Bharti Airtel- Analysing The Financial Ratios

Bharti Airtel Limited

Bharti Airtel Limited commonly known as Airtel, is

an Indian telecommunications company that operates in 20 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world . It is the largest cellular service provider in India Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.

Liquidity And Solvency Ratios

Current Ratio

Mar11

Mar10

0.70

0.70

Quick Ratio Debt Equity Ratio Long term debt / Equity

0.77 0.27 0.20

0.67 0.14 0.11

Profitability Ratio
Operating Profit Margin(%)
Gross Profit Margin(%) Return On Net Worth(%)

Mar11

Mar10

35.25

39.08

24.22 17.60

28.15 25.79

Conclusion: Expenses of company exceeds over sales.

Contd..
Profitability Ratio
Earnings Per Share Mar11 Mar10

20.32

24.82

Dividend per share Net Profit Margin(%)

1.00 20.21

1.00 26.36

Management Efficiency Ratio

Inventory Turnover Ratio Debtors Turnover Ratio Total Assets Turnover Ratio Fixed Assets Turnover Ratio

Mar11

Mar10

1,105.11

1,307.05

16.97 0.93 0.82

15.30 0.93 0.88

Company is efficient(2010) in using inventory properly and company able to collecting cash from debtors on time(2011).

CONCLUSION
BHARTI AIRTEL is growing company. On the basis of its various ratios like Current ratio, Quick ratio , Net profit margin ratio, Account receivable ratio, one can say that company has good liquidity position and good market condition . But year 2010-2011 does not mark as good profitability condition as earning per share is decreased in March 11 .

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