04

20

MONTHLY
REPORT
BY ALEX SEVEN MEDIA

www.alexseven-media.com
 GROUP 16

TABLE OF CONTENTS

01 Letter of Transmittal
21 Risk and Return Analysis

02 Executive Summary
24 Leverages

03 Company Overview
27 SWOT Analysis

04 Financial Ratios
32 Conclusion, Appendices & References
PAGE 01

LETTER OF TRANSMITTAL

Wednesday, April 24, 2019

Abdullah Al Mahmud

Associate Professor

Department of Banking and Insurance, University of Dhaka

Course Instructor of Principles of Finance

Subject: Submission of report on Financial Datas of five companies.

 

Dear Instructor,

We are very pleased to inform you that the report you instructed us to make has

been completed with our level best. We have collected necessary information of

our selected companies. After that we have orderly and graphically organized the

collected and explain those information to show SWOT.

Hereby we submit the completed report to you. Hope that you will appreciate our

hard work and forgive our minor errors if there is any.

Yours Sincerely

Sumaiya Rahman (23-058)                      Md. Mahe Alom (24-070)

Shakil Hossen (24-162)                             Sorna Akter (24-080)

Shahadat Hossain Sagor (24-130)

PAGE 02

EXECUTIVE SUMMARY

We have collected financial datas of all of the five companies of

consequent five companies from 2013 to 2017. It represents the financial

analysis of five manufacturing company. Here five companies are

selected under five industres and each company is situated in India.

Three basic analysis Ratio Analysis, Risk and Return assessment and

leverage analysis of the companies have been calculated and showed in

graphical chart. In Ratio analysis we analysed 17 ratios. Under risk and

return assessment we analysed 3 ratios and under leverage we analysed

3 leverages. Each findings has been visualized in the chart with related

interpretation and comparative analysis among the five companies.

However the report has ended with the related appendices and

references.

So, these findings are showing the overall financial position, strength,

weakness, opportunity, threats and market position. And thereby,

economic and financial condition of the selected companies.

PAGE 03

OVERVIEW

BPL stands for British Physical

Laboratories', an Indian electronic

company associated with the making Ranbaxy Laboratories Limited is an

of health care materials. BPL was Indian pharmaceutical company that

established in 1963 with the basic was established in 1961 and went

motive to manufacture public in 1973. The name is a combined

electrocardiograph machines and word of the first owners Ranbir and

panel meters and for their best quality Gurbax. The financial statement of this

of  service and believe in giving the company is fluctuated, that’s why they

best make the company the first truly had to face loss more in their business

world class Indian consumer life. In 2009 it was reported that

electronics band. Now BPL has been former Novartis Senior Vice-President

running successfully for the 56 years Yugal Sikri would lead the India

through their high quality, elegant operations of Ranbaxy.

designs and superior technology. It's The company has a global footprint in

headquarters in Bangalore and the last 49 countries, world-class

2018 BPL paid Rs.15.51 cores total tax. manufacturing facilities in 11 countries

and serves customers in over 125

Dabur India Ltd. is one of the India's countries.

leading FMCG companies with

revenues over Rs. 7680 crores and Raymond Group is an Indian branded
market capitalization of Rs. 48800 fabric and fashion retailer,

crore. This company is also a world incorporated in 1925. It is a very well

leader in Ayurvedic with a portfolio of known clothing manufacturing

over 250 herbal products. The company in the world. Its current CEO

company's FMCG portfolio in five Sanjay Behi. Its headquarter is situated

flagship brands. in Mumbai. It has produced more than

800 million as revenue.

L&T is an Indian construction company

.It was  founded 73 years ago on 07

February 1946.Its total asset is 245053

crore and market capital 190612.68

crore.
PAGE 04

CURRENT RATIO
CHART 01

What Does It Mean: It is a liquidity From the above chart we can see five

companies current ratio of five consequent

ratio that measures whether or not a
years. BPL’s current ratio was good from 2013
firm has enough resources to meet its
to 2016, but it was too large in 2017 that
short term obligation.
shows the inefficient use of current assets or

How is it calculated: It is calculated its short term financing facilities.Dabur, L&T

by dividing a company's current and Ranboxy companies have enough current

assets to meet their short term obligations. in

assets by its current liabilities.
the last year Raymond company had current

ratio less than  1 that means the company 

has problem to meet its short term

obligations.
PAGE 05

LIQUIDITY RATIO
CHART 02

What Does It Mean: Liquidity ratio The liquidity ratio  of all companies  were less

than 2 in  the first three years. In 2016 and

measures the total liquidity available to
2017Daburhad good liquidity position and BPL
the company. This ratio only considers
had good position in 2017.
marketable securities and cash

available to the company.

How is it calculated: It is calculated

by dividing a company's liquid

assets by its current liabilities.

PAGE 06

QUICK RATIO
CHART 03

What Does It Mean: Quick ratio also From the above chart we see that all

companies had good position to pay back

known as acid test ratio is a liquidity
their current liabilities except Ranbaxy
ratio which measures the ability of a
company. In the last year BPL had more
company to use its near cash or quick
liquidity ratio that is also bad for any

assets to retire its current liabilities company.

immediately. A normal liquidity ratio is

1:1. A company with a quick ratio of less

than 1 cannot currently fully pay back

its current liabilities.

How is it calculated: It is calculated

by dividing a company's (current

assets-inventory) by its current

liabilities.
PAGE 07

INVENTORY TURNOVER
CHART 04

What Does It Mean: The inventory From the above chart we can see five

companies inventory turnover ratio of five

turnover ratio is  an efficiency ratio
consequent years. BPL and Dabur had highest
that shows how effectively inventory is
inventory turnover in 2014 and then it start to
managed by comparing cost of goods
decrease dramatically because L&T had

sold with average inventory for a almost equal inventory turnover over the time

period. This measures how many times period and its position is good that shows its

operating efficiency. Ranbaxy and Raymond

average inventory is turned or sold
had poor inventory turnover over the  five
during a period.
years that shows their operating inefficiency
How is it calculated: It is calculated
by dividing a company's cost of goods

sold by its inventory.

PAGE 08

AVERAGE COLLECTION PERIOD

CHART 05

What Does It Mean: The average This  graph shows fives companies average

collection period for five consequent years.

collection period is the average
We know  that less average collection period
number of days between the dates
is good for any company so Dabur is in the
that credit sales were made and the
best position. The other companies are also

dates that the money was collected good except L&T ,because their average

from the customers. collection period is less than 90 days. L&T’s

How is it calculated: It is calculated average collection period is more than 90

days for each year that is not a good sign

by dividing the account receivable by
.The reason of this large average collection
average sales per day.
period is that they have more credit sales in

their sales volume.

PAGE 09
AVERAGE PAYMENT PERIOD
CHART 06
What Does It Mean: s defined as the
number of days a company takes
to pay off credit purchases.
How is it calculated: It is calculated
by dividing a company's accounts
payable by its average daily purchase.
From above chart, we can see five
companies average payment period of five
consequent years. BPL’s highest average
payment period was in 2014 and lowest on
2016. Dabur India Ltd’s highest average
payment period was in 2016 and lowest on
2013. L&T’s highest average payment period
was in 201 and lowest on 2017. Ranbaxy’s
highest average payment period was in 2013
and lowest on 2017. Raymond’s highest
average payment period was in 2017 and
lowest on 2015.
PAGE 10

TOTAL ASSET TURNOVER

CHART 07

What Does It Mean: The asset From above chart, we can see five

companies total asset turnover of five

turnover ratio is an efficiency ratio that
consequent years. BPL’s highest total asset
measures a company's ability to
turnover was in 2016 and lowest on 2015.
generate sales from its assets by
Dabur India Ltd’s highest total asset turnover

comparing net sales with average total was in 2014 and lowest on 2017. L&T’s highest

assets. total asset turnover was in 2014 and lowest

How is it calculated: It is calculated on 2016. Ranbaxy’s highest total asset

turnoverwas in 2017 and lowest on 2013.

by dividing a company's net sales by its
Raymond’s highest total asset turnover was in
average total asset.
2015 and lowest on 2013.
PAGE 11

DEBT RATIO
CHART 08

What Does It Mean: Debt Ratio is a From above chart, we can see five

companies debt ratio of five consequent

financial ratio that indicates the
years. BPL’s highest debt ratio was in 2017
percentage of a company's assets that
and lowest on 2015. Dabur India Ltd’s highest
are provided via debt. It is the ratio of
debt ratio was in 2013 and lowest on 2017.

total debt and total assets. L&T’s highest debt ratio was in 2013 and

How is it calculated: It is calculated lowest on 2017. Ranbaxy’s highest debt ratio

was in 2014 and lowest on 2013. Raymond’s

by dividing a company's total liabilities
highest debt ratio was in 2013 and lowest on
by its total assets.
2017.
PAGE 12

DEBT TO EQUITY RATIO

CHART 09

What Does It Mean: With higher debt From above chart, we can see five

companies debt to equity ratios of five

to equity ratios indicating higher
consequent years. BPL’s highest debt to
degrees of debt financing against
equity was in 2017 and lowest on 2015. The
equity.
unusual fluctuation happened during 2015-17.

How is it calculated: It is calculated It’s because they tried to take advantage of

by dividing a company's the increased profits that financial leverage

may bring. Dabur India Ltd’s highest debt to

total liabilities by its shareholder
equity was in 2016 and lowest on 2014. Their
equity.
condition was pretty normal. L&T’s highest

debt to equity was in 2013 and lowest on

2014. The unusual fluctuation happened

during 2013-14. It’s because they was not be

able to generate enough cash to satisfy

its debt obligations. Ranbaxy’s highest debt

to equity was in 2014 and lowest on 2013.

The unusual fluctuation happened during

2013-14. It’s because the company is being

financed by creditors rather than by internal

positive cash flow. Raymond’s highest debt to

equity was in 2016 and lowest on 2015. Their

condition was pretty normal. Among all of the

companies best Debit to Equity ratio was

Ranbaxy’s.
PAGE 13

GROSS PROFIT MARGIN

CHART 10

What Does It Mean: Gross profit From above chart, we can see five

companies Gross Profit Margin of five

margin is a metric used to assess a
consequent years. BPL’s highest Gross Profit
company's financial health and
Margin was in 2017 and lowest on 2015. There
business model by revealing the
was no unusual fluctuations. . Dabur India

amount of money left over from sales Ltd’s highest Gross Profit Margin was in 2016

after deducting the cost of goods sold. and lowest on 2013. Their condition was

pretty normal. L&T’s highest Gross Profit

The gross profit margin is often
Margin  was in 2014 and lowest on 2013. Their
expressed as a percentage of sales
condition was pretty normal. Ranbaxy’s
and may be called the gross
highest Gross Profit Margin  was in
margin ratio.
2014&2015 and lowest on 2017. Their

How is it calculated: It is calculated condition was pretty normal. Raymond’s

by dividing a company's Gross Profit by highest Gross Profit Margin was in 2017 and

lowest on 2013. Their condition was pretty

its Revenue and multiplying the output
normal. Among all of the companies best
with 100.
Debit to Equity ratio was Raymond’s.
PAGE 14

OPERATING PROFIT MARGIN

CHART 11

What Does It Mean: The operating In the above chart, there are five companies

operating profit margin percentage

profit margin measures the percentage
presented. From year 2013 to 2017 BPL, Dabur
of each sales amount remaining after
and L&T companies have made a positive
all cost and expenses other than
operating profit margin percentage. Ranbaxy

interest, taxes and preferred stock was good at year 2013, 2015, 2016 and 2017.

dividends are deducted. But in year 2014 they had to face operating

How is it calculated: The formula of loss for not maintaining their operating

expenses. Raymond’s operating profit margin

operating profit margin is company’s
percentages was low but profitable.
operating profits divided by its sales.
PAGE 15

NET PROFIT MARGIN

CHART 12

What Does It Mean: The net profit In the above chart, from five companies

Dabur and L&T company’s net profit margin

margin measures the percentage of
percentages are satisfactory than others.
each sales amount remaining after all
BPL, Ranbaxy and Raymond companies had
costs and expenses, including interest,
made loss frequently. In year 2014, BPL

taxes, and preferred stock dividends, company’s expenditures have exceeded their

have been deducted. net sales, for this their profit percentage is

How is it calculated: For net profit lower than Ranbaxy and Raymond.

margin we have divided the company’s

earning available for common

stockholders by company’s sales.

PAGE 16

EARNING PER SHARE

CHART 13

What Does It Mean: The firm’s earning In the above chart of EPS, Dabur and L&T

companies are pretty capable to pay

per share is generally of interest to
dividend to their common stockholders. But
present or prospective stockholders
stockholders of BPL and Ranbaxy companies
and management.
have to bear the loss of the companies. In the

How is it calculated: EPS of the case of BPL at the year 2014, the loss amount

companies is calculated dividing the was too high, as their available earning was

imperfect for the stockholders. On the other

earnings available for common
hand, Raymond company’s EPS is too much
stockholders by number of shares of
lower, but they were capable to pay interest.
common stock outstanding.
PAGE 17

ROA
CHART 14

What Does It Mean: Return on assets FFrom the above chart, we can come to know

the ROA ratios of the selected five

(ROA) is an indicator of how profitable
companies that has been arranged
a company is relative to its total
according to five consequent years. BPL's
assets. ROA gives a manager, investor,
highest ROA was in 2015 and lowest was in

or analyst an idea as to how efficient a 2014. In 2014 it dramatically fall because

company's management is at using its company wanted to retain earnings rather

than distributing it. Dabur's highest ROA was

assets to generate earnings. Return on
in 2013 and lowest was in 2017. L&T's highest
assets is displayed as a percentage.
ROA was in 2014 and lowest was in 2016.
How is it calculated: It is calculated Ranbaxy's highest ROA was in 2015 and
by dividing a company's net income by
lowest was in 2013. Because Ranbaxy at that

its average total assets. time could not meet to common stock

holders. Raymond's highest ROA was in 2014

and lowest was in 2013.This company's

situation was too much volatile.

Among five companies the best ROA ratio

was Dabur's.
PAGE 18

ROE
CHART 15

What Does It Mean: The return on From above chart, we can see five

companies ROE of five consequent years.

equity is a measure of the profitability
BPL’s highest ROE was in 2017 and lowest on
of a business in relation to the equity,
2014. BPL company always fluctuated during
also known as net assets or assets
this period. the unusual part happened in

minus liabilities. 2014. the total expenditure was more than

How is it calculated: It is calculated the revenue. Dabur India Ltd’s highest ROE

was in 2016 and lowest on 2013. L&T’s highest

by dividing a company's net profit by
ROE was in 2013 and lowest on 2015.
its shareholders average equity.
Ranbaxy’s highest ROE was in 2013 and

lowest on 2017. Raymond’s highest ROE was

in 2015 and lowest on 2013 .

PAGE 19

P/E RATIO
CHART 16

What Does It Mean: The From above chart, we can see five

companies P/E ratio of five consequent

price/earnings ratio is the ratio of a
years. BPL’s highest P/E ratio was in 2015 and
company's share price to the
lowest on 2016. Because investors was willing
company's earnings per share. The
to give more money, but there was negative

ratio is used for valuing companies and EPS. Dabur India Ltd’s highest P/E ratio was

to find out whether they are in 2013 and lowest on 2016. L&T’s highest P/E

ratio was in 2014 and lowest on 2013.

overvalued or undervalued.

How is it calculated: It is calculated Ranbaxy’s highest P/E ratio was in 2013 and

lowest on 2017. Here the unusual fluctuations

by dividing a company's market price
was in 2017. Though investors wanted to give
per share by its earning per share.
more but considerably EPS was low.

Raymond’s highest P/E ratio was in 2017 and

lowest on 2013. Here dramatical changes was

in 2017 when share per price was higher than

other years.

Overall, it can be assumed that Dabur and

L&T has more flexible and normal P/E ratio.

 PAGE 20

MARKET BOOK RATIO

CHART 17

What Does It Mean: The book-to- From above chart, we can see five

companies market book ratio of five

market ratio is used to find a
consequent years. BPL’s highest debt ratio
company's value by comparing
was in 2017. Dabur India Ltd’s highest debt
its book value to its market value.
ratio was in 2017 and lowest on 2016. L&T’s

How is it calculated: It is calculated highest debt ratio was in 2015. Ranbaxy’s

by dividing market price per share by highest debt ratio was in 2015. Raymond’s

highest debt ratio was in 2017 and lowest on

its book value per share.
2013.
 PAGE 21

AVERAGE EXPECTED RETURN

CHART 18

What Does It Mean: the annual From the above chart we can see that five

companies expected return. First of all the

income from an investment expressed
BPL expected return was above 0.2773
as a proportion (usually a percentage)
Dabur's expected return was below 0.01457.
of the original investment.
L&T expected return was 0.1063. Ranbaxy's

How is it calculated: It is average of was minus -0.07359  that was negative. The

all the returns. Raymond's expected return was below

0.0529

From this we can notice that highest

expected rate of return was BPL company's

which was more than 0.20 and Ranbaxy's

expected return was negative.

 PAGE 22

STANDARD DEVIATION
CHART 19

What Does It Mean: Standard From the above chart we can see five

companies Standard Deviation. BPL has a

deviation is a statistical measurement
very high Standard Deviationand Dabur has a
infinance that, when applied to the
minus Standard Deviation.
annual rate of return of an investment,
Standard Deviation BPL's 0.8275 Dabur's

sheds light on the historical volatility of 0.4904 L&T's 0.7494 Ranbaxy's 0.5427

that investment. Raymond's 0.5765 Portfolio 0.0356.

How is it calculated: The standard

deviation is given by the formula: s

means 'standard deviation'. Now,

subtract the mean individually from

each of the numbers given and square

the result. This is equivalent to the (x -

² step.
)
PAGE 23

CO-VARIANCE
CHART 20

What Does It Mean: Covariance is a From the above chart we can see five

companies co-variance. Dabur has a very

measure of the directional relationship
high CV and Ranbaxy has a minus CV.
between the returns on two risky
Co-Variance BPL's 2.98 Dabur's 33.64
assets. A positive covariance means
L&T's7.04 Ranbaxy's -7.37 Raymond's 10.81

that asset returns move together while and Portfolio CV is 1.621. So, BPL, Dabur, L&T

a negative covariance means returns and Raymond covariance means that asset

returns move together. In case of Ranbaxy

move inversely.

How is it calculated: It is calculated covariance means returns move inversely.

by dividing a company's standard

deviation by its rate of return.

PAGE 24

OPERATING LEVERAGE
CHART 21

What Does It Mean: Operating From the above chart we can see five

companies current ratio of five consequent

leverage is a measure of how revenue
years. BPL’s current ratio was good from 2013
growth translates into growth in
to 2016, but it was too large in 2017 that
operating income. It is a measure of
shows the inefficient use of current assets or

leverage, and of how risky, or volatile, its short term financing facilities.Dabur, L&T

a company's operating income is. and Ranboxy companies have enough current

How is it calculated: It is calculated assets to meet their short term obligations. in

the last year Raymond company had current

by dividing a company's change in
ratio less than  1 that means the company 
Sales by its change in EBIT.
has problem to meet its short term

obligations.
 PAGE 25

FINANCIAL LEVERAGE
CHART 22

What Does It Mean: Financial From the above chart, we can see the degree

of financial leverage of five companies for

leverage results from the presence of
five consequent years. Here, the lowest and
fixed financial costs that the firm must
minus values are for BPL at year 2013-14, for
pay. The degree of financial leverage
Dabur at year 2014-15 and 2015-16, for L&T at

(DFL) is a numerical measure of the year 2015-16 and year 2016-17, for Ranbaxy at

firm’s financial leverage year 2015-16 and also for Raymond at year

How is it calculated: It is calculated 2015-16. The reason behind the degrees is an

increase in the firm’s EBIT results in a more-

by a company’s percentage in EPS
than-proportional increase in the firm’s EPS,
divided by company’s percentage in
whereas another one results in the opposite
EBIT.
form of this aforesaid sentence. The results of

positive figures are less risky than the

negative figures.
PAGE 26

TOTAL LEVERAGE
CHART 23

What Does It Mean: A degree From the above chart we can see five

companies total leverage. Here, the lowest

of combined leverage (DCL) is
and minus values are for BPL at year 2014-15,
a leverage ratio that summarizes
for Dabur at year 2013-14 and 2015-16, for
thecombined effect that the degree
L&T at year 2014-15 and year 2014-15, for

of operating leverage (DOL) and the Ranbaxy, at year 2016-17  for Raymond.

degree offinancial leverage have on

A relatively high level of combined leverage is

earnings per share (EPS), given a
seen as riskier than a firm with less combined
particular change in sales.
leverage because high leverage means
How is it calculated: It is calculated more fixed costs to the firm. So here  riskiest
by multiplying DOL and DFL.
company is Ranbaxy and best one is Dabur,

because it DTL was normal during the five

years.
 PAGE 27

BPL GROUP SWOT ANALYSIS

Strengths:  
1. Ranked among the top 100 most trusted brands in India 

2. Tie up with Sanyo for technology transfer to manufacture CTVs

3. Strong brand with a legacy of making smart and popular TVs

4. Brand had strong advertising through TVCs and print media

5. Entire portfolio includes Medical equipment, televisions, refrigerators, washing

machines, microwaves & audio equipment

Weaknesses:
1. Expansion into several unrelated sectors led to the downfall

2. Lack of economies of scale compared to the Korean giants

3. Being an Indian brand leads to lower brand perception compared to the global

brands

Opportunity:
1.Medical devices market market is likely to grow annually in the coming years

2. Growing consumer appliances market in tier -2,3 cities.

Threats:
1. Overseas competitors winning over BPL’s customer segment

2. Rapidly changing technology and new features being added by foreign players
 PAGE 28

DABUR INDIA LTD. SWOT ANALYSIS

Strengths:  
1. A large number of variants.

2. Real Fruit.

3. Endorsements and certifications.

4. Better Understanding of Indian market.

5. A composition of the juices.

Weaknesses:
1. Indian habits.

2. Expensive.

3. Acquired Taste.

Opportunity:
1. High market potential for packaged drinks in India.

2. Favourable environment in India.

Threats:
1. Low barriers to entry.

2. Competition.
 PAGE 29

LARSEN & TOUBRO SWOT ANALYSIS

Strengths:  
1. Strong Brand Name in construction and manufacturing in India.

2. Competitive advantage.

3. Technical expertise.

4. Strong financial position.

Weaknesses:
1. Dependence on Indian market.

2. Increasing debt.

Opportunity:
1. Growth in Indian construction and engineering industry.

2. Strong order book position.

Threats:
1. Extensive environmental regulations.

2. Low Oil prices affect the industry.

3. GST impact can be negative.

 PAGE 30

RANBAXY PHARMACEUTICALS SWOT

ANALYSIS
Strengths:  
1. Top 10 Global Generic Company with a spread over 125 countries.

2. over 13,000 well trained Employees, over 50 nationalities.

3. Strong presence in the International market with a major share and a strong

presence in India as well.

4. It has operations in nearly 50 countries and has 7 manufacturing plants.

Weaknesses:
1. It is heavily dependent upon generics for its revenue generation.

2. Constantly regulated policies by the govt means operational efficiency is

affected.

Opportunity:
1. Increasing health awareness.

2. Improvement in distribution network & brand building.

3. They can leverage  Synriam, anti-malarial drug in brand building.

Threats:
1. Increasingly stringent FDA Regulations.

2. Exchange rate fluctuations.

3. Global economic slowdown.

 PAGE 31

RAYMOND GROUP SWOT ANALYSIS

Strengths:  
1. Popular Tagline “Raymond: The complete man”.

2. Product Line Extension.

3. The Raymond Shop.

Weaknesses:
1. Low Global Penetration.

2. Over Dependence on Indian market.

Opportunity:
1. Increasing Disposable Income in India.

2. Growing Middle Class.

3. Global Expansion.

Threats:
1. Intense Competition.

2. The abundance of counterfeit products.

 PAGE 32

CONCLUSION

Profitability:  
Dabur India Ltd. and Larsen & Toubro are capable of paying dividend all the year.

They are the best for profitability.

Stability:
Raymond group has a stability in its all ratios. We can take it as the most stable

company among these.

Strongest:
Dabur India Ltd. has a various level of products and Indian market in most favourable

for them. It is the strongest company among all.

Growth:
Raymond has a quiet stable growth not big fluctuations during the years. Which is

undoubtedly one of the best sign for stability.

Activity:
BPL Group name will be in first when discussing best activity. They has a large

number of product based and innovative market ahead. They can easily compete

with foreign companies by expressing their brand values.

 PAGE 33

APPENDICES
FINANCIAL RATIO
Liquidity ratios
1. Current ratio = Current assets/Current liabilities

2. Quick (Acid-test) ratio = (Current assets – Inventory)/Current liabilities.

Activity ratios
1. Inventory turnover = Cost of goods sold/Inventory

2. Average collection period = Accounts receivable/Average sales per day

3. Average payment period = Accounts payable/Average purchases per day

4. Total assets turnover = Sales/Total assets

Debt ratios
1. Debt ratio = Total liabilities/Total assets

2. Times interest earned ratio = Earnings before interest and taxes/Interest

3. Fixed-payment coverage ratio = (Earnings before interest and taxes + Lease payment)/Interest +

Lease payment + {(Principle + Preferred dividend) x [1/(1 – T)]}

Profitability ratios
1. Gross profit margin = Gross profit/Sales

2. Operating profit margin = Operating profit/Sales

3. Net profit margin = Earnings available for common stockholders/Sales

4. Earnings per share (EPS) = Earnings available for common stockholders/Number of shares of

common stock outstanding

5. Return on total assets (ROA) = Earnings available for common stockholders/Total assets

6. Return on equity (ROE) = Earnings available for common stockholders/Common stock equity

LEVERAGE
Operating leverage

Degree of Operating Leverage (DOL) = Percentage change in EBIT/Percentage change in sales

Financial leverage

Degree of Financial Leverage (DFL) = Percentage change in EPS/Percentage change in EBIT

Total leverage

Degree of Total Leverage (DTL) = Percentage change in EPS/Percentage change in sales

 PAGE 34

REFERENCES

To make this report, We have collected data from several sources. All of them are cited
below with cordial credit.

https://en.wikipedia.org/wiki/BPL_Group
https://en.wikipedia.org/wiki/Dabur
https://en.wikipedia.org/wiki/Larsen_%26_Toubro
https://en.wikipedia.org/wiki/Ranbaxy_Laboratories
https://en.wikipedia.org/wiki/Raymond_Group
http://www.bpl.in/
http://www.dabur.com/
http://www.larsentoubro.com/
www.sunpharma.com/
www.raymond.in
www.marketing91.com