DATA ANALYSIS & INTERPRETATION

I. LIQUIDITY RATIOS
1.

CURRENT RATIO

The ratio between all current assets and all current liabilitie another way of expressing
liquidity. It is a measure of the firms short-term solvency. It indicates the availability of
current assets in rupees for every one rupee of current liability
Current Assets
Current ratio = ________________
Current Liabilities
Table 1. Current ratio (Rupees in crores)
CURRENT

CURRENT

LIABILITIES

RATIO

362726

351470

1.03

201415

398025

387464

1.03

2015-16

472724

462302

1.02

SR.NO

Year

QUICK ASSETS

201314

2
3

1.03

1.03

1.03
1.03
1.03
1.02
1.02
1.02
1.02
1.02
1.01

1.02

2013-14

2014-15

GRAPH OF
Current ratio

2015-16

CHART SHOWING NET CURRENT RATIO

InterpretationAs the current ratio is between 1.03: 1 to 1.02 :1 it denotes that the firm is adequately
liquid and has the ability to meet its current obligations. As the Quick ratio of the firm is
successively decreasing from 1.03:1 in the year 2013-14 to 1.02:1 in the year 2015-16 the
Bank has many paying debtors near ideal ratio of 1:1
2. Cash ratio:

The ratio between cash plus marketable securities and current liabilities.

CASH RATIO

CASH AND MARKETABLE SECURITIES

_____________________________
CURRENT LIABILITIES

Table . Cash Ratio (Rupees in crores)

SR. NO

Year

CASH & BANK

CURRENT

CASH

201314

BALANCES
28179.41

LABILITIES
351470

RATIO
0.08

201415

34714.7

387464

0.09

2015-16

44828.8

462302

0.093

500,000.00

462302

450,000.00
387464

400,000.00

351470

350,000.00
300,000.00
250,000.00
CASH & BANK BALANCES
200,000.00

CURRENT LABILITIES

150,000.00
100,000.00
50,000.00

28179.41

44828.8

34714.7

0.00
2013-14

2014-15

2015-16

CASH & BANK BALANCES

CHART SHOWING CASH BALANCE AND CURRENT LIABILITY

Interpretation As the cash ratio has decreased considerable in 2015-16 after increasing in
2014-15 ,it shows that Bank has utilized liquidity and increased profitability. The Bank has
effective management.

II.

LEVERAGE RATIOS

1.

Total Debt To equity ratio Debt equity ratio is computed by dividing Long term
Liabilities divided by Equity. Lower debt equity ratio higher the degree of protection. A
debt-equity ratio of 2:1 is considered ideal.

Total Debt equity ratio =

TOTAL DEBTS
___________________
SHAREHOLDERS FUNDS

Table Debt To equity ratio (Rupees in crores)

SR. No

Year

TOTAL DEBTS

SHAREHOLDER

DEBT
RATIO
0.64
0.67

1.

201314

14521.57

FUNDS
22689.96

2.

201415

16668.18

24877.88

3.

16883.46

2015-16

50000

29620.11

0.57

29620.11

45000
24877.88

22689.96
40000
35000
30000

SHAREHOLDER FUNDS

25000
20000
14521.57
15000

16668.18

16883.46

2014-15

2015-16

TOTAL DEBTS

10000
5000
0
2013-14

CHART SHOWING DEBT AND SHAREHOLDERS FUNDS

Interpretation- It indicates the margin of safety to long term creditors. A low debt-equity
ratio implies the use of more equity than debt which means a larger safety margin for
creditors.

III. ACTIVITY RATIOS

1. DEBTORS TURNOVER RATIO
It is found out by dividing the credit sale by average debtors. Debtors turnover
indicates the number of time debtors turnover each year.
SALES
DEBTORS TURNOVER RATIO

= ----------------------------AVERAGE DEBTORS

Table . DEBTORS TURNOVER RATIO (Rupees in crores)

SR.NO.

YEAR

SALES

AVERAGE
DEBTORS

D.T. RATIO

1.

201314

236446.83

31968.33

7.40 times

2.

201415

296139.66

38067.66

7.80 times

3.

2015-16

343666

7.60 times

2014-15

2013-14
SALES

31968.33

45278

38067.66

SALES
AVERAGE
DEBTORS

AVERAGE
DEBTORS

236446.83

296139.66

2015-16
SALES

45278

AVERAGE
DEBTORS
343666

FIGURE COMPARING SALES AND AVERAGE DEBTORS

Interpretation- It indicates the speed at which the debtors and the credit collection efforts of
the enterprise. It has a high ratio indicating shorter collection period and prompt payments by
debtors.
2. Fixed asset turnover ratio
The ratio is supposed to measure the efficiency with which fixed assets are employed
a high ratio indicates a high degree of efficiency in asset utilization and a low ratio reflects
inefficient use of assets. However, in interpreting this ratio, one caution should be borne in
mind. When the fixed assets of the firm are old and substantially depreciated, the fixed assets
turnover ratio tends to be high because the denominator of the ratio is very low.

Fixed Asset Turnover Ratio =

Net Sales
__________
Net Fixed Asset

Table 3 : Fixed asset turnover ratio (Rupees in crores)

Sr. NO

Year

SALES

NET FIXED ASSETS

F.A.T.RATIO

201314
201415
2015-16

1.
2.
3.

33778.22
37230.94
43480.37

375313.55
435386.75
483115.22

0.09
0.08
0.09

483115.22

500000

435386.75

450000

375313.55

400000
350000
300000

2013-14

250000

2014-15

200000

2015-16

150000
100000
50000

43480.37
37230.94
33778.22

0
SALES

NET FIXED ASSETS

2013-14

2015-16

FIGURE SALES AND NET FIXED ASSESTS

Interpretation-It indicates the firms ability to generate sales per rupee of investment in
fixed assests. As the fixed assets ratio shows a decreasing trend does not means it is less
efficient as it is moderate and balanced.
3.CURRENT ASSESTS TURNOVER RATIO
Sale
Current Asset Turnover Ratio

----------------------Current Asset

Table. Current Asset

turnover ratio (Rupees in

crores)
Sr. NO

Year

SALES

CURRENT ASSETS

C.A.T.RATIO

1.
2.
3.

201314
201415
2015-16

33778.22
37230.94
43480.37

362726
398025
472724

0.093 times
0.094 times
0.092 times

100%
90%
80%
70%
60%

362726

50%

398025

40%

CURRENT ASSETS

472724

30%

SALES

20%
10%

33778.22

0%

37230.94
2013-14

43480.37
2014-15
2015-16

DIAGRAM SHOWING CURRENT ASSESTS TURNOVER RATIO

Interpretation-It indicates the firms ability to generate sales per rupee of investment in
current assests. The current assests turnover ratio is slowly increasing trend as a result the
Bank is more efficient in management of current assests.

4. CAPITAL TURNOVER RATIO

This ensure whether the capital employed has been effectively used or not this
is also test of managerial efficiency and business performance
Sales
CAPITAL TURNOVER RATIO = _________________________
Capital Employed
CAPITAL EMPLOYED = FIXED ASSET + CURRENT ASSET

+INVESTMENT-

CURRENT LIABILITY
Table CAPITAL TURNOVER RATIO (Rupees in crores)
Sr.NO

Year

SALES

CAPITAL

C.T.RATIO

1.
2.
3.

201314
201415
2015-16

EMPLOYED
14113.2
13422.7
17064.26

33778.22
37230.94
43480.37

2.39 times
2.77 times
2.55 times

C.T.RATIO
2.8
2.7
2.6
2.5
2.4
2.3
2.2

2013-14

2014-15

2015-16

CHART SHOWING CAPITAL TURNOVER RATIO

Interpretation-The firm does not have too high ratio hence it indicates efficient management
as too high ratio is not good as it indicates of over trading and too low as under capitalization.
5. WORKING CAPITAL TURNOVER RATIO
Working capital turnover indicates for one rupees of sale the Bank to need how many
net current asset this ratio indicates whether or not working has been effectively utilise
market sale.
NET SALES
WORKING CAPITAL TURNOVER RATIO =

__________________
WORKING CAPITAL

Table 6. WORKING CAPITAL TURNOVER RATIO (Rupees in crores)

Sr.NO

Year

1.

201314

SALES
33778.22

WORKING CAPITAL

w.c.t.ratio

11256

3 times

2.

201415

3.

2015-16

37230.94
43480.37

11256
33778.22

10561

3.5 times

10422

4.2 times

10561 43480.37
10422
37230.94

50000

WORKING CAPITAL

40000
30000
20000

SALES

10000
0

2013-14

2014-15
SALES

2015-16
WORKING CAPITAL

CHART OF SALES AND WORKING CAPITAL

Interpretatio- the working capital turnover ratio suddenly increased in year 2015-16 .The
high ratio indicates the more efficient management and utilization of working capital.

IV.

PROFITABILITY RATIO

1 . Gross profit ratio : This ratio shows that the margin left after meeting manufacturing
costs. It measures the efficiency of production as well as pricing.
Gross profit
Gross profit margin Ratio = ____________ X100
Net sales
(Total income)
Gross profit= Net sales-Cost of goods sold
Cost of goods sold= Opening stock+ material consumed+ mfg .exp- closing stock
Table 1: Gross profit ratio
(Rupees in crores)

S.NO

Year

GROSS PROFIT

SALES

G.P. RATIO (%)

1.

201314

3354.17

33778.22

9.93

2.

201415

2989.63

37230.94

8.03

3.

2015-16

3147.9

43480.37

7.24

43.48
33.78

37.23

GROSS PROFIT
SALES
GP RATIO()

9.93

8.03

7.24

3.35

2.99

3.15

2013-14

2014-15

2015-16

chart showing gross profit, sales and gross pt. ratio

(figures proportional to compare)
Interpretation- higher the ratio the more efficient the production or purchase management,
the above ratio denotes good recovery in year 2015-16

2 :NET PROFIT RATIO:The firm with a high net margin ratio would be in advantageous position to survive in
the face faling selling price rising cost of production or declining demand for the product.
NET PROFIT
NET PROFIT RATIO=

_____________ X 100
NET SALE

Table NET PROFIT RATIO

(Rupees in crores)
SR.NO.

YEAR

1.
2.

201314
201415

PROFIT AFTER
TAX
3282.71
2872.10

SALES
33778.22
37230.94

NET PROFIT
RATIO(%)
9.76
7.71

3.

2015-16

2438.19

43480.37

5.60

2014-15
2013-14
3282.71

2872.1

PROFIT
AFTER TAX

PROFIT
AFTER TAX
SALES

SALES
33778.22

33778.22

2015-16
2438.19

PROFIT
AFTER TAX
SALES

43480.37

CHART SHOWING NET PROFIT and sales

Interpretation-the Bank net profit ratio has increased from 9.1 % in 2013-14 to 10.69% in
2015-16 which is ideal for a Bank. Neither too high nor too low net profit indicates better
survival of Bank
3: OPERATING RATIO :The Operating expenses ratio explains the changes in the profit margin ratio. A
higher operating expense is unfavorable since it will leave a small amount of operating
income to meet interest, dividends.

Operating expenses ratio=

Operating cost
_________________ X100
Sales

Operating cost = Cost of Goods Sold + Operating Expenses

Operating expenses =Admin expenses+ Selling expenses
Table OPERATING RATIO
(Rupees in crores)
Sr.NO
1.
2.
3.

Year
201314

OPERATING COST
3516.31

SALES
33778.22

OPERATING RATIO(%)
10.41

3194.41

37230.94

8.58

3395.82

43480.37

7.81

201415
2015-16
50000

43480.37

45000
40000
35000

37230.94
33778.22

30000
25000

OPERATING RATIO

20000

SALES

15000
10000
5000

3516.31

3194.41

3395.82

0
2013-14

2014-15

2015-16

CHART SHOWING OPERATING COST AND SALES

Interpretation-The operating ratio of the firm is decreasing and lowest in 3 years which
indicates that lower the ratio ,greater is the operating profit to cover the non-operating
expenses, to pay dividend and to create reserves.
4

Return on Investment
The conventional approach of calculated ROI is to divide PAT by investment.

E.B.I.T
Return on investment(ROI)= __________________X 100
Capital Employed
Table 4. Return on Investment
(Rupees in crores)
Sr.NO

Year

EBIT

CAPITAL EMPLOYED

R.O.I. RATIO

1.

201314

33778.21

14113.2

239.33

2.

201415

37230.9

13422.7

277.37

3.

2015-16

43480.37

17064.26

254.80

ROI
277.37

280
270
260
250

254.8

ROI

239.33

240
230
220
2013-14

2014-15

2015-16

Graph showing return on investment

Interpretation- a consistent high ratio from 239.33% in 2013-14 while 2014-15 being the
most profitable year with 277.34% to 254.80% in 2015-16 indicates that the firm is efficient
in the management and utilization of Capital Employed.

CONCLUSION

 Liquidity ratios, both current ratio and quick ratio are showing effectiveness in
liquidity as in all the years current ratio is greater than the standard 2:1 and quick
ratio is greater than the standard 1:1 ratio.
The firm is maintaining a low cash balance and marketable securities which means
they done cash payments.
Debt equity ratio, solvency ratio and interest coverage ratio are showing an average
increase in the long term solvency of the firm.
The proprietary ratio is showing an average increase which means, the shareholders
have contribute more funds to the total assets.
Average payment period of the firm is showing the credit worthiness of the firm to its
suppliers.
Fixed assets turnover ratio is showing that the firm needs lesser investment in fixed
assets to generate sales.
The increasing trend of current assets turnover ratio indicates that the firm needs
more investment in current assets for generating sales.
The gross profit ratio, net profit ratio is showing the increasing trends. The
profitability of the firm the increasing.
Operating ratio of the Bank has observed decreasing trend, hence it may be good
control over the operating expenses.
The interest that has to be paid is very less when compared to the sales. The firm is
not utilizing the debt conservatively.
The firm is retaining much of the earnings (based on dividend payout ratio).

The Bank financial performance is very good and also they will increase their
business year by year by expanding their branches.

SUGGESTION

 The Bank has to increase the profit maximization and has to decrease the operating
expenses.
By considering the profit maximization in the Bank the earning per share, investment
and working capital also increases. Hence, the outsiders are also interested to invest.
The Bank should maintain sufficient cash and bank balances; they should invest the idle
cash in marketable securities or short term investments in shares, debentures, bonds and
other securities.
The Bank must reduce its debtors collection period from 83 & 84 days to 40 days be
adopting credit policy by providing discounts to the debtors.
Return on investment is fluctuates every year. The Bank has to make efforts in increasing
return on investments by reducing its administration, selling and other expenses.
The Bank should increase its interest coverage ratio to serve long term debts.
The net profit of the Bank is increasing over the study period. Hence the organization
maintaining good control on all trees of expenses.
The dividend per share has observed as raising trend over the study period, hence it may
be suggested SBI Bank should take key interest to maximize.

BIBLIOGRAPHY

1. I.M.Pandey

Financial management

2. M.Y.Khan & P.K.Jai

Financial Management

3. S.P. Jain & K.L. Narang

Cost & Management

Accounting & Finance

A/c
4. K.Rajeswara rao & G. Prasad
5. P.Kulakarni

Financial Management

Web-sites:
www.google.com
www.SBIbank.in

ANNEXURE
Particulars

BALANCESHEET AS AT 31 MARCH (rupees in crores)

As at
Schedule
As at 31.03.2013
31.03.2014
No.

Rupees

443.0000

Rupees

Rupees

Capital and liabilities

Share Capital

443.0000

Rupees

Reserves & Surplus

22246.9556

19596.8188

Deposits

327053.7271

293436.6416

Borrowings

15525.3916

14261.6458

Other liabilities and prov

8891.1184

8206.7505

374160.1927

335944.8567

TOTAL
ASSETS
Cash and Balances with RBI
Bal.with banks/money at
call/short notice

17795.1357

22014.7924

10384.2651

8693.3228

Investments

102057.4282

83636.0200

Advances

232489.8185

211268.2925

Fixed Assests

10

2857.5368

2844.4049

Other Assests

11

8576.0084

7488.0241

374160.1927

335944.8567

190056.3608

129654.2930

12496.5117

11193.1768

TOTAL
Contingent Liablities

12

Bills for Collection

Accounting Policies

17

Notes on Accounts

18

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH

(rupees in crores)
Particulars
INCOME
Interest Earned
Other Income
TOTAL

Schedule No.
No.

Year Ended on
31.03.14

Year Ended on
31.03.13

13
14

30850.6215
2927.5965
33778.2180

22940.0689
2811.4621
25751.5310

EXPENDITURE
Interest Expended
Operating Expenses
Provisions and Contingencies
TOTAL
NET PROFIT FOR THE YEAR
APPROPRIATIONS
Transfer To Statutory Reserve
Capital Reserve
Investment Reserve Account
Revenue Reserve
Special Reserve
Proposed Dividend
Dividend Tax
TOTAL
ACCOUNTING POLICIES
NOTES ON ACCOUNTS
Earnings per share(in rupees)

15
16

17
18

23161.3116
4673.7434
2660.4500
30495.5050
3282.7130

15240.7357
4419.3156
2065.5914
21725.6427
4025.8883

825.0000
5.1500

1020.0000
45.2864

1185.2630
700.0000
487.3000
80.0000
3282.7130
-

1693.3018
700.0000
487.3000
80.0000
4025.8882
-

74.10

97.83

BALANCESHEET AS AT 31 MARCH
Particulars

Schedule

As at 31.03.2015

No.

Rupees

Share Capital

443.0000

Reserves & Surplus

24434.8789

Deposits

355855.9913

Borrowings

20283.3738

Other liabilities and prov

11325.4546

As at 31.03.2014
Rupees

Rupees

Capital and liabilities

TOTAL

412342.6086

443.0000
22246.9556
327053.7271
15525.3916
8891.1184
374160.1927

ASSETS
Cash and Balances with RBI

15405.9303

Bal.with banks/money at
call/short notice

19308.7723

Investments

121132.8303

Advances

242176.6246

Fixed Assests

10

2862.7184

Other Assests

11

11455.7327

TOTAL
Contingent Liablities

412342.6086
12

Bills for Collection

249707.5469
13997.7894

Accounting Policies

17

Notes on Accounts

18

17795.1357
10384.2651
102057.4282
232489.8185
2857.5368
8576.0084
374160.1927
190056.3608
12496.5117
0
0

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH

Rupees

Particulars

Schedule No.

Year Ended on

Year Ended on

No.

31.03.15

31.03.14

Interest Earned

13

34077.9350

Other Income

14

3153.0078

INCOME

TOTAL

30850.6215
2927.5965

37230.9428

33778.2180

EXPENDITURE
Interest Expended

15

26198.9433

Operating Expenses

16

5141.9899

Provisions and Contingencies

3017.9067

TOTAL

34358.8399

NET PROFIT FOR THE YEAR

2872.1029

23161.3116
4673.7434
2660.4500
30495.5050
3282.7130

APPROPRIATIONS
Transfer To Statutory Reserve

720.0000

Capital Reserve

43.0684

Investment Reserve Account

205.0000

Revenue Reserve

530.0345

Special Reserve

700.0000

Interim Dividend

Proposed Dividend

576.0000

Dividend Tax

98.0000

TOTAL

2872.1029

ACCOUNTING POLICIES

17

NOTES ON ACCOUNTS

18

Earnings per share(in rupees)

825.0000
5.1500

1185.2630
700.0000

487.3000
80.0000
3282.7130
-

64.83

74.10

BALANCESHEET AS AT 31 MARCH (rupees in crores)

Particulars

Schedule

As at
31.03.2016

No.

Rupees

As at
31.03.2015
Rupees

Rupees

Rupees

Capital and liabilities

Share Capital

461.2588

443.0000

Reserves & Surplus

29158.8544

24434.8789

Deposits

420722.8182

355855.9913

Borrowings

27230.6366

20283.3738

Other liabilities and prov

14348.2863

11325.4546

491921.8543

412342.6086

TOTAL
ASSETS
Cash and Balances with RBI

22153.7808

15405.9303

Bal.with banks/money at
call/short notice

22674.9299

19308.7723

Investments

126828.2550

121132.8303

Advances

301067.4788

242176.6246

Fixed Assests

10

6641.5623

2862.7184

Other Assests

11

12555.8475

11455.7327

491921.8543

412342.6086

223051.4498

249707.5469

16268.9163

13997.7894

TOTAL
Contingent Liablities

12

Bills for Collection

Accounting Policies

17

Notes on Accounts

18

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH

(rupees in crores)
Particulars

Schedule No.

Year Ended on

Year Ended on

No.

31.03.16

31.03.15

Interest Earned

13

39547.6181

34077.9350

Other Income

14

3932.7562

3153.0078

43480.3680

37230.9428

INCOME

TOTAL
EXPENDITURE
Interest Expended

15

30603.1654

26198.9433

Operating Expenses

16

6081.0103

5141.9899

Provisions and Contingencies

4357.9977

3017.9067

TOTAL

41042.1734

34358.8399

NET PROFIT FOR THE YEAR

2438.1946

2872.1029

Transfer To Statutory Reserve

650.0000

720.0000

Capital Reserve

87.5000

43.0684

Investment Reserve Account

205.0000

Revenue Reserve

1107.0799

530.0345

Special Reserve

700.0000

Interim Dividend

299.8195

Proposed Dividend

207.5652

576.0000

Dividend Tax

86.2300

98.0000

TOTAL

2438.1946

2872.1029

APPROPRIATIONS

ACCOUNTING POLICIES

17

NOTES ON ACCOUNTS

18

54.48

64.83

Earnings per share(in rupees)