The golden ratio is a unique number approximately equal to 1.6180339887498948482. The Greek letter Phi (Φ) is used to refer to this ratio. The exact value for the golden ratio is the following: ` A popular example of the application of the golden ratio is the Golden Rectangle. Interestingly enough‚ many artists and architects have proportioned their works to apply the golden ratio in the form of the golden rectangle. A golden rectangle is a rectangle where the ratio of the longer
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Ratio Analysis Ratio analysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratio analysis focuses on three key aspects of a business: liquidity‚ profitability‚ and solvency. Liquidity ratios Liquidity ratios measure the ability of a company to repay its short-term debts and meet unexpected cash needs. Current ratio. The current
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