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    Ratio Analysis

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    Swati Sharma
    This document analyzes the ratio analysis of Raymond Ltd., an Indian textile and apparel company, for the years 2011-2013. It provides ratios such as current ratio, quick ratio, inventory turnover ratio, debt-to-equity ratio, return on equity, earnings per share, and others. The ratios show that in 2013, Raymond had an operating loss, lower liquidity and profitability compared to previous years. However, inventory turnover was higher in 2013 indicating faster inventory movement. Overall, the ratio analysis examines Raymond's financial performance and position over the period.

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    Download as PPTX, PDF, TXT or read online from Scribd

    Ratio Analysis

    Uploaded by

    Swati Sharma
    95 views27 pages
    This document analyzes the ratio analysis of Raymond Ltd., an Indian textile and apparel company, for the years 2011-2013. It provides ratios such as current ratio, quick ratio, inventory turnover ratio, debt-to-equity ratio, return on equity, earnings per share, and others. The ratios show that in 2013, Raymond had an operating loss, lower liquidity and profitability compared to previous years. However, inventory turnover was higher in 2013 indicating faster inventory movement. Overall, the ratio analysis examines Raymond's financial performance and position over the period.

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    Raymond ratio analysis foe 2011-2013

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    Ratio analysis

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    This document analyzes the ratio analysis of Raymond Ltd., an Indian textile and apparel company, for the years 2011-2013. It provides ratios such as current ratio, quick ratio, inventory turnover ratio, debt-to-equity ratio, return on equity, earnings per share, and others. The ratios show that in 2013, Raymond had an operating loss, lower liquidity and profitability compared to previous years. However, inventory turnover was higher in 2013 indicating faster inventory movement. Overall, the ratio analysis examines Raymond's financial performance and position over the period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    95 views27 pages

    Ratio Analysis

    Uploaded by

    Swati Sharma
    This document analyzes the ratio analysis of Raymond Ltd., an Indian textile and apparel company, for the years 2011-2013. It provides ratios such as current ratio, quick ratio, inventory turnover ratio, debt-to-equity ratio, return on equity, earnings per share, and others. The ratios show that in 2013, Raymond had an operating loss, lower liquidity and profitability compared to previous years. However, inventory turnover was higher in 2013 indicating faster inventory movement. Overall, the ratio analysis examines Raymond's financial performance and position over the period.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    You are on page 1of 27

    RATIO ANALYSIS OF RAYMOND

    Presented By: Swati Sharma Roll no 12210113


    1

    RAYMOND
    Raymond Ltd. Indias largest leading Textile and Branded Apparel company with interest in engineering business having its corporate headquarters in Mumbai.
    Particular Growth rate Operating loss/profit before and after tax Status in 20122013 8.5% 6.82 crore( loss) Status in 20112012 25% 83.74 crore

    Share capital Details

    RATIO ANALYSIS
    Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. Objective of this study is to understand the information contained in financial statements with a view to know the strength or weaknesses of the firm and thereby enabling the financial analyst to take different decisions regarding the operations of the firm

    Current Ratio
    =
    2013 2012 2011

    Current assets
    Current liabilities Current ratio

    102169.48
    119898.40 0.85

    132563.231.44
    92043.47 1.44

    117875.04
    76402.91 1.54

    It is clear from the ratio that for the year 2011-2012 liquidity position of the company was sound but in 2013 company was not in good position there was .85 rupee available for 1rupee of liability
    5

    Quick Ratio
    =
    2013 Quick assets Current liabilities Quick RATIO 90870.94 119898.40 1.18
    Quick Assets Current liabilities

    2012 86510.51 92043.47 0.94

    2011 73816.17 76402.91 0.97

    In the years 2011-2013 quick ratio is almost approaching to 1. There is slight increase in ratio in FY 2013 company follow low liquidity position to achieve high profitability

    Absolute asset ratio


    Absolute asset ratio =
    2013 Absolute assets Current liabilities Absolute asset ratio 1825.47 119898.40 0.02 2012 1285.82 92043.47 0.014 2011 1551.24 76402.91 0.02

    In 2012 ratio was decreased from 0.02 to 0.014 and again increased in 2013. According to conventions it should be 0.5:1.
    7

    Inventory Turnover Ratio


    Inventory Turnover ratio =
    Cost of good sold Average Inventories

    2013

    2012

    2011

    Cost of good sold


    Average Inventories Inventory Turnover ratio

    213241.42
    47532 4.49

    187529.20
    43038 3.89

    147416.04
    41309.10 3.57

    The stock turnover ratio is 2011 was 3.57 times which indicate that the stock is being turned into sales 3.4 times during the year and has increased up to 4.49 times in 2013. Thus, the stock of the company is moving fast in the market.
    8

    Inventory Conversion period


    Inventory conversion period =
    365 Inventory turnover ratio

    2013 Inventory Turnover ratio Inventory conversion period 4.49 81.29 days

    2012 3.89 94.08 days

    2011 3.57 102.24days

    Debt to Equity Ratio


    Debt to Equity ratio =
    2013 Long term Debt Shareholders Equity Debt to Equity Ratio 92613.97 103096.04 0.898
    Total long term Debt Equity

    2012 79116.15 110130.04 0.718

    2011 98605.63 106558.49 0.925

    The rate of debt equity ratio is increased from 0.898 to 0.718 during the year 2013-2012 to 2012-2011. This shows that with the increase in debt.

    10

    Proprietary Ratio
    Proprietary ratio =
    2013
    Shareholders Fund Total Assets Proprietary Ratio 103096.04 302111.15 0.34
    Shareholders fund Total Assets

    2012
    110430.44 295087.48 0.37

    2011
    106558.49 280965.38 0.38

    This ratio is used to determine the financial stability of the concern in general. Proprietary Ratio indicates the share of owners in the total assets of the company
    11

    Solvency Ratio
    solvency ratio =
    2013 Long term Debt Total Assets Solvency Ratio 92613.97 302111.15 0.306
    Long term Debt total Assets

    2012 79116.15 295087.48 0.268

    2011 98605.63 280965.38 0.351

    This ratio shows the share of long term debt in total assets of the company. Smaller the ratio, better is the solvency position of the company. But as Tex reduction is concern having some portion of long term Debt is always profitable.
    12

    Fixed assets to net worth Ratio


    FANW ratio =
    2013 Fixed assets Net worth Fixed Assets to NW ratio 97915.53 103096.04 94.98
    fixed assets net worth

    * 100
    2011 93512.47 106558.49 87.76

    2012 98376.61 110430.04 89.05

    Due to decrease in net worth of Raymond in 2013 & slight increase in fixed asset from 2011 to 2013, the Fixed asset to net worth ratio has increased.
    13

    Capital gearing Ratio


    Capital Gearing ratio =
    Euity share+Res.& surplus Prefernce share+Long term Debt

    2013

    2012

    2011

    Equity + reserve Long term debt


    Capital gearing Ratio

    103096.04 79116.15
    1.30

    110430.04 92613.97
    1.19

    106558.49 89166.21
    1.20

    14

    Capital gearing ratio compare the equity of the company with the long term debt. The higher the ratio, better equipped the company is. In 2013,as reserve of the company were taken and was used to pay some Debt. Despite the decrease in reserve and surplus this ratio has increased.

    Operating Leverage Ratio


    Contribution Operating leverage = EBIT
    2013 2012 2011

    Contribution
    EBIT/LBIT Financial leverage

    104912.43
    (682.23) (153.77)

    90211.5
    8374.19 10.77

    69145.48
    (9853.94) (7.017)

    15

    Gross Profit Ratio


    Gross profit ratio =
    2013 Gross Profit/loss (682.23)
    Gross Profit Net sales

    * 100
    2011 (9853.94)

    2012 8374.19

    Net Sales
    Gross Profit Ratio

    203238.77
    (0.33%)

    187187.26
    4.47%

    149646.66
    (6.58%)

    16

    Operating Ratio
    Operating ratio =
    2013 Operating Cost Net Sales Operating Ratio 43782.58 203451.25 21.52%

    operating expenses
    Net sales

    * 100
    2011 29893.38 149653.25 19.98%

    2012 38497.49 187463.49 20.54%

    17

    Net Profit Ratio


    Net Profit ratio =
    Net Profit After Tex * Net sales

    100

    2013 NPAT/ (NLAT) Net sales Net Profit/ (Loss) ratio (4784.02) 203451.25 (2.35%)

    2012 5635.01 187463.49 3.01%

    2011 (10019.19) 149653.25 (6.69%)

    18

    Operating Profit Ratio


    Operating profit ratio = 100 Operating ratio
    2013 Operating ratio Operating profit ratio 21.52% 78.48% 2012 20.54% 79.46% 2011 19.98% 80.02%

    19

    Return on equity Ratio


    Return on Equity =
    Net Profit After Tex Avg.shareholders equity

    * 100
    2011 (10019.19) 111924.54 (8.95%)

    2013 NPAT/(NLAT) Avg. Shareholders equity Return on Equity (4784.02) 106762.56 (4.48%)

    2012 5635.01 108494.265 5.19%

    20

    Earning per share


    Earning Per share =
    2013 Net Profit/(loss) After Tax Total no. of Shares Earning Per Share (478402000) 61380854 (7.79)
    Net profit after tex Total Number of shares

    2012 563501000 61380854 9.18

    2011 (1001919000) 61380854 (16.32)

    21

    Return on Gross capital


    Return on Gross capital =
    2013 NPAT/(NLAT) Gross capital employed Return on Gross capital (4784.02) 302111.15 (1.58%)

    * 100
    2011 (10019.19) 280965.38 (3.5%)

    2012 5635.01 295087.48 1.91%

    22

    Dividend payout ratio


    Divident payout ratio =
    20132013
    Divident per share Earning per share

    2012 2012

    2011

    Dividend per per share Dividend share


    Earning per share Earning Per share Dividend payout ratio Dividend payout ratio

    1.00
    (7.79) (0.128)

    2.50
    9.18 .272

    1.00
    (16.32) (0.061)

    Despite the loss in 2011 and 2013 company has paid dividend of re1 by withdrawing cash from reserve and in year 2012 about 27.2% of profit was shared with the share holders.
    23

    Cost of good sold Ratio


    Cost of good sold ratio =
    2013 COGS Net sales COGS Ratio 202556.54 203238.77 99.66%
    COGS Net sales

    * 100
    2011 139792.72 149646.66 93.41%

    2012 178813.07 187187.26 95.52%

    24

    Return on proprietary fund Ratio


    Return on propritary fund =
    2013 NPAT/(NLAT) Prop. Fund Return on proprietary fund (4784.02) 103095.04 (4.64%)
    NPAT * Prop Fund

    100
    2011 (10019.19) 106558.493 (9.40%)

    2012 5635.01 110430.04 5.10%

    25

    Book value of share


    Book value of share =
    2013
    Eq.+reserve Total no of shares Book value 103096.04 61380854 169.96
    Equity+reserve and surplusLosses Total No.of shares

    2012
    110430.04 61380854 179.909

    2011
    106558.493 61380854 173.602

    Because of the withdrawal of fund from reserve and surplus, the book value of shares has decreased. And the dividend paid (re. 1) in 2013 wasnt enough to cover the difference.
    26

    THANK YOU
    27

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