4.Current Ratio(Sonali)

7/30/2019 4.Current Ratio(Sonali)

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CURRENT RATIO:

years current assets current liabilities ratio

Mar '12 2,978.38 6,420.48 0.46

Mar '11 2,703.28 5,345.56 0.51

Mar '10 1,121.26 2,153.61 0.52Mar '09 982.64 1,982.39 0.50

Mar '08 927.06 1,834.51 0.51

Interpretation:

The current ratio is 0.46 in the year 2012, 0.51 in the year 2011, 0.52 in the year 2010,0.5 in

the year 2009,0.51 in the year 2008.

The difference in the ratios in the year 2010 and 2012 are due to the increase in the current

liabilities. Since low current ratio does not necessarily mean that the firm will go bankrupt,

but it is definitely is not a good sign. Short term creditors prefer a high current ratio since it

reduce their risk.

QUICK RATIO:

years quick assets current liabilities ratio

Mar '12 942.44 6,420.48 0.15

Mar '11 746.76 5,345.56 0.14

Mar '10 299.56 2,153.61 0.14

Mar '09 290.67 1,982.39 0.15

Mar '08 317.30 1,834.51 0.17


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The acid-test ratio is far more forceful than the current ratio, primarily

because the current ratio includes inventory assets which might not be ableto turn to cash immediately. Companies with ratios of less than 1 cannot pay

their current liabilities and should be looked at with extreme caution.

Furthermore, if the acid-test ratio is much lower than the current ratio, it

means current assets are highly dependent on inventory.

DEBT EQUITY RATIO:

years total liabilities shareholders equity ratio

Mar '12 16,667.95 12859.82 1.30

Mar '11 14,810.64 10666.04 1.39

Mar '10 6,213.17 4608.65 1.35

Mar '09 5,743.73 3602.1 1.59

Mar '08 4,437.49 2696.99 1.65

Interpretation:


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This ratio is used to compare the amount of debt a company has with the

amount the owners have invested in the company. It compares the amount of

creditors claims to the owners claims to the assets of the firm. Trend shows that

in 2008 the company was highly leverage but after it has managed to control

this ratio in the year 2010 and 2011.

DEBT RATIO:

years total debt total assets ratio

Mar '12 3,808.13 16,667.95 0.23

Mar '11 4,144.60 14,810.64 0.28

Mar '10 1,604.52 6,213.17 0.26Mar '09 2,141.63 5,743.73 0.37

Mar '08 1,740.50 4,437.49 0.39

INTEREST COVERAGE RATIO:

years PBIT INTEREST ratio

Mar '12 3,575.22 223.86 15.97

Mar '11 2,074.10 287.91 7.20

Mar '10 1,712.27 124.11 13.80

Mar '09 1,495.55 134.09 11.15

Mar '08 1,588.94 81.93 19.39


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INVENTOR TURNOVER:

years NET SALES AVG INVENTORY ratio

Mar '12 18,270.69 1223.18 14.94

Mar '11 13,205.64 1223.18 10.80

Mar '10 7,042.82 1223.18 5.76

Mar '09 6,385.50 1223.18 5.22

Mar '08 5,512.43 1223.18 4.51

ACCOUNTS RECEIVABLE TURNOVER RATIO:

years NET SALES AVG SUNDRYDEBTORS ratio

Mar '12 18,270.69 397.374 45.98

Mar '11 13,205.64 397.374 33.23

Mar '10 7,042.82 397.374 17.72

Mar '09 6,385.50 397.374 16.07

Mar '08 5,512.43 397.374 13.87


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FIXED ASSETS TURNOVER RATIO:

years NET SALES AVERAGE FIXED ASSETS ratio

Mar '12 18,270.69 8520.21 2.14

Mar '11 13,205.64 8520.21 1.55

Mar '10 7,042.82 8520.21 0.83

Mar '09 6,385.50 8520.21 0.75

Mar '08 5,512.43 8520.21 0.65

A High fixed asset turnover ratio indicates the capability of the firm to earn

maximum sales with the minimum investing in fixed assets. So it shows that

the company is using its assets more efficiently. As it is shown in above the

Company is using its assets specially fixed assets more efficiently each year.

The company has shown constant increasing trend in its financial health in subsequent

years.


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TOTAL ASSETS TURNOVER RATIO:

years NET SALES AVERAGE TOTAL ASSETS ratio

Mar '12 18,270.69 9574.596 1.91Mar '11 13,205.64 9574.596 1.38

Mar '10 7,042.82 9574.596 0.74

Mar '09 6,385.50 9574.596 0.67

Mar '08 5,512.43 9574.596 0.58

In this formula current assets are balance sheet accounts that represent the

value of all assets that are reasonably expected to be converted into cash

within one year in the normal course of business. A higher current assets

turnover ratio is more desirable since it shows the better financial position of

company and better usage of these current assets. . The company has shown

constant increasing trend in its financial health in subsequent years. It means the

company is using its current assets more efficiently. The comparison between

two ratios over the same period of time, also shows that company has used

its current assets better than its fixed assets.

GROSS PROFIT MARGIN RATIO:

years GROSS PROFIT NET SALES ratio

Mar '12 4,253.92 18,270.69 23.28

Mar '11 2,551.92 13,205.64 19.32

Mar '10 1,976.24 7,042.82 28.06

Mar '09 1,684.46 6,385.50 26.38

Mar '08 1,744.24 5,512.43 31.64


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This ratio indicates the relation between production cost and sales and the

efficiency with which goods are produced or purchased. If it has a very high

gross profit ratio it may indicate that the organization is able to produce or

purchase at a relatively lower cost. Gross profit is the profit we earn before

we take off any administration costs, selling costs and so on. Here company

has achieved very good efficiency in 2008 compared to other financial years.

NET PROFIT MARGIN RATIO:

years NET PROFIT NET SALES ratio

Mar '12 2,446.19 18,270.69 13.38Mar '11 1,404.23 13,205.64 10.63

Mar '10 1,093.24 7,042.82 15.52

Mar '09 977.02 6,385.50 15.30

Mar '08 1,007.61 5,512.43 18.27


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RETURN ON ASSETS RATIO:

years NET PROFIT AVERAGE TOTAL ASSETS ratio

Mar '12 2,446.19 9574.596 25.54Mar '11 1,404.23 9574.596 14.66

Mar '10 1,093.24 9574.596 11.41

Mar '09 977.02 9574.596 10.20

Mar '08 1,007.61 9574.596 10.52

Because this ratio shows the profitability of investment in the firm so higher

the ratio, the better is the return to the owners of the company.

RETURN ON CAPITAL EMPLOYED:

years EBIT TOTAL ASSETS-CURRNT LIABILITIES ratio

Mar '12 3,575.22 10,247.47 34.88

Mar '11 2,074.10 9,465.08 21.91

Mar '10 1,712.27 4,059.56 42.17

Mar '09 1,495.55 3,761.34 39.76Mar '08 1,588.94 2,602.98 61.04


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A measure of the return that a company is realizing from its capital employed. The ratio can also

be seen as representing the efficiency with which capital is being utilized to generate revenue. It

is commonly used as a measure for comparing the performance between businesses and forassessing whether a business generates enough returns to pay for its cost of capital.

Of course the higher the ratio, the better will be the profitability of the

company.

RETURN ON EQUITY:

yearsNETPROFIT-PRFDIVIDEND NET WORTH ratio

Mar '12 2,446.19 12,859.82 19.02

Mar '11 1,404.23 10,666.04 13.16

Mar '10 1,093.24 4,608.65 23.72

Mar '09 977.02 3,602.10 27.12

Mar '08 1,007.61 2,696.99 37.36

This ratio indicates the productivity of the owned funds employed in the firm.

However, in judging the profitability of a firm, it should not be overlooked


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that during inflationary periods. In the year 2008 the return on equity is

more.

EARNING PER SHARE:

EPS= NPA-PREFERENCE DIVIDEND/ NO. OF EQUITY SHARE

2012 2011 2010 2009 2008

Earning Per Share (Rs) 89.26 51.24 87.82 78.48 80.94

DIVIDEND PAY OUT RATIO:

DPR RATIO=( DIVIDEND PER SHARE /EPS ) X 100

2012 2011 2010 2009 2008

DPS 8.00 6.00 6.00 5.00 5.00

EPS 89.26 51.24 87.82 78.48 80.94

DPR 8.962581 11.7096 6.832157 6.37105 6.177415


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COMMONSIZE BALANC SHEET

PARTICULARS

2012

2011

Sources of Funds

RS. IN

CRORES

change in

%

RS. IN

CRORES

change in

%

Equity Share Capital274.07 1.64 274.04 1.85

Reserves12,585.75 75.5 10,392.00 70.16

Secured Loans2,012.09 12.07 2,789.76 18.83

Unsecured Loans1,796.04 10.78 1,354.84 9.15

Total16,667.95 100 14,810.64 100

Application of funds

Net Block11,634.82 69.8 11,400.25 76.97

Work in Progress3,163.02 18.98 1,105.32 7.46

Investments3,788.77 22.73 3,730.32 25.19

Total CA, Loans & Advances4,501.82 27 3,920.31 26.47

Total CL & Provisions6,420.48 38.52 5,345.56 36.09

Total16,667.95 100 14,810.64 100

PARTICULARS

2011

2010

Sources of Funds RS. IN change in RS. IN change in


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CRORES % CRORES %

Equity Share Capital274.04 1.85 124.49 2

Reserves10,392.00 70.16 4,482.17 72.14

Secured Loans2,789.76 18.83 854.19 13.75

Unsecured Loans1,354.84 9.15 750.33 12.07

Total14,810.64 100 6,213.17 100


Net Block11,400.25 76.97 4,941.68 79.54

Work in Progress1,105.32 7.46 259.37 4.17

Investments3,730.32 25.19 1,669.55 26.87

Total CA, Loans & Advances3,920.31 26.47 1,496.18 24.08


Total14,810.64 100 6,213.17 100


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PARTICULARS 2010 2009

Sources of Funds

RS. IN

CRORES

change in

%

RS. IN

CRORES

change in

%

Equity Share Capital124.49 2 124.49 2

Reserves4,482.17 72.14 3,475.93 60.15

Secured Loans854.19 13.75 1,175.80 20.47

Unsecured Loans750.33 12.07 965.83 16.82

Total6,213.17 100 5,743.73 100


Net Block4,941.68 79.54 4,635.69 80.71

Work in Progress259.37 4.17 677.28 11.79

Investments1,669.55 26.87 1,034.80 18.01



Total6,213.17 100 5,743.73 100


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PARTICULARS 2009 2008

Sources of Funds

RS. IN

CRORES

change in

%

RS. IN

CRORES

change in

%

Equity Share Capital124.49 2 124.49 2.81

Reserves3,475.93 60.15 2,571.73 57.95

Secured Loans1,175.80 20.47 982.66 22.14

Unsecured Loans965.83 16.82 757.84 17.07

Total5,743.73 100 4,437.49 100


Net Block4,635.69 80.71 2,500.46 56.35

Work in Progress677.28 11.79 2,283.15 51.45

Investments1,034.80 18.01 170.9 3.85


Total CL & Provisions

1,982.39 3.51 1,834.51 41.34

Total5,743.73 100 4,437.49 100


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COMPARISON OF RATIOS:

RATIOS 2012 2011 2010 2009 2008

DEBT EQUITY RATIO 1.3 1.39 1.35 1.59 1.65

TOTAL ASSET TURNOVERRATIO

1.911.38 0.74 0.67 0.58

NET PROFIT MARGIN RATIO(%)

1311 16 15 18

RETURN ON EQUITY RATIO(%)

1913 24 27 37

EARNING PER SHARE89.26

51.24 87.82 78.48 80.94


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SUGGESTIONS

The present study of ULTRATECH PVT LTD Was conducted with the help of annual

report. Various financial tools are used in the study from the ratio analysis it has been

found out that the average collection period of the company is high and capital gearing is

low. To extent possible the study has achieved its stated objectives. It is on the part of the

company to accept the suggestions.

ULTRATECH PROFITABILITY position was deteriorated year by year, liquidity

position also moderate, long term solvency of the firm is also moderate due to high debts;

the firms efficiency in utilizing assets is also very low.

Finally the study helped me to acquire practical knowledge that was only over by books

and papers alone. I take up this opportunity to thank one and all for making this study a

complete one.

ULTRATECH should reduce operating and administrative expenses, it will increase over

all efficiency of the firm.

A high level of debt introduces inflexibility in the firms operations due to increaseing

interference and pressures from creditors. A high debt company is able to borrow funds

on very restrictive terms and conditions. So, it should raise owners funds.

Documents

4.Current Ratio(Sonali)