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DEBT TRADE CREDITORS AS ON MAR 31, 2012 AS ON MAR 31, 2011 1370 1070 400 500 60 50 100 100 50 40
TOTAL
1980
1760
EXPENSES Opening stock (finished goods) Raw material Employee compensation Power and fuel Other manufacturing expenses Research and development Depreciation Advertising Other marketing and selling expenses General and administrative expenses Training expenses Restructuring expenses Interest Tax expenses Net profit
INCOME STATEMENT OF JOHN LIMITED FOR THE YEAR 2012 2011 60 40 1485 1200 200 180 35 30 500 410 50 180 80 80 120 130 105 100 160 160 70 90 10 10 35 40 132 120 330 300 3372 3070
E SHEET OF JOHN LIMITED AS ON ASSETS GOODWILL INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT (NET) INVESTMENTS INVENTORIES PREPAID EXPENSES RECEIVABLES CASH AND BANK TOTAL AS ON MAR 31, 2012 AS ON MAR 31, 2011 200 200 45 50 400 400 150 100 235 255 5 5 650 550 295 200 1980 1760
OF JOHN LIMITED FOR THE YEAR ENDED 31 MAR INCOME Sales Other income Closing stock (finished goods)
2012 3300 12 60
2011 3000 10 60
3372
3070
Assessing liquidity position CURRENT ASSETS INVENTORIES PREPAID EXPENSES RECEIVABLES CASH AND BANK TOTAL QUICK ASSETS CURRENT LIABILITIES TRADE CREDITORS SHOR TERM DEBT TOTAL Assessing solvency position LONG TERM DEBT SHOR TERM DEBT TOTAL DEBT NET WORTH DEFERRED TAX LIABILITIES EFFECTIVE NET WORTH TOTAL ASSETS INVESTED CAPITAL CAPITAL EMPLOYED Net profit Tax expenses Interest Restructuring expenses EBIT MAR 31, 2012 MAR 31, 2011 235 255 5 5 650 550 295 200 1185 1010 945 750
50 100 150
40 100 140
400 60 460 1370 60 1430 1980 1930 1870 330 132 35 10 507
500 50 550 1070 50 1120 1760 1720 1670 300 120 40 10 470
Gross profit Operating profit Net profit NOPLAT(Assuming 40% tax rate)
100 20
100 16
MAR 31, 2012 ASSESSING LIQUIDITY POSITION OF THE COMPANY EXCLUDING SHORT TEM DEBT IN CURRENT LIABILITIES CURRENT RATIO QUICK RATIO CASH RATIO INCLUDING SHORT TEM DEBT IN CURRENT LIABILITIES CURRENT RATIO QUICK RATIO CASH RATIO
ASSESSING SOLVENCY POSITION OF THE COMPANY TOTAL DEBT/TOTAL ASSETS LONG TERM TERM /TOTAL ASSETS DEBT/EQUITY INTEREST COVERAGE RATIO 0.23 0.20 0.28 14.49 0.31 0.28 0.45 11.75
ASSESSING ASSET EFFICIENCY OF THE COMPANY Cost of goods sold per day Inventory storage period =Inventory (FG)/Cost of goods sold per day Inventory turnover (Using cost of goods sold) = cost of goods sold/inventory Inventory turnover (Using net sales) = Net sales/Inventory 8.14 28.86 12.65 14.04 7.40 34.47 days 10.59 times 11.76 times
Purchases per day Average payment period Creditor turnover Total asset turnover = Net sales/Total assets Fixed asset turnover =Net Sales/Net Fixed assets Current asset turnover = Net sales/current assets
3.29 12.17 days 30.00 times 1.70 times 4.62 times 2.97 times
ASSESSING PROFITABILITY POSITION OF THE COMPANY Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Retrn on Assets (%) =(NOPLAT/Total Assets) Retrn on Assets (%) =(EBIT/Total Assets) Return on invested capital = NOPLAT/ IC Return on capital employed = PBIT/CE Return on networth = PAT/Effective networth
DUPONT ANLAYSIS Net profit/Sales Sales/ Total assets Total Assets/Networth ROE ASSESSING MARKET PERFORMANCE OF THE COMPANY Bok value per share = Earning per share = Net profit/ Number of shares Price/Earning ratio Price/Book value ratio
Current ratio is very high. It is due to less amount of creditors. However, comparision with peer group and industry average is Quick ratio is also very high due to low inventory Cash ratio is also very high.
The liquidity ratios are high even after considering the short term debt. From this, it can be intrepreted that the firm is more dependent on long term sources of finance and investment in fixed asse It can put an effort to improve its bargaining power with the suppliers, thereby increasing the trade creditors and also can inc
For every rupee of investment in total assets, the firm sourced Rs.0.23 from outside debt in the year 2012, which is less than As a whole, it is observed that the firm is more depedent on internal sources than external sources for financing
As indicated by the coverage ratio, the firm is comfortable zone in paying it interest obligations. By looking at both capital structure and coverage ratio, the solvency position of the firm is good. It has a scope for further bo
Average collection period is higher compared to average payment period. It may be an indication of inability of the company to collect money from its customers Morever, it has low bargaining power over its suppliers, as is evident from comparatively less number of average payment pe
The company is able to generate around Rs.1.67 for every rupee of investment in total assets The company is able to generate around Rs.1.67 for every rupee of investment in fixed assets Despite fixed asset turnover ratio marginally increased compared to previous year, current asset turnover resultantly total as It is an indication of marginal decline in asset utilization efficiency of the company. The marginal decline in current asset eficie
All profitbility ratios marginally declined compared to previous years'. This observation was already evident from low total as
peer group and industry average is also required to have meaningful conclusion.
ance and investment in fixed assets is relatively lower than the investment in current assets he trade creditors and also can increase its investments in fixed assets, so as to bring a balance between profitability and liquidty
the year 2012, which is less than the previous year's values. It is due to repayment of debt sources for financing
asset turnover resultantly total asset turnover decreased. ginal decline in current asset eficiency is mainly due to increase in receivables.
INCOME STATEMENT INCOME Sales Other income Stock adjustments (Closing stock-Opening stock) Total EXPENDITURE Raw material Employee compensation Power and fuel Other manufacturing expenses Research and development Depreciation Advertising Other marketing and selling expenses General and administrative expenses Training expenses Restructuring expenses Interest Tax expenses Net profit Total 2012 3300 12 0 3312 1485 200 35 500 50 80 120 105 160 70 10 35 132 330 3312
BALANCE SHEET AS ON MAR 31, 2012 LIABILITIES NET WORTH LONG TERM DEBT DEFERRED TAX LIABILITIES SHOR TERM DEBT TRADE CREDITORS TOTAL ASSETS GOODWILL INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT (NET) INVESTMENTS INVENTORIES PREPAID EXPENSES RECEIVABLES CASH AND BANK TOTAL 1370 400 60 100 50 1980 200 45 400 150 235 5 650 295 1980
2011 3000 10 20 3030 1200 180 30 410 180 80 130 100 160 90 10 40 120 300 3030
Vertical Analysis (Individual account balance/Net Sales)*100 2012 2011 100.00 100.00 0.36 0.33 0.00 0.67 100.36 101.00 45.00 6.06 1.06 15.15 1.52 2.42 3.64 3.18 4.85 2.12 0.30 1.06 4.00 10.00 100.36 40.00 6.00 1.00 13.67 6.00 2.67 4.33 3.33 5.33 3.00 0.33 1.33 4.00 10.00 101.00
AS ON MAR 31, 2011 1070 500 50 100 40 1760 200 50 400 100 255 5 550 200 1760
Vertical Analysis (Individual account balance/Total assets)*100 AS ON MAR 31, ON MAR 31, 2011 AS 2012 69.19 20.20 3.03 5.05 2.53 100.00 10.10 2.27 20.20 7.58 11.87 0.25 32.83 14.90 100.00 54.04 25.25 2.53 5.05 2.02 88.89 10.10 2.53 20.20 5.05 12.88 0.25 27.78 10.10 88.89
Around 69% of total asset are sourced fro Around 20% is from long term debt
Out of total assets, intangible assets are a Inventory is around 12% and receivables As a whole, it is observed that receivables
5% of sales for the year 2012 as against to 40% in the previous years
% of total asset are sourced from internal capital as against to 54% in the previous year % is from long term debt
l assets, intangible assets are around 12% and tangible fixed assets are around 20% s around 12% and receivables is around 30%. , it is observed that receivables account for major part of the assets compared with even tangible fixed assets
INCOME STATEMENT INCOME Sales Other income Stock adjustments (Closing stock-Opening stock) Total EXPENDITURE Raw material Employee compensation Power and fuel Other manufacturing expenses Research and development Depreciation Interest Other marketing and selling expenses General and administrative expenses Training expenses Restructuring expenses Interest Tax expenses Net profit Total
BALANCE SHEET LIABILITIES NET WORTH LONG TERM DEBT DEFERRED TAX LIABILITIES SHOR TERM DEBT TRADE CREDITORS TOTAL ASSETS GOODWILL INTANGIBLE ASSETS PROPERTY, PLANT AND EQUIPMENT (NET) INVESTMENTS INVENTORIES PREPAID EXPENSES RECEIVABLES CASH AND BANK TOTAL
2012 3300 12 0 3312 1485 200 35 500 50 80 120 105 160 70 10 35 132 330 v 3312
2011 3000 10 20 3030 1200 180 30 410 180 80 130 100 160 90 10 40 120
Absolute change % Change 300 10.00 2 20.00 -20 -100.00 282 9.31 285 20 5 90 -130 0 -10 5 0 -20 0 -5 12 #VALUE! 582 23.75 11.11 16.67 21.95 -72.22 0.00 -7.69 5.00 0.00 -22.22 0.00 -12.50 10.00 #VALUE! 21.32
2730
AS ON MAR 31, 2012 1370 400 60 100 50 1980 200 45 400 150 235 5 650 295 1980
AS ON MAR 31, 2011 1070 500 50 100 40 1760 200 50 400 100 255 5 550 200 1760 300 -100 10 0 10 220 0 0 -5 0 50 -20 0 100 95 220 28.04 -20.00 20.00 0.00 25.00 12.50 0.00 -10.00 0.00 50.00 -7.84 0.00 18.18 47.50 12.50
Increase in rawmaterial consumption is observed. Proportionate increase in raw material consumption is more tnan proporti Increase in rawmaterial consumption is observed. Proportionate increase in raw material consumption is more tnan proporti It may be an indication of rise in raw material prices. Not only rawmaterial cost but also other operating expenses also increased. Decrease is observed in Research and Development expenses and interest Decrease is in interst is due to repayment of a part of long term debt
An increase in netwoth of the company is observed. This is due to reatined earnings in the previous year A part of debt is repaid, as is evident from fall in debt by 20% An increase in trade creditors is also observed
An increase in receivables and cash is observed Proportionate in increase in receivables is more than the proportionate in sales. It is also an indication of inability of the comp From this, it is observed that the retained earningss of the previous year have been partly put in investments and partly kept
onsumption is more tnan proportionate increase in sales. onsumption is more tnan proportionate increase in sales.
previous year
indication of inability of the company to collect money from its customers ut in investments and partly kept in the form cash and receivables.A part of long term loan is repaid. Retained earnigs are invested in fixe