GROSS

PROFIT RATIO
Interpretation:
Net
Cost of Purchase
Opening Closing
Net Sales
Goods
Stock (in
s plus
Stock (in
Gross Adequate funds to cover its OE
Year Sold (in Direct Profit
(in crs) crs) crs)
crs) Expenses Ratio(%)
(in crs) More net profit

 More funds to expand the

2008 7,693.94 3,703.29 230.36 3,701.23 228.3 51.86747
business.

2009 8,479.55 3,621.04 228.3 3,649.78 257.04 57.2968

 Sales)
Pr
*
Pro
Sales)
(Net
(Net

NET PROFIT
RATIO
Net Profit after
Year Tax Net Sales Net profit Ratio (%)

2008 1212.79 7282.87 16.652638

Interpretation:
Earned better net profit than
2009 1606.73 8027.2 20.01607 last year.

The ROI is high so the

investors will take keen interest
in the firm.

 good prospects of expanding

their business as the liquidity
would be high. .
 (OperatinC
Sales)
*
(Operating
Sales)

OPERATING
RATIO
Admin S & Net Interpretation:
D Expenses Purchas Closin
Openin Net
= COGS g Stock
es plus g
Sales
Operati percentage of net sales that is
Year Operating (in crs) Direct Stock ng Ratio
(in crs)
Expense (in crs)
(in crs)
(%)
consumed by operating cost.
Expenses
(in crs) s (in crs)
The ratio got reduced by app.
4.5 % in 2009.

50.2272  less percentage of cost means

2008 161.167 3,703.29 230.36 3,701.23 228.3 7,693.9
56
higher margin to earn profit.
44.6815
2009 167.756 3,621.04 228.3 3,649.78 257.04 8,479.5
55
 Operati
Operating

OPERATING
PROFIT
RATIO Interpretation:
percentage of net sales that is
available to achieve net profit.
Operating Profit
Year Operating Ratio (%)
Ratio (%)
2008 50.2273 49.7727 The ratio got increased by app. 6%
2009 44.6816 55.3184
in 2009.

 more chances of earning a higher

net profit than last year.
 Sales)
*
ProP
Sales)
(Cash
(Cash

CASH
PROFIT
RATIO Interpretation:
Year Net Profit Depreciation
Cash
Net Sales
Cash Profit increase of 3.5% in CPR as
Profit Ratio(%)
2008 1,213.00 320.54 1,533.54 7,693.94 19.93173 compared to NPR is due to the
2009 1,607.00 373.13 1,980.13 8,479.55 23.35181 addition of depreciation.
% change 32.48 16.41 29.12 10.21 17.15896
Depreciation got increased by
Years 2005 2006 2007 2008 2009 Average 16.41% in 2009.
Cash
Profit  ACC should maintain their assets
21.95 25.53 21.57 19.93 23.35 22.466
Margin( better.
%)