Financial

Statement
Analysis

By group no.1
Reliance
Year 2015-2016
o Liquidity ratios:

o Current Ratio = Current assets

Current Liabilities
= 92,538
1,25,033
= 0.74
o Quick Ratio = Quick assets
Current Liabilities
= 64,507
1,25,033
= 0.52

o Leverage ratios:

o Debt-equity Ratio = Debt

Equity
= 77,830
2,53,998
= 0.31

o Interest Coverage Ratio = Profit before interest and taxes

Interest
= 37,499
1,483
= 25.29

o Debt Service Coverage Ratio = Profit after tax + Other non-cash charges +
Interest on term loan + Lease rental
Interest on term loan + Lease rental
+ Repayment of term loan
= 27,304 + 8,590 +1,483 +
10 1,483 + 10
= 35.21

o Turnover Ratios:
o Inventory Turnover = Net sales
Inventory
= 2,51,100
28,034
= 0.96

o Debtors Turnover = Net credit sales

Debtors
= 2,51,100
28,034
= 8.96

o Fixed Assets Turnover = Net sales

Net fixed assets
= 2,51,100
1,61,454
= 1.56

o Total Assets Turnover = Net sales

Total assets
= 2,51,100
4,81,674
= 0.52

o Profitability Ratios:

o Gross Profit Margin Ratio = Gross profit

Net sales
= 4,30,364 x 100
2,51,100
= 171.39%

o Net Profit Margin Ratio = Net profit

Net sales
= 36,016 x 100
2,51,100
= 14.34%
o Return on Capital Employed 1 = Profit after tax x 100
Total assets
= 27,384 x 100
4,81,674
= 5.69%
o Return on Capital Employed 2 = Profit before interest and tax
Total assets
= 37,499 x 100
4,81,647
= 7.79
o Return on Capital Employed 3 = Profit before interest and tax (1- Tax rate)
Total assets
= 37,499 x 100
4,81,674
= 7.79
o Return on Equity = Equity earnings
Net worth
= 28,222
2,53,998
= 0.11
o Valuation Ratios:
o Price-earning Ratio = Profit after Tax – Preference dividend
Number of outstanding equity shares
= 273,84
324,48
= 84.39
o Market Value to Book Value Ratio = Market value per share
Book value per share
= 915.50
84.39
= 10.84

o Year 2016-2017

o Liquidity ratios:

o Current Ratio = Current assets

Current Liabilities
= 1,06,281
1,52,826
= 0.70
o Quick Ratio = Quick assets
Current Liabilities
= 72,263
1,52,826
= 0.47
o Leverage ratios:

o Debt-equity Ratio = Debt

Equity
= 78,723
2,88,313
= 0,27

o Interest Coverage Ratio = Profit before interest and taxes

Interest
= 42,809
2,032
= 21.07

o Debt Service Coverage Ratio = Profit after tax + Other non-cash charges +
Interest on term loan + Lease rental
Interest on term loan + Lease rental
+ Repayment of term loan
= 31,425 + 8,465 + 2,032 +
10 2,032 + 10
= 30.63

o Turnover Ratios:

o Inventory Turnover = Net sales

Inventory
= 2,64,909
34,018
= 7.79

o Debtors Turnover = Net credit sales

Debtors
= 2,64,909
5,472
= 48.41

o Fixed Assets Turnover = Net sales

Net fixed assets
= 2,64,909
1,59,036
= 1.67
o Total Assets Turnover = Net sales
Total assets
= 2,64,909
5,46,746
= 0.49

o Profitability Ratios:

o Gross Profit Margin Ratio = Gross profit

Net sales
= 77,321 x 100
2,64909
= = 0.29

o Net Profit Margin Ratio = Net profit

Net sales
= 40,777 x 100
2,64,909

= 0.15
o Return on Capital Employed 1 = Profit after tax x 100
Total assets
= 31,425 x 100
5,46,746
= 5.75%
o Return on Capital Employed 2 = Profit before interest and tax
Total assets
= 42809 x 100
5,46,746
= 7.83%
o Return on Capital Employed 3 = Profit before interest and tax (1- Tax rate)
Total assets
= 42,809 x 100
5,46,746
= 7.83%
o Return on Equity = Equity earnings
Net worth
= 33,617
2,88,313
= 0.12 or 11.66%
o Valuation Ratios:
o Price-earning Ratio = Profit after Tax – Preference dividend
Number of outstanding equity shares
= 314,25
324,87
= 96.73

=
o Market Value to Book Value Ratio = Market value per share
Book value per share
= 915.50
96.73
= 9.46
Airtel
Year 2015-2016

o Liquidity ratios:

o Current Ratio = Current assets

Current Liabilities
= 114210
278468
= 0.41
o Quick Ratio = Quick assets
Current Liabilities
= 114157
278468
= 0.41

o Leverage ratios:

o Debt-equity Ratio = Debt

Equity
= 414570
117291
= 3.53

o Interest Coverage Ratio = Profit before interest and taxes

Interest
= 126088
23544
= 5.35

o Debt Service Coverage Ratio = Profit after tax + Other non-cash charges +
Interest on term loan + Lease rental
Interest on term loan + Lease rental
+ Repayment of term loan
= 77803 + 95753 + 23544 +
7164 23544
= = 8.68

o Turnover Ratios:
o Inventory Turnover = Net sales
Inventory
= 603003
53
=

o Debtors Turnover = Net credit sales

Debtors
= 603003
31724
= 1.14

o Fixed Assets Turnover = Net sales

Net fixed assets
= 603003
1627883
= 0.38

o Total Assets Turnover = Net sales

Total assets
= 603003
1850280
= 0.32

o Profitability Ratios:

o Gross Profit Margin Ratio = Gross profit

Net sales
= 22336.20
603003
= 0.04

o Net Profit Margin Ratio = Net profit

Net sales
= 102544
603003

= 0.18
o Return on Capital Employed 1 = Profit after tax x 100
Total assets
= 77803 x 100
1850280
= 4.20%
 o Return on Capital Employed 2 = Profit before interest and tax
Total assets
= 126088 x 100
603003
= 20.91%
o Return on Capital Employed 3 = Profit before interest and tax (1- Tax rate)
Total assets
= 126088 x 100
603003

= 20.91%
o Return on Equity = Equity earnings
Net worth
= 77769
1850280
= 0.04
o Valuation Ratios:
o Price-earning Ratio = Profit after Tax – Preference dividend
Number of outstanding equity shares
= 77803
3997400
= 19.46
o Market Value to Book Value Ratio = Market value per share
Book value per share
= 516.75
19.46
= 26.55

Year 2016-2017
o Liquidity ratios:

o Current Ratio = Current assets

Current Liabilities
= 176,709
349,204
= 0.51
o Quick Ratio = Quick assets
Current Liabilities
= 176,670
349,204
= 0.50
o Leverage ratios:

o Debt-equity Ratio = Debt

Equity
= 503,421
1,012,073
= 0.49

o Interest Coverage Ratio = Profit before interest and taxes

Interest
= (39,190)
42,902
= (0.91)

o Debt Service Coverage Ratio = Profit after tax + Other non-cash charges +
Interest on term loan + Lease rental
Interest on term loan + Lease rental
+ Repayment of term loan
= (99,256) + 122,034 +
42,902 +7,400 42,902
= 65680.18
=

o Turnover Ratios:

o Inventory Turnover = Net sales

Inventory
= 622,763
39
= 15968.29

o Debtors Turnover = Net credit sales

Debtors
= 622,763
32,118
= 19.39

o Fixed Assets Turnover = Net sales

Net fixed assets
= 622,763
1658950

= 0.37
o Total Assets Turnover = Net sales
Total assets
= 622,763
1907416
= 0.33

o Profitability Ratios:

o Gross Profit Margin Ratio = Gross profit

Net sales
= 23,692.90
622763
= 0.04

o Net Profit Margin Ratio = Net profit

Net sales
= (85095)
622763

= (0.14)
o Return on Capital Employed 1 = Profit after tax x 100
Total assets
= (99,256) x 100
1907416
= (5.20)
o Return on Capital Employed 2 = Profit before interest and tax
Total assets
= (39,190) x 100
622763
= (6.29)
o Return on Capital Employed 3 = Profit before interest and tax (1- Tax rate)
Total assets
= (39,190) x 100
622763
= (6.29)
o Return on Equity = Equity earnings
Net worth
= (99281)
1,907,416
= (0.05)
o Valuation Ratios:
o Price-earning Ratio = Profit after Tax – Preference dividend
Number of outstanding equity shares
= 99,256
3997400
= (24.84)
o Market Value to Book Value Ratio = Market value per share
Book value per share
= 516.75
24.84
= 20.80