Beruflich Dokumente
Kultur Dokumente
for the
Financial Year
2004-05
of
2005 2004
Liquidity Ratios
Current Ratio Current Assets 2248.1 1686.6
2.388 1.913
Current Liabilities 941.6 881.8
The Current Ratio has increased from 1.91 to 2.388 which is considered to very healthy
as the ideal current ratio is 2:1
Quick Ratio has increased from 1.68 to 2.03 but we can’t predict anything as the Industry
average ratio is not given, but as the ratio has increased the company’s liquidity (quick)
has increased over the period of one years
The ratio has decreased from 0.36 to 0.167 hence the company’s reliance on short term
borrowings to fund its working capital gap has decreased which is good financial signal
Account receivable turnover ratio has increased thus the liquidity of the company has
also been better to that respect
The industry margin is not available and hence we cannot predict its significance
It shows that the profit margin for the company has improved but we cannot generalize if
the company is operating on a better margin as we don’t have the industry ratio.
Here the ratio shows that the company with asset base of one unit could produce 0.431
units of sales in 2003-04 and 0.419 in 2004-05
We have to have the industry standards to predict the efficiency of the company as far as
earning power is concerned, but the E.P. has decreased slightly from previous year.
Returns to equity share holders is 11.4% in 04-05 and 7.2% in 03-04, thus the company
has been able to increase the shareholders return
Ownership Ratio
2005 2004
Ownership
Ratios
Earning Per Share Net Income (PAT) 120 72.3
41.899 25.280
Outstanding Share 286.4 286
% %
(nos.)
EPS has grown by 65% over the last year, shows that company is in right track of
profiteering and increase in shareholders wealth
The company’s debt liability has increased at higher proportion than its equity over the
previous year.
Debt 1521. 818.9
Debt-Asset Ratio 9
0.338 0.274
Asset 4498. 2988.
6 8
Coverage Ratios
Interest Ratios EBIT 328.7 234.7
5.128 5.588
Interest Expense 64.1 42