Sno.

Ratios Definition Formula Result Analysis

1. Liquidity ratio Liquidity ratios are an
important class of financial
metrics used to determine a
debtor's ability to pay off
current debt obligations
without raising external
capital. Liquidity ratios
measure a company's ability to
pay debt obligations and its
margin of safety through the
calculation of metrics.
1.1 Current Ratio The current ratio is a liquidity Current Assets / Current Current Assets Since it is more than 1, it means the
ratio that measures a Liabilities =1358.008 company has 1.335 INR current asset
company's ability to pay short- Current available to cover 1 INR of current liability.
term obligations or those due Liabilities= https://www.investopedia.com/
within one year. It tells 1016.906 Current
investors and analysts how a Ratio= 1.335
company can maximize the
current assets on its balance
sheet to satisfy its current debt
and other payables.
1.2 Quick Ratio The quick ratio is an indicator Cash and near cash (cash Quick Since it is less than 1 ,it means the company
of a company’s short-term + cash equivalent + Assets(Current has 0.663 INR liquid asset available to
liquidity position and short-term investments + Assets - cover 1 INR of liquid liability.
measures a company’s ability current trade receivable) Inventories) =
to meet its short-term /current liabilities 673.898Current
obligations with its most liquid Liabilities
assets. =1016.906
Quick Ratio =
0.663
1.3 Net Working Capital The net working capital Net working capital/ Net Working Since it is less than 1, it means that the
Ratio (NWC) ratio measures the Total assets Capital(CA-CL) = company has 0.2512 INR assets available
 percentage of a company’s 341.102 Total to cover 1INR of working capital, which is
current assets to its short-term Assets = 1358.008 very less. The optimal ratio should be in
liabilities. Similar to net Net Working between 1.2 - 2.
working capital, the NWC Capital Ratio =
ratio can be used to determine 0.2512
whether or not you have
enough current assets to cover
your current liabilities.
2. Profitability Ratio Profitability ratios are a class
of financial metrics that are
used to assess a business's
ability to generate earnings
relative to its revenue,
operating costs, balance sheet
assets, and shareholders' equity
over time, using data from a
specific point in time.
2.1 Gross Profit Margin Gross profit margin is a metric (Net Sale - COGS/Net Gross Profit = It mean that the company is making 0.94
used to assess a company's Sales)*100 2655.744 INR on the rupee gross margin.
financial health and business Revenue =
model by revealing the amount 2809.338
of money left over from sales Gross profit
after deducting the cost of %=94.53
goods sold. The gross profit
margin is often expressed as a
percentage of sales and may be
called the gross margin ratio.
2.2 Operating Profit Margin The operating margin measures (Operating Operating Profit = It mean that the company is making 0.16
how much profit a company Profit/Revenue)*100 448.88 INR on1 INR of sales.
makes on a rupee of sales, after Revenue =
paying for variable costs of 2809.338
production, such as wages and
Operating Profit
raw materials, but before paying
interest or tax. It is calculated by Margin%=15.98
dividing a company’s operating
profit by its net sales.
2.3 Return on Capital Return on capital employed PBIT/Total Assets PBIT = 448.88 It mean that the company is making a return
Employed (ROCE) is a financial ratio Total Assets = 0.33 INR on 1 INR of capital employed.
that measures a company's 1358.008 Return
profitability and the efficiency on Capital
with which its capital is used. Employed%=33.05
In other words, the ratio
measures how well a company
is generating profits from its
capital. The ROCE ratio is
considered an important
profitability ratio and is used
often by investors when
screening for suitable
investment candidates.
2.4 Return on Assets Return on assets (ROA) is an Net Income/ Total Net Income = It mean that the company is making 0.03
indicator of how profitable a Assets 80.422 Total INR on 1 INR of asset implied.
company is relative to its total Assets = 2400.264
assets. ROA gives a Return on Assets =
manager, investor, or analyst 3.35
an idea as to how efficient a
company's management is at
using its assets to generate
earnings. Return on assets is
displayed as a percentage.
3. Stability Ratio These ratios concentrate on the
long-term health of a business
- particularly the effect of the
capital/finance structure on the
business.
3.1 Gearing ratio Gearing (otherwise known as Borrowing / Net Assets Borrowing = It means the company gearing ratio is 40%,
"leverage") measures the 1190.683 which is considered as optimal level, that is
proportion of assets invested in Net assets = the borrowing is 40% of Net asset.
a business that are financed by 2400.264
borrowing. In theory, the Gearing Ratio =
higher the level of borrowing 0.4
 (gearing) the higher are the
risks to a business, since the
payment of interest and
repayment of debts are not
"optional" in the same way as
dividends.
3.2 Interest cover ratio This measures the ability of Operating profit before Interest Cover(in The ratio is just above 1.5, which is
the business to "service" its interest / Interest ratios) - considered to be lower i.e. the company
debt. Are profits sufficient to 1.62(year1) ability to meet its interests and outstanding
be able to pay interest and 1.37(year2) is doubtful. So, it can meet the interest
other finance costs. 1.94(year3) expenses with a bit of ease.
1.75(year4)
1.42(year5)= 1.62
4. Efficiency ratio These ratios give us an insight
into how efficiently the
business is employing those
resources invested in fixed
assets and working capital.

4.1 Sales/capital ratio A measure of total asset Sales/Capital Employed Total sales= The higher ratio implies that the company is
utilisation. What sales are 2655.74 Capital efficiently utilizing its capital resources in
being generated by each INR Employed= 61.38 revenue generation.
worth of assets invested in the Sales/Capital
business Employed = 43.26
4.2 Sales profit/fixed assets This ratio is about fixed asset Sales or profit/ fixed Sales= 2655.74 The ratio is on the lower side, which mean
ratio capacity. assets Fixed assets= a large sum of money is tied up in fixed
2400.26 assets of the company.
Sales/fixed assets
= 1.106
4.3 Stock turnover ratio Stock turnover ratio is an Cost of sales/ Average Cost of sales= Measures the number of times the inventory
important measure of how well stock value 2655.74 Average is rotated in a given year. The higher the
a company generates sales stock= 684.11 number, the better is the company's
from its stock. Stock turnover= financial health.
3.88
4.4 Credit given “Debtor The "debtor days" ratio trade debtors Trade Debtors= The debtor days is comparatively lower
days” indicates whether debtors are average/sales *365 610.27 Sales= which means that there is no problem with
being allowed excessive credit. 2655.74 Credit debt collection.
Given= 83.87
4.5 Credit taken “Creditor A similar calculation to that (trade Trade Creditors+ The creditor days is high which means that
days” for debtors, giving an insight creditors1+accruals)/cost accruals = 190.63 the company is taking full advantage of
into whether a business is of sales+other purchases cost of sales+other credit available to it.
taking full advantage of trade * 365 purchases=
credit available to it. 3858.17
Credit taken =
112.63
5 Investors ratio There are several ratios
commonly used by investors to
assess the performance of a
business as an investment:

5.1 Earning per share EPS measures the overall Earnings (profits) Earning Per A high EPS ratio attracts investors as it
profit generated for each share attributable to ordinary Share(in ratios) - means that there is more money in company
in existence over a particular shareholders / Weighted 15.98(year1) either to re invest or distribute in
period. average ordinary shares 5.51(year2) shareholder as dividend.
in issue during the year 13.37(year3)
16.29(year4)
14.36(year5) =
13.102
5.2 Price-Earnings Ratio the P/E ratio is an indication of Market price of share / Market It derieves the amount of rupee investor
("P/E Ratio") how highly the market "rates" Earnings per Share price=640.34/ needs to put in, order to get an INR out of
or "values" a business EPS=13.102 company income.
PE ratio=48.8
5.3 Dividend yield It provides a guide as to the Latest dividend per dividend oer
ability of a business to ordinary share / current share= /current
maintain a dividend payment. market price of share) x market
It also measures the proportion 100 price=819.20
of earnings that are being
retained by the business rather
than distributed as dividends.