Return on share holders investment

ROG-Net Worth (%)

20 15 10 5 0 201203201103201003200903200803200703200603200503200403200303200203200103200003199903 ROG-Net Worth (%)

This ratio establishes the profitability from the share holders' point of view. This ratio is one of the most important ratios used for measuring the overall efficiency of a firm. This ratio indicates the extent to which this primary objective of businesses being achieved. This ratio is of great importance to shareholders as well as the management of the company. Inference: We can conclude that from the past trend the net worth is decreasing as in 201203 it is 7.95 % which was 8.74 % in previous year 201103. Hence can conclude that NTPC is not

Fixed asset ratio

Fixed Assets Ratio
0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 201203201103201003200903200803200703200603200503200403200303200203200103200003199903 Fixed Assets Ratio

Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern. Higher the ratio, greater is the intensive utilization of fixed assets. Lower ratio means underutilization of fixed assets.

Inference: In case of NTPC the ratio was 0.79 in 201103 which

Current Ratio
4
3.5 3 2.5 2 1.5 1 0.5 0

Current ratio
Current Ratio

201203201103201003200903200803200703200603200503200403200303200203200103200003199903

Current ratio may be defined as the relationship between current assets and current liabilities. This ratio is also known as "working capital ratio ". Inference: As a conventional rule a current ratio of 2:1 is considered satisfactory. And NTPC has current ratio as 2.73 which when compared with Power Grid which has this ratio as 0.96 . Hence NTPC may have adapted aggressive working

Debt-equity ratio
Debt-Equity Ratio
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 201203 201103 201003 200903 200803 200703 200603 200503 200403 200303 200203 200103 200003 199903 Debt-Equity Ratio

Debt-to-Equity ratio indicates the relationship between the external equities or outsiders funds and the internal equities or shareholders funds. Inference: From the chart we can conclude that NTPC has less debt equal to 0.66 so it can pay off the obligation very easily as compared to its competitor Power Grid which owns the ratio 2.1 and hence NTPC is better than Power Grid.

Thank you