Description
This is a spreadsheet about the balance sheet analysis of suzlon energy.
Balance sheet
Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities 7,048.40 5,068.61 3,754.36 1,665.88 2,582.33 1,505.10 1,261.41 4,466.07 3,563.51 2,492.95 717.97 947.91 (in Rs. crores) Mar ' 07 Mar ' 06 Mar ' 05
-
287.76 287.53 86.92 0.02 15 115 6,648.27 3,425.53 2,519.72 727.65
299.39
672.26 771.78 276.61 285.46 2,412.48 364.86 58.76 37.08 10,032.40 4,849.95 3,157.62 1,252.11
779.2 266.98 512.22 134.63 4,919.48 -
567.04 178.57 388.47 92.71 805.26
400.41 104.73 295.68 76.25 292.74
217.88
57.61 160.27 17.93 126.01
10,032.40 4,849.95 3,157.62 1,252.11
4,919.48 -
805.26 -
292.74 251.63
126.01
7,584.65 3,607.72
78.61
Number of equity sharesoutstanding (Lacs)
14969.34 2877.65 2875.31
869.23
Profit and Loss Account
(in Rs crores) Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings
6,942.24 5,380.37 3,788.46 1,917.50
4,274.96 3,265.14 386.68 288.3 139.34 111.46 384.4 327.42 153.75 142.51 5,339.13 4,134.83 1,603.11 1,245.54 109.38 86.25 1,712.49 1,331.79 142.14 104.03 86.21 73.49 1,484.14 1,154.27 89.95 69.4 1,394.19 1,084.87 -128.35 -34.69 -0.13 10.96 1,265.71 1,061.14 2,743.57 1,943.63 149.69 143.88 1.5 25.44 20.39 2,568.44 1,777.86
2,295.66 1,147.99 263.96 20.48 62.96 35.32 167.98 177.45 60.08 72.08 2,850.64 1,453.32 937.82 464.18 69.28 22.96 1,007.10 487.15 56.93 43.65 45.87 38.97 0.06 904.3 404.47 81.43 30.92 822.87 373.55 -1.64 -12.32 -0.04 0.24 821.19 361.47 1,348.14 668.1 143.76 34.78 1.51 1.51 20.38 4.87 1,182.49 626.95
Interpretation 1. Liquidity or Short term Solvency Ratio
A .Current Ratio:Importance: It indicates the firms short term solvency position. A ratio of 2:1 is considered as ideal. If the ratio is less than one the firm faces problems in meeting its short term obligations. Hence it is so important for every organization. Formula:
Ratios Current Ratio
2005 2.32
2006 2.98
2007 3.37
2008 2.73
Current Ratio
4 3 2 1 0 1 2 3 4 5 Current Ratio
Interpretation: The Ratio is satisfactory because it is more than 2:1. But it has been fluctuating over the years. The Current Assets of the company have increased from 4994.61 to 6954.47 and Current liabilities are increased from 1501.98 to 2582.05 by which the ratio is decreased as compare to the last year. In 2007 the ratio is 3.37 and in 2008 it becomes 2.73.
B .Quick Ratio:Importance: As stock may not be converted in to cash quickly we can not measure the firm’s efficiency in meeting its obligations. Quick ratio is more accurate method than Current ratio and is more useful. The ideal ratio is 1:1.
Formula: Ratios Quick Ratio 2005 1.56 2006 2.05 2007 2.4 2008 2.12
Quick Ratio
3 2.5 2 1.5 1 0.5 0 1 2 3 4 5 Quick Ratio
Interpretation: The ratio has been increasing for three years but it dropped in 2008. The ratio is satisfactory because it is more than the ideal ratio. The Current liabilities have increased and Current assets also increased but after deducting the inventory in ratio is little bit decreased. In 2007 the ratio is 2.40 and in 2008 it becomes 2.12.
C .Debt-Equity Ratio:Importance: It indicates the relationship between the long term loans and share holders funds. So it is much important in the view of invester. It gives the information about the relation between the owners funds to the share holders funds. There’s no ideal ratio. Formula: Ratios Debt-Equity Ratio 2005 0.44 2006 0.13 2007 0.33 2008 0.46
Debt-Equity Ratio
0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 5 Debt-Equity Ratio
Interpretation: The ratio is satisfactory because it is less the 2:1. There is a 2 times increased in share holders funds as compared to the last year and Rs 1948.1cr increase in long term debt, which effect the ratio. In 2007 the ratio is 0.33 and in 2008 it becomes 0.46.
D .Proprietary Ratio:Importance: It indicates relation between the assets and its long term debts and other investments. Formula: Ratios Proprietary Ratio 2005 0.84 2006 0.9 2007 0.94 2008 0.97
Proprietary Ratio
1 0.95 0.9 0.85 0.8 0.75 1 2 3 4 5 Proprietary Ratio
Interpretation: The ratio has been gradually increasing over the years and is satisfactory because it is less than 1. In 2007 net worth of the company is 4550.46cr and 2008 it becomes 9722.79. In 2007 the Fixed assets are 4849.95cr and in 2008 it is 10032.40. As you see the amount of Fixed Assets and Net Worth is increasing in a proportionate rate, that’s why the ratio becomes 0.97 from 0.94.
E .Interest Coverage Ratio:Importance: Shows the relation between the interest to be paid and profits, the ratio is low we’ve to pay off the loans in order to retain profits. Formula:
Ratios Interest Coverage Ratio
2005 9.26
2006 15.88
2007 11.09
2008 10.44
Interest Coverage Ratio
20 15 10 5 0 1 2 3 4 5 Interest Coverage Ratio
Interpretation: There is a increase in PBT from 1119.58 to 1506.96 and increase in Fixed interest charges 101.47 in 2007 and 139.61 in 2008 due to which there is a change in the ratio. In 2007 the ratio is 11.09 its decreased to 10.44 in 2008.
2. Activity Ratio or Turnover Ratio:A .Inventory Turnover Ratio:Importance: By determining this ratio we can know the cost of goods sold, with this we can restrict our CGS. Formula:
Ratios Inventory Turnover Ratio
2005 3.96
2006 3.56
2007 3.96
2008 4.7
Stock Turnover
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1 2 3 4
Interpretation : The Cost of good sold is increased from 3232.47 to 4226.99 and the Average stock remains higher as compared to the last year which have effect on the ratio. In 2007 the ratio was 3.96 and it increased to 4.70.
B .Inventory Holding Period:-
Importance: As it dealing with the stock remained in the godown to be sold the cost will go on increase , hence by this ratio we can know and can increase our efforts of sales and decrease this ratio.
Formula: Ratios Inventory Holding Period 2005 2006 2007 2008 90.90 101.12 90.90 76.59
Inventory Holding Period (days)
120 100 80 60 40 20 0 1 2 3 4 5 Inventory Holding Period (days)
Interpretation: Due to increase in the Stock Turnover ratio, the holding period days have decreased which is good for the company. In 2007 the holding period is 90.90 and In 2008 it becomes to 76.59.
C. Working Capital Turnover Ratio:Importance: Explains about the net sales in relation to current assets and liabilities, which can determine the target of sales. Formula:
Ratios 2005 Working Capital Turnover Ratio 2.08
2006 1.55
2007 2008 1.54 1.58
Working Capital Turnover Ratio
2.5 2 1.5 1 0.5 0 1 2 3 4 5 Working Capital Turnover Ratio
Interpretation: There is a increase in the sales from 5380.37 to 6926.01 and increase in the Work in Capital from 3492.63 to 4372.42. As compared to the last year the proportion of work in capital and net sales is slightly changed that’s why the ratio is increased little bit.
D .Fixed Assets Turnover Ratio:Importance: It gives us details about the turn over/ profit with the given fixed assets (efficiency of fixed assets utilization) Formula:
Ratios Fixed Assets Turnover Ratio
2005 9.44
2006 2007 2008 10.53 10.36 9.65
Fixed Assets Turnover Ratio
11 10.5 10 9.5 9 8.5 1 2 3 4 5 Fixed Assets Turnover Ratio
Interpretation: There is a increase in the company sales which is good sign for a company. And increase in fixed assets from 481.18 to 646.85 in 2008, which effects the ratio. In 2008 the ratio is 10.36 and in 2008 it becomes 9.65.
4 .Profitability Ratio:A .Gross Profit Ratio Importance: It tells about the profit due to sales, so that we can put efforts to increase profits. Formula:
Ratios Gross Profit Ratio
2005 22.17
2006 23.54
2007 2008 21.78 21.85
Gross Profit Ratio
24 23.5 23 22.5 22 21.5 21 20.5 1 2 3 4 5
Gross Profit Ratio
Interpretation: The Gross Profit is increased by 52cr and Sales are increased by 1045cr which effects the ratio. The ratio is 21.78 in 2007 and 21.85 in 2008.
B. Net Profit Ratio Importance: It tells about the profit due to sales, so that we can put efforts to increase profits. Formula: Net Profit Ratio = (Net Profit/ Sales)* 100 Ratios Net Profit Ratio 2005 18.62 2006 21.28 2007 19.41 2008 20.09
Interpretation: There is slight increase in Net profit ratio in 2008 which is a good sign for the company.
C .Operating Ratio:Importance: By this ratio we can control our operating expenses. Formula: Ratios Operating Ratio 2005 24.2 2006 2007 2008 24.75 23.14 23.09
Operating Ratio
25 24.5 24 23.5 23 22.5 22 1 2 3 4 5 Operating Ratio
Interpretation: For calculating the Operating Ratio we have to add the operating expenses in Cost of Goods Sold. The operating expenses have increased slightly which decreased the ratio. Last year the ratio is 23.14 and in 2008 it becomes to 23.09.
D .Earning Per Share:Importance: It is useful for the long term investors. From the past earning investers make decisions. No ideal ratio. Formula:
Ratios Earning Per Share
2005 42.8
2006 28.57
2007 2008 37.65 9.31
Earning Per Shares Ratio
50 40 30 20 10 0 1 2 3 4 5 Earning Per Shares Ratio
Interpretation: In Year 2007 the company EPS is 37.65 it’s decreased to 9.31 in 2008. The profit was decreased due to financial crises in the market in 2008.
doc_144486578.xlsx
This is a spreadsheet about the balance sheet analysis of suzlon energy.
Balance sheet
Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities 7,048.40 5,068.61 3,754.36 1,665.88 2,582.33 1,505.10 1,261.41 4,466.07 3,563.51 2,492.95 717.97 947.91 (in Rs. crores) Mar ' 07 Mar ' 06 Mar ' 05
-
287.76 287.53 86.92 0.02 15 115 6,648.27 3,425.53 2,519.72 727.65
299.39
672.26 771.78 276.61 285.46 2,412.48 364.86 58.76 37.08 10,032.40 4,849.95 3,157.62 1,252.11
779.2 266.98 512.22 134.63 4,919.48 -
567.04 178.57 388.47 92.71 805.26
400.41 104.73 295.68 76.25 292.74
217.88
57.61 160.27 17.93 126.01
10,032.40 4,849.95 3,157.62 1,252.11
4,919.48 -
805.26 -
292.74 251.63
126.01
7,584.65 3,607.72
78.61
Number of equity sharesoutstanding (Lacs)
14969.34 2877.65 2875.31
869.23
Profit and Loss Account
(in Rs crores) Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings
6,942.24 5,380.37 3,788.46 1,917.50
4,274.96 3,265.14 386.68 288.3 139.34 111.46 384.4 327.42 153.75 142.51 5,339.13 4,134.83 1,603.11 1,245.54 109.38 86.25 1,712.49 1,331.79 142.14 104.03 86.21 73.49 1,484.14 1,154.27 89.95 69.4 1,394.19 1,084.87 -128.35 -34.69 -0.13 10.96 1,265.71 1,061.14 2,743.57 1,943.63 149.69 143.88 1.5 25.44 20.39 2,568.44 1,777.86
2,295.66 1,147.99 263.96 20.48 62.96 35.32 167.98 177.45 60.08 72.08 2,850.64 1,453.32 937.82 464.18 69.28 22.96 1,007.10 487.15 56.93 43.65 45.87 38.97 0.06 904.3 404.47 81.43 30.92 822.87 373.55 -1.64 -12.32 -0.04 0.24 821.19 361.47 1,348.14 668.1 143.76 34.78 1.51 1.51 20.38 4.87 1,182.49 626.95
Interpretation 1. Liquidity or Short term Solvency Ratio
A .Current Ratio:Importance: It indicates the firms short term solvency position. A ratio of 2:1 is considered as ideal. If the ratio is less than one the firm faces problems in meeting its short term obligations. Hence it is so important for every organization. Formula:
Ratios Current Ratio
2005 2.32
2006 2.98
2007 3.37
2008 2.73
Current Ratio
4 3 2 1 0 1 2 3 4 5 Current Ratio
Interpretation: The Ratio is satisfactory because it is more than 2:1. But it has been fluctuating over the years. The Current Assets of the company have increased from 4994.61 to 6954.47 and Current liabilities are increased from 1501.98 to 2582.05 by which the ratio is decreased as compare to the last year. In 2007 the ratio is 3.37 and in 2008 it becomes 2.73.
B .Quick Ratio:Importance: As stock may not be converted in to cash quickly we can not measure the firm’s efficiency in meeting its obligations. Quick ratio is more accurate method than Current ratio and is more useful. The ideal ratio is 1:1.
Formula: Ratios Quick Ratio 2005 1.56 2006 2.05 2007 2.4 2008 2.12
Quick Ratio
3 2.5 2 1.5 1 0.5 0 1 2 3 4 5 Quick Ratio
Interpretation: The ratio has been increasing for three years but it dropped in 2008. The ratio is satisfactory because it is more than the ideal ratio. The Current liabilities have increased and Current assets also increased but after deducting the inventory in ratio is little bit decreased. In 2007 the ratio is 2.40 and in 2008 it becomes 2.12.
C .Debt-Equity Ratio:Importance: It indicates the relationship between the long term loans and share holders funds. So it is much important in the view of invester. It gives the information about the relation between the owners funds to the share holders funds. There’s no ideal ratio. Formula: Ratios Debt-Equity Ratio 2005 0.44 2006 0.13 2007 0.33 2008 0.46
Debt-Equity Ratio
0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 5 Debt-Equity Ratio
Interpretation: The ratio is satisfactory because it is less the 2:1. There is a 2 times increased in share holders funds as compared to the last year and Rs 1948.1cr increase in long term debt, which effect the ratio. In 2007 the ratio is 0.33 and in 2008 it becomes 0.46.
D .Proprietary Ratio:Importance: It indicates relation between the assets and its long term debts and other investments. Formula: Ratios Proprietary Ratio 2005 0.84 2006 0.9 2007 0.94 2008 0.97
Proprietary Ratio
1 0.95 0.9 0.85 0.8 0.75 1 2 3 4 5 Proprietary Ratio
Interpretation: The ratio has been gradually increasing over the years and is satisfactory because it is less than 1. In 2007 net worth of the company is 4550.46cr and 2008 it becomes 9722.79. In 2007 the Fixed assets are 4849.95cr and in 2008 it is 10032.40. As you see the amount of Fixed Assets and Net Worth is increasing in a proportionate rate, that’s why the ratio becomes 0.97 from 0.94.
E .Interest Coverage Ratio:Importance: Shows the relation between the interest to be paid and profits, the ratio is low we’ve to pay off the loans in order to retain profits. Formula:
Ratios Interest Coverage Ratio
2005 9.26
2006 15.88
2007 11.09
2008 10.44
Interest Coverage Ratio
20 15 10 5 0 1 2 3 4 5 Interest Coverage Ratio
Interpretation: There is a increase in PBT from 1119.58 to 1506.96 and increase in Fixed interest charges 101.47 in 2007 and 139.61 in 2008 due to which there is a change in the ratio. In 2007 the ratio is 11.09 its decreased to 10.44 in 2008.
2. Activity Ratio or Turnover Ratio:A .Inventory Turnover Ratio:Importance: By determining this ratio we can know the cost of goods sold, with this we can restrict our CGS. Formula:
Ratios Inventory Turnover Ratio
2005 3.96
2006 3.56
2007 3.96
2008 4.7
Stock Turnover
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 1 2 3 4
Interpretation : The Cost of good sold is increased from 3232.47 to 4226.99 and the Average stock remains higher as compared to the last year which have effect on the ratio. In 2007 the ratio was 3.96 and it increased to 4.70.
B .Inventory Holding Period:-
Importance: As it dealing with the stock remained in the godown to be sold the cost will go on increase , hence by this ratio we can know and can increase our efforts of sales and decrease this ratio.
Formula: Ratios Inventory Holding Period 2005 2006 2007 2008 90.90 101.12 90.90 76.59
Inventory Holding Period (days)
120 100 80 60 40 20 0 1 2 3 4 5 Inventory Holding Period (days)
Interpretation: Due to increase in the Stock Turnover ratio, the holding period days have decreased which is good for the company. In 2007 the holding period is 90.90 and In 2008 it becomes to 76.59.
C. Working Capital Turnover Ratio:Importance: Explains about the net sales in relation to current assets and liabilities, which can determine the target of sales. Formula:
Ratios 2005 Working Capital Turnover Ratio 2.08
2006 1.55
2007 2008 1.54 1.58
Working Capital Turnover Ratio
2.5 2 1.5 1 0.5 0 1 2 3 4 5 Working Capital Turnover Ratio
Interpretation: There is a increase in the sales from 5380.37 to 6926.01 and increase in the Work in Capital from 3492.63 to 4372.42. As compared to the last year the proportion of work in capital and net sales is slightly changed that’s why the ratio is increased little bit.
D .Fixed Assets Turnover Ratio:Importance: It gives us details about the turn over/ profit with the given fixed assets (efficiency of fixed assets utilization) Formula:
Ratios Fixed Assets Turnover Ratio
2005 9.44
2006 2007 2008 10.53 10.36 9.65
Fixed Assets Turnover Ratio
11 10.5 10 9.5 9 8.5 1 2 3 4 5 Fixed Assets Turnover Ratio
Interpretation: There is a increase in the company sales which is good sign for a company. And increase in fixed assets from 481.18 to 646.85 in 2008, which effects the ratio. In 2008 the ratio is 10.36 and in 2008 it becomes 9.65.
4 .Profitability Ratio:A .Gross Profit Ratio Importance: It tells about the profit due to sales, so that we can put efforts to increase profits. Formula:
Ratios Gross Profit Ratio
2005 22.17
2006 23.54
2007 2008 21.78 21.85
Gross Profit Ratio
24 23.5 23 22.5 22 21.5 21 20.5 1 2 3 4 5
Gross Profit Ratio
Interpretation: The Gross Profit is increased by 52cr and Sales are increased by 1045cr which effects the ratio. The ratio is 21.78 in 2007 and 21.85 in 2008.
B. Net Profit Ratio Importance: It tells about the profit due to sales, so that we can put efforts to increase profits. Formula: Net Profit Ratio = (Net Profit/ Sales)* 100 Ratios Net Profit Ratio 2005 18.62 2006 21.28 2007 19.41 2008 20.09
Interpretation: There is slight increase in Net profit ratio in 2008 which is a good sign for the company.
C .Operating Ratio:Importance: By this ratio we can control our operating expenses. Formula: Ratios Operating Ratio 2005 24.2 2006 2007 2008 24.75 23.14 23.09
Operating Ratio
25 24.5 24 23.5 23 22.5 22 1 2 3 4 5 Operating Ratio
Interpretation: For calculating the Operating Ratio we have to add the operating expenses in Cost of Goods Sold. The operating expenses have increased slightly which decreased the ratio. Last year the ratio is 23.14 and in 2008 it becomes to 23.09.
D .Earning Per Share:Importance: It is useful for the long term investors. From the past earning investers make decisions. No ideal ratio. Formula:
Ratios Earning Per Share
2005 42.8
2006 28.57
2007 2008 37.65 9.31
Earning Per Shares Ratio
50 40 30 20 10 0 1 2 3 4 5 Earning Per Shares Ratio
Interpretation: In Year 2007 the company EPS is 37.65 it’s decreased to 9.31 in 2008. The profit was decreased due to financial crises in the market in 2008.
doc_144486578.xlsx