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4.1 Sales/capital ratio A measure of total asset Sales/Capital Employed Total sales= The higher ratio implies that the company is
utilisation. What sales are 2655.74 Capital efficiently utilizing its capital resources in
being generated by each INR Employed= 61.38 revenue generation.
worth of assets invested in the Sales/Capital
business Employed = 43.26
4.2 Sales profit/fixed assets This ratio is about fixed asset Sales or profit/ fixed Sales= 2655.74 The ratio is on the lower side, which mean
ratio capacity. assets Fixed assets= a large sum of money is tied up in fixed
2400.26 assets of the company.
Sales/fixed assets
= 1.106
4.3 Stock turnover ratio Stock turnover ratio is an Cost of sales/ Average Cost of sales= Measures the number of times the inventory
important measure of how well stock value 2655.74 Average is rotated in a given year. The higher the
a company generates sales stock= 684.11 number, the better is the company's
from its stock. Stock turnover= financial health.
3.88
4.4 Credit given “Debtor The "debtor days" ratio trade debtors Trade Debtors= The debtor days is comparatively lower
days” indicates whether debtors are average/sales *365 610.27 Sales= which means that there is no problem with
being allowed excessive credit. 2655.74 Credit debt collection.
Given= 83.87
4.5 Credit taken “Creditor A similar calculation to that (trade Trade Creditors+ The creditor days is high which means that
days” for debtors, giving an insight creditors1+accruals)/cost accruals = 190.63 the company is taking full advantage of
into whether a business is of sales+other purchases cost of sales+other credit available to it.
taking full advantage of trade * 365 purchases=
credit available to it. 3858.17
Credit taken =
112.63
5 Investors ratio There are several ratios
commonly used by investors to
assess the performance of a
business as an investment:
5.1 Earning per share EPS measures the overall Earnings (profits) Earning Per A high EPS ratio attracts investors as it
profit generated for each share attributable to ordinary Share(in ratios) - means that there is more money in company
in existence over a particular shareholders / Weighted 15.98(year1) either to re invest or distribute in
period. average ordinary shares 5.51(year2) shareholder as dividend.
in issue during the year 13.37(year3)
16.29(year4)
14.36(year5) =
13.102
5.2 Price-Earnings Ratio the P/E ratio is an indication of Market price of share / Market It derieves the amount of rupee investor
("P/E Ratio") how highly the market "rates" Earnings per Share price=640.34/ needs to put in, order to get an INR out of
or "values" a business EPS=13.102 company income.
PE ratio=48.8
5.3 Dividend yield It provides a guide as to the Latest dividend per dividend oer
ability of a business to ordinary share / current share= /current
maintain a dividend payment. market price of share) x market
It also measures the proportion 100 price=819.20
of earnings that are being
retained by the business rather
than distributed as dividends.