Comparative Financial Analysis of National Foods and Shezan Foods

8/18/2019 Comparative Financial Analysis of National Foods and Shezan Foods

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FINANCIAL ANALYSIS

NATIONAL FOODS VS SHEZAN FOODS

• LIQUIDITY RATIOS:-

• Current Ratio:-

Formula: C. Assets/C. Liabilities

NATIONAL FOODS

2012

2013 2014

1.33 1.30 1.4

SHEZAN FOODS

2012

2013 2014

1.7 1.64 1.64

• ANALYSIS:-

• Tis !ati" s"#s "# $%& &%!!e't assets &"$(a') as a*ai'st ea& +"lla! ", &%!!e't

liabilit).

• I' ab"-e sit%ati"' b"t &"$(a'ies &%!!e't !ati" is $"!e ta' 1 #i& $ea's b"t

&"$(a'ies a-e s%,,i&ie't a$"%'t ", &%!!e't assets "-e! &%!!e't liabilities.

• Sea' F""+s is s"#i'* bette! !es%lts ", &%!!e't !ati" ta' Nati"'al ,""+s.

• Qui! Ratio:-

Formula: C. AssetsI'-e't"!)!e (a)$e'ts/C. Liabilities

NATIONAL FOODS

2012

2013 2014

.3 .0 .

SHEZAN FOODS

2012

2013 2014

.46 .0 .6

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FINANCIAL ANALYSIS

• ANALYSIS:-

•

Tis !ati" s"#s "# $%& &%!!e't assets &"$(a') a&t%all) ("ssesses a*ai'st its &%!!e'tliabilities a,te! +e+%&ti'* i'-e't"!ies a'+ (a)ables.

• I' ab"-e sit%ati"' b"t &"$(a'ies %i& !ati" is bel"# sta'+a!+ be&a%se te) a-e

i'-este+ $"!e i' i'-e't"!) a'+ &!eate+ (a)ables.

• Te!e is -e!) little +i,,e!e'&e i' te !es%lts ", b"t &"$(a'ies %i& !ati".

• 5"t &"$(a'ies s"%l+ #"! "' tei! i'-e't"!) &"'t!"l $a'a*e$e't a'+ s"%l+ a((l)

IT a((!"a&.

• OVERALL ANALYSIS OF THIS HEAD:-

Te "-e!all !es%lts ", li%i+it) !ati"s a!e s"#i'* tat Sea' F""+s as a little e+*e "-e!

Nati"'al F""+s. 5%t b"t &"$(a'ies 'ee+ t" #"! "' i'-e't"!) &"'t!"l $a'a*e$e't.

• "ROFITA#ILITY RATIOS:-

• $ro%% "ro&it 'ar(in%:-

Formula:!"ss !",it/Sales8

NATIONAL FOODS

2012

2013 2014

32.49 34.9 39

SHEZAN FOODS

2012

2013 2014

26.9 309 309

• ANALYSIS:-

• Tis !ati" s"#s "# $%& (!",it &"$(a') is ea!'i'* "' ea& +"lla! ", sales.

• : ", Nati"'al F""+s is i'&!easi'* !a(i+l) i' ,i!st t" se&"'+ )ea! a'+ a sli*t &a'*e i'

last )ea! #ile Sea' F""+s : is als" i'&!easi'* !a(i+l) i' ,i!st t" se&"'+ )ea!.

• 5"t &"$(a'ies : is s"#i'* (!"*!ess be&a%se tei! CS is satis,a&t"!).

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FINANCIAL ANALYSIS

• 5"t &"$(a'ies &a' i$(!"-e tei! : b) i'&!easi'* sales; i't!"+%&i'* 'e# (!"+%&t "!

e'te!i'* i' a 'e# $a!et.

• Net "ro&it 'ar(in%:-

Formula: Net !",it/Sales8

NATIONAL FOODS

2012

2013 2014

.19 7.i.e. Selli'* e=(; :a!eti'* e=(; De(!e&iati"'; Sala!ies e.t.&?@ile Sea' F""+s N: is i'&!easi'* i' se&"'+ )ea! be&a%se its "(e!ati'* e=(e'ses a!e

a((!"(!iate b%t +e&!ease i' last )ea! be&a%se "(e!ati'* e=(e'ses a!e i'&!ease+.• 5"t &"$(a'ies &a' i$(!"-e tei! N: b) E'te!i'* i' t" 'e# $a!et; b) i'&!easi'*

sales; b) i$(!"-i'* %alit) ", (!"+%&t; b) i't!"+%&i'* 'e# (!"+%&t li'e a'+ $"!e

i$("!ta'tl) b) ee(i'* tei! "(e!ati'* e=(e'ses as l"# as ("ssible.

• Return On E)uit*:-

Formula: Net !",it/E%it)8

NATIONAL FOODS

2012

2013 2014

41.9 40.9 32.9

SHEZAN FOODS

2012

2013 2014

1.69 1


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FINANCIAL ANALYSIS

• I' &"$(a!ati-e a'al)sis Nati"'al F""+s OA is bette! ta' Sea' F""+s be&a%se it as

i'-este+ $"!e i' assets a'+ als" #"!i'* e,,e&ti-el).

• OVERALL ANALYSIS OF THIS HEAD:-I' ab"-e a'al)sis ", (!",itabilit) !ati" #e ,i'+ "%t tat Nati"'al F""+s is s"#i'* $"!e !es%lts

ta' Sea' F""+s. Sea' F""+s 'ee+s t" &!eate $"!e i''"-ati"'s b) te ti$e ,"! (!"*!ess a'+

s"%l+ als" ee( its e=(e'ses l"#.

• EFFICIENCY RATIOS:-

• In+entor* Turno+er Ratio:-

Formula: C..S/I'-e't"!)8

NATIONAL FOODS

2012

2013 2014

3.1 ti$es 2.< ti$es 2. ti$es

SHEZAN FOODS

2012

2013 2014

2.


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FINANCIAL ANALYSIS

• Reei+a,le Turno+er:-

Formula:Sales/e&ei-ables8

NATIONAL FOODS

2012

2013 2014

1.2 ti$es 7.7 ti$es 7.30 ti$es

SHEZAN FOODS

2012

2013 2014

14.< ti$es 1< ti$es 14. ti$es

• ANALYSIS:-

• Tis !ati" s"#s "# $a') ti$es &"$(a') *e'e!ates !e&ei-ables ,"!$ its sales.

• F"! Nati"'al F""+s !e&ei-ables is +e&!easi'* !a(i+l) b) te ti$e #i& $ea's &"$(a')

sales a!e l"#.

• F"! Sea' F""+s !e&ei-ables t%!'"-e! i'&!ease !a(i+l) ,!"$ 201213 a,te! 201314 it

&"$es t" te ,i!st )ea!s ("siti"'#i& $ea's its sales a!e i* i' 2013 b%t i' 2014 it

&"$es t" te sa$e le-el.

• I' &"$(a!ati-e a'al)sis Sea' F""+s !e&ei-able t%!'"-e! is i*e! ta' Nati"'al F""+s.

• Nati"'al F""+s &a' i$(!"-e its !e&ei-able t%!'"-e! b) i'&!easi'* sales t!"%*

$a!eti'*; &%st"$e! &!e+it ",,e!s a'+ a-aili'* +is&"%'ts.

• A+( Colletion "erio:-

Formula:e&ei-ables/sales368

NATIONAL FOODS

2012

2013 2014

24 +a)s 47 +a)s 0 +a)s

SHEZAN FOODS2012

2013 2014

24 +a)s 1< +a)s 2 +a)s

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FINANCIAL ANALYSIS

• ANALYSIS:-

• Tis !ati" s"#s "# $%& ti$e !e&ei-ables tae t" (a)ba& te &as.

• F"! Nati"'al F""+s !e&ei-ables +a)s a!e i'&!easi'* b) te ti$e #i& $ea's &"$(a') is

'"t !e&"-e!i'* its a$"%'ts i' ti$e.• F"! Sea' F""+s !e&ei-ables +a)s a!e +e&!easi'* i' 2013 #i& $ea's &"$(a')s

!e&"-e!) is *""+ i' tat )ea! b%t i' 2014 !e&ei-ables +a)s a!e ba& t" te '"!$al ti$e.

• Sea' F""+s A-* &"lle&ti"' (e!i"+ is bette! ta' Nati"'al F""+s.

• Nati"'al F""+s &a' i$(!"-e its a-* &"lle&ti"' (e!i"+ b) i$(le$e'ti'* its &!e+it &"'t!"l

s)ste$ $"!e st!i&tl) a'+ b) !e-isi'* &!e+it te!$s.


I' ab"-e a'al)sis ", e,,i&ie'&) !ati" #e ,i'+ "%t tat Sea' F""+ is s"#i'* (!"*!ess as

&"$(a!e t" Nati"'al F""+s be&a%se Sea's sales a!e $"!e a'+ &"$(a') is !e(la&i'* its

"l+ i'-e't"!) #it 'e# i'-e't"!) $"!e e,,i&ie'tl) a'+ its &"lle&ti"' (e!i"+ is als"

satis,a&t"!).

• SOLVENCY RATIOS:-

• De,t To A%%et% Ratio:-

Formula: Debt/T.Assets

NATIONAL FOODS

2012

2013 2014

169 229 1


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FINANCIAL ANALYSIS

• F"! Sea' F""+s te !ati" is +e&!easi'* !a(i+l) b) te ti$e tat s"#s &"$(a') as '"t

(%!&ase+ assets #i& a!e ,i'a'&e+ b) +ebt.

• 5) &"$(a!i'* b"t &"$(a'ies Nati"'al F""+s assets a!e $"!e ,i'a'&e+ b) +ebt.

• 5"t &"$(a'ies s"%l+ $a'a*e tei! a$"%'t ", +ebt ,"! (!"*!ess.

• De,t To E)uit*:

Formula: Debt/E%it)

NATIONAL FOODS

2012

2013 2014

369 79 439

SHEZAN FOODS

2012

2013 2014

27.Debt E%it)?

NATIONAL FOODS

2012

2013 2014

26.609 36.219 2


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FINANCIAL ANALYSIS

SHEZAN FOODS

2012

2013 2014

21.09 10.79


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FINANCIAL ANALYSIS

2012

G3.4 G3.77 G3.6

• ANALYSIS:-

• Tis !ati" s"#s "# $%& ea!'i'* &"$(a') *e'e!ates "' its ea& sa!e. Healt)

&"$(a'ies s"# *!"#t i' ES "-e! te (e!i"+.

• F"! Nati"'al F""+s ES is i'&!easi'* b) te ti$e #i& is *""+ ,"! te &"$(a') a'+ it

#ill e'&"%!a*e te sa!e"l+e! t" i'-est i' te &"$(a').

• F"! Sea' F""+s ES is +e&!easi'* b) te ti$e #i& is '"t *""+ ,"! te &"$(a') a'+

it #"%l+ '"t *et te i'te!est ", te i'-est"!s.

• I' ab"-e sit%ati"' Nati"'al F""+s is s"#i'* (!"*!ess as its ES is i*e! ta' Sea'

F""+s.• Sea' F""+s &a' i$(!"-e its ES b) i'&!easi'* its 'et (!",it.

• Di+ie .er S1are:-

Formula: Di-i+e'+/ N" ", Sa!es

NATIONAL FOODS

2012

2013 2014

G.


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FINANCIAL ANALYSIS

• Di+ien "a*out Ratio:-

Formula: Di-i+e'+ (e! Sa!e/ Ea!'i'* (e! Sa!e

NATIONAL FOODS

2012

2013 2014

17.679 7.429 22.669

SHEZAN FOODS

2012

2013 2014

21.739 21.49 2.29

• ANALYSIS:-

• Tis !ati" s"#s te (e!&e'ta*e ", +i-i+e'+ (ai+ ,!"$ ea!'i'*.

• F"! Nati"'al F""+s (e!&e'ta*e ", +i-i+e'+ is i'&!easi'* !a(i+l) i' 2013 #i& $ea's

&"$(a') i'&!ease+ its 'et ea!'i'*s i' tat )ea! b) ee(i'* its "(e!ati'* e=(e'ses l"#.

• F"! Sea' F""+s (e!&e'ta*e ", +i-i+e'+ is +e&!easi'* sli*tl) i' 2013 b%t i$(!"-e+ i'

2014.

• Nati"'al F""+s e'&"%!a*e $"!e i'-est"! t" i'&est i' te &"$(a') b) &"'si+e!i'* te

&"$(a')s (a)"%t !ati".


I' ab"-e a'al)sis ", $a!et !ati"s #e ,i'+ "%t tat Nati"'al F""+s is bette! ta' Sea'

F""+s be&a%se its ES; DS a'+ (a)"%t !ati" is $%& bette!. It #ill e'&"%!a*e i'-est"!s

t" i'-est tei! $"'e) i' Nati"'al F""+s.

• CONCLUSION:-

5) C"$(a!ati-e a'al)sis ", Nati"'al F""+s Sea' F""+s #e ,"%'+ te ,"ll"#i'*8

• Sea' F""+s as sli*tl) bette! !es%lts ", li%i+it) !ati" te' te Nati"'al F""+s ; !ate!

b"t #"! "' i'-e't"!) &"'t!"l $a'a*e$e't a'+ a((l) IT a((!"a&.

• A&&"!+i'* t" (!",itabilit) !ati" Nati"'al F""+s is s"#i'* (!"*!ess as it sales a!e

s%,,i&ie't #it l"# &"st ", (!"+%&ti"'; te) a!e ee(i'* tei! "(e!ati'* e=(e'ses >De(;

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FINANCIAL ANALYSIS

$a!eti'* selli'*? as l"# as ("ssible; i'-esti'* te sa!e"l+e! a$"%'t i' s"%'+

(!"Be&ts a'+ ,i'all) %si'* tei! assets #ell t" &!eate i''"-ati"' #it te ti$e.

• Sea' F""+s (!ese'ti'* $"!e e,,i&ie't !es%lts. Its i'-e't"!) &"'t!"l $a'a*e$e't;

!e&ei-able t%!'"-e! A-e!a*e &"lle&ti"' (e!i"+ is bette! ta' Nati"'al F""+s.

• A&&"!+i'* t" s"l-e'&) !ati" a'al)sis Sea' F""+s is S"#i'* (!"*!ess as its assets a!e

$"!e ,i'a'&e+ b) e%it) te' +ebt; +ebt t" e%it) !ati" is bette! ta' Nati"'al F""+s a'+

"-e!all &a(ital st!%&t%!e is $"stl) &"'sist ", e%it).

• I' $a!et !ati" a'al)sis #e ,"%'+ tat Nati"'al F""+s is bette! ta' Sea' F""+s

be&a%se its ea!'i'* $"!e "' ea& sa!e #it !es(e&t t" Sea' F""+s a'+ als" (a)i'*

$"!e +i-i+e'+s t" its sa!e"l+e!s.

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Comparative Financial Analysis of National Foods and Shezan Foods