RATIO ANALYSIS AND

INTERPRETATION

RD350

COMPANY PROFILE
ABOUT INDIA YAMAHA MOTOR PVT. LTD.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 jointventure with the Escorts Group in 1996.
However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary
of Yamaha Motor Co., Ltd, Japan (YMC).
In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor
in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)".
I

CURRENT SCENARIO
Yamaha continues to soar high, Domestic Sales up by 35.2 % in September.
Sep 06, 2011
Yamaha zips ahead with the launch of the YZF-R15 version 2.0
Sep 05, 2011
Fourth Leg of Yamaha YZF-R15 One Make Race - Season 2011 rounds off in style.
Sep 01, 2011
Yamaha upbeat about upcoming festive season, registers a domestic sales growth of 32% in August.
Aug 01, 2011
Yamaha continues to ride high on sales in July 2011.

BALANCE SHEET
Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Total Share Capital

289.37

144.68

144.68

144.68

101.18

Equity Share Capital

289.37

144.68

144.68

144.68

101.18

Share Application Money

Preference Share Capital

4,620.85

2,783.66

1,725.01

1,442.91

5,433.14

4,910.22

2,928.34

1,869.69

1,587.59

5,534.32

23.53

12.98

6.95

22.46

Unsecured Loans

301.62

1,325.60

1,570.00

1,327.39

1,602.97

Total Debt

325.15

1,338.58

1,570.00

1,334.34

1,625.43

5,235.37

4,266.92

3,439.69

2,921.93

7,159.75

Gross Block

3,395.16

3,379.25

3,350.20

2,994.68

3,178.54

Less: Accum. Depreciation

1,912.45

1,899.66

1,807.91

1,726.07

1,904.94

Net Block

1,482.71

1,479.59

1,542.29

1,268.61

1,273.60

149.34

120.84

106.48

34.74

107.62

Sources Of Funds

Reserves
Revaluation Reserves
Networth
Secured Loans

Total Liabilities
Application Of Funds

Capital Work in Progress

Investments
Inventories
Sundry Debtors
Cash and Bank Balance

4,795.20
547.28
362.76
155.45

4,021.52
446.21
272.84
100.2

1,808.52
338.84
358.65
135.68

1,857.14
349.61
275.31
54.74

6,447.53
309.7
529.83
62.16

Total Current Assets

1,065.49

819.25

833.17

679.66

901.69

Loans and Advances

3,891.66

2,291.29

1,567.09

1,099.68

2,925.24

Fixed Deposits
Total CA, Loans &
Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions

401.04
5,358.19

1.21
3,111.75

1.19
2,401.45

1.33
1,780.67

21.32
3,848.25

0
2,624.35
3,925.72
6,550.07

0
2,218.06
2,248.72
4,466.78

0
1,378.20
1,224.15
2,602.35

0
1,185.19
834.04
2,019.23

0
1,683.46
2,833.79
4,517.25

-1,191.88

-1,355.03

-200.9

-238.56

-669

183.3

5,235.37
959.66

4,266.92
818.25

3,439.69
924.96

2,921.93
1,129.29

7,159.75
811.66

169.69

202.4

129.23

109.73

546.96

Net Current Assets

Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

PROFIT AND LOSS ACCOUNT

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

Income

Sales Turnover

17,386.51

12,420.95

9,310.24

9,856.66

10,741.91

Excise Duty

934.71

607.7

610.07

1,029.51

1,321.67

Net Sales

16,451.80

11,813.25

8,700.17

8,827.15

9,420.24

Other Income

1,176.00

22.5

-6.2

170.27

567.16

Stock Adjustments

82.79

47.6

-24.49

67.85

-0.9

Total Income

17,710.59

11,883.35

8,669.48

9,065.27

9,986.50

Raw Materials

11,965.30

8,187.11

6,502.10

6,760.04

6,969.50

Power & Fuel Cost

86.61

70.35

60.89

69.2

79.34

Employee Cost
Other Manufacturing
Expenses
Selling and Admin
Expenses

494.33

411.76

366.67

350.09

310.07

61.77

57.54

57.08

53.72

74.53

450.18

407.61

381.73

390.15

457.17

Miscellaneous Expenses
Preoperative Exp
Capitalised

237.76

221.94

225.56

209.63

230.89

-16.66

-15.67

-14.42

-23.04

-32.05

Total Expenses

13,279.29

9,340.64

7,579.61

7,809.79

8,089.45

Operating Profit

3,255.30

2,520.21

1,096.07

1,085.21

1,329.89

Expenditure

PBDIT

4,431.30

2,542.71

1,089.87

1,255.48

1,897.05

Interest

1.69

5.98

21.01

5.16

5.34

PBDT

4,429.61

2,536.73

1,068.86

1,250.32

1,891.71

Depreciation

122.84

136.45

129.79

173.96

190.26

Other Written Off

1.12

0.39

Profit Before Tax

4,306.77

2,400.28

939.07

1,075.24

1,701.06

Extra-ordinary items

46.77

26.87

18.72

59.32

26.6

PBT (Post Extra-ord

Items)

4,353.54

2,427.15

957.79

1,134.56

1,727.66

Tax

1,011.02

710.12

301.61

378.78

490.09

Reported Net Profit

3,339.73

1,702.73

656.48

755.95

1,237.96

Total Value Addition

1,313.99

1,153.53

1,077.51

1,049.75

1,119.95

Preference Dividend

Equity Dividend
Corporate Dividend
Tax

1,157.47

578.73

318.3

289.37

404.73

187.77

96.12

54.1

49.18

68.78

Shares in issue (lakhs)

2,893.67

1,446.84

1,446.84

1,446.84

1,011.84

Earnings Per Share (Rs)

115.42

117.69

45.37

52.25

122.35

Equity Dividend (%)

400

400

220

200

400

Book Value (Rs)

169.69

202.4

129.23

109.73

546.9

Per share data

(annualized)

RATIO INTERPRETATION
Investment Valuation Ratios
Face Value
Dividend Per Share
Operating Profit Per Share (Rs)
Net Operating Profit Per Share (Rs)
Free Reserves Per Share (Rs)
Bonus in Equity Capital
Profitability Ratios
Operating Profit Margin (%)
Profit Before Interest And Tax
Margin (%)
Gross Profit Margin (%)
Cash Profit Margin (%)
Adjusted Cash Margin (%)
Net Profit Margin (%)
Adjusted Net Profit Margin (%)
Return On Capital Employed (%)
Return On Net Worth (%)
Adjusted Return on Net Worth (%)
Return on Assets Excluding
Revaluations
Return on Assets Including
Revaluations
Return on Long Term Funds (%)

Mar, 11

Mar , 10

Mar , 09

Mar , 08

Mar , 07

10
40
112.4
568.54
158.97
89.45

10
40
173.02
816.49
190.09
78.91

10
22
75.64
601.32
106.56
78.91

10
20
75.01
610.1
99.73
78.91

10
40
131.39
931.01
535.16
112.84

19.76

21.19

12.57

12.29

14.11

18.56
19.02
15.7
15.7
19.8
19.8
67.57
68.01
51.42

19.78
20.03
16.2
16.2
14.23
14.23
59.01
58.14
61.53

10.88
11.08
10.55
10.55
7.4
7.4
32.8
38.92
47.78

10.03
10.32
10.48
10.48
8.32
8.32
39.71
47.61
48.91

11.65
12.09
12.18
12.18
12.66
12.66
20.9
22.36
18.09

169.69

202.4

116.56

109.73

546.96

169.69
69.67

202.4
59.19

116.56
35.36

109.73
39.71

546.96
20.97

Liquidity And Solvency Ratios

Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio
Financial Charges Coverage Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
Asset Turnover Ratio
Average Raw Material Holding
Average Finished Goods Held
Number of Days In Working Capital
Profit & Loss Account Ratios
Material Cost Composition
Imported Composition of Raw Materials
Consumed
Selling Distribution Cost Composition
Expenses as Composition of Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
Adjusted Cash Flow Times
Earnings Per Share
Book Value

0.8
0.71
0.07
0.03

0.69
0.55
0.46
0.45

0.84
0.73
0.84
0.71

0.88
0.64
0.84
0.84

0.84
0.76
0.29
0.29

2,093.39
0.07
2,166.08

421.06
0.46
443.88

53.71
0.84
59.89

224.91
0.84
258.84

280.28
0.29
315.98

2,049.86

308.56

38.42

181.43

268.53

32.8
51.77
32.8
4.85
3.14
4.85
5.58
9.15

28.87
37.41
28.87
3.5
2.77
3.5
7.91
9.13

28.64
27.45
28.64
2.6
2.53
2.6
6.39
9.97

29.33
21.93
29.33
2.95
3.02
2.95
5.24
10.73

36.88
22.66
36.88
2.96
1.32
2.96
5.08
8.14

-26.08

-41.29

-8.31

-9.73

-25.57

72.72

69.3

74.73

76.58

73.98

4.06

3.59

2.35

2.37

5.56

2.45

3.23

3.97

3.98

4.45

27.74

27.67

30.82

23.53

18.36

40.27

39.63

56.72

44.78

38.24

38.85
46.73
49.2
0.12
115.42
169.69

36.69
62.55
65.19
0.69
117.69
202.4

47.36
53.79
60.2
1.68
45.37
129.23

36.36
56.41
64.43
1.4
52.25
109.73

33.14
52.71
60.28
1.36
122.35
546.96

Current Ratio
The relationship between current assets and current liabilities is called current ratio.
It is a measure of general liquidity and is most widely used to make the
INTERPRETATION for short term financial position or liquidity of a firm.

Current Ratio = Current Assets / Current Liabilities

Current Ratio
0.84

0.8

0.88

0.84

0.69

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

INTERPRETATION
The ideal figure should always
be greater than 1.The
company has a current ratio
of 0.8 and it should look to
improve it. The higher the
better.

Liquid Ratio
It is the ratio of liquid assets to current liabilities. The true liquidity refers to the
ability of a firm to pay its short term obligations as and when they become due.

Liquid Ratio = Liquid Assets / Current Liabilities

Liquid Ratio
0.73

0.71
0.55

0.76
0.64

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

INTERPRETATION

A Companys liquidity ratio

should ideally be more than
1.a liquidity ratio of 1:1 is
considered satistaftory.since
the ratio is 0.71 the company
needs to work on its liquidity
ratio.

Inventory turnover ratio

This ratio is a relationship between the cost of goods sold during a particular period
of time and the cost of average inventory during a particular period. This ratio
indicates whether investment in stock is within proper limit or not.

Inventory Turnover Ratio = Cost of goods sold / Average

inventory at cost

Inventory Turnover Ratio

32.8

36.88
28.87

28.64

29.33

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

INTERPRETATION
The higher the better. A
higher inventory turnover
ratio shows either strong sales
or ineffective buying.

Debt Equity Ratio

Debt-to-Equity ratio indicates the relationship between the external equities or
outsiders funds and the internal equities or shareholders funds.

Debt Equity Ratio = External Equities /

Internal Equities

Debt Equity Ratio

0.84

0.84

INTERPRETATION

0.46
0.29
0.07
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Manufacturing companies tend

INTERPRETATION
to have
a debt equity ratio of
above 2.The company has a debtequity ratio of 0.7 which means
the company is not been wanting
to take risks.

Net Profit ratio

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as
percentage. The two basic components of the net profit ratio are the net profit and
sales. The net profits are obtained after deducting income-tax and, generally, non operating expenses and incomes are excluded from the net profits for calculating this
ratio.

Net Profit Ratio = (Net profit / Net sales) 100

Net Profit Margin(%)

INTERPRETATION

19.8
14.23

12.66
7.4

8.32

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

This ratio also indicates the

firms capacity to face adverse
economic conditions such as
low demand price
competition etc.

Gross profit ratio

Gross profit ratio (GP ratio) is the ratio of gross profit to net
sales expressed as a percentage. It expresses the
relationship between gross profit and sales.

Gross Profit Margin(%)

25
20

19.02

20.03

INTERPRETATION

15

12.09

11.08

10.32

Mar '09

Mar '08

10
5
0
Mar '11

Mar '10

Mar '07
Gross Profit Margin(%)

Gross profit margin is

fluctuating ,till 2010 Yamaha
was enjoying good profits but
again profit went down in
2011.

Conclusion

YAMAHAS FINANCIAL POSITION IS NOT AS PER STD.

WORKING CAPITAL RATIO IS NEGATIVE FOR ALL THE YEAR

WHICH IS NOT GOOD FOR THE COMPANY

CURRENT RATIO AND LIQUID RATIO IS ALSO SHOWING A

DECREASING TREND

YAHAMA SHOULD TRY TO IMPROVE ITS CURRENT

RATIO