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Ratio Analysis Assignment for Colgate Palmolive

1. Current Ratio:

Current Ratio =

Current assets
Current liabilities

Current Ratio =

7 , 026 , 946
=3.54
1,979,991

For every Rs. 1 Colgate has Rs. 3.54

2. Quick Ratio / Acid-Test Ratio:

Quick Ratio=

Quick Ratio=

Quick assets
Current liabilities

6,901,226
=3.4
1,979,991

For every Rs. 1 Colgate has Rs. 3.4

3. Total asset Turnover:

Total A sset Turnover =

Total Asset Turnover=

Net average Sales

Total average assets

21,746,763
=2.24
19,411,126

For every Rs. 1 asset Colgate has generated Rs. 2.24 in 2014
4. Fixed assets Turnover:

Asset Turnover=

Net average Sales

average assets

Total Asset Turnover=

21,746,763
=6.8
3 ,166 ,125

5. Inventory Turnover:

Inventory Turnover=

Net average Sales

Inventory ( average )

Ratio Analysis Assignment for Colgate Palmolive

Inventory Turnover=

21,746,763
=8 .2
2,630,284

6. Receivable Turnover:

Receivable Turnover=

Net average Sales

Total average receivable

Receivable Turnover=

21,746,763
=36. 6
593, 178

For every Rs. 1 investment Colgate has generated Rs. 36.6 sales in 2014
7. Debt Ratio:

Debt Ratio=

Total liabilities
Total assets

Debt Ratio=

2,462,651
=24.12
10,207,885

8. Equity Ratio:

Equity Ratio=

Total equity
Total assets

Equity Ratio=

7,745,234
=75. 8
10,207,885

9. Times Interest Earned (TIE):

TIE=

Earning before interest taxes( EBIT )

Interest e xpense

TIE=

2,477,395
=139.2
17,796

10.Profit Margin:

Ratio Analysis Assignment for Colgate Palmolive

Profit Margin=

Net Income
Net Sales

Profit Margin=

1,693,253
=7 .2
23,226,086

11.Gross Margin:

Gross Margin=

N et SalesCost of Sales
Net Sales

Gross Margin=

6,580,431
=2 8.3
23,226,086

12.Return on Total Assets (RTA):

RTA=

Net Income
Total assets

RTA=

1,693,253
=16.5
10,207,885

13.Basic Earning per share (EPS):

EPS=

Net Income
Common s hares outstanding

EPS=

1,693,253
=35.3
47,954,927

14.Price per earning (P/E):

P/ E=

Market Price
EPS

P 10
=
=0. 283
E 35.3