UPL Ltd.

Financial Management Group 05

Presented By Vrushil Thakkar Khushboo Singh Mohd. Aqil Ansari

MBA20A73 MBA20B66 MBA20C25
 COMPANY INFORMATION

Founded on 29 May 1969 Rajnikant Shroff (Chairman & MD)

UPL Limited formerly known

Headquartered in Mumbai, Maharashtra Public Limited
as United Phosphorus Limited
Company

Manufactures and markets agrochemicals,

industrial chemicals, chemical Revenue was ₹35,756
Approx. 7,435  Employee
intermediates, and specialty chemicals, and crore in FY20
also offers crop protection solutions.
 CURRENT RATIO
CR = Current Asset/Current Liabilities

Part of Liquidity ratio 2017-18 1.42 times

Measures a company's ability to pay current, or
short-term, liabilities with its current, or short- 2018-19 1.44 times
term, assets

Higher this ratio, better liquidity position 2019-20 1.11times

Ideal ratio is 2:1
 CURRENT RATIO

Interpretation

The Current ratio is almost at ideal level in all 2019-20 1.11

the three years but it is seen that the ratios has
been declined in FY 2019-20 in comparison to
last two years. 2018-19 1.44

This indicates the reduced ability to generate

cash which has happened for the FY 2019-20
but the company isn’t yet facing liquidity issue. 2017-18 1.42

It has enough current assets to cover its current

liabilities. 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6
 QUICK RATIO
Quick Ratio = (Current Assets –Inventory – Prepaid exp) /
(Current liabilities – Bank over draft)
Also referred to as Acid test ratio

Part of Liquidity ratio

Measures the ability of a company to use its near

cash or quick assets to extinguish or retire its
current liabilities immediately
2017-18 0.97 times
Strict measure of liquidity; includes only 2018-19 0.79 times
assets that can be converted to cash within 90 days
or less
2019-20 0.86 times
Ideal ratio is 1:1 ratio

The higher the ratio, the better a company's

liquidity and financial health
 QUICK RATIO

1.2
Interpretation
1

The company is in a quite better position in terms

of the quick ratio since it is less than the ideal ratio, 0.8

i.e. 1:1 in all the financial years but it is near 1 i.e

0.97 0.6

0.97
0.86
0.4
The ratio indicates that UPL Ltd can easily cover 0.79

its current liabilities using its near cash assets.

0.2

0
2017-18 2018-19 2019-20
 DEBT-EQUITY RATIO
DER = Long term Borrowing of the Company/Total
Owned Funds

Part of Solvency ratio

0.63
Compares a company's total liabilities to
its shareholder equity 
2017-18 0.086 times
Used to evaluate how much leverage a 2018-19 0.0574 times
company is using
2019-20 0.05707 times
Higher the ratio, higher is the financial
risk
 DEBT-EQUITY RATIO

0.1

Interpretation 0.086
0.09

0.08
The figure shows that Debt ratio has sharp
0.07
decline in FY 2018-19 to 0.0574 from FY 2017-
18 0.0574 But in FY 2020 it has increased to 0.06
0.05707
0.05707 0.05
0.0574

0.04
This increase in ratio indicates that the
company is  financing its growth with debt. 0.03

0.02

0.01

0
2017-18 2018-19 2019-20
RECEIVABLE TURNOVER RATIO
RTR = Credit sales / Average receivable

Part of Performance ratio

Measure how effective a company is in

extending credit as well as collecting 2017-18 1.92 times
debts

Shows the speed of recovery from 2018-19 1.97 times

debtors

Higher the ratio means better and faster

2019-20 2.23 times
recovery
RECEIVABLE TURNOVER RATIO
2.3

2.23
2.2
Interpretation

From the trends it is seen that UPL Ltd had a 2.1

high RTR in FY 2019-20 of 2.23times (163
days) but if we see the last 2 years RTR i.e.
2
in FY 2017-18 1.96times (186 days) and in
FY 2018-19 its was 1.97times (185 days) 1.97
1.9
1.92
It can be concluded that RTR (recovering of
debts) of UPL is improving every year 1.8

1.7
2017-18 2018-19 2019-20
 NET PROFIT
{ RATIO
Net Profit Ratio = Net (PAT) Profit / Sales
*100

Part of Profitability ratio

Measures how much profit is generated as a 2017-18 7.43%

percentage of revenue

It represents the financial standing of a company after 2018-19 4.66%

all its expenses have been paid off from its total
revenue. 2019-20 4.78%
Higher the ratio, better for the company
 NET PROFIT RATIO

Interpretation 8
7.43

From the figures it is visible that the Net Profit 7

Margin is showing downward trend, in FY 6

2017-18 from 7.43 it has dropped to 4.66 in FY
2018-19 and then slightly rise to 4.78 in FY 5
4.78
2019-20 4.66
4

This is not a good sign for the company and its 3

stakeholders. 2

In order to improve NPR the sales needs to be 1

improved and cost of goods sold to be 0

2017-18 2018-19 2019-20
decreased so that the gross profit can be
increased
Thank You