OPERATING PROFIT

Maruti suzuki bosch cummins

12061.5
10351.7
8884.4
6712.97

2163.54
1981.33

1960.36
1878.15

2093.2
801.82
775.11
735.05

732.45

864.1
0.00
2015 2016 2017 2018 2019

Operating profit meaning : Operating profit is an

accounting figure that measures the profit earned from a
company's ongoing core business operations, thus
excluding deductions of interest and taxes. This value
also does not include any profit earned from the firm's
investments, such as earnings from firms in which the
company has partial interest.

Formulae : Operating Profit = Operating Revenue -

Cost of Goods Sold (COGS) -operating expenses -
Depreciation – Amortization.

Interpretation :
From the figure, we come to know that Maruti
Suzuki has good operating profit and better than
bosch and cummins. Good operating profit
indicates better ability to pay for their fixed costs
and interest on debt.It is also usefull to survive
economic downturns.
 INVENTORY TURN-OVER RATIO
Maruti suzuki bosch cummins

25.94

25.87
23.69
21.08

20.77
10.11

9.69
9.66
9.52

9.05
9.6
8.76
8.48
6.9

0
2015 2016 2017 2018 2019

Inventory turnover ratio meaning : Inventory turnover is the

number of times a company sells and replaces its stock
of goods during a period. Inventory turnover provides
insight as to how the company manages costs and how
effective their sales efforts have been.

Formulae :
Inventory turnover ratio = Cost of goods sold/Average
inventories.

Interpretation :
Maruti Suzuki has good inventory turnover ratio and
much better than bosch and cummins. Good inventory
ratio indicates strong sales which Maruti Suzuki has as
compared to bosch and cummins.
 CURRENT RATIO
Maruti suzuki bosch cummins

2.33
2.26
2.08

2.08

1.91
1.89
1.79
1.71

1.67
0.68

0.7

0.56
0.55

0.49
0
2015 2016 2017 2018 2019

Meaning : CURRENT RATIO MEANING : The current ratio is a

liquidity ratio that measures a company’s ability to pay short-
term obligations or those due within one year. It tells
investors and analysts how a company can maximize the
current assets on its balance sheet to satisfy its current debt
and other payables.

CURRENT RATIO FORMULAE : Current ratio=Current

assets/Current liabilities.

Interpretation :

Maruti Suzuki has low current ratio compared to its

competitors. Bosch and cummins have good current
ratio and are consistent in maintaining them over the
years. A ratio between 1.5-3 indicates good for a healthy
business.
 ASSETS TURN-OVER RATIO
Maruti suzuki bosch cummins
2.15

2.14

2.03

2.02

1.95
1.75
1.62

1.48

1.36

1.28
1.24

1.3
1.14
0

0
2015 2016 2017 2018 2019

Asset turnover ratio meaning : The asset turnover ratio

measures the value of a company's sales
or revenues relative to the value of its assets. The asset
turnover ratio can be used as an indicator of the
efficiency with which a company is using its assets to
generate revenue.
Formulae:
Asset turnover ratio = Total sales /Beginning Assets +
Ending assets.
Interpretation :

Maruti Suzuki has good asset turnover ratio and better

compared to bosch and cummins. Bosch has not good asset
turnover ratio and has very low value as compared to its
competitors.In short Maruti Suzuki and cummins are more
efficient. Bosch has a lower asset turnover ratio, which
indicates it is not efficiently using its assets to generate sales.
 RETURN ON ASSETS RATIO
Maruti suzuki bosch cummins

3,270.33

3,094.68
3,036.70

2,883.15
2,339.89

149.01
125.59
104.13

143.8
12.79

14.34
11.06

11.91
135

13
2015 2016 2017 2018 2019

Return on total assets (ROTA) is a ratio that measures a

company's earnings before interest and taxes (EBIT)
relative to its total net assets. The ratio is considered to
be an indicator of how effectively a company is using it
assets to generate earnings. EBIT is used instead of
net profit to keep the metric focused on operating
earnings without the influence of tax or financing
differences when compared to similar companies.

FORMULAE:

Return on total assets = EBIT/Average total assets

Interpretation :Bosch has better returns on asset as compared

to Maruti and cummins. From the figure it shows that ,Bosch
is more effectively managing its assets to produce greater
amounts of net income. The higher the ROA ,the better,
because bosch is earning more money on less investment.
 EPS
Maruti suzuki bosch cummins

561

525.2
488

449
426

255.62
243.32

248.3
177.58
123

28.35

27.21

25.56

26.07
2015 2016 2017 26.5 2018 2019

Meaning : EPS is a financial ratio, which divides net

earnings available to common shareholders by the
average outstanding shares over a certain period of time. The
EPS formula indicates a company’s ability to produce net
profits for common shareholders. This guide breaks down the
Earnings per Share formula in detail

Formulae :
EPS= Total earnings/Outstanding shares.

Interpretation:
Bosch has better EPS compared to Maruti Suzuki and
cummins.Higher EPS indicates more money of your shares of
stock will be worth because investors are willing to pay more
for higher profits.Bosch’s EPS is increasing year by year which
is very good and a positive investment for the investors.