Data Analasys

7/28/2019 Data Analasys

1/29

A.LIQUIDITY RATIO1 .Current Ratio

The current ratio is a measure of the firm's short-term solvency. It indicates the

availability of current assets in rupees for every one rupee of current liability. Current

assets include cash and those assets that can be converted into cash within a year, such

as inventories, debtors, marketable securities and prepaid expenses also.

Current assets

Current Ratio = -----------------------------------------

Current liabilities

Current assets include cash and bank balances, marketable securities, debtors and

inventories and also prepaid expenses.

Current liability includes creditors, bills payable, accrued expenses, short term

bank loans , income tax liability etc.

Tablel: CURRENTRATIO

Year Current assets Current liabilities Ratio

2008 2978.57 1123.12 2.65

2009 3727.18 1159.99 3.21

2010 3812.86 1593.99 2.39

2011 4810.00 3104.00 1.55

2012 4785.00 1781.00 2.69


2/29

Source: Complied from the annual reports of Nutrine Confectionery Company

Private Limited (NCCPL)

INTERPRETATION

The statistics in the above table says that the current ratio of the company is slightly

fluctuating. The ratio has increased from 2.65% in 2008 to 3.2% in 2009. further it

started declining and again reached to 2.69% in 20012. As then calculated current

ratio is above 2:1 in 2008-2012. the liquidity position is good.

2.65

3.21

2.39

1.55

2.69

0

0.5

1

1.5

2

2.5

3

3.5

2008 2009 2010 2011 2012

RATIO

YEARS

CURRENT RATIO


3/29

Quick Ratio:

It is used as a measure of the company's ability to meet its current obligations. This

ratio is calculated as a supplement to the current ratio in analyzing the liquidity of the

firm.

Current assets - inventories

Quick Ratio = ---------------------------------------------------------------

Current liabilities

Where,

Liquidity assets include cash, debtors, and bills receivable and marketable securities.

QUICK RATIO

YearQuick assets Current liabilities Ratio

2008408.06 1123.12 0.36

2009243.33 1159.99 0.21

20101138.20 1593.99 0.71

2011 2574.00 3104.00 0.82

20122231.00 1781.00 1.25


4/29

Source: Complied from the annual reports of Nutrine Confectionery Company Private

Limite d (NCCPL)

INTERPRETATION

Normally the quick ratio standard is 1:1. Here the ratio has decreased from 0.36% in

2008 to 0.2% in 2006 and again it has increased. This ratio has grow up to very high

level during the year 2012 that is 1.25%. thus there is increased between 2010 to

2012( 1.71 %& 1.25%) .The quick ratio is become 1:1 from 2008-2011.Hence the

liquidity is not good. The quick ratio is satisfactory in 2012.

0.36

0.21

0.710.82

1.25

0

0.2

0.4

0.6

0.8

1

1.2

1.4

2008 2009 2010 2011 2012

RATIO

YEARS

QUICK RATIO


5/29

3. CURRENT ASSETS TO FIXES ASSETS RATIO

The current assets to fixes assets ratio is improve their current assets ,to maintain

fixed assets. This ratio is divided into current assets by fixed assets.

Current assets

Current assets

Current assets to fixed assets Ratio = -----------------------------------------

Fixed assets

Year Current assets Fixed Assets Ratio

2008 2978.57 1490.41 1.99

20093727.18 1794.48 2.08

2010 3812.86 2219.10 1.72

2011 4810.00 2366.00 2.03

20124785.00 1914.00 2.50

Source: Complied from the annual reports of Nutrine Confectionery Company PrivateLimited (NCCPL)

1.99 2.08

1.72

2.03

2.5

0

0.5

1

1.5

2

2.5

3

2008 2009 2010 2011 2012

RATIO

YEARS

Ratio


6/29

INTERPRETATION

In the above table the current assets to fixed assets ratio shows that fluctuated year byyear. During the year 2009 this ratio seems to be highest that is of 2.08% .But during

the after 3 years it seems to be increased the ratio. Here the current assets to fixed

assets are good. The current assets to fixed assets ratio is satisfactory in 2012.


7/29

B.ACTIVITY RATIO

1. INVENTORY TURNOVER RATIO

It indicates the number of times stock has been turnover during the period and

evaluates the efficiency with which a firm is able to manage its inventory. A high

inventory turnover is indicative of good inventory management, a low inventory

turnover implies excessive inventory levels than warranted by production an sales

activities.

Cost of goods sold

Inventory turnover ratio = -------------------------------------------------------

Average inventory

Average inventory = opening inventory +closing inventory

2

Cost of goods sold = sales - gross profit

INVENTORY TURNOVER RATIO

Year

Cost of goods sold Average stock Ratio

2008 9998.96 568.52 17.58

2009 11224.16 795.13 14.12

2010 9171.07 898.11 10.21

2011 12608.00 787.00 16.02

2012 11555.00 1184.00 10.05


8/29


Limited (NCCPL)

17.58

14.12

10.21

16.02

10.05

0

2

4

6

8

10

12

14

16

18

20

2008 2009 2010 2011 2012

RATIO

YEARS

INVENTORY TURNOVER RATIO


9/29

INTERPRETATION

In the above table the stock turnover ratio dhows that how many times the stock is

converted into sales. During the year 2008 this ratio seems to be highest that is 17.58

times, but during the after 4 years it seems to be changed. The high inventory turnover

is indicative of good inventor}' management. The low inventory turnover is indicating

slow moving. But the company is the maintaining good inventory in 2012.


10/29

2.CURRENT ASSETS TURNOVER

It indicates the extent to which the investments in current assets contribute towards

sales. If compared with a previous period, it indicates whether the investment in

current assets has been judicious or not. The ratio is calculated as follows.

Sales

Current assets turnover ratio = ------------------------------------

Current assets

Current Assets Turnover Ratio

Year Credit Sales Current assets Ratio

2008 15033.68 2978.57 5.04

2009 16452.00 3727.18 4.41

2010 16325.21 3812.86 4.28

2011 15284.00 4810.00 3.26

2012 14170.00 4785.00 3.06



5.04

4.41 4.28

3.26 3.06

0

1

2

3

4

5

6

2008 2009 2010 2011 2012

RATIO

YEARS

CURRENT ASSETS TURNOVER RATIO


11/29

INTERPRETATION

In the above table shows that the total assets turnover ratio of the company has shown

a decreasing trend from 4.58 times in 2004 to 3.52 times in 2010. Again it has

decreased to 3.64 times in 2011. But there is a small change of decreasing trend from

2011 to 2012 that is 2.80 times. Therefore the company is mot maintain the proper

sales.


12/29

C. PROFITABILITY RATIO

1. GROSS PROFIT RATIO

It measures the gross margin on total net sales of company. This ratio measures the

efficiency of company's operations and can be higher the gross profit ratio, better is

for the company.

Gross profit

Gross profit ratio = -------------------------------------------- x 100

Net sales

Where,

Gross Prof!t= sales-(Raw Material, Wrapping and packing material consumed+purchase of finished goods)

GROSS PROFIT RATIO

Year Gross Profit Sales Ratio

2008 5034.72 15033.68 33.49

2009 5227.84 16452.00 31.78

2010 7154.15 16325.21 43.82

2011 2676.00 15284.00 17.50

2012 2615.00 14170.00 18.45


13/29



INTERPRETATION

The above Gross profit ratio has decreased from 33.49% in 2008 to 31.78% in 2009.

And further it has increased to 43.82% in 2010, again it has reduced 17.50% in

2011,once again it has increased to 18.45%in 2012.The high ratio indicates a highselling price of the product or the low cost of the production.

33.49 31.78

43.82

17.5 18.45

0

5

10

15

20

25

30

35

40

45

50

2008 2009 2010 2011 2012

RATIO

YEARS

PROFIT RATIO


14/29

2. Net Profit Ratio

This is used for the proprietors and prospective investors because it reveals the overall

profitability of the concern. Higher the ratio is preferable because it gives idea of

improved efficiency of the concern.

Net profit after tax

Net profit ratio = ----------------------------------------------- x 100

Net sales

NET PROFIT RATIO

YearNet Profit Sales Ratio

20081748.67 15033.68 11.63

20091873.87 16452.00 11.39

20101956.04 16325.21 11.98

2011 2366.00 15284.00 15.48

20121914.00 14170.00 13.50

11.63 11.39 11.98

15.48

13.5

0

2

4

6

8

10

12

14

16

18

2008 2009 2010 2011 2012

RATIO

YEARS

NET PROFIT RATIO


15/29


Limited (NCCPL)

INTERPRETATION

In the above table shows that the net profit ratio of the company is highly fluctuating.

The decreasing trend from 11.63% in 2008 to 11.39% in 2009. Again it has increased

to 11.98% in 2010.Further it has decreasing trend from 2009 to 2012 that is 13.50%.

The net profit ratio is increased only for cost of goods sold. But the company is not

maintain the goods properly


16/29

3.Return on Investment

The return on investment is promoting the investors .It is divided into profit before

interest and tax by capital employed.

EBIT

Return on investment ratio =-------------------------------- x 100

Capital employed

Where,

Capital employed includes equity shareholders, preference share holders, reserves and

surplus.

Year

PBIDT Capital Employed Ratio

2008 1748.67 2966.94 58.93

2009 1873.87 3548.67 52.80

2010 1956.04 4129.36 47.36

2011 2366.00 4049.00 58.43

2012 1914.00 4985.00 38.40


17/29


Limited (NCCPL)

Interpretation

The above over all profitability ratio reveals the down ward trend from 58.93% in

2008 to 52.80% in 2009 and again it has decreased to 47.36%in 2010.Further it has

increased to 58.43% in 2011. But there is a change of decreasing trend from 2011 to

2012 that is 38.40%. Therefore the company effectively and properly utilize the

investment.

58.9352.8

47.36

58.43

38.4

0

10

20

30

40

50

60

70

2008 2009 2010 2011 2012

RATIO

YEARS

Ratio


18/29

4.Return on Equity Ratio

The return on equity ratio is improve the profit after tax in the company. It is divided

into profit after and tax by equity.

PAT

Return on equity ratio = ----------------------------- - x 100

Equity

Return on Equity Ratio

YearPAT Equity Ratio

2008839.97 2966.94 28.31

2009 983.67 3548.61 27.72

2010760.32 4129.36 18.41

2011 825.00 4049.00 20.38

2012864.00 4985.00 17.33


Limited (NCCPL)

28.31 27.72

18.4120.38

17.33

0

5

10

15

20

25

30

2008 2009 2010 2011 2012

RATIO

YEARS

RETUN ON EQUITY RATIO


19/29

INTERPRETATION

The equity shareholder has shown a decreasing trend from 28.31% in 2008 to 27.72%

in 2009. And again it has decreased to 18.41% in 2010.Further increased to 20.38%

in2011. But there is a slight change from 2011 to 2012 that 17.33%. Thus the high

ratio will reveal the performance and strength of the company in attracting future

investment.


20/29

5.Administrative Expenses Ratio

The Administrative expenses is promote the profit in the company. It is improve the

selling and distribution. It is divided into administrative expenses by sales.

Administrative expenses

Administrative expenses ratio = ----------------------------------------------x 100

Sales

Administrative Expenses Ratio

Year

Administrative

Expenses

Sales Ratio

2008 3395.16 15033.68 22.58

2009 3743.52 16452.00 22.75

2010 3671.29 16325.21 22.48

2011 4768.00 15284.00 31.20

2012 4766.00 14170.00 33.60

22.58 22.75 22.48

31.233.6

0

5

10

15

20

25

30

35

40

2008 2009 2010 2011 2012

RATIO

YEARS

ADMINISTRATIVE EX PENSES RATIO


21/29


Limited (NCCPL)

INTERPRETATION

The statistics in the above table says that the administrative expenses ratio of the

company is slightly fluctuating. The ratio has increased from 22.58% in 2008 to

22.75% in 2009.Further it started to declining to 22.48% in 2010.Again it is increased

from 31.2% in 2007 to 33.6% in 2012.Which indicates that the company has spend

more expenses for selling and distribution.


22/29

6. Operating Ratio

This ratio establishes the relationship between operating profit and sales.

Cost of goods sold + operating expenses

Operating ratio = ----------------------------------------------------x 100

Net sales

Operating expenses = Administration, selling and distribution expenses

Cost of goods sold = opeingstock+purchases+direct expenses+manuexpenses-closing

stock-gross profit

Operating Ratio

Year

Cost of Goods sold+

Operating Expenses

Sales Ratio

2008 13344.12 15033.68 89.09

2009 14967.68 16452.00 90.97

2010 12842.36 16325.21 78.67

2011 17376.00 15284.00 113.68

201216321.00 14170.00 115.17


23/29


Limited (NCCPL)

Interpretation

The operating ratio is more important to company growth. This ratio is increased from

89.09% in 2008 to 90.97% in 2009.Further it has decreased to 78.67% in 2010. Again

it has increased from 113.68% in 2011 to 115.17% in 2012. Therefore the company

effectively and properly utilize to improve the cost of goods sold.

89.09 90.9778.67

113.68 115.17

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012

RATIO

YEARS

OPENING RATIO


24/29

7. Return ORTotal Assets

The Return on total assets is improve the total assets in the company. It is divided into

profit after tax by total assets.

PAT

Return on total assets ratio = ----------------------------------------------------- x 100

Total assets

Return on Total Assets

Year PAT Total Assets Ratio

2008 839.97 3349.66 25.08

2009 983.67 4362.09 21.52

2010 760.32 4638.21 16.39

2011 825.00 4196.00 19.66

2012 864.00 5069.00 17.04

25.08

21.52

16.39

19.6617.04

0

5

10

15

20

25

30

2008 2009 2010 2011 2012

RATIO

YEARS

RETUN ON TOTAL ASSETS


25/29


Limited (NCCPL)

INTERPRETATION

The total assets are mainly depends upon the company growth. The above overall

profitability ratio reveals the downward trend from 25.08%in 2008 to 21.52% in

2009. Again it has declining from 16.39% in 2006 to 17.04% in 2012.Therefore the

company has not maintain the total assets properly. The company is utilized their

sales


26/29

D. Leverage Ratio 1 .Interest Coverage Ratio

The interest coverage ratio is promote interest to the shareholders. It is divided into

earnings before tax by interest.

EBIT

Interest coverage ratio = -------------------------------------- x 100

Interest

Interest Coverage Ratio

Year

EBIT Interest Ratio

2008 1748.67 45.27 39

2009 1873.87 38.52 49

2010 1956.05 46.15 42

2011 2366.00 21.70 11

2012 1914.00 10.50 18

39

49

42

11

18

0

10

20

30

40

50

60

2008 2009 2010 2011 2012

RATIO

YEARS

INTERESET COVERAGE RATIO


27/29



INTERPRETATION

The above actual interest coverage ratio has increased from 39 times in 2008 to 49

times in 2009, and again it has decreased from 42 times in 2010 to 11 times in

2011.But there is a small change of increasing trend from 2011 to 2012 that is 18

times. Therefore the high ratio indicates the company has to pay interest income

periodically with respect to their lenders.


28/29

2. Financial Leverage Ratio

The finance leverage ratio is improve the earning before tax in the company. It is

divided into earnings before interest tax by earning before tax.

EBIT

Financial leverage ratio = -------------------------------------------------- x 100

EBT

Financial Leverage Ratio

Year EBIT EBT Ratio

2008 1748.67 1364.97 1.28

2009 1873.87 1478.67 1.26

2010 1956.05 1495.32 1.30

2011 2366.00 1041.00 2.27

2012 1914.00 865.00 2.21

1.28 1.26 1.3

2.27 2.21

0

0.5

1

1.5

2

2.5

2008 2009 2010 2011 2012

RATIO

YEARS

Financial Leverage Ratio


29/29


Limited (NCCPL)

INTERPRETATION

The statistics in the above table says that the financial leverage of the company is

slightly increasing. The leverage has decreased from 1.28% in 2008 to 1.26% in 2009.

Again it has a small change to increase from 1.30% in 2010 to 2.27% in 2011. Further

it has decreased from 2011 to 2012 that is 2.21%. Therefore the company has to

maintain their financial position is very good.

Documents

Data Analasys