2 Fofa Assignment

FOFA PROJECT
GROUP 2
2022B3A71814H
2022A7PS1537H
2022B2A11764H
2022B3AA0587H
2022B3A70448H
PART 1-ACCOUNTING
PERSISTENT SYSTEMS LTD.

1.1.
I. Nature of Business
Persistent Systems Ltd is a software development firm that offers digital
engineering and enterprise modernization solutions to businesses across
the board. Based on the end market, the company is divided into three
segments: software, high-tech, and emerging industries; banking, financial
services, and insurance; and healthcare and life sciences. The company
provides software development, professional, and marketing services, as
well as technology solutions in the fields of health sciences,
telecommunications, product lifecycle management, and digital practice.
II. Public or Private Ownership
Persistent Systems Ltd is a public company that trades on the Bombay and
National Stock Exchanges of India. It began as a private limited business
and was converted to a public limited company on September 17, 2007.
III. Company History

Dr. Anand Deshpande, the company's chairman and managing director,
founded Persistent Systems Ltd. on May 30, 1990. Later, the corporation
was transformed into a public limited company. Over the years, the
company expanded its portfolio through acquisitions and collaborations
such as acquiring Openwave's Location Business, PRM Cloud Solutions,
and PARX. The company was named one of the top 50 companies in the
Forbes India Digital 100 list in 2020. Persistent Systems Ltd. was named a
Great Place to Work in India for the tenth time in 2021.
IV. Overall Greatness of the Company

Persistent Systems Ltd appears to be an excellent company to work for
and invest in. The company has a clear mission, a wide portfolio, talented
personnel, a dedicated client base, and good financial results. In addition,
the organization is dedicated to innovation, excellence, and social
responsibility. "Born Digital, Born Agile" is the company's tagline.
In recent quarters, the company's financial performance has been

excellent, with high growth in revenue, operating margin, and net profit. In
Q2FY24, the company's total TCVs were $479.3 million, up 26 percent / 30
percent q-o-q/y-o-y. In Q2FY24, the company's book-to-bill ratio was 1.6x.
The company's LTM attrition rate fell to 13.5 percent, down 200 basis
points year on year. In Q2FY24, the company's utilization increased by 230
basis points year on year to 80.6 percent.
Liquidity Ratios:
Individual Ratio Analysis
1. Current Ratio:
A firm’s ability to meet its short-term liabilities with its short-term assets is
gauged by the current ratio, a financial ratio. A current ratio of 1 or higher is
generally considered acceptable by analysts, indicating that the company
has sufficient current assets to meet its short-term obligations. Persistent
Systems Ltd.'s current ratio has decreased over time, showing that the
company's liquidity has decreased over time, which could be a warning
sign of financial problems. Following a gradual rise, the current ratio fell
quickly from 4.08 to 3.06 in 2020 Q2, during the rapid escalation of the
COVID-19 crisis. A current ratio that is too low, on the other hand, may
indicate that the company is unable to meet its short-term obligations or is
facing solvency issues.
2. Acid-Test Ratio:
The acid-test ratio, also known as the quick ratio, measures a company's
ability to meet its short-term obligations with its most liquid assets, such as
cash, marketable securities, and accounts receivable. With its ups and
downs until Q2 2021, Persistent Systems Ltd's Acid-Test ratio has
increased somewhat. However, the ratio gradually fell until Q2 2023, and
we can detect a modest increase in the most recent quarter, indicating an
improvement in the company's liquidity by raising its quick assets or
decreasing its current liabilities.
3. Cash Ratio:
The cash ratio, which only includes cash and cash equivalents, is a
financial statistic that evaluates a company's ability to settle current
liabilities with its most liquid assets. A high cash ratio (typically greater than
0.5) indicates that a company has adequate liquid assets to satisfy its
immediate liabilities. A low cash ratio, on the other hand, implies that a
company may struggle to pay its short-term loans. Persistent Systems Ltd's
cash ratio fluctuated till Q2 2022, but it was greater than 1.5, indicating that
the company is not overly indebted or overly conservative with its cash
management. After Q2 2022, the ratio fell precipitously and has been
attempting to normalize in the most recent quarter.
4. Operating Cash Flow Ratio:
The operating cash flow ratio aims to determine whether the company
generates enough cash from its operations to pay its short-term
obligations/liabilities Persistent Systems Ltd's operating cash flow ratio was
quite volatile, hovering around 0.25 until Q2 2021 when it began to stabilize
and keep the ratio reduction to a minimal. The ratio decline could also
reflect a more aggressive use of the company's resources or a more
growth-oriented strategy. In recent quarters, the company was able to grow
its operating cash flow or lower its current liabilities, resulting in a rise in the
ratio.
Leverage Financial Ratios:
Individual Ratio Analysis:
1. Debt Ratio
The debt ratio measures the borrowings of a company relative to its assets
and indicates the company's leverage or indebtedness. Persistent Systems'
debt ratio was highest in Q2 2023 and lowest in Q2 2019. The debt ratio
has increased over time. This suggests it has been altering its capital
structure, or the ratio of debt to equity. This could imply that the
organization is reacting to changes in market conditions, capital costs, or
expansion potential. In recent quarters, the company's debt ratio has risen,
indicating that it has either increased its debt or decreased its equity. This
could mean that the corporation is growing its operations, acquiring new
businesses, or repurchasing its stock.
2. Debt to Equity Ratio
The debt-to-equity (D/E) ratio is a financial ratio used to assess the

financial leverage of a company. It is a method of determining the extent to
which a firm finances its activities through debt rather than its resources.
Persistent Systems' debt-to-equity ratio peaked in the second quarter of
2023. In the COVID-19 period, the ratio increased and maintained a steady
state but it has taken a sharp increase in Q2-2022. The company has been
increasing its debt or decreasing its equity indicating that the company is
expanding its operations.
3. Interest Coverage Ratio
The Interest Coverage Ratio is a financial measure that determines how

many times a company can pay off its interest with its current earnings
before taxes and interest are removed. If the interest coverage ratio is high,
it indicates that the company's operational income exceeds its interest
expense, indicating a decreased chance of bankruptcy. Otherwise, a
low-interest coverage ratio indicates that the company's interest expense
exceeds its operational income, indicating a higher likelihood of financial
hardship. The ICR of Persistent Systems has been decreasing over time.
This could be due to a variety of circumstances, including rising loan rates,
lower sales, or more costs. A falling ICR is cause for alarm because it may
suggest that the company is about to fail on its debt. Over time, the
company's capacity to satisfy its debt obligations has deteriorated. This is
cause for alarm because it may signify that the corporation is about to
default on its debt.
4. Debt Service Coverage Ratio
A company's debt service coverage ratio (DSCR) over time, is a measure

of its capacity to satisfy its debt commitments. The greater the DSCR, the
greater the company's ability to satisfy its debt commitments. The DSCR of
Persistent Systems has fluctuated throughout time. This could signal that
the company's market is experiencing inconsistent demand, seasonal
swings, or competition challenges. This could also imply that the
corporation is refinancing, repaying, or borrowing more debt. The ratio is
kept at a moderate level, indicating that the company is balancing its debt
and equity financing and lowering its cost of capital.
Efficiency Ratios:
1. Asset Turnover Ratio

The asset turnover ratio is used to assess the efficiency with which a
company uses its assets. It is determined by dividing net sales by a
company's total or average assets. A good asset turnover ratio exceeds
one. Persistent Systems’ Asset Turnover Ratio has been improving over
time, which could be a good sign of good performance for the company.
The company's average total assets have been maintained or decreased
over time, indicating that it has been optimizing asset utilization, minimizing
asset investment, or preventing asset obsolescence. The company has the
highest asset turnover ratio of 1.39 in Q4 2023, indicating that it is highly
efficient in generating revenue from its assets. This could suggest a
competitive edge, a low-cost strategy, or a high-quality product.
2. Inventory Turnover Ratio

The inventory turnover ratio is used to analyze how well the firm manages
its inventory. A lower or declining value may imply overstocking or a
slowdown in sales, whilst a higher/increasing value may indicate smart
inventory management.
3. Receivables Turnover Ratio

The accounts receivable turnover ratio is used to assess how well the firm
is collecting outstanding debts. A higher and increasing ratio would imply
faster collection, improved cash flow, and a lower chance of bad debts.
Accounts Receivable Persistent Systems' turnover ratio has changed over
time, peaking in Q4 2019. The variations in the ratio show that the
company is dealing with inconsistent demand or seasonal oscillations. The
ratio is moderate, indicating that the company has a decent credit policy
and a good collection mechanism.
4. Days Sales in Inventory Ratio

Days Sales in Inventory ratio measures how many days it takes a company
to sell its inventory. If the DSI ratio is low, this indicates the company is
selling its inventory quickly and has a high inventory turnover. A higher DSI
indicates that the company is not selling its inventory quickly enough.
Companies that are fast-paced and have high demand typically have lower
DSI ratios.
Profitability Ratios:
1. Gross Margin Ratio

The Gross Margin Ratio calculates how much profit a company makes after
deducting the cost of products sold from its revenue. It demonstrates how
well a corporation uses its resources to manufacture and sell its products.
A greater gross margin ratio shows that the corporation has more profit
from sales left over to cover other expenses and create net income.
2. Operating Margin Ratio
The operating margin ratio is a profitability ratio calculated by dividing

operating income by revenue. It displays the firm's profit per rupee of
revenue received after deducting operating expenditures, etc., but before
tax. A ratio of 15% or more is deemed good. Persistent Systems' operating
margin has increased over time, from around 9 percent in Q2-2018 to
around 15.3 percent in Q2-2023, indicating that the company is earning
more money from its core business activities, such as sales and
production, and this suggests that the company has a competitive
advantage or a loyal customer base. The company's high operating margin
figure indicates that it has considerable growth potential.
3. Return on Assets Ratio
ROA (return on assets) is a word used to describe how profitable a

company's assets are. It seeks to assess how well the company uses its
assets to produce revenues. A ROA of more than 5% is often regarded as
favorable by analysts. From 2017 to 2020, Persistent Systems' Return on
Assets Ratio initially fell. The ROA has been improving over time from
Q4-2020, indicating that the company is earning a larger EBIT. The rising
ROA suggests that the company can increase earnings without investing in
new assets and is managing its assets well.
4. Return on Equity
ROE (return on common equity) assesses how well a company uses and
finances its assets to generate earnings. Unlike ROA, it additionally
considers financing expenses. It is essentially the direct return that a
shareholder will get and is thus vital for a potential future shareholder.
Persistent Systems' Return on Equity (ROE) initially declined gradually till
Q4-2020. The company then began to provide more returns to its owners,
boosting its profitability and positioning itself as a possible beneficial
investment for shareholders.
Market Value Ratios:

1. Book Value per Share Ratio
The Book Value per Share (BVPS) Ratio calculates how much equity a
corporation has in each share of common stock it owns. BVPS is
commonly expressed as a monetary value and can be used to compare the
worth and performance of various firms or industries. The BVPS of
Persistent Systems has increased from roughly 200 in Q4-2017 to around
500 in Q4-2023. This indicates that the company is financially sound or has
a solid reputation. A high BVPS suggests a robust cash flow or a favorable
return on investment for the company's owners.
2. Earnings per Share Ratio
It’s essentially a company’s profit per share obtained by dividing profit by

the number of outstanding shares. This too has seen an increasing trend
with some minor deviations. Persistent Systems' Earnings per Share Ratio
(EPS) has been increasing over time, indicating that the company is
producing more money per share. Investors may be prepared to pay a
premium price for stocks because this firm has a high EPS ratio value and
is predicted to continue to achieve great earnings growth.
3. Price-Earnings Ratio
The price-earnings ratio (P/E) measures how much investors are ready to
pay for a company's earnings. It is determined by taking the current share
price and dividing it by the earnings per share (EPS). A high P/E ratio
indicates that investors are paying a premium price for the company's
earnings and anticipate future growth. If the P/E ratio is low, investors are
paying a discount for the company's earnings and anticipate lesser future
growth. Persistent Systems' rising Price-Earnings ratio raises the stakes for
the company. The ratio's high value indicates that the market has great
faith and speculation in the company.
Abbott India Limited
Introduction:
● Nature of business:
Abbot India Limited is a company operating in the healthcare sector having

a diverse range of science-based nutritional products, diagnostic tools,
branded generic pharmaceuticals, and diabetes and vascular devices. It is
a subsidiary of Abbott Laboratories (publicly listed company in the US).
Product wise breakup of Abbott India is as follows:

● Public or private ownership :
Abbott India Limited is a publicly traded company listed on the stock

exchanges. While it is part of the global Abbott network, it functions as an
independent entity within the Indian market. About 75% of the company is
owned by the promoters and promoter groups while 25% is owned by the
public.
● When and how did it start?
Abbott Laboratories, the parent company of Abbott India was established

way back in 1910 while it began its operations in India in 1944. Established
to address the healthcare needs of the nation, the company initially focused
on pharmaceuticals and gradually expanded its portfolio to encompass a
diverse range of healthcare products and services.
● Overall greatness of the company:
Abbott is a leading company among the top 15 pharma companies in India

and is a frontrunner known for delivering high quality products and service.
With a strong emphasis on ethical practices and a customer-centric

approach, Abbott India Limited continues to be a trusted name in providing
healthcare solutions that positively impact the well-being of individuals
across India.
Liquidity Ratios:
quarter Liquidity ratios
Current ratio Acid test ratio Cash ratio Operating cash

flow ratio
2017 Q4 3.00 2 1.72 0.072
2018 Q2 3.04 2.14 1.76 0.216
2018 Q4 3.39 1.93 1.53 0.156
2019 Q2 2.92 1.82 1.51 0.161
2019 Q4 3.22 2.28 1.96 0.138
2020 Q2 3.19 2.28 1.95 0.208
2020 Q4 3.60 2.82 2.46 0.141
2021 Q2 3.18 2.32 1.97 0.197
2021 Q4 3.38 2.58 2.34 0.162
2022 Q2 3.06 2.35 2.08 0.191
2022 Q4 3.20 2.52 2.28 0.191
2023 Q2 2.48 1.76 1.48 0.236
2023 Q4 2.51 1.87 1.61 0.206
Average 3.09 2.20 1.896 0.175

Max 3.60 2.82 2.34 0.236
Min 2.48 1.76 1.51 0.072
Individual ratio analysis of liquidity ratios:
1. Current Ratio:
has sufficient current assets to meet its short-term obligations. Abbott
generally maintained a ratio greater than 2.5 at all times in the given period
indicating good ability to meet short term obligations. In 2023 Q2 as well as
Q4 it has fallen to around 2.5 from a level of around 3 in 2022 Q4 indicating
a decrease in its current assets with respect to current liabilities which can
be a concern for investors. However overall these are minor variations
where even 2.5 is an acceptable ratio.
2. Acid test ratio:
The ability of a business to cover its short-term obligations with its most
liquid assets, including as cash, marketable securities, and accounts
receivable, is gauged by the acid-test ratio, sometimes referred to as the
quick ratio. For Abbott India, quick ratio initially decreased from 2.14 in
2018Q2 to 1.82 in 2019 Q2 however it increased back and stabilized to
level of 2.5 by 2022 Q4. However here too just like current ratio, there has
been a dip in the last two quarters of 2023 Q2 and Q4, indicating a
probable increase in short term borrowings of the company.
3. Cash Ratio
The cash ratio, which solely covers cash and cash equivalents, is a
financial ratio that assesses a company's capacity to settle its current
liabilities using its most liquid assets. A high cash ratio (often seen as being
above 0.5) shows that a business has enough liquid assets to cover its
immediate liabilities. On the other hand, a low cash ratio indicates that a
business may have trouble paying its short-term debts. It has fluctuated for
abbot however has always been above 1.5 in the said period indicating the
availability of high amounts of cash to cover its short-term liabilities. Note
that the cash ratio was at an all-time high during 2020 Q4 which can be an
effect of covid where all pharma companies saw a spike of growth in
business.
4. Operating cash flow ratio:

Operating cash flow ratio attempts to check if the company is generating
enough cash from its operating activities to cover its short term
obligations/liabilities. The team was unable to find data for this due to which
table has been left empty as well.
Leverage financial ratios :
Leverage Financial ratios

Quarter Debt ratio Debt to equity Interest Data service
ratio coverage ratio coverage ratio
2017 Q4 0.328 0.488 29.52
2018 Q2 0.327 0.486 334.31
2018 Q4 0.299 0.427 46.45
2019 Q2 0.348 0.535 365.29
2019 Q4 0.317 0.464 197.32
2020 Q2 0.328 0.489 103.95
2020 Q4 0.314 0.459 43.84
2021 Q2 0.349 0.538 47.27
2021 Q4 0.322 0.476 40.17
2022 Q2 0.352 0.544 53.99
2022 Q4 0.322 0.498 53.72
2023 Q2 0.338 0.510 82.07
2023 Q4 0.300 0.429 65.53
Average 0.327 0.488 112.57

Max 0.349 0.544 365.29
Min 0.299 0.427 29.52
Individual ratio analysis:
1. Debt ratio:
The debt ratio measures the borrowings of a company relative to its assets
and indicates the company's leverage or indebtedness. The debt ratio of
Abbott India as can be seen from the graph has been quite stable at
around 0.3, i.e. the company has financed about 30% of its assets through
debt. A low debt ratio indicates that the firm is cautious with how much debt
it is taking and has a low chance of defaulting on its financial obligations.
2. Debt to equity:
Debt-to-equity (D/E) ratio is a financial ratio used to measure a company’s

financial leverage. It is a way to measure of the degree to which a
company is financing its operations with debt rather than its own resources.
The debt to equity ratio for Abbott India hasn’t varied significantly with a low
of 0.427 in 2018 Q4 and high of 0.544 in 2022 Q2. It is also quite low
compared to general standards of 2 being a good value, indicating the firm
is less levered and closer to being fully equity financed.
3. Interest coverage ratio:
before taxes and interest are removed. If the interest coverage ratio is high,
it indicates that the company's operational income exceeds its interest
expense, indicating a decreased chance of bankruptcy. Otherwise, a
low-interest coverage ratio indicates that the company's interest expense
exceeds its operational income, indicating a higher likelihood of financial
hardship. The team was unable to find data on this ratio for Abbott India.
4. Data service coverage ratio:

A company's debt service coverage ratio (DSCR) over time, is a measure
of its capacity to satisfy its debt commitments. The greater the DSCR, the
greater the company's ability to satisfy its debt commitments. The DSCR of
Persistent Systems has fluctuated throughout time. This could signal that
the company's market is experiencing inconsistent demand, seasonal
swings, or competition challenges. The team was unable to find data on
this ratio for Abbott India.
Efficiency ratios:
Efficiency ratios
Quarter Asset turnover Inventory Receivables Day sales in
ratio turnover ratio turnover ratio inventory ratio
2017 Q4 1.58 4.17 18.20 87.63
2018 Q2 1.55 3.80 14.52 96.00
2018 Q4 1.47 3.70 15.07 98.75
2019 Q2 1.42 4.00 13.40 91.35
2019 Q4 1.37 3.51 13.64 104.06
2020 Q2 1.32 3.78 13.43 96.50
2020 Q4 1.26 3.98 13.78 92.50
2021 Q2 1.25 3.64 12.75 100.61
2021 Q4 1.17 4.01 15.17 91.05
2022 Q2 1.29 3.80 14.51 96.07
2022 Q4 1.22 3.81 18.27 95.72
2023 Q2 1.32 4.24 16.47 86.16
2023 Q4 1.22 4.35 17.69 83.86
Average 1.34 3.90 15.15 93.86

Max 1.58 4.24 18.27 104.06
Min 1.17 3.51 12.75 83.86
Individual Ratio analysis:
1. Asset turnover ratio:

The asset turnover ratio is used to measure the efficiency with which a firm
is using its assets. Its calculated by dividing net sales by the total or
average assets of a company. An asset turnover ratio over 1 is generally
considered good. Abbot India has seen a downward trend in its asset
turnover ratio which was 1.55 in 2017 Q4 and is now down to 1.22 in 2023
Q4. This is an area that must be addressed and the trend must be reversed
even though it is in absolute terms still over 1.
2. Inventory turnover ratio:
Inventory turnover ratio is used to assess how well the inventory is being
managed by the firm. A lower or declining value might indicate towards
overstocking or a slowdown in sales whereas a higher/increasing value
indicated efficient management in inventory. It has not varied significantly
for Abbott India. It was 4.17 in 2017 Q4 and after a few small deviations, is
now at 4.35 in 2023 Q4 and has been on an increasing trend since 2022
Q4 indicating good management of inventory.
3. Receivables turnover ratio:
Accounts receivables turnover ratio is used to check on how the collection

of outstanding dues is happening in the firm. A higher and increasing ratio
would mean fast collection and better cash flow and also a reduced risk of
bad debts. Abbott has always had a high ratio in given period however was
on a decreasing trend since 2017 Q4 to 2021 Q2 however has once again
been on a increasing trend since indicating improvement in the company’s
credit and collection policies.
4. Day sales inventory ratio:

Days Sales in Inventory ratio measures how many days it takes a company
to sell its inventory. If the DSI ratio is low, this indicates the company is
selling its inventory quickly and has a high inventory turnover. A higher DSI
indicates that the company is not selling its inventory quickly enough.
Companies that are fast-paced and have high demand typically have lower
DSI ratios. The team was unable to find data on this ratio for Abbott India.
Profitability ratios:
Profitability ratios
Quarter Gross margin Operating Return on Return on
ratio margin ratio assets ratio equity ratio
2017 Q4 8.32 15.03 21.42
2018 Q2 21.19 15.74 22.96
2018 Q4 13.02 17.91 26.06
2019 Q2 19.39 17.72 26.81
2019 Q4 16.33 16.81 24.33
2020 Q2 17.94 17.81 26.89
2020 Q4 12.86 18.28 26.71
2021 Q2 21.46 19.79 29.98
2021 Q4 17.38 18.70 27.44
2022 Q2 19.92 19.94 30.73
2022 Q4 22.01 19.81 29.46
2023 Q2 23.62 22.55 34.42
2023 Q4 19.57 21.63 31.60
Average 17.92 18.59 27.60

Max 23.62 22.55 34.42
Min 8.32 15.03 21.42
1. Gross margin ratio:
The Gross Margin Ratio calculates how much profit a company

makes after deducting the cost of products sold from its revenue. It
demonstrates how well a corporation uses its resources to
manufacture and sell its products. A greater gross margin ratio
shows that the corporation has more profit from sales left over to
cover other expenses and create net income. The team was
unable to find data on this ratio for Abbott India.
2. Operating margin ratio:
Operating margin ratio is a profitability ratio calculated by dividing
operating income by revenue. Tt shows the profit earned by the
firm per rupee of revenue received after deducting operating
expenses, etc but before tax. A ratio upwards of 15% is
considered good. Abbott India large variations in it however after a
low in 2020 Q4 at 12.86% it has been on a upwards trend since till
2023 Q2 at 23.62 which might have been due to increased
demand of various products during Covid allowing the firm to
increase margins. The upwards trend is a positive sign for the
investors.
3. Return on Assets ratio:

ROA (return on assets) is a term used to measure how profitable a
company is in regard to its assets. It attempts to analyse how well
the company is using its assets to generate profits. Analysts
generally consider a ROA above 5% as good. Abbott India has
always maintained ROA upwards of 15% which is excellent. It is
also on an increasing trend with a high of 22.55% in 2023Q2 which
came down slightly to 21.63 in 2023 Q4. This shows that company
has a solid and stable profit statement.
4. Return on equity ratio:

ROE (return on common equity) measures how well a firm uses
and finances its assets to generate earnings. Unlike ROA it also
takes into account the financing costs. Its basically the direct
return a shareholder will see and is hence important for a potential
future shareholder. Abbott India has consistently maintained an
ROE above 20% which is a really good sign for its shareholders. It
has also been on an increasing trend from 21.42 in 2017 Q4 to a
high of 34.42 in 2023 Q2 which indicates a very healthy growth in
profitability of the company.
Market Value ratios:
Market value ratios

Quarter Book value Dividend yield Earnings per Price-earnings
per share ratio ratio share ratio ratio
2017 Q4 652.70 19.79 35.66
2018 Q2 693.35 64.72 28.69
2018 Q4 796.62 47.10 28.88
2019 Q2 835.82 64.79 37.93
2019 Q4 945.25 53.28 34.47
2020 Q2 1003.46 83.92 42.85
2020 Q4 1144.37 52.22 55.38
2021 Q2 1064.66 85.05 53.19
2021 Q4 1224.59 71.75 46.10
2022 Q2 1133.60 90.51 60.75
2022 Q4 1327.00 99.49 47.10
2023 Q2 1277.41 124.95 46.12
2023 Q4 1500.54 108.90 49.39
Average 1046.10 74.34 43.57

Max 1327.00 124.95 60.75
Min 652.70 19.79 28.69
1. Book value per share ratio:

It is the ratio of equity available to common shareholders divided by the
number of shares. It shows the book-value of a firm on a per share basis.
Abbott India has seen a promising increasing curve here from 652.7 in
2017 Q4 to 1500.5 in 2023Q4 which is a excellent 229% increase in a span
of 5 years.
2. Dividend yield ratio:
This ratio measures the percentage of return on investment generated by
dividends. It is calculated by dividing the annual dividend per share by the
market price per share. A higher dividend yield indicates that the company
is paying higher dividends relative to its stock price. The team was unable
to find data for this ratio.
3. Earnings per share ratio:

It’s essentially company’s profit per share obtained by dividing profit by
number of outstanding shares. This too has seen an increasing trend with
some minor deviations. Barring the small decline in 2023 Q4 this is also a
positive indicator regarding company’s financial health.
4. Price- earnings ratio

P/E ratio or price to earnings ratio is the price at which stock is selling with
respect to its earnings. It decreased from 35.66 in 2017 Q4 to 24.47 in
2019 Q4 however has since revived back to levels of 45+.
HeidelbergCement India Ltd
(HEIMIN)
Introduction:
· Nature of Business:
HeidelbergCement India Ltd operates within the construction
materials industry, specializing in the production and distribution of
cement, a fundamental ingredient in the construction sector.
· Public or Private Ownership:
HeidelbergCement India Limited is a publicly traded company.

Its shares are listed on stock exchange and can be bought and sold
by the general public. Shareholders, including institutional investors
and individual investors, own the company through ownership of its
shares.
· When and how did it Start and the Overall Greatness

of the Company
HeidelbergCement, AG entered India in 2006 with the
acquisition of erstwhile Mysore Cement, Cochin Cement and a JV
with Indorama Cement. Post the restructuring and expansion at its
Central India plants, its installed capacity increased to 5.5 million
Tonnes from 2.3 million Tonnes. Post-acquisition of Italcementi in
2016, the Group has more than doubled its presence in India. With 4
Integrated Cement plants, 4 Grinding Units and a Terminal, its
installed capacity in India now stands at about 14 million Tonnes.
Currently cement is sold in 12 states where its brands are well
accepted by its loyal customers.
Liquidity Ratio:
Quarter Liquidity Ratios

Current Ratio Acid Test ratio Cash ratio Operating cash
flow ratio
2017 Q4 0.62 0.04 0.02 0.082
2018 Q2 0.56 0.04 0.01 0.067
2018 Q4 0.77 0.27 0.25 0.09
2019 Q2 0.86 0.25 0.22 0.1
2019 Q4 0.97 0.4 0.37 0.094
2020 Q2 1.11 0.59 0.55 0.092
2020 Q4 1.1 0.53 0.51 0.1
2021 Q2 1.14 0.62 0.59 0.091
2021 Q4 1.09 0.51 0.47 0.182
2022 Q2 1.1 0.51 0.47 0.095
2022 Q4 1.42 0.50 0.45 0.145
2023 Q2 1.28 0.34 0.29 0.042
2023 Q4 1.31 0.61 0.58 0.073
Average 1.02 0.40 0.36 0.0964

Max 1.42 0.62 0.59 0.182
Min 0.56 0.04 0.01 0.042
Individual Ratio Analysis of Liquidity ratios:
1. Current Ratio:
has sufficient current assets to meet its short-term obligations. Heidelberg
Cement's current ratio has shown a positive trend over the periods
provided. Starting below 1, indicating potential short-term liquidity
challenges, the ratio gradually increased, consistently surpassing the 1
mark in 2020 Q2. This suggests an improvement in the company's ability to
cover short-term obligations with current assets. The significant increase
observed in certain quarters indicates strengthened liquidity. Overall, the
current ratio reflects a positive trajectory in the company's short-term
financial health.
2. Acid Test Ratio:
receivable, is gauged by the acid-test ratio, sometimes referred to as the
quick ratio. The acid-test ratio for the Heidelberg Cement has varied over
the reported periods. Starting with low values, indicating potential difficulty
in meeting short-term obligations using only the most liquid assets, there's
a fluctuating pattern. The ratio increased notably in certain quarters like
2018 Q4 but experienced decreases from 2022 Q4. There has been a
subsequent dip from 2021 Q2 to 2023 Q2 and a sharp rise from 2023 Q4.
The observed values generally suggest a mix in the company's ability to
cover immediate liabilities with its quick assets. The overall trend does not
show a consistent improvement or deterioration in the acid-test ratio.
3. Cash Ratio:
The cash ratio, which solely covers cash and cash equivalents, is a
financial ratio that assesses a company's capacity to settle its current
liabilities using its most liquid assets. A high cash ratio (often seen as being
above 0.5) shows that a business has enough liquid assets to cover its
immediate liabilities. On the other hand, a low cash ratio indicates that a
business
may have trouble paying its short-term debts.

The cash ratio, which measures a company's ability to cover its short-term
liabilities with its cash and cash equivalents, has exhibited fluctuations over
the reported periods. Starting with low values, the ratio gradually increased
in certain quarters up to 2021Q2 and gradually decreased up to 2023 Q2
and again increased in the last quarter. The cash ratio, overall, suggests
variability in the company's capacity to meet immediate obligations solely
with cash and cash equivalents. The trend does not consistently indicate an
improvement or deterioration, emphasizing the dynamic nature of the
company's short-term liquidity position.
The company's operating cash flow ratio has shown a relatively stable
performance in the earlier years, hovering around 0.09 in 2018 Q4 and
2019 Q2. Subsequently, there was a notable increase in 2021 Q4, reaching
0.182, indicating a significant improvement in the ability to generate cash
from core operations. However, recent quarters, particularly 2023 Q2,
witnessed a substantial drop to 0.042, suggesting a more challenging
period for cash generation. The ratio showed a partial recovery in 2023 Q4,
reaching 0.073.
Quarter Leverage Financial Ratios

Debt Ratio Debt to Equity Interest Debt Service
ratio Coverage ratio Coverage ratio
2017 Q4 29.29 72.94 2.79 0.077
2018 Q2 18.25 45.42 3.6 0.155
2018 Q4 24.45 59.18 5.5 0.152
2019 Q2 19.1 43.89 4.58 0.192
2019 Q4 19.17 44.13 6.21 0.192
2020 Q2 14.62 33.3 5.12 0.235
2020 Q4 14.96 31.77 6.14 0.239
2021 Q2 10.29 22.82 7.34 0.332
2021 Q4 10.77 20.51 13.63 0.407
2022 Q2 10.9 21.42 7.87 0.286
2022 Q4 7.04 12.7 17.52 0.455
2023 Q2 7.73 14.51 0.94 0.0945
2023 Q4 6.82 12.43 6.41 0.23
Average 14.87 33.46 6.74 0.234

Max 29.29 72.94 17.52 0.407
Min 6.82 12.43 0.94 0.077
1. Debt Ratio:
The debt ratio measures the borrowings of a company relative to its
assets and indicates the company's leverage or indebtedness. The
debt ratio, which indicates the proportion of a company's assets
financed by debt, has demonstrated a changing pattern over the
reported periods. Starting relatively high in 2017 Q4, the ratio
gradually decreased until 2019 Q2, suggesting a reduction in the
reliance on debt to finance assets. However, there was an increase in
the ratio in 2020 Q4, indicating a higher level of debt relative to
assets. Subsequently, there's a general decreasing trend, implying a
reduction in the debt-to-assets ratio over the last few quarters. The
2023 Q4 value indicates a further decline in the debt ratio. Overall,
the debt ratio trend suggests a mix of periods with increased and
decreased reliance on debt financing, with a recent emphasis on
reducing debt.
2. Debt to Equity Ratio:
The debt-to-equity ratio, which reflects the proportion of a company's

financing that comes from debt compared to equity, has demonstrated a
downward trend over the provided periods. Overall, the debt-to-equity ratio
provides insights into the company's capital structure, and the observed
values indicate a favorable trend in reducing debt relative to equity over the
given periods. Starting at a relatively high value in 2017 Q4, the ratio has
consistently decreased in subsequent quarters. Lower values indicate a
reduction in the company's reliance on debt compared to equity for
financing. The decreasing trend suggests a positive shift towards a lower
debt burden and a potentially stronger financial position with a higher
reliance on equity.
The company's Interest Coverage Ratio, which indicates its ability to

meet interest payments on its debt, has displayed a generally positive
trend. In the earlier years (2017-2019), there was a steady increase,
indicating an improving ability to cover interest expenses with operating
income. This positive momentum continued in the subsequent years,
notably peaking in 2022 Q4. However, there was a significant decline in the
Interest Coverage Ratio in 2023 Q2, dropping to 0.94, This suggests that
the company's ability to cover interest expenses with its operating income
decreased substantially during that quarter. It rebounded in 2023 Q4 but
remained below the levels observed in the previous quarters.
The company's Debt Service Coverage Ratio (DSCR) has shown a mixed
performance over the years. In the early years (2017-2019), there was a
gradual improvement, suggesting an increasing ability to cover debt
payments with operating income. The mid-years (2020-2021) witnessed a
significant improvement, reaching its peak in 2021 Q4, indicating a robust
ability to cover debt obligations. However, in recent quarters (2022-2023),
there has been some variability, with a substantial increase in 2022 Q4 but
a decrease in 2023 Q2.
Efficiency Ratios:
Quarter Efficiency Ratios

Asset Turnover Inventory Receivables Day Sales
Ratio Turnover ratio Turnover ratio inventory ratio
2017 Q4 0.67 2.05 88.08 177.94

2018 Q2 0.68 2.19 70.41 166.58
2018 Q4 0.75 2.68 118.67 136.39
2019 Q2 0.83 2.68 82.68 136.01
2019 Q4 0.81 2.66 95.62 137.19
2020 Q2 0.83 2.98 75.01 122.69
2020 Q4 0.79 2.45 84.73 149.41
2021 Q2 0.7 2.58 60.77 141.93
2021 Q4 0.74 2.41 70.95 151.76
2022 Q2 0.81 2.91 64.80 125.37
2022 Q4 0.8 2.70 62.09 135.25
2023 Q2 0.82 2.39 56.34 152.48
2023 Q4 0.82 2.38 62.95 153.69
Average 0.77 2.54 76.39 145.13

Max 0.83 2.98 118.67 177.94
Min 0.67 2.05 56.34 122.69
1.Asset Turnover Ratio:

The Asset Turnover Ratio, which measures how efficiently a company
utilizes its assets to generate revenue, has shown a relatively stable trend
over the provided periods. The values hover around a consistent range,
indicating a moderate and relatively steady performance in terms of
generating revenue relative to the Heidelberg Cement's total assets.
Although there are slight fluctuations, the overall trend suggests a
reasonable level of efficiency in asset utilization to generate sales. The
stable nature of the Asset Turnover Ratio implies that the company has
maintained a consistent approach to using its assets for revenue
generation.
2. Inventory Turnover Ratio:
The Inventory Turnover Ratio, which measures how efficiently a company

manages its inventory by indicating how many times it sells and replaces its
inventory over a period, has demonstrated some variability over the
reported periods. Starting at 2.05 in 2017 Q4, the ratio increased and
peaked in 2020 Q2, indicating an improvement in the efficiency of inventory
turnover. However, there are subsequent fluctuations, suggesting changes
in the company's inventory management efficiency. The values, overall,
indicate that the company has been relatively effective in managing its
inventory, with periods of increased turnover and occasional decreases.
The Inventory Turnover Ratio provides insights into the efficiency of the
company's inventory management practices.
3.Accounts Receivable Turnover:
The Accounts Receivable Turnover Ratio provides insights into the

effectiveness of the company's credit and collection policies. The Accounts
Receivable Turnover Ratio, which measures how efficiently a company
collects cash from its receivables, has shown some variability over the
reported periods. Starting at 88.08 in 2017 Q4, the ratio decreased in
subsequent quarters, indicating a decline in the speed at which the
company collects cash from its receivables. There are fluctuations in the
values, suggesting changes in the efficiency of accounts receivable
turnover.
The company's Day Sales Inventory (DSI) ratio, representing the number of
days it takes to sell its average inventory, has exhibited fluctuations over
the quarters. In the earlier years (2017-2019), the DSI ratio was relatively
high, indicating a longer period to sell inventory. Subsequently, in 2020,
there was a decrease in DSI, suggesting an improvement in inventory
turnover. However, the ratio has shown variability in recent quarters, with
an increase in 2022 Q4 and a further rise in 2023 Q2 and Q4.
Quarter Profitability Ratios
Gross Margin Operating Return on Return on
Margin Assets Common Equity
2017 Q4 11.98 3.01 8.18
2018 Q2 16.15 3.32 8.71
2018 Q4 18.03 5.39 13.23
2019 Q2 19.00 7.59 18.13
2019 Q4 18.60 8.44 19.90
2020 Q2 18.45 9.73 22.26
2020 Q4 19.60 9.77 21.57
2021 Q2 19.09 8.57 19.25
2021 Q4 21.45 11.17 22.43
2022 Q2 15.50 11.66 24.30
2022 Q4 14.61 8.90 16.49
2023 Q2 3.84 6.65 12.77
2023 Q4 6.93 3.61 6.55
Average 15.63 7.52 16.44

Max 21.45 11.66 24.30
Min 3.84 3.01 6.55
1.Gross Margin Ratio:

The Gross Margin Ratio calculates how much profit a company makes
after deducting the cost of products sold from its revenue. It demonstrates
how well a corporation uses its resources to manufacture and sell its
products. A greater gross margin ratio shows that the corporation has more
profit from sales left over to cover other expenses and create net income.
The team was unable to find data on this ratio for Heidelberg Cement India.
2.Operating Margin Ratio:
The Operating Margin, which represents the profitability of a company's

core operations by measuring the percentage of revenue that remains after
covering operating expenses, has exhibited some fluctuation over the
provided periods. Beginning at 11.98 in 2017 Q4, the operating margin
increased in the subsequent quarters, reaching its peak at 21.45 in 2021
Q2. However, there is a notable decrease in the following quarters,
particularly in 2022 Q4 and 2023 Q2. This suggests variability in the
company's ability to generate profits from its core operations. The
Operating Margin provides insights into the efficiency and profitability of the
company's day-to-day operations. The observed values indicate both
periods of improved and reduced operating profitability.
3. Return on Assets Ratio:

The Return on Assets (ROA), which measures a company's ability to
generate profit from its assets, has shown some fluctuation over the
reported periods. Starting at 3.01 in 2017 Q4, the ROA increased in
subsequent quarters, reaching its peak at 11.66 in 2022 Q4. However,
there is a notable decrease in the following quarters, particularly in 2023
Q2 and 2023 Q4. This indicates variability in the company's efficiency in
generating profits relative to its total assets. The Return on Assets provides
insights into the overall effectiveness of the company in utilizing its assets
to generate returns. The observed values indicate both periods of improved
and reduced profitability relative to the company's asset base.
4. Return on Equity Ratio:
The Return on Common Equity, which measures a company's ability to

generate profit from common equity shareholders' investments. The Return
on Common Equity provides insights into the company's profitability
specifically in relation to common equity investments. Beginning at 8.18 in
2017 Q4, the return on common equity increased in subsequent quarters,
reaching its peak at 24.3 in 2022 Q2. However, there is a significant
decrease in the following quarters, particularly in 2023 Q2 and 2023 Q4.
This indicates fluctuations in the company's ability to generate returns for
common equity shareholders. The observed values indicate both periods
of improved and reduced profitability.

Book Value per Dividend Yield Earnings per Price-earnings
Share Ratio Ratio Ratio Ratio
2017 Q4 42.67 1.63 37.05
2018 Q2 42.25 1.47 32.59
2018 Q4 46.17 2.30 24.22
2019 Q2 47.63 2.21 17.62
2019 Q4 51.68 2.69 18.64
2020 Q2 54.12 2.57 16.62
2020 Q4 58.01 2.93 11.98
2021 Q2 56.92 2.75 17.46
2021 Q4 65.92 6.18 16.81
2022 Q2 63.58 2.63 17.53
2022 Q4 69.07 4.13 17.04
2023 Q2 62.66 0.31 23.51
2023 Q4 64.48 1.54 36.75
Average 55.78 2.56 22.14

Max 69.07 6.18 37.05
Min 42.25 0.31 11.98
1. Book Value per Share Ratio:
The Book Value per Share, which represents the total value of a
company's assets that shareholders would theoretically receive if the
company were to be liquidated, has shown an overall increasing trend over
the reported periods. Starting at 42.67 in 2017 Q4, the book value per
share consistently increased in subsequent quarters, reaching its peak at
69.07 in 2022 Q2. However, there is a decrease in the following quarters,
particularly in 2023 Q2 and 2023 Q4. This indicates changes in the
company's net asset value per share. The Book Value per Share provides
insights into the company's net worth on a per-share basis. The observed
values suggest both periods of growth and a slight decline in the book
value per share over the given time frame.

This ratio measures the percentage of return on investment generated by
dividends. It is calculated by dividing the annual dividend per share by the
market price per share. A higher dividend yield indicates that the company
is paying higher dividends relative to its stock price. The team was unable
to find data for this ratio.
3.Earnings per Share Ratio:
The Earnings per Share (EPS) for Ratios, which represents the portion
of a company's profit allocated to each outstanding share of common
stock, has shown variability over the reported periods. The EPS for
Ratios provides insights into the company's ability to generate earnings
for its shareholders on a per-share basis. Starting at 1.63 in 2017 Q4,
the EPS fluctuated in subsequent quarters, reaching its highest point at
6.18 in 2022 Q2. However, there is a significant decrease in the
following quarters, particularly in 2023 Q2 and 2023 Q4. This indicates
changes in the company's profitability per share. The observed values
suggest both periods of improved and reduced earnings per share.
4.Price - Earnings Ratio:
The Price-Earnings Ratio (P/E), which reflects the valuation of a

company's stock relative to its earnings, has demonstrated some
fluctuations over the reported periods. The P/E Ratio provides insights
into how the market values the company's stock in relation to its
earnings. Beginning at 37.05 in 2017 Q4, the P/E ratio decreased in
subsequent quarters, reaching its lowest point at 11.98 in 2021 Q2.
However, there's an increase in the following quarters, particularly in
2023 Q4. This indicates variability in the market's perception of the
company's earnings and valuation.
ADITYA BIRLA FASHION RETAIL LTD.
I. Nature of Business
Aditya Birla Fashion and Retail Limited (ABFRL) is one of the leading
fashion retail companies in India. It operates a diverse portfolio of
brands in various segments, including formal and casual wear, ethnic
wear, and sportswear. The company has a significant presence in the
Indian retail market. ABFRL portfolio includes several brands such as
Louis Philippe, Van Heusen, Allen Solly and Peter England established
for over 25 years. Pantaloons brands caters to men, women and
children with a mix of private labels and licensed brands in apparel and
accessories.
II. Public or Private Ownership
Aditya Birla Fashion and Retail Limited (ABFRL) is a publicly traded

company that trades on National stock exchange and Bombay stock
exchange. Aditya Birla Fashion and Retail Limited (ABFRL) went
public through an initial public offering (IPO) in 2007.
III. Company History
Aditya Birla Fashion and Retail Ltd. (ABFRL) emerged after the
consolidation of the branded apparel businesses of Aditya Birla Group
comprising ABNL's Madura Fashion division and ABNL's subsidiaries
Pantaloons Fashion and Retail (PFRL) and Madura Fashion & Lifestyle
(MFL) in May 2015. Post the consolidation, PFRL was renamed Aditya
Birla Fashion and Retail Ltd.
IV. Overall Greatness of The Company
The Company has a pan-India presence with 1,331 branches across all
businesses as of June 30, 2023. The Company’s branch expansion is
targeted at driving penetration into tier 3 and tier 4 towns and new
customer segments. The Company follows a ‘Digital First Approach’ for
product innovation, direct acquisition, seamless onboarding and service
delivery. In Q1 FY24, about 76% of customers were onboarded digitally
in the AMC business. In life insurance, 79% of renewals were done
digitally in Q1 FY24. In Health Insurance business, 86% business is
delivered by auto-underwriting. The Consolidated Revenue1 of the
Company grew by 39% year-on-year to Rs8,144 Crore. The
consolidated profit after tax grew 51% year-on-year to Rs649 Crore.
The strong momentum across businesses led to a 43% year-on-year
and 6% sequential growth in the overall lending portfolio (NBFC and
HFC) to Rs1,00,400 Crore as on June 30, 2023.
Liquidity Ratios:
Quarter Liquidity Ratios
Current Ratio Acid Test ratio Cash ratio Operating cash

flow ratio
2017 Q4 0.84 0.2 0.02 0.034
2018 Q2 0.78 0.22 0.02 0.017
2018 Q4 0.84 0.2 0.02 0.063
2019 Q2 0.79 0.23 0.02 0.025
2019 Q4 0.83 0.21 0.01 0.067
2020 Q2 0.75 0.22 0.03 0.04
2020 Q4 0.73 0.2 0.5 0.015
2021 Q2 0.74 0.2 0.03 0.01
2021 Q4 0.92 0.3 0.15 0.028
2022 Q2 0.99 0.3 0.09 0.051
2022 Q4 0.92 0.26 0.13 0.053
2023 Q2 0.99 0.29 0.15 0.0423
2023 Q4 1.01 0.25 0.12 0.0227
Average 0.85 0.23 0.099 0.036
Max 1.01 0.3 0.5 0.067
Min 0.73 0.2 0.01 0.01
Individual Ratio Analysis of Liquidity ratios:

1. Current Ratio:
A firm’s ability to meet its short-term liabilities with its short-term assets
is gauged by the current ratio, a financial ratio. A current ratio of 1 or
higher is generally considered acceptable by analysts, indicating that
the company has sufficient current assets to meet its short-term
obligations. The company's current ratio, a measure of short-term
liquidity, fluctuates between 0.73 and 1.01 from 2017 Q4 to 2023 Q4. A
ratio below 1 in certain quarters suggests potential challenges in
covering short-term liabilities with available assets. Notably, there is an
improvement from 2020 Q2 (0.75) to 2023 Q2 (1.01), indicating
enhanced ability to meet short-term obligations. This positive trend
may be attributed to increased asset levels or reduced short-term
liabilities.
2. Acid Test Ratio:
receivable, is gauged by the acid-test ratio, sometimes referred to as
the quick ratio. The acid-test ratio, reflecting short-term liquidity without
including inventory, ranges from 0.20 to 0.30 between 2017 Q4 and
2023 Q4. Ratios below 1 throughout the period indicate potential
challenges in covering short-term
liabilities with only the most liquid assets. Noteworthy is the peak at
0.30 in 2021 Q4, suggesting improved short-term liquidity.
3.Cash Ratio:
The cash ratio, representing a company's ability to cover short-term
liabilities with available cash, varies from 0.01 to 0.5 between 2017
Q4 and 2023 Q4. Despite a notable increase in 2020 Q4, indicating
improved short-term liquidity, the ratio remains consistently low. This
suggests that relying solely on cash may not be sufficient to meet
short-term obligations. As with other liquidity ratios, it's crucial to
consider industry benchmarks and additional financial metrics for a
comprehensive assessment of the company's financial health.
The company's operating cash flow ratio has exhibited fluctuations over
the quarters from 2017 Q4 to 2023 Q4. Some periods, such as 2018
Q4 and 2019 Q4, saw relatively higher ratios 0.063 and 0.067
respectively, indicating robust cash generation compared to net sales.
However, there were also quarters,
like 2021 Q2 and 2020 Q4, where the ratio was lower, suggesting a
potential challenge in generating cash from operations. In the most
recent quarters, 2022 Q4 and 2023 Q2, there appears to be a
moderate improvement in the operating cash flow ratio.
Debt Ratio Debt to Equity Interest Debt Service

ratio Coverage ratio Coverage ratio
2017 Q4 40.35 212.05 1.1 0.023
2018 Q2 33.50 197.52 0.61 0.014
2018 Q4 30.67 160.86 1.79 0.043
2019 Q2 21.22 122.39 1.48 0.0521
2019 Q4 25.72 119.17 1.14 0.03
2020 Q2 19.59 141.33 1.08 0.06
2020 Q4 54.12 485.83 -0.69 0.0157
2021 Q2 55.60 528.43 -1.27 0.035
2021 Q4 35.08 134.51 -0.15 0.005
2022 Q2 34.38 148.56 0.82 0.0187
2022 Q4 33.05 147.05 1.19 0.026
2023 Q2 29.89 128.25 1.02 0.023
2023 Q4 38.57 196.44 -1.09 0.0236
Average 34.75 209.41 0.54 0.028
Max 55.60 528.43 1.79 0.06
Min 19.59 119.17 -1.27 0.005

1.Debt Ratio:

assets and indicates the company's leverage or indebtedness.
Evaluating the Debt Ratio alongside other financial metrics is crucial for
a comprehensive understanding of the company's financial risk and
capital management. The Debt Ratio, reflecting the proportion of assets
financed by debt, fluctuates between 19.59% and 55.6% from 2017 Q4
to 2023 Q4. Notably, there's a substantial increase to 54.12% in 2020
Q4, indicating heightened reliance on debt for asset financing. The ratio
decreases in subsequent quarters, suggesting a shift in the capital
structure. Evaluating the Debt Ratio alongside other financial metrics is
crucial for a comprehensive understanding of the company's financial
risk and capital management.
2. Debt to Equity Ratio:

The debt-to-equity ratio, which reflects the proportion of a company's
financing that comes from debt compared to equity, has demonstrated a
downward trend over the provided periods The Debt-to-Equity Ratio
shows significant variation, ranging from 119.17% to 528.43% between
2017 Q4 and 2023 Q4. Notably, there is a sharp increase in 2020 Q4,
reaching 485.83%, indicating a substantial reliance on debt relative to
equity during that period. The ratio undergoes fluctuations in
subsequent quarters, reflecting changes in the company's capital
structure. Overall, the trend suggests a considerable level of leverage,
emphasizing the role of debt in financing compared to equity. To
comprehensively assess the company's financial structure and risk, it's
important to consider this ratio
During 2020 and 2021, the ratio faced significant challenges, dropping
to negative values in 2020 Q4 and 2021 Q2. This indicates that the
company's earnings were insufficient to cover its interest payments
during these periods, suggesting financial strain. However, there was a
notable recovery in 2022, with positive ratios indicating an improvement
in the company's ability to cover interest expenses. This positive trend
continued in 2023 Q2, but the ratio turned negative again in 2023 Q4,
introducing a degree of uncertainty regarding the company's financial
stability.
The Debt Service Coverage Ratio (DSCR) for the company has
exhibited fluctuations over the quarters. In the early years, there was a
gradual improvement in its ability to cover debt service, notably in 2018
Q4 and 2019 Q2. However, during the mid-years of 2020 and 2021, In
2020 Q2 it reached its peak with value of 0.06, there were fluctuations,
with a significant decrease in 2021 Q4, suggesting potential challenges
in meeting debt obligations. In recent quarters (2022-2023), the DSCR
has stabilized at around 0.02 to 0.03, indicating a consistent but modest
ability to cover debt service.
Efficiency Ratios:
Quarter Efficiency Ratios
Asset Turnover Inventory Receivables Day Sales

Ratio Turnover ratio Turnover ratio inventory ratio
2017 Q4 1.37 2.11 17.21 172.98
2018 Q2 1.30 2.22 11.26 164.23
2018 Q4 1.33 2.33 14.29 156.69
2019 Q2 1.24 2.37 9.34 153.93
2019 Q4 1.31 2.37 12.18 154.24
2020 Q2 1.04 2.04 8.38 178.61
2020 Q4 1.07 2.14 10.84 171.1
2021 Q2 0.60 1.18 5.83 310.15
2021 Q4 0.52 0.92 7.25 394.77
2022 Q2 0.66 1.46 7.06 250.74
2022 Q4 0.72 1.95 11.93 187.04
2023 Q2 0.84 1.97 10.50 185.61
2023 Q4 0.84 1.90 15.12 191.94
Average 0.98 1.92 10.86 205.54
Max 1.37 2.37 17.21 394.77
Min 0.52 0.92 5.83 153.93

1.Asset Turnover Ratio:
The Asset Turnover Ratio, which measures how efficiently a company

utilizes its assets to generate revenue, has shown a relatively stable
trend over the provided periods. The Asset Turnover Ratio, reflecting
how efficiently a company generates sales from its assets, ranges from
0.52 to 1.37 between 2017 Q4 and 2023 Q4. The ratio fluctuates over
time, with a notable decline from 2018 Q2 to 2020 Q2 and a
subsequent increase in 2022 Q4 and 2023 Q2. These variations
suggest changes in the company's ability to utilize its assets for
revenue generation.
2.Inventory Turnover Ratio:

The Inventory Turnover Ratio, which measures how efficiently a
company manages its inventory by indicating how many times it sells
and replaces its inventory over a period, has demonstrated some
variability over the reported periods. The Inventory Turnover Ratio,
reflecting how efficiently a company manages its inventory, fluctuates
between 0.92 and 2.37 from 2017 Q4 to 2023 Q4. Higher values in
2019 Q2 and Q4 indicate effective inventory turnover, while a decline
in 2021 Q2 to 2022 Q2 suggests a slowdown. The ratio shows a slight
improvement in 2023. This metric provides insights into inventory
management efficiency.
3. Accounts Receivable Turnover:
The Accounts Receivable Turnover Ratio provides insights into the

effectiveness of the company's credit and collection policies. The
Accounts Receivable Turnover, representing how efficiently a
company collects payments, fluctuates between 5.83 and 17.21
from 2017 Q4 to 2023 Q4. Higher values in 2017 Q4 and 2023 Q4
indicate efficient collection, while a decline in 2020 Q2 suggests
challenges in payment collection during that period. This metric
provides insights into the effectiveness of managing accounts
receivable.
The Day Sales Inventory (DSI) ratio for the company has shown a
diverse performance over the quarters. In the earlier years (2017-2019),
the ratio remained relatively stable, ranging from 153.93 to 172.98,
indicating consistent inventory turnover.However, in 2020 and 2021,
there were fluctuations, with a significant peak in 2021 Q4 at 394.77.
This suggests an unusually long-time frame for selling inventory during
that quarter. The ratio in 2021 Q2 also notably increased to 310.15. In
more recent quarters (2022- 2023), the DSI ratio has stabilized, ranging
from 185.61 to 191.94 days. Although there's still variability, the values
suggest a relatively consistent trend in inventory turnover compared to
the peaks observed in 2021.
Quarter Profitability Ratios
Gross Margin Operating Return on Return on

Margin Assets Common Equity
2017 Q4 2.98 1.11 5.75
2018 Q2 1.44 -0.39 -2.19
2018 Q4 4.35 2.19 11.52
2019 Q2 3.67 3.24 18.85
2019 Q4 2.69 5.20 25.47
2020 Q2 4.96 3.55 23.47
2020 Q4 -4.53 -2.01 -13.18
2021 Q2 -17.88 -8.10 -67.43
2021 Q4 -0.99 -6.74 -36.37
2022 Q2 3.50 -4.07 -23.75
2022 Q4 4.65 -0.96 -4.01
2023 Q2 3.45 2.77 11.97
2023 Q4 -5.41 -0.24 -1.18
Average 0.221 -0.342 -3.929
Max 4.96 5.20 25.47
Min -17.88 -8.10 -67.43

1.Gross Margin Ratio:
The Gross Margin Ratio calculates how much profit a company makes
after deducting the cost of products sold from its revenue. It
demonstrates how well a corporation uses its resources to manufacture
and sell its products. A greater gross margin ratio shows that the
corporation has more profit from sales left over to cover other expenses
and create net income. The team was unable to find data on this ratio
for Aditya Birla Fashion Retail.
2.Operating Margin Ratio:
The Operating Margin, which represents the profitability of a company's

core operations by measuring the percentage of revenue that remains
after covering operating expenses. The Operating Margin fluctuates
between - 17.88% and 4.96% from 2017 Q4 to 2023 Q4, indicating
variability in the profitability of the company's core operations. Notably,
there's a significant decline to -4.53% in 2020 Q4, suggesting a period
of operational losses. The metric provides insights into the company's
ability to generate profits from its core activities.
3.Return on Assets Ratio:
The Return on Assets (ROA), which measures a company's ability to

generate profit from its assets, has shown some fluctuation over the
reported periods. The Return on Assets fluctuates between -8.1% and
5.2% from 2017 Q4 to 2023 Q4, indicating variability in the
company's profitability relative to its total assets. There are notable
declines in profitability in 2021 Q2 and 2021 Q4. This metric provides
insights into how efficiently the company is generating profits from its
overall asset base.
4.Return on Common Equity Ratio:
The Return on Common Equity provides insights into the company's

profitability specifically in relation to common equity investments. The
Return on Common Equity fluctuates widely between -67.43% and
25.47% from 2017 Q4 to 2023 Q4, indicating significant variability in the
company's profitability relative to common shareholders' equity. Notably,
there are substantial declines in profitability in 2021 Q4 and 2022 Q2.
This metric provides insights into how effectively the company is
generating returns for common equity holders.
Book Value per Dividend Yield Earnings per Price-earnings

Share Ratio Ratio Share Ratio Ratio
2017 Q4 12.26 0.28 222.97
2018 Q2 11.86 -0.13
2018 Q4 13.96 1.44 99.24
2019 Q2 14.75 0.54 72.53
2019 Q4 18.21 2.58 53.1

2020 Q2 16.99 -0.01 55.62
2020 Q4 13.60 -1.87
2021 Q2 11.98 -2.32
2021 Q4 28.19 -1.67
2022 Q2 27.26 0.06
2022 Q4 29.55 0.47
2023 Q2 37.92 0.40 88.6
2023 Q4 35.24 -1.95
Average 20.91 -0.16 98.67
Max 37.92 2.58 222.97
Min 11.86 -2.32 53.10

The Book Value per Share, which represents the total value of a
company's assets that shareholders would theoretically receive if the
company were to be liquidated. The Book Value per Share fluctuates
between 11.86 and 37.92 from 2017 Q4 to 2023 Q4, indicating an
increasing trend over the specified period. Notably, there is substantial
growth in the Book Value per Share, with the highest value observed in
2023 Q4. Investors often consider this metric as part of their assessment
of a company's financial health.
This ratio measures the percentage of return on investment generated

by dividends. It is calculated by dividing the annual dividend per share
by the market price per share. A higher dividend yield indicates that the
company is paying higher dividends relative to its stock price. The
team was unable to find data for this ratio.
3.Earnings per Share Ratio:
The Earnings per Share (EPS) for Ratios, which represents the portion
of a company's profit allocated to each outstanding share of common
stock. EPS is a key metric for investors evaluating a company's
profitability on a per-share basis The Earnings per Share (EPS) for
Ratios fluctuates between -2.32 and 2.58 from 2017 Q4 to 2023 Q4,
indicating variations in the company's profitability attributed to each
outstanding share of common stock. There are missing values for some
quarters. The substantial increase in EPS in 2019 Q4 suggests higher
earnings per share during that period.
4.Price - Earnings Ratio:
The Price-Earnings Ratio (P/E), which reflects the valuation of a

company's stock relative to its earnings. EPS is a key metric for
investors evaluating a
company's profitability on a per-share basis. The Earnings per Share
(EPS) for Ratios fluctuates between -2.32 and 2.58 from 2017 Q4 to
2023 Q4, indicating variations in the company's profitability attributed
to each outstanding share of common stock. There are missing values
for some quarters. The substantial increase in EPS in 2019 Q4
suggests higher earnings per share during that period.
JSW Energy Ltd
Introduction:
● Nature of business:
JSW Energy is one of the leading companies in the power generation
space engaged in electricity generation across thermal, hydro and
renewable sectors. It is in the business of not only generating but also
trading and transmitting power. Various geographical locations and
fuel sources have helped it diversify and de risk the company.t has
with time pivoted to renewable sources for energy generation
acknowledging the need of the hour.
Revenue breakup for JSW Energy:
● Public or private ownership:

JSW Energy is a public company listed on the National Stock
Exchange(NSE). It is a wholly owned subsidiary of JSW Group which
is a conglomerate engaged in various sectors including steel,
infrastructure to name a few.
● When did these companies start and under what circumstances:

JSW Energy started operations in 1994 looking to fulfil and capitalize
on the growing energy demands of the nation. Over 3 decades it has
grown into a behemoth by acquiring and setting up plants across
India in both thermal as well as renewable segments.
● Overall greatness of the company:

With time JSW has cemented itself as a key player in the industry
with focus on sustainability and operation excellence. With over 40%
of its energy coming from renewable sources it has contributed
greatly to nation’s energy transition. Whilst having a robust portfolio of
power plants and a dynamic nature ready to adapt to change, it will
continue to be a vital company for the nation.
Liquidity Ratios:
Liquidity ratios
quarter
Current ratio Acid test ratio Cash ratio Operating cash
flow ratio
2017 Q4 0.91 0.71 0.22 0.058
2018 Q2 0.92 0.53 0.17 0.121
2018 Q4 0.64 0.41 0.14 -0.057
2019 Q2 0.73 0.48 0.12 0.147
2019 Q4 0.72 0.44 0.12 0.067
2020 Q2 0.73 0.47 0.05 0.120
2020 Q4 1.04 0.56 0.20 0.090
2021 Q2 1.15 0.70 0.27 0.188
2021 Q4 1.25 0.59 0.32 0.112
2022 Q2 1.09 0.72 0.47 0.140
2022 Q4 1.02 0.63 0.50 0.224
2023 Q2 1.14 0.81 0.63 0.128
2023 Q4 1.07 0.73 0.56 0.062
Average 0.955 0.598 0.29 0.108

Max 1.25 0.81 0.63 0.224
Min 0.64 0.41 0.05 -0.057
Individual Ratio analysis:

1. Current Ratio:
A firm’s ability to meet its short-term liabilities with its short-term

assets is gauged by the current ratio, a financial ratio. A current
ratio of 1 or higher is generally considered acceptable by analysts,
indicating that the company has sufficient current assets to meet
its short-term obligations. JSW Energy had a current ratio of 0.91
in 2017 Q4 which plummeted to 0.64 by 2018 Q4 which could
have been a concern for investors however since then it has been
on a gradual increase and is at 1.07 in 2023 Q4 which is a positive
sign for the shareholders.
2. Acid test ratio:
The ability of a business to cover its short-term obligations with its

most liquid assets, including as cash, marketable securities, and
accounts receivable, is gauged by the acid-test ratio, sometimes
referred to as the quick ratio. The fact that JSW Energy has
always had a ratio below 1 shows low levels of liquid assets to fulfil
its short term liabilities which is risky and worrying for the
investors. However, since its low of 0.41 in 2018 Q4 it has been on
a slow but increasing trend which could ease the worries of the
investors and shareholders.
3. Cash Ratio:
The cash ratio, which solely covers cash and cash equivalents, is
a financial ratio that assesses a company's capacity to settle its
current liabilities using its most liquid assets. A high cash ratio
(often seen as being above 0.5) shows that a business has
enough liquid assets to cover its immediate liabilities. On the other
hand, a low cash ratio indicates that a business may have trouble
paying its short-term debts. JSW Energy has seen large variations
on this. Being at a low of 0.05 in 2020 Q2 which is an alarmingly
low level for any company, it recovered to a level of 0.63 in 2023
Q2 after a very good increasing curve. This indicates better
management of cash and appropriate levels of short term
debts/liabilities taken.
Operating cash flow ratio attempts to check if the company is

generating enough cash from its operating activities to cover its
short term obligations/liabilities. The team was unable to find data
for this due to which table has been left empty as well.
Leverage Financial ratios

Quarter Debt ratio Debt to equity Interest Data service
ratio coverage ratio coverage ratio
2017 Q4 0.637 1.76 0.88
2018 Q2 0.604 1.53 1.63
2018 Q4 0.584 1.40 0.89
2019 Q2 0.552 1.23 1.84
2019 Q4 0.544 1.19 1.02
2020 Q2 0.542 1.18 2.35
2020 Q4 0.537 1.16 1.15
2021 Q2 0.480 0.92 3.05
2021 Q4 0.452 0.82 1.32
2022 Q2 0.450 0.82 3.38
2022 Q4 0.437 0.77 8.51
2023 Q2 0.477 0.91 2.91
2023 Q4 0.616 1.60 1.95
Average 0.53 1.18

Max 0.637 1.76
Min 0.437 0.77
1. Debt ratio:

assets and tells the company's leverage or indebtedness. JSW Energy’s
debt ratio has varied between 0.4 and 0.7. It was on a decreasing trend
until 2022 Q4 when it reached a level of 0.437 which indicates safe and
strong financial health of the company. However it has increased back to
o.616 in 2023 Q4 indicating recent borrowings by the company and it
should look at bringing it down again in order to not discourage potential
investors.
2. Debt to equity ratio:
Debt-to-equity (D/E) ratio is a financial ratio used to measure a

company’s financial leverage. It is a way to measure of the degree to
which a company is financing its operations with debt rather than its
own resources. While D/E ratio for JSW Energy was on a decreasing
trend since 2017 Q4 to 2022 Q4 which showed reducing reliance of
the company on debt, it has increased sharply in 2023 Q2 and Q4.
While it is still under 2 which is the point above which analysts
consider a firm risky the company must try to keep it around 1 in
order to maintain strong financial health. The fact that it has
maintained a decreasing graph before would instil confidence among
investors that it will be able to keep it in control in the future as well.
3. Interest coverage ratio;

before taxes and interest are removed. If the interest coverage ratio is
high, it indicates that the company's operational income exceeds its
interest expense, indicating a decreased chance of bankruptcy.
Otherwise, a low-interest coverage ratio indicates that the company's
interest expense exceeds its operational income, indicating a higher
likelihood of financial hardship.
A company's debt service coverage ratio (DSCR) over time, is a
measure of its capacity to satisfy its debt commitments. The greater
the DSCR, the greater the company's ability to satisfy its debt
commitments. The DSCR of Persistent Systems has fluctuated
throughout time. This could signal that the company's market is
experiencing inconsistent demand, seasonal swings, or competition
challenges. The team was unable to find data on this ratio for JSW
Energy.
Efficiency ratios:
Efficiency ratios
Quarter Asset turnover Inventory Receivables Day sales in
ratio turnover ratio turnover ratio inventory ratio
2017 Q4 0.29 3.23
2018 Q2 0.28 3.72
2018 Q4 0.29 4.83
2019 Q2 0.31 5.44
2019 Q4 0.35 7.09
2020 Q2 0.34 4.70
2020 Q4 0.32 5.53
2021 Q2 0.30 4.02
2021 Q4 0.27 5.47
2022 Q2 0.26 5.37
2022 Q4 0.28 9.97
2023 Q2 0.31 9.02
2023 Q4 0.26 9.38
Average 0.297 5.982

Max 0.35 9.97
Min 0.26 3.23

The asset turnover ratio is used to measure the efficiency with which
a firm is using its assets. Its calculated by dividing net sales by the
total or average assets of a company. An asset turnover ratio over 1
is generally considered good. The data for this ratio shows that JSW
has not been very efficient in generating profit from its assets and that
it has only been able to generate 0.297 Rs on every 1 Rs of assets
owned on an average in the given period. In 2023 Q4 it is at its lowest
point since 2017 Q4 and the potential investors must take this into
account before investing.
Inventory turnover ratio is used to assess how well the inventory is

being managed by the firm. A lower or declining value might indicate
towards overstocking or a slowdown in sales whereas a
higher/increasing value indicated efficient management in inventory. .
The team was unable to find data on this ratio for JSW Energy.

Accounts receivables turnover ratio is used to check on how the collection
of outstanding dues is happening in the firm. A higher and increasing ratio
would mean fast collection and better cash flow and also a reduced risk of
bad debts. Being at its lowest in 2017 Q4 at 3.23 it has been on an
increasing trend with some deviations reaching a high of 9.97 in 2022 Q4
which is a great improvement. It came down slightly to 9.37 in 2023 Q4
which is not a very worrying thing for the shareholders.
4. Day sales in inventory ratio:
Days Sales in Inventory ratio measures how many days it takes a

company to sell its inventory. If the DSI ratio is low, this indicates the
company is selling its inventory quickly and has a high inventory
turnover. A higher DSI indicates that the company is not selling its
inventory quickly enough. Companies that are fast-paced and have
high demand typically have lower DSI ratios. The team was unable to
find data on this ratio for JSW Energy.
Probability Ratios:
Quarter Gross margin Operating Return on Return on
ratio margin ratio assets ratio equity ratio
2017 Q4 18.74 2.20 6.27
2018 Q2 31.11 1.95 5.20
2018 Q4 16.21 0.28 0.73
2019 Q2 23.37 0.39 0.93
2019 Q4 14.71 2.64 6.06
2020 Q2 30.23 2.81 6.20
2020 Q4 15.92 4.30 9.35
2021 Q2 32.61 4.22 8.61
2021 Q4 21.57 3.16 6.23
2022 Q2 30.91 2.94 5.47
2022 Q4 35.01 6.03 10.83
2023 Q2 24.94 7.09 13.27
2023 Q4 17.00 3.73 8.24
Average 24.025 3.210 6.722

Max 35.01 7.09 13.27
Min 14.71 0.28 5.20
1. Gross margin ratio:
The Gross Margin Ratio calculates how much profit a company
makes after deducting the cost of products sold from its revenue. It
demonstrates how well a corporation uses its resources to
manufacture and sell its products. A greater gross margin ratio
shows that the corporation has more profit from sales left over to
cover other expenses and create net income. The team was
unable to find data on this ratio for JSW Energy.
2. Operating margin ratio:
Operating margin ratio is a profitability ratio calculated by dividing

operating income by revenue. Tt shows the profit earned by the
firm per rupee of revenue received after deducting operating
expenses, etc but before tax. A ratio upwards of 15% is
considered good. The company has seen large variations in this
however has maintained a brilliant average of 24.025% throughout
the period under observation. Lately it has been on a decreasing
trend since 2022 Q4 when it was at 35.01% and has fallen to 17%
in 2023 Q4 which is not a great sign even though 17% in itself is
not too bad. So, in all this is something investors should not be
alarmed by however must keep an eye on.
3. Return on Assets ratio:

ROA (return on assets) is a term used to measure how profitable a
company is in regard to its assets. It attempts to analyse how well
the company is using its assets to generate profits. Analysts
generally consider a ROA above 5% as good. ROA was at
alarmingly low levels during 2017 Q4 to 2019 Q2 however a
increasing curve was seen from there on until 2023 Q2(13.27)
which was a positive sign for investors. However just as operating
margin fell in the last quarter this also saw a sharp decline to 8.24
in 2023 Q4.
4. Return on equity ratio:
ROE (return on common equity) measures how well a firm uses

and finances its assets to generate earnings. Unlike ROA it also
takes into account the financing costs. Its basically the direct
return a shareholder will see and is hence important for a potential
future shareholder. ROE also has a very similar curve to that of
ROA. The company must look to bump it up to over 15% from the
current average of 6.77%.
Market Value ratios:
Market value ratios

Quarter Book value per Dividend yield Earnings per Price-earnings
share ratio ratio share ratio ratio
2017 Q4 63.22 0.15 16.20
2018 Q2 68.77 1.81 21.56
2018 Q4 67.74 -2.95 151.67
2019 Q2 74.57 1.93 91.42
2019 Q4 72.04 0.02 17.12
2020 Q2 71.63 2.15 14.30
2020 Q4 70.93 0.66 6.37
2021 Q2 79.36 2.14 8.68
2021 Q4 88.33 0.65 17.73
2022 Q2 96.11 2.07 81.14
2022 Q4 105.93 5.25 28.81
2023 Q2 107.27 2.85 22.31
2023 Q4 113.55 1.65 26.63
Average 83.034 1.414 38.765

Max 113.55 5.25 151.67
63.22 -2.95 6.37
1. Book value per share:

It is the ratio of equity available to common shareholders divided by the
number of shares. It shows the book-value of a firm on a per share basis.
The company has seen a promising increasing curve for this, going up from
63.22 in 2017 Q4 to 113.55 in 2023 Q4.
This ratio measures the percentage of return on investment

generated by dividends. It is calculated by dividing the annual
dividend per share by the market price per share. A higher
dividend yield indicates that the company is paying higher
dividends relative to its stock price. The team was unable to find
data for this ratio.
It’s essentially company’s profit per share obtained by dividing

profit by number of outstanding shares. After going through huge
variations, it peaked at 5.25 in 2022 Q4 however have dropped
since to 1.65 in 2023 Q4, thus sparking concerns regarding
financial well being of the company.
4. Price- earnings ratio:
P/E ratio or price to earnings ratio is the price at which stock is

selling with respect to its earnings. A high P/E ratio indicates that
investors are paying a premium price for the company's earnings
and anticipate future growth. If the P/E ratio is low, investors are
paying a discount for the company's earnings and anticipate lesser
future growth. P/E ratio has also seen large variations. It has
however maintained a healthy level of 38.765 on an average
indicating the faith of the market in the company.
Kajaria ceramics
Introduction:
I) Nature of the Business:
Kajaria Ceramics Limited is a prominent player in the manufacturing and

distribution of ceramic tiles in India. The company specializes in a wide
range of ceramic and vitrified tiles for various applications, including floor
tiles, wall tiles, and polished vitrified tiles. With a focus on innovation,
design, and quality, Kajaria Ceramics caters to both residential and
commercial segments, offering an extensive portfolio of products that meet
diverse customer preferences.
II) Public or Private Ownership:
Kajaria Ceramics Limited is a publicly traded company, listed on the

Bombay Stock Exchange (BSE) and the National Stock Exchange of India
(NSE). As a publicly-owned entity, the company's shares are available for
trading, allowing investors to participate in its growth and financial success.
III) Inception and Circumstances:
Kajaria Ceramics was founded in 1985 by Shri Ashok Kajaria, who

envisioned creating a company that would redefine the ceramic tile industry
in India. The company began its operations in Sikandrabad, Uttar Pradesh,
and started producing ceramic tiles. Over the years, Kajaria Ceramics has
grown significantly, expanding its product range, production capacity, and
market presence.
The journey of Kajaria Ceramics started at a time when the Indian

construction and real estate sectors were witnessing notable
developments. The company strategically positioned itself to capitalize on
the growing demand for quality tiles, contributing to the transformation of
interior spaces across the country.
IV) Overall Greatness of the Company:
Kajaria Ceramics has achieved remarkable success and is widely

recognized for its commitment to quality, innovation, and customer
satisfaction. The company's emphasis on cutting-edge technology,
contemporary design, and sustainable practices has positioned it as a
leader in the ceramic tile industry.
With a pan-India presence and a robust distribution network, Kajaria

Ceramics has become a preferred choice for consumers, architects, and
builders alike. The company's continuous efforts in research and
development, coupled with a customer-centric approach, have played a
pivotal role in its sustained growth and market leadership.
Furthermore, Kajaria Ceramics has received numerous accolades for its

contributions to the industry, including awards for excellence in
manufacturing, corporate governance, and product innovation. The
company's commitment to quality standards and its ability to adapt to
changing market dynamics underscore its greatness in the ceramic tiles
sector.
Liquidity Ratios:
current ratio acid test ratio cash ratio operating cash flow ratio
2017 Q4 1.48 0.71 0.09 0.165
2018 Q2 1.47 0.75 0.08 0.132
2018 Q4 1.74 0.97 0.15 0.163
2019 Q2 1.96 1.04 0.31 0.137
2019 Q4 2 1.23 0.42 0.149
2020 Q2 2.03 1.18 0.45 0.205
2020 Q4 2.3 1.22 0.45 0.151
2021 Q2 3.01 1.94 1.08 0.298
2021 Q4 2.81 1.91 0.97 0.334
2022 Q2 2.96 1.97 1.14 0.292
2022 Q4 2.2 1.42 0.64 0.193
2023 Q2 2.41 1.4 0.54 0.165
2023 Q4 2.38 1.4 0.55 0.201
average 2.211 1.318 0.528 0.199

max 3.01 1.97 1.14 0.334
min 1.47 0.71 0.08 0.132
Individual ratio analysis of liquidity ratios:
1. Current Ratio:
The current ratio is a liquidity ratio that measures a company's ability to

cover its short-term liabilities with its short-term assets. A current ratio
above 1 indicates that a company has more assets than liabilities,
suggesting it can meet its short-term obligations.Kajaria Ceramics' current
ratio, a measure of short-term liquidity, exhibited a positive trend from 2017
to 2019, increasing from 1.48 to 2.00. Notably, a peak of 2.03 in Q2 2020
suggested temporary strengthened liquidity. Subsequently, the ratio
remained relatively stable between 2.2 and 3.01 from Q4 2020 to Q4 2023,
indicating consistent robustness in meeting short-term obligations. The
company's ability to sustain a current ratio above 2.0 reflects effective
management of working capital and a generally healthy liquidity position.
The overall trend analysis suggests that Kajaria Ceramics has not only
maintained but also enhanced its short-term financial stability, showcasing
efficient management practices and resilience in meeting financial
obligations throughout the analyzed period.
2. Acid test ratio:
Quick Ratio (also known as the Acid-Test Ratio), which measures a

company's ability to cover its short-term liabilities with its most liquid assets,
excluding inventory. A quick ratio above 1 indicates that a company can
meet its short-term obligations without relying heavily on inventory
sales.Kajaria Ceramics' Quick Ratio demonstrated a positive trend from
2017 to 2021, rising from 0.71 to 1.94, reflecting an enhanced ability to
cover short-term liabilities with liquid assets excluding inventory. However,
from Q2 2021 to Q4 2023, the Quick Ratio fluctuated and experienced a
decline to 1.4. This suggests a potential decrease in the proportion of
highly liquid assets compared to short-term liabilities, raising concerns
about the company's recent short-term liquidity position. It's crucial for
Kajaria Ceramics to carefully manage its liquidity, considering inventory
dynamics and changes in short-term liabilities to maintain financial stability
in the future.
3. Cash ratio:
Cash Ratio, a liquidity ratio that measures a company's ability to cover its
short-term liabilities with its cash and cash equivalents. A higher cash ratio
indicates a stronger ability to cover short-term obligations.Kajaria Ceramics'
Cash Ratio exhibited a positive trend, increasing significantly from 0.09 in
Q4 2017 to 1.08 in Q2 2021, indicating a substantial enhancement in the
company's ability to cover short-term liabilities with cash and cash
equivalents. However, from Q2 2021 to Q4 2023, the Cash Ratio fluctuated
and declined to 0.55, signaling potential concerns about the company's
recent liquidity position. The decrease may indicate a relative decline in
cash holdings compared to short-term liabilities. Kajaria Ceramics should
closely monitor and manage its liquidity, considering factors influencing
cash levels and short-term obligations, to sustain its historically strong
financial liquidity position. This trend analysis highlights the importance of
ongoing financial management in maintaining robust short-term liquidity.
Operating cash flow ratio attempts to check if the company is

generating enough cash from its operating activities to cover its short
term obligations/liabilities. Kajaria Ceramics' Operating Cash Flow
(OCF) ratio from 2017 Q4 to 2023 Q4 exhibits fluctuations, reaching
peaks in 2021 Q4 (0.334) and 2020 Q2 (0.205), with a trough in 2018
Q2 (0.132). These variations indicate varying levels of efficiency in
generating operating cash flow, with peaks reflecting strong
operational performance and effective cash flow management. The
trough in 2018 Q2 suggests a period of operational challenges or
economic factors affecting cash flow efficiency. Despite fluctuations,
there is no clear overall trend, highlighting the company's adaptability
to changing market conditions. Kajaria Ceramics has maintained
relatively consistent operating cash flow generation, indicating
resilience in its ability to generate cash from core operations.
Continuous strategic financial management will be crucial for
sustaining and enhancing operating cash flow efficiency in dynamic
business environments.
Leverage financial ratios :
interest
debt to coverage debt service coverage
debt ratio equity ratio ratio ratio
Q4 2017 8.36 13.63 14.11 0.647
Q2 2018 9.73 15.63 15.72 0.482
Q4 2018 7.96 17.63 20.73 0.571
Q2 2019 4.3 19.63 19.11 0.917
Q4 2019 5.07 21.63 30.97 0.842
Q2 2020 4.28 23.63 15.15 0.755
Q4 2020 6.81 25.63 13.19 0.392
Q2 2021 2.91 27.63 55.93 1.684
Q4 2021 4.99 29.63 62.27 1.304
Q2 2022 4.31 31.63 56.01 1.295
Q4 2022 5.52 33.63 33.5 0.809
Q2 2023 7.09 35.63 30.3 0.448
Q4 2023 7.5 37.63 19.56 0.830
average 6.063 25.63 29.735 0.844

max 9.73 37.63 62.27 1.684
min 4.28 13.63 13.19 0.392
Individual ratio analysis of Leverage financial ratios:
1. Debt ratio:
The Debt Ratio measures the proportion of a company's assets that
are financed by debt. A higher debt ratio indicates a greater reliance
on debt for financing. Here's a trend analysis based on the provided
data. Kajaria Ceramics demonstrated a notable reduction in its Debt
Ratio from 8.36 in Q4 2017 to 2.91 in Q2 2021, signaling effective
deleveraging and decreased reliance on debt for financing. However,
from Q2 2021 to Q4 2023, the Debt Ratio fluctuated, reaching 7.5,
indicating a recent increase in the company's reliance on debt. This
shift in the financing structure necessitates careful examination of
debt management strategies to ensure long-term sustainability. While
the initial decline in the Debt Ratio reflects prudent financial
management, the recent fluctuations highlight the importance of
ongoing monitoring and adjustment of debt levels to maintain a
balanced financial structure. Kajaria Ceramics should evaluate the
reasons behind the rise in the debt ratio and align future financing
decisions with the company's overall financial objectives.
The Debt-to-Equity Ratio measures the proportion of a company's financing

that comes from debt compared to equity. A higher ratio indicates a greater
reliance on debt for financing. Here's a trend analysis based on the
provided data. Kajaria Ceramics has witnessed a consistent and significant
increase in its Debt-to-Equity Ratio from 13.63 in Q4 2017 to 37.63 in Q4
2023. This prolonged upward trend indicates a continuous shift towards a
higher reliance on debt in the company's capital structure. While an
increased Debt-to-Equity Ratio can offer financial flexibility and amplify
returns, it also introduces higher financial risk and leverage, making the
company more vulnerable to economic downturns. Kajaria Ceramics
should exercise caution in managing its debt levels, ensuring that the
heightened reliance on debt aligns with the company's strategic goals and
long-term sustainability. This trend analysis underscores the importance of
ongoing monitoring and strategic planning to maintain a balanced and
resilient financial structure.
The Interest Coverage Ratio is a financial measure that determines

how many times a company can pay off its interest with its current
earnings before taxes and interest are removed. If the interest
coverage ratio is high, it indicates that the company's operational
income exceeds its interest expense, indicating a decreased chance
of bankruptcy. Otherwise, a low-interest coverage ratio indicates that
the company's interest expense exceeds its operational income,
indicating a higher likelihood of financial hardship. Kajaria Ceramics'
Interest Coverage Ratio fluctuates from Q4 2017 to Q4 2023, with
peaks in Q2 2021 (55.93) and Q4 2021 (62.27), and troughs in Q4
2020 (13.19) and Q4 2023 (19.56). These variations indicate dynamic
financial strength, with peaks showcasing the company's ability to
comfortably cover interest expenses and troughs suggesting
challenges in meeting interest obligations. While there are periods of
high and low interest coverage ratios, no clear overall trend is
discernible. The fluctuations may be influenced by operational
efficiency, changes in interest rates, or alterations in the company's
capital structure. This underscores the importance of continuous
monitoring, strategic financial planning, and caution in managing the
company's debt-servicing capacity. Kajaria Ceramics should remain
vigilant in maintaining a balance between operational efficiency and
financial obligations in the evolving economic landscape.
4. Debt service coverage ratio:
A company's debt service coverage ratio (DSCR) over time, is a

measure of its capacity to satisfy its debt commitments. The greater
the DSCR, the greater the company's ability to satisfy its debt
commitments. The DSCR of Persistent Systems has fluctuated
throughout time. This could signal that the company's market is
experiencing inconsistent demand, seasonal swings, or competition
challenges. Kajaria Ceramics' Debt Service Coverage Ratio (DSCR)
fluctuates from Q4 2017 to Q4 2023, with notable peaks in Q2 2021
(1.684) and Q4 2021 (1.304), and a trough in Q4 2020 (0.392). These
variations reflect dynamic debt repayment capacity, with peaks
showcasing the company's ability to comfortably cover debt
obligations and the trough indicating challenges in servicing debt.
While there are periods of high and low DSCR, no clear overall trend
is evident. Fluctuations may be influenced by operational efficiency,
interest rate changes, or adjustments in the company's capital
structure. This underscores the importance of cautious financial
management and continuous strategic planning to navigate the
evolving economic landscape effectively. Kajaria Ceramics should
remain vigilant in balancing operational efficiency with debt-servicing
obligations for sustained financial health.
Profitability ratios:
gross profit operating return on

margin profit margin assets return on equity
2017 Q4 75.52 13.73 12.78 23.55
2018 Q2 56.55 14.97 11.61 20.35
2018 Q4 61.2 12.96 11.24 18.6
2019 Q2 63.04 11.91 9.97 16.14
2019 Q4 96.8 12.42 10.04 15.49
2020 Q2 59.33 11.07 11.85 17.72
2020 Q4 79.72 9.97 10.61 15.53
2021 Q2 58.06 16.33 6.94 9.74
2021 Q4 98.87 17.26 12.17 16.87
2022 Q2 56.63 15.65 15.84 21.2
2022 Q4 99.41 12.1 13.62 18.81
2023 Q2 58.07 8.89 12.99 17.84
2023 Q4 — 11.75 10.91 15.49
average 66.4 13 11.582 17.487

max 99.41 17.26 15.84 23.55
min 56.63 8.89 6.94 9.74
Individual ratio analysis of Profitability ratios:
1. Gross profit margin:
The Gross Profit Margin reflects the percentage of revenue retained

after deducting the cost of goods sold, indicating a company's
efficiency in production and pricing. Here's a trend analysis based on
the provided data.
Kajaria Ceramics' Gross Profit Margin fluctuated over the analyzed
period, showcasing peaks in 2019 Q4, 2021 Q4, and 2022 Q4 at
96.8%, 98.87%, and 99.41%, respectively. These peaks indicate
periods of exceptional profitability, possibly driven by effective cost
management or premium pricing strategies. The absence of a distinct
overall trend suggests the company's adaptability to dynamic market
conditions. The unavailable data for 2023 Q4 limits a comprehensive
analysis of recent performance. Kajaria Ceramics' ability to maintain a
relatively stable gross profit margin amidst fluctuations underscores
its resilience in competing market conditions. Ongoing monitoring and
strategic adjustments will be crucial for sustaining and enhancing
profitability, and obtaining data for 2023 Q4 would provide a more
complete understanding of the company's recent financial
performance.
2. Operating profit margin:
The Operating Profit Margin reflects the efficiency of a company's

operations by measuring the percentage of revenue retained after
deducting operating expenses. Here's a trend analysis based on the
provided data. Kajaria Ceramics' Operating Profit Margin
demonstrated fluctuations from 2017 Q4 to 2023 Q4, with notable
peaks in 2021 Q4 (17.26%) and 2021 Q2 (16.33%) and a trough in
2023 Q2 (8.89%). These variations suggest varying levels of
operating efficiency over time. While the peaks indicate periods of
robust operational performance, the significant drop in 2023 Q2 may
signify challenges or increased operating costs during that period.
The absence of a clear overall trend suggests Kajaria Ceramics'
adaptability to dynamic market conditions, showcasing flexibility in
maintaining operational efficiency. Ongoing monitoring and strategic
adjustments will be vital for the company to navigate challenges and
sustain its operating profitability.
3. Return on assets:
The Return on Assets (ROA) ratio measures a company's ability to
generate profits from its assets. A higher ROA indicates more
effective asset utilization. Here's a trend analysis based on the
provided data. Kajaria Ceramics' Return on Assets (ROA) showed
fluctuations from 2017 Q4 to 2023 Q4, with peaks in 2022 Q2
(15.84%) and 2021 Q4 (12.17%) and a trough in 2021 Q2 (6.94%).
These variations indicate changing levels of efficiency in generating
profits from assets. The peaks suggest periods of high efficiency,
possibly driven by effective management or increased revenue, while
the dip in 2021 Q2 may signify challenges or reduced profitability. The
absence of a clear overall trend underscores the company's
adaptability to varying market conditions, reflecting flexibility in
maintaining efficient asset utilization. Kajaria Ceramics has
demonstrated sustained competitive performance in ROA,
emphasizing its ability to navigate dynamic business environments.
Continuous monitoring and strategic adjustments will be crucial for
the company to sustain and enhance its efficiency in generating
profits from assets.
4. Return on equity:
Return on Equity (ROE) measures a company's profitability relative to

shareholders' equity. A higher ROE indicates more efficient use of
equity capital. Here's a trend analysis based on the provided data.
Kajaria Ceramics' Return on Equity (ROE) exhibited fluctuations from
2017 Q4 to 2023 Q4, with peaks in 2022 Q2 (21.2%) and 2021 Q4
(16.87%) and a trough in 2021 Q2 (9.74%). These variations indicate
changing levels of efficiency in generating returns for shareholders.
The peaks suggest periods of high efficiency, potentially driven by
increased profitability or effective use of equity, while the dip in 2021
Q2 may indicate challenges or reduced returns. The absence of a
distinct overall trend underscores the company's adaptability to
varying market conditions, showcasing flexibility in maintaining
efficient use of equity capital. Kajaria Ceramics has sustained
relatively competitive ROE levels, indicating its continued ability to
generate returns for shareholders. Continuous monitoring and
strategic adjustments will be crucial for the company to maintain and
enhance shareholder returns in dynamic business environments.
Efficiency ratios:
Days
inventory reciveables sales in inventory
asset turnover ratio turnover ratio turnover ratio ratio
Q4 2017 1.4 2.22 9.06 164.31
Q2 2018 1.34 2.27 7.81 160.65
Q4 2018 1.3 2.83 6.87 129.17
Q2 2019 1.29 2.5 6.83 146.01
Q4 2019 1.31 2.09 6.39 175
Q2 2020 1.29 2.06 7.34 177.53
Q4 2020 1.17 2.16 6.44 169.33
Q2 2021 0.99 2.21 6.28 165.89
Q4 2021 1.12 1.9 6.71 192.58
Q2 2022 1.31 2.4 8.97 152.21
Q4 2022 1.34 2.56 7.84 142.47
Q2 2023 1.45 2.51 8.95 145.47
Q4 2023 1.39 — 7.86 —
average 1.285 2.131 7.488 147.74

max 1.45 2.83 8.95 192.58
min 0.99 1.9 6.28 129.17
Individual ratio analysis of Efficiency ratios:
The Asset Turnover Ratio measures a company's ability to generate

sales from its assets. A higher ratio indicates more efficient utilization
of assets. Here's a trend analysis based on the provided data. Kajaria
Ceramics' Asset Turnover Ratio experienced fluctuations from Q4
2017 to Q4 2023, with notable peaks in Q2 2018 (1.34), Q2 2022
(1.31), and Q2 2023 (1.45). These variations indicate changing levels
of efficiency in generating sales from assets, with the peaks
suggesting periods of high effectiveness. The decline in Q2 2021
(0.99) may indicate challenges or reduced sales efficiency during that
period. The absence of a clear overall trend suggests the company's
adaptability to varying market conditions, demonstrating flexibility in
maintaining efficient asset utilization. Kajaria Ceramics has sustained
relatively competitive asset turnover levels, highlighting its continued
ability to generate sales from its asset base. Continuous monitoring
and strategic adjustments will be crucial for the company to maintain
and enhance sales efficiency from its assets in dynamic business
environments.
The Inventory Turnover Ratio measures how efficiently a company

manages its inventory by assessing how many times it sells and
replaces its inventory within a given period. Here's a trend analysis
based on the provided data. Kajaria Ceramics' Inventory Turnover
Ratio experienced fluctuations from Q4 2017 to Q4 2023, with
notable peaks in Q4 2018 (2.83), Q4 2022 (2.56), and Q2 2018
(2.27). These variations indicate changing levels of efficiency in
managing and turning over inventory, with the peaks suggesting
periods of high effectiveness. The decline in Q4 2021 (1.9) may
indicate challenges or reduced efficiency in inventory turnover during
that period. The absence of a clear overall trend suggests the
company's adaptability to varying market conditions, showcasing
flexibility in maintaining efficient inventory turnover. Kajaria Ceramics
has sustained relatively competitive inventory turnover levels,
highlighting its continued ability to efficiently manage and turn over
inventory. Continuous monitoring and strategic adjustments will be
crucial for the company to maintain and enhance inventory turnover
efficiency in dynamic business environments.
The Receivables Turnover Ratio measures how efficiently a company

manages its receivables by evaluating how many times it collects its
average accounts receivable within a specific period. Here's a trend
analysis based on the provided data. Kajaria Ceramics' Receivables
Turnover Ratio exhibited fluctuations from Q4 2017 to Q4 2023, with
notable peaks in Q4 2017 (9.06), Q2 2023 (8.95), and Q2 2022 (8.97).
These variations indicate changing levels of efficiency in collecting
accounts receivable, with the peaks suggesting periods of high
effectiveness in credit management and collections. The overall stability in
the ratio reflects consistent performance in managing receivables,
showcasing the company's adaptability to varying market conditions.
Despite fluctuations, Kajaria Ceramics has maintained relatively stable
receivables turnover levels, indicating a continued ability to efficiently
collect accounts receivable. Continuous monitoring and strategic
adjustments will be crucial for the company to sustain and enhance
efficiency in receivables management in dynamic business environments.
4. Days sales in inventory:
The Days Sales in Inventory (DSI) ratio measures the average

number of days a company takes to sell its entire inventory. Here's a
trend analysis based on the provided data. Kajaria Ceramics' Days
Sales in Inventory (DSI) ratio fluctuated from Q4 2017 to Q4 2023,
with peaks in Q4 2019 (175 days) and Q4 2021 (192.58 days) and a
trough in Q4 2018 (129.17 days). These variations suggest changing
levels of efficiency in inventory turnover, with peaks indicating longer
times to sell inventory and potential challenges in sales or inventory
management. The absence of a clear overall trend reflects the
company's adaptability to varying market conditions. Despite
fluctuations, Kajaria Ceramics has maintained relatively consistent
DSI levels, indicating a balanced approach to inventory management.
Continuous monitoring and strategic adjustments will be crucial for
the company to sustain efficient inventory turnover in dynamic
business environments.
Market value ratios
price to earnings per book value per

dividend yield earnings ratio share ratio share ratio
2017 Q4 48.97 4.45 73.94
2018 Q2 46.82 4.01 77.59
2018 Q4 38.71 4.15 85
2019 Q2 27.01 3.16 90.79
2019 Q4 41.36 4.15 99.08
2020 Q2 31.74 5.86 104.42
2020 Q4 23.4 3.12 107.84
2021 Q2 52.57 5.61 111.73
2021 Q4 48.76 7.99 117.48
2022 Q2 47.18 7.3 127.6
2022 Q4 43.19 6.02 133.31
2023 Q2 50.17 4.39 140.49
2023 Q4 48.73 6.78 146.12
average 17.697 5.153 108.876

max 52.57 7.99 146.12
min 23.4 3.12 73.94
Individual ratio analysis of Market value ratios
1. Dividend yield:

dividend per share by the market price per share. A higher dividend
yield indicates that the company is paying higher dividends relative to
its stock price. The team was unable to find data for this ratio.
2. Price to earnings ratio:
The Price-to-Earnings (P/E) ratio reflects the market's valuation of a

company's stock relative to its earnings. Here's a trend analysis
based on the provided data. ajaria Ceramics' Price-to-Earnings (P/E)
ratio exhibited fluctuations from 2017 Q4 to 2023 Q4, reaching peaks
in 2017 Q4 (48.97), 2021 Q2 (52.57), and 2023 Q2 (50.17), and a
trough in 2020 Q4 (23.4). These variations indicate changing market
valuations and investor perceptions over time. Peaks in the P/E ratio
suggest periods of higher market expectations and confidence,
potentially influenced by positive earnings reports or optimistic
economic conditions. Conversely, the trough in 2020 Q4 implies a
contraction in market valuation, likely reflecting economic challenges
or lower investor confidence.
The absence of a distinct overall trend underscores Kajaria Ceramics'

adaptability to diverse market conditions. Fluctuations in the P/E ratio
can be attributed to shifts in investor sentiment, responses to
economic indicators, or industry-specific factors. Continuous
monitoring and strategic communication with investors will be pivotal
for the company to navigate these fluctuations effectively. Kajaria
Ceramics' ability to adapt to dynamic market conditions is evident,
indicating resilience and responsiveness to the ever-changing
economic landscape.
The Earnings Per Share (EPS) ratio measures a company's

profitability by indicating the portion of earnings allocated to each
outstanding share of common stock. Here's a trend analysis based
on the provided data. Kajaria Ceramics' Earnings Per Share (EPS)
ratio demonstrated fluctuations from 2017 Q4 to 2023 Q4, reaching
peaks in 2021 Q4 (7.99) and 2022 Q2 (7.3), and a trough in 2019 Q2
(3.16). These variations indicate changing levels of profitability, with
peaks suggesting robust earnings, possibly driven by increased
revenue or cost efficiencies. The trough in 2019 Q2 implies a period
of lower profitability, influenced by economic conditions or
company-specific factors.
The absence of a clear overall trend underscores Kajaria Ceramics'

adaptability to diverse market conditions, showcasing resilience in
maintaining profitability. Despite fluctuations, the company has
sustained relatively stable EPS levels, indicating consistent earnings
performance. Continuous monitoring and strategic financial
management will be crucial for Kajaria Ceramics to navigate dynamic
business environments and sustain and enhance its earnings
performance over time.
The Book Value Per Share (BVPS) ratio represents the value of a
company's equity per share based on its financial statements. Here's a
trend analysis based on the provided data. Kajaria Ceramics' Book Value
Per Share (BVPS) demonstrated a consistent upward trend from 73.94 in
2017 Q4 to 146.12 in 2023 Q4. This sustained growth in the intrinsic value
of each share reflects the company's effective management of assets and
liabilities, contributing to a positive indicator of financial health. The steady
rise in BVPS is likely to enhance investor confidence, showcasing the
company's commitment to generating value for shareholders. The positive
trajectory indicates strong fundamentals and signifies that Kajaria Ceramics
has been consistently building equity, fostering a stable and reliable
financial position. Continuous strategic financial planning will be essential
to sustain this positive trend, further solidifying the company's financial
standing and attractiveness to investors in the dynamic business
landscape.
GRAVITA INDIA LTD.
Introduction:
I) Nature of the Business:

Gravita India Limited is primarily engaged in the business of recycling lead,
plastics, and aluminum. The company operates in the manufacturing
sector, specializing in the eco-friendly recycling of non-ferrous metals and
other recyclable materials. Gravita's core activities include the production of
lead metal, lead products, and lead alloys, as well as the recycling of
various non-ferrous materials.
II) Public or Private Ownership:

Gravita India Limited is a publicly traded company. Its shares are listed on
recognized stock exchanges, allowing the public to invest and participate in
the ownership of the company.
III) Establishment and Circumstances:

Founded in 1992, Gravita India Limited commenced its operations with a
focus on sustainable and environmentally responsible practices in the
metal recycling industry. The company's inception aligns with the growing
global emphasis on eco-friendly initiatives and the increasing demand for
recycled materials. Gravita has since evolved into a leading player in the
recycling sector, contributing significantly to the reduction of environmental
impact through innovative and responsible recycling processes.
IV) Overall Greatness of the Company:

Gravita India Limited has achieved notable success and recognition in the
recycling industry. The company's commitment to sustainable practices,
coupled with its innovative technologies, has positioned it as a leader in the
sector. Gravita's contribution to environmental conservation, resource
efficiency, and responsible business practices underscores its overall
greatness. The company's growth, adherence to high-quality standards,
and positive impact on both the industry and the environment contribute to
its standing as a reputable and forward-thinking entity in the business
landscape.
Liquidity ratios
current ratio acid test ratio cash ratio operating cash flow ratio
2017 Q4 1.34 0.44 0.1 0.062
2018 Q2 1.31 0.37 0.08 0.071
2018 Q4 1.24 0.47 0.06 0.047
2019 Q2 1.14 0.39 0.07 0.023
2019 Q4 1.1 0.35 0.07 0.009
2020 Q2 1.16 0.3 0.04 0.033
2020 Q4 1.24 0.27 0.06 0.055
2021 Q2 1.32 0.28 0.08 0.048
2021 Q4 1.37 0.2 0.05 0.068
2022 Q2 1.46 0.24 0.07 0.089
2022 Q4 1.59 0.3 0.07 0.100
2023 Q2 1.82 0.29 0.06 0.129
2023 Q4 1.76 0.36 0.08 0.144
average 1.373 0.327 0.296 0.0675

max 1.82 0.47 0.1 0.144
min 1.1 0.2 0.04 0.009
Individual ratio analysis for liquidity ratio
1. Current ratio:
The current ratio measures a company's ability to cover its short-term

liabilities with its short-term assets. Calculated by dividing current
assets by current liabilities, a ratio above 1 indicates that a company
has more assets than liabilities in the short term.
Gravita India Limited's current ratio has shown a consistent upward

trend from 1.34 in 2017 Q4 to 1.76 in 2023 Q4. This signifies an
improving liquidity position, indicating the company's ability to meet
short-term obligations. The sustained growth suggests effective
working capital management and financial stability, enhancing
Gravita's resilience. The trend also implies potential for strategic
investments or expansion, fostering investor confidence. Overall, the
rising current ratio reflects Gravita's sound financial health and
capacity to navigate short-term financial challenges, contributing to its
overall economic robustness.
2. Acid test ratio:
The acid-test ratio, also known as the quick ratio, assesses a

company's ability to cover its short-term liabilities with its most liquid
assets, excluding inventory. Calculated by dividing quick assets
(current assets excluding inventory) by current liabilities, a ratio
above 1 indicates sufficient liquidity.
Gravita India Limited's acid-test ratio fluctuates from 0.2 in 2021 Q4

to 0.47 in 2018 Q4. The overall trend, however, shows a general
decline from 2017 Q4 to 2023 Q4, indicating a potential decrease in
the company's ability to cover short-term obligations using its most
liquid assets. This trend may imply increased reliance on inventory or
other current assets.
Economic inferences suggest a need for vigilant liquidity

management. A declining acid-test ratio could signal challenges in
quickly covering short-term obligations, possibly impacting financial
flexibility. It underscores the importance of monitoring working capital
components and optimizing liquidity to ensure Gravita's continued
ability to meet immediate financial demands.
3. Cash ratio:
The cash ratio is a liquidity metric that assesses a company's ability

to cover its short-term liabilities using its available cash and cash
equivalents. Calculated by dividing cash and cash equivalents by
current liabilities, a higher cash ratio indicates a greater capacity to
settle immediate obligations.
Gravita India Limited's cash ratio fluctuates from 0.04 in 2020 Q2 to

0.1 in 2017 Q4. The overall trend shows variability but without a clear
upward or downward trajectory. This suggests moderate fluctuations
in the company's ability to cover short-term liabilities with its available
cash and cash equivalents.
Economic inferences indicate that Gravita has maintained a

reasonable level of cash coverage, providing a cushion for short-term
financial demands. However, the fluctuations highlight the importance
of prudent cash management, emphasizing the need for a balance
between investing excess cash and maintaining ample liquidity.
Continuous monitoring and strategic financial planning will be crucial
to sustain a favorable cash position, ensuring Gravita's resilience in
navigating short-term financial challenges.
The operating cash flow ratio assesses a company's ability to

generate cash from its operating activities in relation to its current
liabilities. Calculated by dividing operating cash flow by current
liabilities, a higher ratio indicates a greater capacity to cover
short-term obligations with cash generated from core operations.
Gravita India Limited's operating cash flow ratio demonstrates an

upward trend, increasing from 0.062 in 2017 Q4 to 0.144 in 2023 Q4.
This consistent growth suggests an improvement in the company's
ability to generate cash from its operating activities, providing a
stronger buffer against short-term liabilities.
Economic inferences highlight Gravita's enhanced operating cash

flow efficiency, indicating effective management of core business
activities. The rising trend implies increased financial flexibility and
resilience, empowering the company to meet short-term obligations
more robustly. Investors may view this positively as it reflects
sustained operational strength and the ability to generate cash
internally, reducing reliance on external financing for day-to-day
operations. Overall, Gravita's improving operating cash flow ratio
contributes to its financial stability and strategic maneuverability.
Leverage financial ratios
interest
debt to coverage debt service coverage
debt ratio equity ratio ratio ratio
Q4 2017 45.49 104.36 10.45 0.110
Q2 2018 41.56 98.68 4.21 0.136
Q4 2018 45.87 115.92 3.62 0.103
Q2 2019 42.51 115.01 1.83 0.049
Q4 2019 43.71 122.69 2.23 0.053
Q2 2020 41.29 113.46 2.1 0.065
Q4 2020 41.57 110.77 3.59 0.096
Q2 2021 37.2 98.42 2.91 0.079
Q4 2021 35.95 93.93 5.37 0.143
Q2 2022 35.47 95.72 6.46 0.140
Q4 2022 39.25 97.67 4.44 0.165
Q2 2023 30.68 62.79 5.39 0.176
Q4 2023 28.85 57.79 5.74 0.162
average 39.184 99.016 4.487 0.114

max 45.87 122.69 10.45 0.176
min 28.85 57.79 1.83 0.049
Individual analysis of Leverage financial ratios

1. Debt ratio:
The debt ratio measures the proportion of a company's total assets

that are financed by debt. Calculated by dividing total debt by total
assets, a higher debt ratio indicates a higher reliance on debt for
financing.
Gravita India Limited's debt ratio has shown a declining trend,

decreasing from 45.49% in Q4 2017 to 28.85% in Q4 2023. This
indicates a consistent reduction in the company's dependence on
debt as a source of financing over the analyzed period.
Economic inferences suggest prudent financial management, as

Gravita has been actively reducing its debt burden. A declining trend
in the debt ratio signifies improved financial health, potentially
reducing interest expenses and financial risk. It also reflects the
company's efforts to strengthen its balance sheet and enhance
overall solvency. Investors and stakeholders may view this positively,
as it demonstrates Gravita's commitment to sustainable financial
practices and positions the company for greater financial flexibility in
the future.
The debt-to-equity ratio assesses the proportion of a company's

financing that comes from debt compared to equity. Calculated by
dividing total debt by shareholders' equity, a higher ratio indicates
higher financial leverage.
Gravita India Limited's debt-to-equity ratio has displayed a declining

trend, decreasing from 104.36% in Q4 2017 to 57.79% in Q4 2023.
This trend signifies a consistent reduction in the company's reliance
on debt relative to equity over the analyzed period.
Economic inferences suggest prudent financial management, with

Gravita actively lowering its debt-to-equity ratio. A declining trend
indicates a decreasing financial risk and potential interest expense,
contributing to improved financial stability. This strategy enhances the
company's ability to attract investors and withstand economic
uncertainties. The reduced leverage also signifies greater control
over the capital structure, providing Gravita with increased flexibility
for strategic initiatives. Overall, the declining debt-to-equity ratio
reflects positive financial discipline and positions Gravita for
sustained growth and resilience.
The interest coverage ratio evaluates a company's ability to meet its

interest obligations by comparing its operating income to its interest
expenses. Calculated by dividing operating income by interest
expenses, a higher ratio indicates a greater capacity to cover interest
costs.
Gravita India Limited's interest coverage ratio exhibits variations from

13.19 in Q4 2020 to 62.27 in Q4 2021. The overall trend reveals
periods of both increase and decrease over the analyzed period.
Economic inferences suggest that Gravita has experienced

fluctuating ability to cover interest expenses. The significant peak in
Q4 2021 indicates robust operating income relative to interest costs,
enhancing financial stability. However, the subsequent decline in Q2
2022 and Q4 2023 suggests a potential need for attention to sustain
interest coverage.
Investors and creditors may closely monitor this ratio as it reflects

Gravita's capacity to manage debt obligations. The company should
ensure sustained profitability and operational efficiency to
consistently cover interest expenses and maintain a favorable interest
coverage ratio for long-term financial health.
The debt service coverage ratio (DSCR) assesses a company's

ability to meet its debt obligations, considering its operating income
relative to its total debt service obligations. Calculated by dividing
operating income by total debt service, a DSCR above 1 indicates the
company's ability to cover its debt obligations.
Gravita India Limited's DSCR has experienced fluctuations from

0.392 in Q4 2020 to 1.684 in Q2 2021, showing variability in its ability
to service debt. The subsequent decline in Q2 2022 and recovery in
Q4 2023 indicate potential challenges in sustaining consistent debt
service coverage.
Economic inferences suggest that while Gravita demonstrated strong

debt service coverage in certain periods, the variations highlight the
importance of closely monitoring operating income relative to debt
obligations. Investors and creditors should consider these fluctuations
when assessing the company's financial risk and ability to meet its
debt service requirements. Consistent efforts to maintain a healthy
DSCR are crucial for long-term financial sustainability and resilience
against economic uncertainties.
gross profit operating return on

margin profit margin assets return on equity
2017 Q4 — 8.77 10.92 24.12
2018 Q2 — 10.53 — —
2018 Q4 — 6.42 10.41 25.95
2019 Q2 — 3.97 7.51 19.75
2019 Q4 — 3.88 3.14 8.6
2020 Q2 — 4.9 1.72 4.82
2020 Q4 — 6.46 6 16.76
2021 Q2 — 5.62 6.76 18.72
2021 Q4 — 8.5 7.99 21.66
2022 Q2 — 8.25 12.56 34.51
2022 Q4 — 9.67 16.26 42.75
2023 Q2 — 7.78 17.71 42.21
2023 Q4 — 7.54 18.26 41.22
average 7.099 9.172 23.159

max 10.53 18.26 42.75
min 3.88 1.72 4.82
Individual ratio analysis of profitability ratios
1. Gross profit margin:
The Gross Margin Ratio calculates how much profit a company makes after
deducting the cost of products sold from its revenue. It demonstrates how
well a corporation uses its resources to manufacture and sell its products.
A greater gross margin ratio shows that the corporation has more profit
from sales left over to cover other expenses and create net income. The
team was unable to find data on this ratio for Abbott India.
2. Operating profit margin:
The operating profit margin is a profitability metric that assesses a

company's ability to generate profit from its core operations.
Calculated by dividing operating income by total revenue, a higher
margin indicates greater efficiency in converting revenue into
operating profit.
Gravita India Limited's operating profit margin has shown some

variability, ranging from 3.88% in 2019 Q4 to 10.53% in 2018 Q2. The
overall trend demonstrates fluctuations, with peaks in Q2 2018 and
Q4 2022, and troughs in Q2 2019 and Q2 2023.
Economic inferences suggest that Gravita has experienced varying

levels of operational efficiency in converting revenue to operating
profit. The peaks indicate periods of enhanced profitability, possibly
driven by improved cost management or increased revenue. The
fluctuations may be influenced by factors such as market dynamics,
cost structures, or operational efficiency initiatives.
Investors and stakeholders should closely monitor these fluctuations
to understand the company's ability to sustain and improve
operational profitability over time. Consistent efforts to enhance
operational efficiency and maintain a healthy operating profit margin
are vital for long-term financial success and competitiveness.
3. Return on assets:
Return on assets (ROA) measures a company's ability to generate

profit from its assets. It is calculated by dividing net income by
average total assets. A higher ROA indicates efficient asset utilization
for profit generation.
Gravita India Limited's ROA has shown a positive trend, increasing

from 10.92% in 2017 Q4 to 18.26% in 2023 Q4. The trend suggests
consistent improvement in the company's ability to generate profit
from its asset base.
Economic inferences indicate that Gravita has been successful in

enhancing its profitability relative to the size of its asset base. The
positive trend may result from effective cost management, revenue
growth, or strategic initiatives that maximize returns on assets.
Investors and stakeholders may view this trend positively, as it
reflects the company's efficiency in utilizing assets to generate profit.
The increasing ROA over time signals a potential for sustained
financial performance and effective asset management strategies,
contributing to Gravita's overall financial health and competitiveness
in the market.
4. Return on equity:
Return on equity (ROE) measures a company's ability to generate

profit from shareholders' equity. It is calculated by dividing net income
by average shareholders' equity. A higher ROE indicates effective
use of equity capital for profit generation.
Gravita India Limited's ROE has displayed a positive trend, increasing

from 24.12% in 2017 Q4 to 41.22% in 2023 Q4. The trend suggests
consistent improvement in the company's ability to generate returns
for its shareholders.

maximizing returns on shareholders' equity over time. The increasing
trend may result from enhanced profitability, efficient use of capital, or
strategic initiatives that contribute to higher shareholder value.
Investors and stakeholders may view this trend positively, as it
reflects the company's ability to provide attractive returns to
shareholders. The rising ROE signifies effective management of
equity capital and suggests that Gravita is on a path of sustained
financial performance, contributing to shareholder confidence and
overall competitiveness in the market.
Efficiency ratios
inventory reciveables days sales in

asset turnover ratio turnover ratio turnover ratio inventory ratio
Q4 2017 2.2 5.62 14.57 64.98
Q2 2018 — — — —
Q4 2018 2.4 6.37 11.73 57.32
Q2 2019 2.46 6.26 13.99 58.34
Q4 2019 2.33 6 11.85 60.84
Q2 2020 2.13 5.16 12.88 70.69
Q4 2020 2.27 — 16.44 —
Q2 2021 2.17 4.88 17.82 74.93
Q4 2021 2.1 4.17 22.22 87.44
Q2 2022 2.32 4.43 24.73 82.43
Q4 2022 2.57 4.13 26.22 88.42
Q2 2023 2.62 4.33 30.02 84.3
Q4 2023 2.54 4.17 22.71 87.45
average 2.162 4.27 17.321 62.857

max 2.62 6.37 30.02 88.42
min 2.1 4.13 11.73 57.32
Individual ratio analysis of Efficiency ratios

The asset turnover ratio measures a company's ability to generate

revenue from its assets. It is calculated by dividing total revenue by
average total assets. A higher asset turnover ratio indicates efficient
utilization of assets to generate sales.
Gravita India Limited's asset turnover ratio has shown a generally

positive trend, increasing from 2.2 in Q4 2017 to 2.54 in Q4 2023.
The trend suggests improved efficiency in generating revenue relative
to the size of the asset base.

optimizing its asset utilization over time, leading to increased revenue
generation per unit of assets. This improvement may result from
operational efficiencies, increased sales, or strategic initiatives that
enhance the productivity of the company's asset base.
Investors and stakeholders may view this trend positively as it reflects

Gravita's ability to generate more revenue with the given asset
infrastructure. The increasing asset turnover ratio signals potential for
sustained financial performance and effective asset management
strategies, contributing to Gravita's overall financial health and
competitiveness in the market.
The inventory turnover ratio measures how many times a company's

inventory is sold and replaced over a specific period. It is calculated
by dividing the cost of goods sold (COGS) by the average inventory.
A higher inventory turnover ratio indicates efficient inventory
management.
Gravita India Limited's inventory turnover ratio has shown a mixed

trend, with variations from 5.62 in Q4 2017 to 4.17 in Q4 2023. The
ratio's decline suggests a potential increase in average inventory
holding periods, which may be attributed to factors such as changes
in production cycles, demand fluctuations, or supply chain dynamics.
Economic inferences indicate the need for Gravita to assess and

potentially optimize its inventory management practices. A declining
trend in inventory turnover may tie up working capital and affect
liquidity. Strategies to streamline production, improve demand
forecasting, and enhance supply chain efficiency could positively
impact the ratio, leading to improved financial performance.
Investors and stakeholders should monitor Gravita's efforts to
address inventory turnover challenges to ensure optimal use of
resources and maintain competitiveness in the market.
The receivables turnover ratio measures how efficiently a company is

collecting cash from its credit sales. It is calculated by dividing net
credit sales by the average accounts receivable. A higher receivables
turnover ratio indicates effective credit management.
Gravita India Limited's receivables turnover ratio exhibits a positive

trend, increasing from 14.57 in Q4 2017 to 22.71 in Q4 2023. This
trend suggests that Gravita has improved its efficiency in collecting
cash from credit sales over time.
Economic inferences highlight Gravita's successful efforts in

managing its receivables effectively, reducing the average collection
period. A higher receivables turnover ratio can positively impact cash
flow and working capital, contributing to improved liquidity and
financial stability.
Investors and stakeholders may view this trend favorably as it

indicates Gravita's ability to promptly convert credit sales into cash,
enhancing overall financial health. This positive trajectory in
receivables turnover suggests effective credit policies, efficient
collection practices, or improved customer relationships, contributing
to the company's sustained financial performance.
4. Days sales inventory ratio:
The days sales in inventory ratio measures the average number of

days a company takes to sell its entire inventory during a specific
period. It is calculated by dividing the number of days in the period by
the inventory turnover ratio.
For Gravita India Limited, the days sales in inventory ratio has
experienced a fluctuating trend, ranging from 57.32 days in Q4 2018
to 87.45 days in Q4 2023. A higher ratio suggests a longer time to
sell inventory, which may indicate overstocking or potential issues in
inventory management.
The increasing trend from 57.32 days in Q4 2018 to 87.45 days in Q4

2023 implies that Gravita has taken more time, on average, to sell its
inventory. This trend may raise concerns about potential inefficiencies
in inventory turnover and could impact working capital.
Economic inferences suggest that Gravita may need to optimize its

inventory management strategies to enhance efficiency, reduce
carrying costs, and maintain a healthy cash flow. Investors may
closely monitor this trend for its implications on operational
effectiveness and profitability.
Market value ratios
price to earnings per book value per

dividend yield earnings ratio share ratio share ratio
2017 Q4 10.73 1.41 21.93
2018 Q2 22.37 1.95 24.86
2018 Q4 24.28 1.56 27.61
2019 Q2 16.7 0.74 29.17
2019 Q4 34.7 0 28.99
2020 Q2 31.5 0.93 30.81
2020 Q4 6.49 1.95 32.62
2021 Q2 8.3 1.67 34.35
2021 Q4 11.58 3.15 38.95
2022 Q2 13.86 5.35 47.58
2022 Q4 15.65 5.99 56.03
2023 Q2 13.07 6.59 67.54
2023 Q4 16.48 9.24 85.31
average 17.362 3.118 40.44

max 34.7 9.24 85.31
min 6.49 0 21.93
Individual ratio analysis of market value ratios
1. Dividend yield:
dividend per share by the market price per share. A higher dividend
yield indicates that the company is paying higher dividends relative to
its stock price. The team was unable to find data for this ratio.
2. Price to earnings ratio:
The price-to-earnings (P/E) ratio is a valuation metric that compares a

company's current stock price to its earnings per share (EPS). It
reflects the market's expectations for future earnings growth.
For Gravita India Limited, the P/E ratio has shown a fluctuating trend
over the periods provided, ranging from a low of 6.49 in 2020 Q4 to a
high of 34.7 in 2019 Q4. A lower P/E ratio may indicate that the stock
is undervalued, while a higher ratio suggests overvaluation.
The substantial drop in the P/E ratio from 34.7 in 2019 Q4 to 6.49 in
2020 Q4 could be attributed to various factors, such as changes in
earnings, market sentiment, or economic conditions. The subsequent
increase and stabilization around 13-16 in the later periods may
suggest a reevaluation and improved confidence in the company's
earnings potential.
Economic inferences indicate that the market sentiment towards
Gravita has seen fluctuations, possibly influenced by changes in the
company's financial performance or external economic factors.
Investors may analyze this trend to make informed decisions about
the stock's value and potential future growth.
The earnings per share (EPS) ratio measures a company's

profitability by indicating the amount of net income allocated to each
outstanding share of common stock. It is a key financial metric for
investors to assess a company's performance on a per-share basis.
For Gravita India Limited, the EPS has shown a notable upward trend
over the provided periods. Starting at 1.41 in 2017 Q4, it increased to
9.24 in 2023 Q4. The trend suggests a consistent improvement in the
company's profitability and ability to generate earnings for
shareholders.
This positive trend in EPS may be attributed to factors such as

increased net income, effective cost management, or successful
business strategies. Economic inferences indicate that Gravita has
experienced significant earnings growth, potentially making it an
attractive investment for shareholders seeking companies with strong
profitability. Investors may consider this trend as a positive indicator
of the company's financial health and future prospects.
The book value per share (BVPS) ratio represents the net asset value
attributable to each outstanding share of a company's common stock.
It is calculated by dividing the company's total equity by the number
of outstanding shares.
For Gravita India Limited, the BVPS has exhibited a consistent

upward trend over the provided periods. Starting at 21.93 in 2017 Q4,
it has steadily increased to 85.31 in 2023 Q4. This trend suggests a
consistent growth in the company's net asset value on a per-share
basis.
The rising BVPS may indicate that Gravita has been effectively
utilizing its resources, generating positive returns on investments, and
maintaining a strong financial position. Economic inferences suggest
that the company's assets and equity have been appreciating over
time, reflecting positively on its financial health. Investors may
interpret this trend as a sign of the company's increasing intrinsic
value and may find it appealing for potential investment.
TASK 2
COMPARATIVE ANALYSIS FOR ALL SEVEN COMPANIES

1. Current Ratio:
● The graph depicts the current ratios of seven corporations over the
course of 13 quarters, from Q4-2017 to Q4-2023.
● Among the seven companies Persistent has the highest current ratio
in the previous quarters, followed by Kajaria and Abbott, indicating
higher current assets relative to current liabilities and a robust liquidity
position. Abbott and Kajaria have maintained a steady level over the
years, whereas Persistent's ratio has fluctuated significantly.
● ABFRL has the lowest current ratio, we can assume that it may face
difficulties in meeting its short-term obligations Despite having lesser
liquidity issues, it retains its level without further lowering the ratio.
● Gravita has been maintaining a consistent and steady increase in the
ratio with moderate levels
● Heidelberg and JSW have similar liquidity, they are in moderate to
low ratio levels meaning that they can meet their short-term
obligations with some effort.
Some Economic inferences:
● Among the seven companies Kajaria, Abbott, and Persistent have a
competitive edge in terms of current ratio, we can deduce that they
have lower default risk and higher creditworthiness than their peers
● In terms of current ratio, ABFRL is at a competitive disadvantage,
exhibiting less financial flexibility. This may put it at a disadvantage
when it comes to obtaining loans and negotiating terms or investing
opportunities.
● Heidelberg and Gravita have mixed results, with moderate levels of
default risk and creditworthiness, but their cash flows are unclear and
volatile. As a result, they may be sensitive to unexpected external
shocks.
2. Acid-Test Ratio:
● The graph depicts the acid test ratios for seven companies over the
span of 13 quarters, from Q4-2017 to Q4-2023.
● Persistent and Abbott have a similar acid test ratio with higher levels
compared to the other firms, suggesting more than enough current
assets, excluding inventory, to cover their current liabilities
● Gravita and ABFRL have the lowest acid test ratio indicating that they
have a weak liquidity position and may face difficulties in meeting
their short-term obligations
● Heidelberg and JSW are in a moderate to low level of ratio making
them in a position of not so weak liquidity position and can meet their
short-term obligations with some effort
● Kajaria, Persistent, and Abbott have relatively the same level of
acid-test ratio in the recent quarters
● Gravita has a lower and more volatile ratio, this may be due to the
fact that Gravita is a small and growth-oriented company
● Overall, the trend in the acid test ratio graph is positive, suggesting
that the companies are becoming more liquid over time. This is a
good sign for the overall health of the Indian economy.
3. Cash Ratio:
● The graph shows the cash ratio of seven companies over the span
of 13 quarters from Q4-2017 to Q4-2023
● Abbott and Persistent have the highest cash ratios, averaging
around 2.5. This suggests that they are in a strong financial
position and have a significant buffer of cash to meet their
short-term obligations.
● Abbott has a cash ratio of around 1.0 which is below the healthy
level of liquidity
● All the other firms have the lowest level of cash ratio averaging
around 0.5. this suggests that they are more reliant on external
financing to meet their short-term obligations

● The fact that Kajaria and Persistent have the highest cash ratios
suggests that these companies are more conservative in their
financial management and are prioritizing liquidity over growth.
● Gravita and ABFRL have the lowest cash ratios, indicating that
these companies are more aggressive in their financial
management and prioritize growth above liquidity.
● Overall, the graph implies that Indian enterprises are in good
financial shape and have a sufficient cash buffer to cover their
short-term obligations. However, cash ratios differ between
organizations, with some being more conservative and others
being more proactive in their financial management.
Comparative Analysis of Leverage Financial Ratios:
1. Debt Ratio:
● The graph depicts the Debt ratio of seven corporations over the
course of 13 quarters, from Q4-2017 to Q4-2023.
● JSW Energy saw the highest debt ratio of all reaching 63.7 in
Q4 2017 while ABFRL had a similar peak of 55.6 in Q2 2021
suggesting higher debt in that quarter. ABFRL is a apparel
brand and its debt can be influenced by seasonal demands
leading to a sharp increase in a span of a few quarters.
● Persistent had the lowest debt ratio of all at 0.05 during Q2

2019 and it had low levels throughout Q4 2017 to Q4 2019 post
which it saw an increase in its ratios indicating to a increase in
debt burden of the company, it was however at 16.53 in Q4
2023 which is still not exceptionally high.
● Kajaria displayed the second lowest debt level of 2.91 in Q2
2021,while maintaining a stable debt position throughout
quarters. Abbott has also seen largely stable but moderate debt
levels, indicating financial stability however the company has
scope for reducing the debt levels.
● Heidelberg has seen a consistently decreasing debt ratio which
is a sign of good debt management by the company, its ratio
was at an exceptional low of 6.82 at Q4 2023.
● These are the Debt to equity ratios of all the seven companies across
13 quarters from 2017 Q4 to 2023 Q4.
● ABFRL had the highest ratio in Q2 2021 and it also had the highest
ratio post that until 2023 Q4. The peak might have been due to a
showdown in offline shopping during the second wave of COVID-19,
which might have led to an increase in borrowing of the company.
● Abbott, operating in healthcare, demonstrates relatively stable and
lower debt-to-equity ratios across the quarters, highlighting a
conservative approach to financing amidst sector stability.
● Kajaria and Persistent also had low and stable D/E ratios, where
persistent peaked at just 21% in 2023 Q2 and Kajaria peaked at a little
higher around 37% in Q4 2023 which the company must try to bring
down. Persistent indicated a careful and risk averse approach in
taking debts.
● JSW Energy showed on an average second highest levels of D/E
ratios throughout. It could be due to the capital intensive nature of
setting up new power generation units and expanding
3. Interest Coverage Ratio:

● These are the interest coverage ratios of all companies from
quarters 2017 Q4 to 2023 Q4 except Persistent for which data
was unavailable.
● Abbott has seen large fluctuations in its interest coverage ratio,
however has displayed exceptionally high interest coverage
ratios indicating periods of robust earnings relative to its
interest expenses in the healthcare industry.
● ABFRL has an alarmingly low coverage ratio with the lowest
being -1.27 in Q2 2021, even after that maintained a ratio below
1.5. This is a serious concern indicating that the company has
had periods where its earnings weren't enough to cover the
debt.
● Heidelberg, Kajaria and Gravita have all maintained an average
ratio upwards of 3 while reaching peaks of 17, 62 and 11
respectively. Considering they are all engaged in capital
intensive sectors, this is a good indication.
● JSW Energy has struggled a bit here, however has seen a peak
of 8.51 in Q4 of 2022, up from 0.88 in 2017 Q4. It dropped to
levels of 2 in 2023, however the trend has been increasing
which would be a relief to the investors.

● These are the Debt service coverage ratios for Kajaria, Gravita,
Persistent, ABFRL and HEIDELBERG for 13 quarters from 2017 Q4 to
2023 Q4.
● Kajaria has overall had the highest debt service coverage ratio with a
peak of 1.684 in Q2 2021 followed by Persistent which has been on
an increasing trend since Q4 2020.
● ABFRL, Gravita and Heidelberg have all maintained ratios below 0.5
which is not a good sign.
The companies must be careful with future borrowings as they have a
ratio of below 1 currently which means they could have difficulties in
current debt payments.
Comparative analysis of Profitability ratio
1. Operating margin ratio
1. Persistent Systems:
Maintains relatively consistent operating margins, suggesting stability

in the IT services sector.
Positive trends indicate efficient cost management and adaptability to
industry changes.
2.Aditya Birla Fashion and Retail Limited (ABFRL):
Faces volatility, particularly in 2021 Q2, reflecting challenges in the

fashion retail industry.
Negative operating margins in some quarters indicate potential
operational issues or external pressures.
3.Heidelberg Cement India:
Experiences fluctuations, potentially tied to the cyclical nature of the

construction industry.
Improved margins post-2022 Q2 may signify recovery and increased
demand in the construction sector.
4.Kajaria Ceramics:
Demonstrates stability with relatively steady operating margins.

Positive trends post-2020 Q2 suggest effective cost management and
potential growth in the ceramics manufacturing sector.
5.Gravita India Limited:
Maintains consistently positive trends, showcasing effective

operational strategies in lead recycling and manufacturing.
Positive margins highlight adaptability and potential for sustained
growth.
6.Abbott India:
Exhibits periodic peaks, potentially tied to product launches or

strategic initiatives in the pharmaceutical and healthcare sector.
Consistently positive margins reflect robust performance in a
regulated and competitive industry.
7.JSW Energy:
Displays volatility, potentially influenced by energy market conditions

and regulatory changes.
Significant improvement in 2022 Q4 suggests adaptability and
potential growth in the energy sector.
Economic Inferences:
Companies with consistent positive trends demonstrate operational

resilience and effective strategic management.
Volatility may indicate industry-specific challenges or external factors
impacting performance.
Improved margins in certain periods suggest adaptability and
potential growth opportunities.
Industry dynamics play a crucial role, with each sector experiencing
unique challenges and opportunities.
2. Return on asset ratio
1.Persistent Systems:
Consistently maintains a robust ROA, indicating efficient asset

utilization in the IT services sector.
High and stable ROA suggests effective management of resources
for sustained profitability.
Experiences negative ROA in several quarters, indicating challenges

in generating profits relative to assets.
Operational efficiency may be a concern, requiring strategic
adjustments to enhance asset productivity.
Demonstrates moderate ROA, influenced by the capital-intensive

nature of the construction materials industry.
Stable performance indicates effective utilization of assets within the
construction sector.
4.Kajaria Ceramics:
Shows a consistent and positive ROA, reflecting effective

management of assets in the ceramics manufacturing sector.
Stable and healthy ROA indicates efficient use of resources for
profitability.
Maintains a consistently positive ROA, reflecting effective utilization

of assets in lead recycling and manufacturing.
Stable performance suggests sustainable profitability through efficient
asset management.
6.Abbott India:
Demonstrates high and stable ROA in the pharmaceutical and

healthcare sector.
Efficient asset utilization reflects a strong position in a competitive
and regulated industry.
7.JSW Energy:
Experiences fluctuations in ROA, potentially influenced by market

conditions and regulatory dynamics in the energy sector.
Improved ROA in recent quarters suggests enhanced asset
productivity and profitability
Companies with consistently high ROA demonstrate effective asset

management and sustained profitability.
Negative ROA in certain quarters indicates challenges in generating
profits relative to assets, requiring strategic adjustments.
Industries with a capital-intensive nature, like construction, may
exhibit moderate but stable ROA.
A positive and stable ROA is a positive indicator of effective resource
utilization and financial health.
3. Return on equity ratio

1.Persistent Systems:
Consistently maintains a high and increasing ROE, indicating efficient use

of equity for generating profits.
Strong financial performance suggests effective management and strategic
positioning in the IT services sector.
Experiences fluctuations in ROE, with negative values in some quarters,

signaling challenges in generating returns for equity holders.
Operational adjustments may be needed to enhance shareholder value and
financial performance.
Shows moderate and stable ROE, influenced by the cyclical nature of the
construction materials industry.
Stable performance indicates effective use of equity to generate profits
within the construction sector.
4.Kajaria Ceramics:
Demonstrates a consistent and positive ROE, reflecting efficient use of

equity for profitability.
Sustained financial performance indicates effective management and a
strong position in the ceramics manufacturing sector.
Maintains a consistently high ROE, suggesting efficient utilization of equity

Strong financial performance reflects effective strategic positioning in lead
recycling and manufacturing.
6.Abbott India:
Demonstrates a consistently high ROE in the pharmaceutical and

healthcare sector.
Efficient use of equity indicates a strong position in a competitive and
regulated industry.
7.JSW Energy:
Experiences fluctuations in ROE, potentially influenced by market

conditions and regulatory dynamics in the energy sector.
Recent quarters show improved ROE, suggesting enhanced profitability
and value creation for equity holders.
Companies with consistently high ROE demonstrate effective use of equity

Negative or fluctuating ROE may indicate challenges in generating returns
for equity holders, requiring strategic adjustments.
Industries with cyclical patterns, like construction materials, may exhibit
moderate but stable ROE.
A positive and stable ROE is a positive indicator of effective equity
utilization and financial health.
Comparative Analysis of Market Value Ratios:
● The graph depicts the Book Value per Share ratio of seven
corporations over the course of 13 quarters, from Q4-2017 to
Q4-2023.
● The book value per share ratios across the listed companies have
generally exhibited positive trends, indicating growth in the intrinsic
value of their shares over the quarters
● Abbott consistently demonstrated highest substantial growth,

reaching 1200 in 2023 Q4 followed by Persistent which has
reached a peak of 518.
● Hiedelberg and Kajaria also displayed noteworthy increases in

their book value per share, highlighting positive trends in their
financial positions. Heidelberg varying between 42- 69 and Kajaria
varying between 73 –146.
● ABFRL and JSW Energy showed moderate growth, they are in
moderate to low ratio levels, meaning that they cannot meet their
short-term obligations with some effort.
2. Earnings per Share Ratio:
● Abbott has consistently demonstrated high EPS values, with

significant growth over the quarters, reaching 124.95 in 2023 Q2
followed by Persistent which is the next highest Persistent's EPS
has consistently shown growth, reaching 32.91 in 2023 Q4.
● Gravita's EPS has shown positive growth, reaching 9.24 in 2023
Q4v Kajaria's EPS has demonstrated growth over the quarters,
notably reaching 7.99 in 2021 Q4. This indicates an upward trend
in the company's earnings and profitability.
● ABFRL has experienced negative EPS values in some quarters,
indicating losses during those periods. Notably, the EPS reached
-2.32 in 2021 Q2, suggesting financial challenges.
● In summary, while some companies like Abbott and Persistent
consistently demonstrate strong and positive EPS values, others
may experience fluctuations or challenges, as seen in the case of
JSW Energy and ABFRL.
3. Price to Earnings Ratio:
● JSW Energy's P/E ratio has shown significant fluctuations, peaking

at 81.14 in 2022 Q2 and then declining to 26.63 in 2023 Q4. This
suggests that the market has experienced shifts in its valuation of
JSW Energy's earnings, with a potential decrease in investor
confidence or a re-evaluation of future earnings prospects followed
by Abbott's P/E ratio has demonstrated relative stability, with
fluctuations around 46.12 in 2023 Q2 and 16.48 in 2023 Q4. This
stability could indicate a consistent market perception of Abbott's
earnings and a steady valuation by investors.
● Kajaria's P/E ratio has displayed fluctuations, reaching a peak at
52.57 in 2021 Q2. The subsequent decline indicates a potential
re-evaluation by the market, possibly influenced by changes in
Kajaria's earnings or market conditions.
● ABFRL's P/E ratio has experienced significant variability, with a
peak at 88.6 in 2023 Q2. The fluctuations may reflect changing
market sentiments and uncertainties about ABFRL's future
earnings.
● Persistent's and Heidelberg’s P/E ratio has shown a notable
increase, This suggests a potential positive shift in market
valuation, possibly influenced by improved financial performance
or positive outlook for their earnings.
● Gravita has experienced fluctuations in its P/E ratio over the
quarters, ranging from 34.7 in 2019 Q4 to 13.07 in 2023 Q2. The
declining trend in the P/E ratio suggests a potential shift in market
sentiment or valuation of Gravita's earnings during this period.
Comparative Analysis of Efficiency ratios:
● Gravita has the highest asset turnover ratio on an average out of all the companies.
● Its followed by Abbott, Kajaria, Persistent and ABFRL all having the ratios in a similar
range except that, ABFRL has seen a decreasing one in recent quarters.
● JSW and Heildenberg have the lowest asset turnover ratio of all.

● Gravita has the highest of all overall followed by Abbott.
● The other three were in a similar range in the initial quarters however ABFRL has
seen a decline in recent quarters.
● Here Heildenberg has seen lot of fluctuations but has the highest overall.
● All the other companies are in a range of 5 to 25 where Gravita is the
second highest.
● ABFRL has the highest here while gravita has the lowest.
Conclusion:
After conducting a fundamental analysis of Abbott India, Persistant

Systems, Kajaria Ceramics, Gravita India, Heidelbergcement India, JSW
Energy and Aditya Birla Fashion and Retail Limited we have observed the
following:
1. Abbott India Ltd.
● Abbott India has registered excellent operating margins over the last
3 years and has had an increasing trend. Same is the case for the
return it generates with respect to its assets and shareholders equity.
● Its book-value as well as price earnings per share have also been on
an increasing trend which reflects the confidence investors have in
the company.
● Industry wise, the pharmaceutical industry is expected to see more
growth in India and has scope for expansion. We can hence expect
growth in revenue to continue. At the same time, Abbott also has a lot
of competitors in the market.
2. Persistent Systems
● The company's liquidity ratios all have fallen quite dramatically since
Q2 2021. At the same time there has been a sharp increase in its
debt and debt equity ratios and a fall in debt coverage ratios
indicating an increase in borrowings. These changes could be
attributed to the sudden COVID-19 crisis which no firm could foresee.
● However along with all these, the company has seen a good
increasing trend in its profitability ratios including operating margin,
return on assets as well as return on equity which are very positive
signs for the investors.
● The market value ratios have also been on the up pointing to the faith
of shareholders and the market.
3. KAJARIA CERAMICS:
● Kajaria Ceramics exhibits a strong financial performance across

various dimensions. The company's efficient management of liquidity,
moderate leverage, effective operational efficiency, and robust
profitability indicate a sound financial position.
● The positive market value ratios and increasing book value per share
further underscore investor confidence in the company.
● Kajaria Ceramics appears to be well-positioned in its industry,

suggesting a successful blend of financial stability, operational
efficiency, and market competitiveness.
4. GRAVITA INDIA LIMITED:
● Gravita India Limited exhibits a robust financial performance across

liquidity, leverage, efficiency, profitability, and marketability metrics.
The company's strong liquidity position, moderate leverage, and
efficient use of assets contribute to its overall financial health.
● The consistently high profitability ratios indicate effective operational

management, and positive market value ratios suggest investor
confidence.
● Gravita India Limited appears well-positioned in its industry,
demonstrating a balanced and successful financial strategy.
5. ABFRL
● ABFLR shows a mixed performance across liquidity, leverage,

efficiency, profitability, and marketability metrics. The company
maintains reasonable liquidity, and its leverage position appears
manageable. Efficient asset management is reflected in the turnover
ratios.
● However, the company experiences fluctuations in profitability, with

some quarters showing negative values. It's crucial to investigate the
reasons behind these variations. Market value ratios suggest a
dynamic market perception.
● A comprehensive analysis, considering industry benchmarks and

external factors, would provide a more nuanced understanding of
ABFRL's overall performance.
6. HEIDELBERG
● Heidelberg exhibits robust performance across liquidity, leverage,

efficiency, profitability, and marketability metrics. The company
maintains strong liquidity positions, manages debt effectively, and
generates positive returns. Efficient asset management contributes to
healthy turnover ratios.
● Profitability metrics indicate consistent positive performance,
reflecting a well-managed and financially sound company.
● Market value ratios suggest positive sentiments among investors. It is

important to continue monitoring these metrics and considering
industry benchmarks for a comprehensive evaluation of Heidelberg's
overall performance.
● JSW ENERGY:
● The company is a leading company in power sector.
● The analysis of JSW Energy's ratios suggests a financially robust and
well-performing company. With favorable liquidity, efficient operational
management, and a healthy leverage position, the company appears
well-positioned to navigate market fluctuations and capitalize on growth
opportunities.
● However, it's essential to continually monitor these ratios in the context of
industry trends and economic shifts to ensure sustained stability and
growth.
FINANCE PART
Q1)
● JAPAN
1. Yield Curve
2. YIELD ANALYSIS
In Japan Yield Curve it is evident that longer-duration interest rates are

higher than short-duration interest rates. The yield curve normally slopes
upward as duration increases. The yield difference between a longer and a
shorter bond will be positive. Thereby we can come to conclusion that
Japan has an upward-sloping yield curve. This curve encourages Japan to
borrow and make long-term investments as investors demand higher yields
for long term investments as they expect higher interest rates. It also
supports banking sector of Japan as it promotes lending profitability.
Overall, an upward yield curve indicates healthy and expanding economy in
future, fostering optimism among investors and businessman alike.
3. MACROECONOMIC IMPLICATION
● EFFECT ON INFLATION
An upward sloping curve in Japan indicates that investors are
anticipating rising inflation, so the investors demand higher yields to
compensate for the higher inflation rates. Inflation erodes the real
value of fixed interest payments, promoting investors to seek higher
nominal yields on long-term bonds to maintain their purchasing
power. Japan has an average inflation rate of 3.21%
● EFFECT ON GDP
Upward sloping yield curve of Japan implies that investors may
anticipate higher future interest rates and may demand higher
yields for longer time investments as they have expectations of
future economic expansion . GDP in Japan is expected to reach
4200 USD Billion by end of 2023. It is seen that GDP growth rate
in 2020 was -4.28% and that of 2021 was 2.14% which indicates
that there was a 6.42% increase from 2020
● GERMANY
1.Yield Curve
2. YIELD ANALYSIS
From the graph it is clear that Germany has an inverted yield curve or
downward sloping yield curve for the majority and a bit of flat slope is also
found at the end. The downward sloping is because the short duration
interest rates are higher than that of the long duration interest rates. The
gap between Germany's 2-year and 10-year yields was at -83.5 after falling
earlier in the session to -86.8, its lowest level since September 1992.
Investors may be seeking the safety of long-term bonds, driving their prices
up and yields down. the investors might be tending towards the safety
offered by the long-term bonds due to which their prices are driving up and
yield getting plummeted.
3. MACROECONOMIC IMPLICATIONS
● EFFECT ON GDP:
The inverted yield curve also indicates the onset of an economic recession
.
Investors may be anticipating lower future interest rates and economic
challenges, leading to reduced business investments and slower GDP
growth. the investors may expect a further lower interest rates in the future
and other factors leading to a decrease in the investments and slower GDP
growth. Year-on-year, the economy contracted by 0.2% in the second
quarter. It follows a technical recession last winter, as quarter-on-quarter
growth had fallen by 0.4% in the fourth quarter of last year and 0.1% in the
first quarter of this year.
● EFFECT ON INFLATION:
On the view of an inverted yield curve, we expect there to a lower inflation
or even deflation. The lack of confidence in the economy's ability to sustain
growth might be a leading reason for this. Over the past 2 to 3 years
Germany had an inflation rate an average of 2%. and even 0% inflation rate
in the month of August of 2020.
● SLOVAKIA
1.YIELD CURVE
2.YIELD ANALYSIS
From the graph it is clear that slovakia has flat yield curve with a bit of
upward sloping in the beginning. The flat yield curve indicates that there is
very little difference between short term and long term interest rates.
Investors may come to a conclusion that the economic conditions are not
going to change drastically in the near future as the yield on government
bonds with short maturities are similar to those with longer maturities
3. MACROECONOMIC IMPLICATION
● EFFECT ON INFLATION
A flat yield curve in slovakia indicates that investors are not
anticipating rapid increase in prices as rise in inflation generally leads
to higher interest rates thereby leading the investors to reduced
spending and investments in this country. Lower inflation
expectations can affect borrowing costs and investment decisions
which further contributes to overall economic environment in negative
way .
● EFFECT ON GDP
A flat yield curve generally signifies weak GDP growth. Investors perceiving
a stable or slowing economy might allocate capital more cautiously.
Slovakia might also have reduced borrowing incentives which affects
financing for businesses and dampering overall economic activity.GDP in
Slovakia is estimated to be 205.22 Billion USD in 2023.
TASK 2
● Yield curve of T-Bill :
● Yield curve of Financial commercial papers:
It is evident from the two graphs that interest rate of T-Bill is more when
compared to that of Financial commercial paper .This can be influenced by
various factors such as :
● Interest rate risk
● Credit risk
● Liquidity risk
1. Interest rate risk:The risk that value of bond or other fixed-income

investments will have due to change in interest rates.If investors
are expecting a raise in interest rates then they would demand
higher returns on newly issued securities and if interest rates
decrease the reverse will happen which implies that price is
directly proportional to interest rates .
2. Credit risk : The risk associated to lender when borrower could not
repay a loan or could not meet contractual obligations . Since
financial commercial paper is not a security issued by government
it does carry certain amount of risk .since the risk will be on the
higher side investors may demand a higher yield.
3. Liquidity risk :The risk which investors faces when he tries

converting investment into cash without causing significant impact
on its price .Liquidity of financial commercial papers is less when
compared to that of T bills so there will be certain amount of
liquidity premium associated to it .So this might be one of the
reason for higher amount of interest rate in the yield curve .

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FOFA PROJECT

PERSISTENT SYSTEMS LTD.

III. Company History

IV. Overall Greatness of the Company

In recent quarters, the company's financial performance has been

Individual Ratio Analysis:

2. Debt to Equity Ratio

The debt-to-equity (D/E) ratio is a financial ratio used to assess the

3. Interest Coverage Ratio

The Interest Coverage Ratio is a financial measure that determines how

A company's debt service coverage ratio (DSCR) over time, is a measure

Individual Ratio Analysis:

1. Asset Turnover Ratio

2. Inventory Turnover Ratio

3. Receivables Turnover Ratio

4. Days Sales in Inventory Ratio

1. Gross Margin Ratio

2. Operating Margin Ratio

The operating margin ratio is a profitability ratio calculated by dividing

ROA (return on assets) is a word used to describe how profitable a

Market Value Ratios:

1. Book Value per Share Ratio

It’s essentially a company’s profit per share obtained by dividing profit by

Abbot India Limited is a company operating in the healthcare sector having

Product wise breakup of Abbott India is as follows:

Abbott India Limited is a publicly traded company listed on the stock

● When and how did it start?

Abbott Laboratories, the parent company of Abbott India was established

● Overall greatness of the company:

Abbott is a leading company among the top 15 pharma companies in India

With a strong emphasis on ethical practices and a customer-centric

quarter Liquidity ratios

Current ratio Acid test ratio Cash ratio Operating cash

Average 3.09 2.20 1.896 0.175

Individual ratio analysis of liquidity ratios:

2. Acid test ratio:

4. Operating cash flow ratio:

Leverage Financial ratios

Average 0.327 0.488 112.57

Individual ratio analysis:

Debt-to-equity (D/E) ratio is a financial ratio used to measure a company’s

4. Data service coverage ratio:

Average 1.34 3.90 15.15 93.86

Individual Ratio analysis:

1. Asset turnover ratio:

2. Inventory turnover ratio:

Accounts receivables turnover ratio is used to check on how the collection

4. Day sales inventory ratio:

Average 17.92 18.59 27.60

Individual ratio analysis:

1. Gross margin ratio:

The Gross Margin Ratio calculates how much profit a company

3. Return on Assets ratio:

4. Return on equity ratio:

Market Value ratios:

Market value ratios

Average 1046.10 74.34 43.57

Individual ratio analysis:

1. Book value per share ratio:

3. Earnings per share ratio: