Accounting Ratios of HUL Ltd.
For The Year 2020 & 2021
[I] LIQUIDITY RATIOS
Current Ratio = Current Assets
Current Liabilities
For The Year Ending 2021 For The Year Ending 2020
Current Assets = Inventories + Investments Current Assets = Inventories + Investments
+ Trade Receivables + Cash And Cash + Trade receivables + Cash and cash
Equivalents + Bank Balances Other Than equivalents + Bank balances other than cash
Cash And Cash Equivalents Mentioned and cash equivalents mentioned above +
Above + Other Financial Assets + Other Other financial assets + Other current assets +
Current Assets + Assets Held For Sale Assets held for sale
Current Assets = 3,383 + 2,683 + 1,648 + Current Assets = 2,636 + 1,248 + 1,046 +
1,740 + 2,581 + 1,150 + 438 + 17= 13,640 3,130 + 1,887 + 1,410 + 533 + 18= 11,908
Current Liabilities = Trade payables (total
Current Liabilities = Trade Payables (Total
outstanding dues of micro enterprises and
Outstanding Dues Of Micro Enterprises And
small enterprises + total outstanding dues of
Small Enterprises + Total Outstanding Dues
creditors other than micro enterprises and
Of Creditors Other Than Micro Enterprises
small Enterprises) + Other current liabilities +
And Small Enterprises) + Other Current
Provisions
Liabilities + Provisions
Current Liabilities = (0 + 7,399) + 418 +
Current Liabilities = (64 + 8,563) + 567 + 418= 8,235
491 = 9,685
CURRENT RATIO = 11,908 = 1.45:1
CURRENT RATIO = 13,640 = 1.41:1 8,235
9,685
1.41:1 1.45:1
Acid-Test Ratio = Liquid Assets
Current Liabilities
For The Year Ending 2021 For The Year Ending 2020
Liquid Assets= Current Assets - Inventories Liquid Assets= Current Assets - Inventories
Liquid Assets = 13,640 – 3,383= 10,257 Liquid Assets = 11,908 – 2,636= 9,272
Current Liabilities = Trade Payables (Total Current Liabilities = Trade payables (total
Outstanding Dues Of Micro Enterprises And outstanding dues of micro enterprises and
Small Enterprises + Total Outstanding Dues small enterprises + total outstanding dues of
Of Creditors Other Than Micro Enterprises creditors other than micro enterprises and
And Small Enterprises) + Other Current small Enterprises) + Other current liabilities +
Liabilities + Provisions Provisions
Current Liabilities = (0 + 7,399) + 418 +
Current Liabilities = (64 + 8,563) + 567 +
418= 8,235
491= 9,685
LIQUID RATIO = 10,257 = 1.06:1 LIQUID RATIO = 9,272 = 1.13:1
9,685 8,235
1.06:1 1.13:1
[II] SOLVENCY RATIOS
Debt-Equity Ratio = Debt
Equity
For The Year Ending 2021 For The Year Ending 2020
Debt = Other financial liabilities + Provisions Debt = Other financial liabilities + Provisions
+ Non-current tax liabilities + Deferred tax + Non-current tax liabilities + Deferred tax
liabilities liabilities
Debt = 945 + 1,551 + 1,359 + 5,986= 9,841 Debt = 853 + 1,198 + 416 + 0= 2,467
Equity = Equity share capital + Other equity Equity = Equity share capital + Other equity
Equity = 235 + 47,199 Equity = 216 + 7,815
Equity = 47,434 Equity = 8,031
DEBT-EQUITY RATIO = 9,841 = 0.21:1 DEBT-EQUITY RATIO = 2,467 = 0.31:1
47,434 8,031
0.21:1 0.31:1
Debt to Total Asset Ratio = Debt
Total Asset
For The Year Ending 2021 For The Year Ending 2020
Debt = Other financial liabilities + Provisions Debt = Other financial liabilities + Provisions
+ Non-current tax liabilities + Deferred tax + Non-current tax liabilities + Deferred tax
liabilities liabilities
Debt = 945 + 1,551 + 1,359 + 5,986 Debt = 853 + 1,198 + 416 + 0
Debt = 9,841 Debt = 2,467
Total Asset = Non-current assets + Current Total Asset = Non-current assets + Current
assets assets
Total Asset = 54,476 + 13,640 Total Asset = 7,694 + 11,908
Total Asset = 68,116 Total Asset = 19,602
DEBT TO TOTAL ASSET RATIO = 9,841 DEBT TO TOTAL ASSET RATIO = 2,467
68,116 19,602
= 0.14:1 = 0.13:1
0.14:1 0.13:1
Proprietory Ratio = Proprietor’s Funds
Total Asset
For The Year Ending 2021 For The Year Ending 2020
Proprietor’s Funds = Equity share capital + Proprietor’s Funds = Equity share capital +
Other equity Other equity
Proprietor’s Funds = 235 + 47,199 Proprietor’s Funds = 216 + 7,815
Proprietor’s Funds = 47,434 Proprietor’s Funds = 8,031
Total Asset = Non-current assets + Current Total Asset = Non-current assets + Current
assets assets
Total Asset = 54,476 + 13,640 Total Asset = 7,694 + 11,908
Total Asset = 68,116 Total Asset = 19,602
PROPRIETORY RATIO = 47,434 = 0.70:1 PROPRIETORY RATIO = 8,031 = 0.41:1
68,116 19,602
0.70:1 0.41:1
[III] PROFITABILITY RATIOS
Gross Profit Ratio = (Gross Profit / Sales) *100
For The Year Ending 2021 For The Year Ending 2020
Gross Profit = Sales – Cost of Goods Sold Gross Profit = Sales – Cost of Goods Sold
(COGS) (COGS)
Cost of Goods Sold = Cost of materials Cost of Goods Sold = Cost of materials
consumed + Purchases Of Stock-In-Trade + consumed + Purchases Of Stock-In-Trade +
Opening inventories + Closing inventories + Opening inventories + Closing inventories +
Employee benefits expenses Employee benefits expenses
Cost of Goods Sold = 14,951 + 7,117 + 1579 + Cost of Goods Sold = 11,572 + 6,342 +
(1970) + 2,229 1,458 + (1,579) + 1,691
Cost of Goods Sold = 23,906 Cost of Goods Sold = 19,484
Sales = Revenue from Operations Sales = Revenue from Operations
Sales = 45.996 Sales = 38,785
Gross Profit = Sales – COGS Gross Profit = Sales – COGS
Gross Profit = 45,996 – 23,906 Gross Profit = 38,785 – 19,484
Gross Profit = 22,090 Gross Profit = 19,301
GROSS PROFIT RATIO GROSS PROFIT RATIO
= (22,090 / 45,996) * 100 = (19,301 / 38,785) * 100
= 48.03% = 49.76%
48.03% 49.76%
Net Profit Ratio = (Net Profit / Sales) * 100
For The Year Ending 2021 For The Year Ending 2020
Net Profit = Profit After Tax Net Profit = Profit After Tax
Net Profit = 7,954 Net Profit = 6,738
Sales = Revenue from Operations Sales = Revenue from Operations
Sales = 45.996 Sales = 38,785
NET PROFIT RATIO NET PROFIT RATIO
= (7,954 / 45,996) X 100 = (6,738 / 38,785) X 100
= 17.29% = 17.37%
17.29% 17.37%
Return of Capital Employed Ratio = (EBIT / Capital Employed) * 100
For The Year Ending 2021 For The Year Ending 2020
EBIT = Profit After Tax + Current Tax + EBIT = Profit After Tax + Current Tax +
Deferred tax charge Deferred tax charge
EBIT = 7,954 – (-2,458-78) EBIT = 6,738 – (-2,202-152)
EBIT = 10,490 EBIT = 9,092
Capital Employed = Non-Current Assets + Capital Employed = Non-Current Assets +
Current Assets – Current Liabilities Current Assets – Current Liabilities
Capital Employed = 54,476 + 13,640 – Capital Employed = 7,694 + 11,908 – 8,235
9,685 Capital Employed = 11,367
Capital Employed = 58,431
RETURN ON CAPITAL EMPLOYED RETURN ON CAPITAL EMPLOYED
= (10,490 / 58,431) X 100 = (9,092 / 11,367) X 100
= 17.95% = 79.99%
17.95% 79.99%
Return on Net Worth Ratio = (PAT- Pref. Share Dividend / Net Worth) *100
For The Year Ending 2021 For The Year Ending 2020
PAT = Profit After Tax PAT = Profit After Tax
PAT = 7,954 PAT = 6,738
Net Worth = Equity share capital + Other Net Worth = Equity share capital + Other
equity equity
Net Worth = 235 + 47,199 Net Worth = 217 + 7,815
Net Worth = 47,434 Net Worth = 8,031
RETURN ON NET WORTH RATIO RETURN ON NET WORTH RATIO
= (7,954 / 47,434) X 100 = (6,738 / 8,031) X 100
= 16.77% = 83.90%
16.77% 83.90%
Return on Total Assets Ratio = (PAT / Total Assets) *100
For The Year Ending 2021 For The Year Ending 2020
PAT = Profit After Tax PAT = Profit After Tax
PAT = 7,954 PAT = 6,738
Total Asset = Non-current assets + Current Total Asset = Non-current assets + Current
assets assets
Total Asset = 54,476 + 13,640 Total Asset = 7,694 + 11,908
Total Asset = 68,116 Total Asset = 19,602
RETURN ON TOTAL ASSETS RATIO RETURN ON TOTAL ASSETS RATIO
= (7,954 / 68,116) X 100 = (6,738 / 19,602) X 100
= 11.68% = 34.37%
11.68% 34.37%
[I] ACTIVITY RATIO: -
1. Inventory Trnover Ratio = COGS
Average Inventory
For The Year Ending 2021 For The Year Ending 2020
Cost of Goods Sold = Cost of Goods Sold =
Opening Stock+Purchase+Direct Expenses- Opening Stock+Purchase+Direct Expenses-
Closing Stock Closing Stock
Cost of Goods Sold = 1579+7117-1970 Cost of Goods Sold = 1458+6342-1579 =
= 6726 6221
Average Inventory = Average Inventory =
Opening Stock + Closing Stock Opening Stock + Closing Stock
2 2
1579+1970/2 = 1774.5 1458+1579/2 = 1518.5
Inventory Trnover Ratio = 6726/1774.5 = Inventory Trnover Ratio = 6221/1518.5 =
3.790 4.096
3.790 Times 4.096 Times
Debtors Turnover Ratio: - Net Credit Sales
Average Accounts Receivables
For The Year Ending 2021 For The Year Ending 2020
Net Credit Sales = 45996 Net Credit Sales = 38785
(Credit sales not given separately, so we
(Credit sales not given separately, so we consider all sales on credit)
consider all sales on credit)
Average Accounts Receivable = Average Accounts Receivable =
Opening Debtors + Closing Debtors Opening Debtors + Closing Debtors
2 2
= 1648 (Closing Account Receivable) 1046 (Closing Account Receivable)
Debtors Turnover Ratio = 45996/1648 = Debtors Turnover Ratio = 38785/1046 =
27.910 37.0793
27.910 Times 37.0793 Times
Debtors Collection Period = Months/Days in a year
Debtors Turnover Ratio
For The Year Ending 2021 For The Year Ending 2020
Debtors Turnover Ratio = 27.910 Debtors Turnover Ratio = 37.0793
(As per Above Formula Calculation) (As per Above Formula Calculation)
Debtors Collection Period = Debtors Collection Period =
365/27.910 = 13.077 365/37.0793 = 9.843
13.077 Times 9.843 Times
Total Assets Turnover Ratio: - Sales
Total Assets
For The Year Ending 2021 For The Year Ending 2020
Sales = 45996 Sales = 38785
Total Assets = 68116 Total Assets = 19602
Total Assets Turnover Ratio = Total Assets Turnover Ratio =
45996/68116 = 0.675 38785/19602 = 1.978
0.675 Times 1.978 Times
[II] Market Data Based Ratios: -
1. Earning Per Share = PAT-P/S Dividend
No. of E/S Outstanding
For The Year Ending 2021 For The Year Ending 2020
PAT = 8000 PAT = 6764
(Ref. note no 34)
Table check once from note no. 16 no of e/s share No of e/s outstanding 216
No of e/s outstanding 235
8000/235 = 34.042 6764/216 = 31.314
34.042 31.314
Divident Payment Ratio (DPR) = Total Dividend to E/S Holder`s
*100
Total Profit Available to E/S Holder`s
OR DPS/EPS*100
For The Year Ending 2021 For The Year Ending 2020
Dividend = -8811
Dividend = -5196
Price Earning Ratio = Market Price Per Share
EPS
For The Year Ending 2021 For The Year Ending 2020
MPS 2430.80 MPS 2298.15
EPS 34.042 EPS 31.314
2430.80/34.042 = 71.405 2298.15/31.314 = 73.390
71.405 Times 73.390 Times
Price to Book Value Ratio (PBV Ratio) = Market Price Per Share
Book Value Per Share
For The Year Ending 2021 For The Year Ending 2020
Book Value per Share = E/S Capital + Reserve & Surplus Book Value per Share = E/S Capital + Reserve & Surplus
No. of E/s Outstanding No. of E/s Outstanding
216+
235+
