Manufacturing

Net Profit Margin Net Pretax Profit ÷ Revenue The bottom line -- the amount you have left after every other expense is taken out. (Sageworks adjusts the number so any extra funds the owners have taken out have been added back in.)

5%

Gross Profit Margin Gross Profit ÷ RevenueGross profit is your revenue minus what it costs to make your product.

35%

* EBITDA Margin EBITDA ÷ RevenueMany companies use this as a shorthand measure of cash flow. EBITDA is earnings before interest, taxes, depreciation, and amortization.<

7.9%

Return on Equity Net Income ÷ Total Equity The return your shareholders are getting on their investment. 15.6%

Return on Assets Net Income ÷ Total Assets Net income generated for each dollar of assets. It's especially relevant for capital-intensive industries, like manufacturing.

7.9%

Interest Coverage Ratio

EBITDA ÷ Interest Expense This ratio shows roughly how easily you can repay your debts. 7.5

Debt to Equity Ratio Total Liabilities ÷ Total EquityWhat you owe compared with what you own. 2.2

Sales per Employee $203,965

Profit per Employee $12,191

Payroll as % of Sales 15%

Advertising as % of Sales

0.8%

Inventory Days (Inventory ÷ Cost of Goods Sold) x 365 The amount of time it takes to convert inventory into sales.

49

Accounts Payable Days

(Accounts Payable ÷ Cost of Goods Sold) x 365 The number of days, on average, you take to pay your bills. 34

Accounts Receivable Days

(Accounts Receivable ÷ Sales) x 365 The number of days, on average, your customers take to pay you. 41

Current Ratio Total Current Assets÷Total Current Liabilities The amount of cash (or assets that can be turned into cash) on hand.

2.5

Quick Ratio (Cash + Accounts Receivable) ÷ Total Current Liabilities Similar to the current ratio, this is a good measure of a company's short-term cash position.

1.4

Sample Size 3,673

Adjusted Net Profit Before Tax % Change

9.60%

Sales % Change 6.30%

OperatingProfit/Sales 7.00%%

Larsen and Toubro Previous Years »

Key Financial Ratios

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00

Dividend Per Share 14.50 12.50 10.50 17.00 13.00

Operating Profit Per Share (Rs) 96.55 84.42 70.72 110.81 71.77

Net Operating Profit Per Share (Rs) 717.03 612.26 578.06 853.36 622.91

Free Reserves Per Share (Rs) 347.12 294.74 205.21 319.09 197.15

Bonus in Equity Capital 73.86 74.67 76.77 53.71 55.44

Profitability Ratios

Operating Profit Margin(%) 13.46 13.78 12.23 12.98 11.52

Profit Before Interest And Tax Margin(%)

11.82 12.41 11.14 11.97 10.34

Gross Profit Margin(%) 12.14 12.74 11.39 12.19 13.24

Cash Profit Margin(%) 8.96 9.21 8.50 8.78 8.63

Adjusted Cash Margin(%) 8.96 9.21 8.50 8.78 8.60

Net Profit Margin(%) 8.82 11.56 10.06 8.54 7.74

Adjusted Net Profit Margin(%) 8.82 11.56 10.06 8.54 7.72

Return On Capital Employed(%) 22.35 22.49 24.14 26.72 29.82

Return On Net Worth(%) 18.44 23.95 27.99 22.81 24.44

Adjusted Return on Net Worth(%) 15.94 16.81 21.21 21.21 24.39

Return on Assets Excluding Revaluations

352.40 303.28 212.31 325.87 202.30

Return on Assets Including Revaluations

352.76 303.66 212.73 326.76 203.29

Return on Long Term Funds(%) 23.23 23.19 25.62 28.73 32.59

Liquidity And Solvency Ratios

Current Ratio 1.20 1.19 1.22 1.09 1.16

Quick Ratio 1.18 1.15 0.97 0.86 0.93

Debt Equity Ratio 0.33 0.37 0.53 0.38 0.36

Long Term Debt Equity Ratio 0.30 0.33 0.44 0.28 0.25

Debt Coverage Ratios

Interest Cover 10.01 11.17 13.09 28.57 25.07

Total Debt to Owners Fund 0.33 0.37 0.53 0.38 0.36

Financial Charges Coverage Ratio 5.90 6.09 6.35 7.41 7.52

Financial Charges Coverage Ratio Post Tax

4.80 5.81 5.92 5.75 5.72

Management Efficiency Ratios

Inventory Turnover Ratio 29.73 28.73 6.01 6.00 6.03

Debtors Turnover Ratio 3.70 3.48 3.89 3.88 3.42

Investments Turnover Ratio 29.73 28.73 6.01 6.00 6.11

Fixed Assets Turnover Ratio 5.03 5.20 6.23 6.09 9.52

Total Assets Turnover Ratio 1.52 1.48 1.80 1.92 2.27

Asset Turnover Ratio 5.03 5.20 6.23 6.09 6.21

Average Raw Material Holding 25.77 32.32 38.11 34.14 34.05

Average Finished Goods Held 4.21 3.54 4.02 5.21 5.56

Number of Days In Working Capital 56.58 49.22 59.09 37.06 51.15

Profit & Loss Account Ratios

Material Cost Composition 28.34 26.01 27.51 33.09 30.15

Imported Composition of Raw Materials Consumed

36.78 54.43 44.34 39.78 49.28

Selling Distribution Cost Composition 0.80 0.83 0.92 1.28 1.13

Expenses as Composition of Total Sales

14.58 18.62 21.70 22.67 21.36

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 25.15 19.72 20.58 26.29 30.04

Dividend Payout Ratio Cash Profit 21.84 18.01 18.92 23.96 26.97

Earning Retention Ratio 70.90 71.91 72.84 71.72 69.85

Cash Earning Retention Ratio 75.24 75.25 75.66 74.40 72.95

AdjustedCash Flow Times 1.78 1.95 2.23 1.61 1.33

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Earnings Per Share 65.01 72.66 59.45 74.35 49.53

Book Value 352.40 303.28 212.32 325.98 202.65