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    FAA Ratio Analysis

    Uploaded by

    Rishav Bhattacharjee
    This document provides financial ratios for a company for the years 2017 and 2016. It analyzes the company's profitability, liquidity, solvency, and capital market standing. Key metrics included gross profit margin, net profit margin, current ratio, debt-to-equity ratio, return on equity, earnings per share, and inventory turnover. Comparing 2017 to 2016, most metrics were stable or improved slightly, indicating the company maintained profitability and liquidity while managing leverage.

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

    FAA Ratio Analysis

    Uploaded by

    Rishav Bhattacharjee
    55 views4 pages
    This document provides financial ratios for a company for the years 2017 and 2016. It analyzes the company's profitability, liquidity, solvency, and capital market standing. Key metrics included gross profit margin, net profit margin, current ratio, debt-to-equity ratio, return on equity, earnings per share, and inventory turnover. Comparing 2017 to 2016, most metrics were stable or improved slightly, indicating the company maintained profitability and liquidity while managing leverage.

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    Finance || Ratio Analysis

    Original Title

    FAA ratio analysis

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    This document provides financial ratios for a company for the years 2017 and 2016. It analyzes the company's profitability, liquidity, solvency, and capital market standing. Key metrics included gross profit margin, net profit margin, current ratio, debt-to-equity ratio, return on equity, earnings per share, and inventory turnover. Comparing 2017 to 2016, most metrics were stable or improved slightly, indicating the company maintained profitability and liquidity while managing leverage.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    55 views4 pages

    FAA Ratio Analysis

    Uploaded by

    Rishav Bhattacharjee
    This document provides financial ratios for a company for the years 2017 and 2016. It analyzes the company's profitability, liquidity, solvency, and capital market standing. Key metrics included gross profit margin, net profit margin, current ratio, debt-to-equity ratio, return on equity, earnings per share, and inventory turnover. Comparing 2017 to 2016, most metrics were stable or improved slightly, indicating the company maintained profitability and liquidity while managing leverage.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    Ratio analysis - establishing a relevant financial relationship between components of financial statements

    Strengths and troble spots -evaluating profitability, solvency, liquidity, capital market standing
    0.1 0.01

    Figures in millions
    2017 2016
    Sales /Revenue 300 280 Costs/expenses per unit of sales
    Cost of Goods Sold 148 140 0.49 0.50

    Gross Profit 152 140


    Selling expenses 25 22 0.283 0.286
    General expenses 60 58
    Operating Profit/Income (Earnings before
    Interest & Tax ) 67 60
    Interest expense 14 13
    Profit before tax 53 47
    Income Tax 26 23 0.49 0.49
    Profit after tax / Net Profit 27 24

    Dividends 2 2
    Profit Retained 25 22

    2017 2016
    Assets
    Cash 19 11
    Accounts Receivable 32 20
    Loans & Advances 43 34
    Inventory 121 99

    Other Current Assets 17 26


    Total Current Assets 232 190
    Fixed Assets 94 79

    Other Assets 4 1

    Total Assets 330 270


    Liabilities & Equity
    Current Liabilities
    Acceptances 5 2
    Accounts Payable 27 19
    Advance against Sales 26 21

    Other Liabilities 9 8
    Interest accrued 3 2
    Provisions 35 28
    Total Current Liabilities 105 80

    Long term/Non current liabilities

    Bank term loans 40 32


    10.5% debentures 26 26
    Financial Institutions 24 22
    Total liabilities 195 160
    Shareholders's equity
    Paid up Capital 37 37
    Retained Earnings 98 73
    Total shareholders' equity 135 110
    Total liabilities & shareholders' equity 330 270

    No. of ordinary shares (million) 3.7 3.7


    Market price per share (Rs.) 30 28
    DuPont analysis basically breaks down return on equity into three parts,
    asset turnover, profit margin and leverage. 

    Profitability Ratios 2017 2016


    Gross Profit Margin (Gross Profit/Sales )*100 50.67 50.00
    Operating Profit Margin (Operating Profit/Sales )
    *100 22.33 21.43
    Net Profit Margin (Net Profit/Sales )*100 9.00 8.57
    Asset Turnover (Sales/ Total Assets) 0.91 1.04

    Return on Assets (Net Profit/Total Assets)*100 8.18 8.89


    PM*AT (varying margins)
    Return On Equity (Net Profit/Equity)*100 20 21.82
    Leverage (Assets/ Equity) 2.44 2.45
    ROA*Leverage
    Earnings Per Share i.e. EPS (Net Profit after
    Tax/No of Shares Outstanding) 7.30 6.49

    Liquidity Ratios

    Current Ratio 2.21 2.38


    Quick Ratio 1.06 1.14
    Receivable Turnover Ratio 9.38 14.00
    Average Collection Period (365/Receivable
    Turnover) 38.93 26.07
    Inventory Turnover (COGS/ Inventory) 1.22 1.41
    Average Inventory 110.00
    Inventory Turnover based on avg inventory
    (COGS/ Average Inventory) 1.35
    Inventory Holding Period (365/Inventory
    Turnover) 298.41 258.11

    Solvency Ratios
    Debt to Equity Ratio 0.67 0.73
    Liability to Equity Ratio 1.44 1.45
    Interest Cover (Profit before Interest &
    Tax/Interest) 4.79 4.62
    Price/Earnings Ratio (Market price per
    share/Earnings per share) 4.11 4.32
    Dividends Per Share i.e. DPS (Dividends/No of
    Equity Shares) 0.5 0.5
    Dividend Payout Ratio (DPS/EPS) 0.07 0.08

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