Description
The PPT explaining financial ratio analysis on Pantaloons retail. Covers balance sheets, P/L, major ratios for the brand.
Some important results – Balance Sheet
2008 Equity Reserves Total Loans Net Fixed Assets Total Current Assets 31.86 1,751.50 2,191.78 1,198.17 2,628.58 2007 29.35 1,062.82 1,299.58 674.60 1,749.45 2006 26.88 500.02 601.39 309.43 844.48 2005 22.00 196.53 286.21 213.74 403.87
Cash
Inventories Total Current Liabilities
121.10
1,429.84 637.66
162.97
885.96 359.58
21.77
507.02 245.44
21.50
275.93 144.82
Some important results – P/L Account
2008 2007 2006 2005 Sales 5,048.91 3,236.74 1,868.97 1,052.80
Total Cost
4,588.39
3,021.14
1,722.34
961.94
PBT
195.62
181.01
91.90
53.12
PAT
125.97
119.99
64.16
38.55
Cash Flow Statement Analysis
2008 Net Cash by Operating Activities Acquisition Fixed Assets Purchase of investments Net Cash Investing Activities Working Capital from Banks (19.21) 2007 (271.94) 2006 (89.81) 2005 (19.70) (654.52) (351.69) (1,410.82) (402.87) (119.39) (641.73) (116.75) (112.42) (434.46) (66.85) (31.88) (125.78)
556.17
(65.73)
82.76
(80.7)
Net Cash financing activities
Net Cash
1,388.16
1,054.87
524.53
113.73
(41.87)
141.20
26.95
7.65
Gross Profit Margin
2008 Gross Profit Margin 30.4% 2007 30.6% 2006 33.4% 2005 33.4%
Reason: 1. Growth in sale was matched by similar percentage growth in cost of goods sold .
Net Profit Margin
2008 Net Profit Margin Reasons: 2.4% 2007 3.6% 2006 3.43% 2005 3.65%
1. From 2006 to 2007, sales increased by ~73% whereas net profit increased by ~86%.
2. From 2007 to 2008, sales increased by 55% whereas net profit increased by ~5%. 3. Main reason being increase in costs – costs of goods sold (56%), Rent (58%), and marginal increases in ad & personnel costs. a. High real estate prices b. Probable sales at lower prices c. Possible increase in labor costs
Current Ratio
2008 Current Ratio 1.94 2007 1.92 2006 1.318 2005 1.897
Current Assets = Inventories + Cash + Other current assets Current Liabilities = Creditors + Other current liabilities + short term loans Reasons: 1. From 2005 onwards, current ratio has seen an almost a steady trend 2. Main Cause – 1. increase in inventory 2. Cash balance 3. From 2007 onwards, there is a large increase in fixed Assets & Inventory. Reasons : Large Scale Expansions.
Quick Ratio
2008 2007 2006 2005
Quick Ratio
1.702
2.22
1.31
0.798
Quick Assets = Cash + Other current assets
Inventory turnover (days)
2008 Inventory Turnover (in days) 120 2007 113 2006 115 2005 113
Reasons:
1. Seen to be constant across the years. 2. Similar percentage increases seen for COG and inventories 3. Is able to turnover the stock consistently in ~4 months.
Debt-Equity Ratio
2008 Debt Equity Ratio Reasons: 1.19 2007 1.19 2006 1.14 2005 1.29
1. From 2005 onwards, the ratio has been a constant.
2. Main reason being that both equity and debt have almost grown equally 2007-08 (~65%), 2006-07 (~110%) :
Asset Turnover Ratio
2008 Asset Turnover Ratio Reasons: 1.23 2007 1.36 2006 1.62 2005 2.03
1. A steady decline has been seen in the values starting from 2005.
2. Though both sales and total assets have been increasing over the time period, the growth in assets has been more when compared to growth in sales. 3. Assets have mainly increased due to increase in fixed assets and current assets. :
ROA Ratio
2008 ROA 3.94 2007 5.8 2006 7.06 2005 8.15
Reasons:
1. A steady decline is seen.
2. Assets have mainly increased due to increase in fixed assets and current assets.
:
Interest Coverage Ratio
2008 Interest Coverage Ratio Reasons: 2.5059 2007 3.4272 2006 4.0531 2005 3.4199
1. The ratio is seen to vary across the years.
2. In general company is able to generate sufficient funds to pay its interests. :
Dividend Payout Ratio
2008 Dividend Payout Ratio Reasons: 8.5 2007 6.3 2006 10.4 2005 14.2
1. The main reason (till 2007):- net profit has grown faster than the percentage by which dividend declared has grown.
2. Excess amount has lead to increase in reserves & surplus from 2005 onwards. Company seems to be retaining a large amount of the profit for future use (probably expansion).
Retention Ratio
2008 Retention Ratio 90.016 2007 92.65 2006 88.06 2005 81.40
DuPont Analysis
2008 Net Profit Sales Total Assets Equity 125.97 5,048.91 3189.08 1783.36 2007 119.99 3,236.74 2064.46 1,092.18 2006 64.16 1,868.97 908.47 526.90 2005 38.55 1,052.80 472.79 218.53
2008 Net Profit / Sales 0.0249
2007 0.0371
2006 0.0343
2005 0.0366
Sales / Assets
Assets / Equity ROE
1.5832
1.7882 0.0705
1.5678
1.8902 0.1099
2.0573
1.7242 0.1217
2.2268
2.1635 0.1763
Altman’s Z score
2008 NWC / TA RE / TA EBIT / TA MV equity / BV of liabilities Sales / TA Z Score 0.4848 0.4265 0.0476 1.5132 1.2296 3.47 2007 0.5678 0.4342 0.0490 2.6320 1.3224 4.35
Cost of Capital
Year 2006 – 07 2007 – 08 Beta 1.20 1.05 Rf 7.5% 6% Rm 13.5% 13.5 % Ke – CAPM 14.7% 13.88%
Year
Int
Tax
TOTAL LOANS
Kd
06 – 07 07 – 08
89.76 185.27
30% 30%
1,299.58 2,191.78
7.0% 8.4%
Cost of Capital (contd …)
Year We Ke Wd Kd Ko (%)
06 – 07
0.456
14.7
0.544
7
10.52
07 – 08
0.457
13.88
0.543
8.4
10.90
Leverage
2008 % increase in EBIT % increase in sales % increase in EPS Operation Leverage Financial Leverage Overall Leverage 50.92 55.98 - 4.2 0.90 -0.082 -0.074 2007 105.58 73.18 72.13 1.44 0.68 0.979 2006 59.34 77.52 44.32 0.77 0.74 0.569
Projections for next 5 years
Current Year Expansi on in retail space Sales 8 million 2009 2010 2011 2012 2013 12 million 15 million 20 million 26 million 26 million
5,048.91
7321
10715
15391
22316
26780
Total Cost PBT
4,588.39
6791
10050
14573
21277
25532
195.62
202
214
310
395
474
PAT
125.97
141
151
217
277
331
Assumptions for Free Cash Flow
? ?
Current Ratio will remain constant Ratio of sales to current assets will be constant (based on trend) Investment expenses based on expansion plan in report
?
Free Cash Flows
2013 Net Profit Depreci ation/ Amortiz ation +/- Net WC Investm ent in fixed assets Free Cash Flows 331 275 2012 277 228 2011 217 188.14 2010 151 140 2009 141 100.7 2008 125.97 83.39 2007 119.99 36.86
-698 0
-1082 1874
-730 1563
-531 937.95
-505 1249
- 601.05 937.95
- 790.82 502.44
-92
- 2451
-1888
-1177
- 1512
- 1398
- 1436
doc_727799104.pptx
The PPT explaining financial ratio analysis on Pantaloons retail. Covers balance sheets, P/L, major ratios for the brand.
Some important results – Balance Sheet
2008 Equity Reserves Total Loans Net Fixed Assets Total Current Assets 31.86 1,751.50 2,191.78 1,198.17 2,628.58 2007 29.35 1,062.82 1,299.58 674.60 1,749.45 2006 26.88 500.02 601.39 309.43 844.48 2005 22.00 196.53 286.21 213.74 403.87
Cash
Inventories Total Current Liabilities
121.10
1,429.84 637.66
162.97
885.96 359.58
21.77
507.02 245.44
21.50
275.93 144.82
Some important results – P/L Account
2008 2007 2006 2005 Sales 5,048.91 3,236.74 1,868.97 1,052.80
Total Cost
4,588.39
3,021.14
1,722.34
961.94
PBT
195.62
181.01
91.90
53.12
PAT
125.97
119.99
64.16
38.55
Cash Flow Statement Analysis
2008 Net Cash by Operating Activities Acquisition Fixed Assets Purchase of investments Net Cash Investing Activities Working Capital from Banks (19.21) 2007 (271.94) 2006 (89.81) 2005 (19.70) (654.52) (351.69) (1,410.82) (402.87) (119.39) (641.73) (116.75) (112.42) (434.46) (66.85) (31.88) (125.78)
556.17
(65.73)
82.76
(80.7)
Net Cash financing activities
Net Cash
1,388.16
1,054.87
524.53
113.73
(41.87)
141.20
26.95
7.65
Gross Profit Margin
2008 Gross Profit Margin 30.4% 2007 30.6% 2006 33.4% 2005 33.4%
Reason: 1. Growth in sale was matched by similar percentage growth in cost of goods sold .
Net Profit Margin
2008 Net Profit Margin Reasons: 2.4% 2007 3.6% 2006 3.43% 2005 3.65%
1. From 2006 to 2007, sales increased by ~73% whereas net profit increased by ~86%.
2. From 2007 to 2008, sales increased by 55% whereas net profit increased by ~5%. 3. Main reason being increase in costs – costs of goods sold (56%), Rent (58%), and marginal increases in ad & personnel costs. a. High real estate prices b. Probable sales at lower prices c. Possible increase in labor costs
Current Ratio
2008 Current Ratio 1.94 2007 1.92 2006 1.318 2005 1.897
Current Assets = Inventories + Cash + Other current assets Current Liabilities = Creditors + Other current liabilities + short term loans Reasons: 1. From 2005 onwards, current ratio has seen an almost a steady trend 2. Main Cause – 1. increase in inventory 2. Cash balance 3. From 2007 onwards, there is a large increase in fixed Assets & Inventory. Reasons : Large Scale Expansions.
Quick Ratio
2008 2007 2006 2005
Quick Ratio
1.702
2.22
1.31
0.798
Quick Assets = Cash + Other current assets
Inventory turnover (days)
2008 Inventory Turnover (in days) 120 2007 113 2006 115 2005 113
Reasons:
1. Seen to be constant across the years. 2. Similar percentage increases seen for COG and inventories 3. Is able to turnover the stock consistently in ~4 months.
Debt-Equity Ratio
2008 Debt Equity Ratio Reasons: 1.19 2007 1.19 2006 1.14 2005 1.29
1. From 2005 onwards, the ratio has been a constant.
2. Main reason being that both equity and debt have almost grown equally 2007-08 (~65%), 2006-07 (~110%) :
Asset Turnover Ratio
2008 Asset Turnover Ratio Reasons: 1.23 2007 1.36 2006 1.62 2005 2.03
1. A steady decline has been seen in the values starting from 2005.
2. Though both sales and total assets have been increasing over the time period, the growth in assets has been more when compared to growth in sales. 3. Assets have mainly increased due to increase in fixed assets and current assets. :
ROA Ratio
2008 ROA 3.94 2007 5.8 2006 7.06 2005 8.15
Reasons:
1. A steady decline is seen.
2. Assets have mainly increased due to increase in fixed assets and current assets.
:
Interest Coverage Ratio
2008 Interest Coverage Ratio Reasons: 2.5059 2007 3.4272 2006 4.0531 2005 3.4199
1. The ratio is seen to vary across the years.
2. In general company is able to generate sufficient funds to pay its interests. :
Dividend Payout Ratio
2008 Dividend Payout Ratio Reasons: 8.5 2007 6.3 2006 10.4 2005 14.2
1. The main reason (till 2007):- net profit has grown faster than the percentage by which dividend declared has grown.
2. Excess amount has lead to increase in reserves & surplus from 2005 onwards. Company seems to be retaining a large amount of the profit for future use (probably expansion).
Retention Ratio
2008 Retention Ratio 90.016 2007 92.65 2006 88.06 2005 81.40
DuPont Analysis
2008 Net Profit Sales Total Assets Equity 125.97 5,048.91 3189.08 1783.36 2007 119.99 3,236.74 2064.46 1,092.18 2006 64.16 1,868.97 908.47 526.90 2005 38.55 1,052.80 472.79 218.53
2008 Net Profit / Sales 0.0249
2007 0.0371
2006 0.0343
2005 0.0366
Sales / Assets
Assets / Equity ROE
1.5832
1.7882 0.0705
1.5678
1.8902 0.1099
2.0573
1.7242 0.1217
2.2268
2.1635 0.1763
Altman’s Z score
2008 NWC / TA RE / TA EBIT / TA MV equity / BV of liabilities Sales / TA Z Score 0.4848 0.4265 0.0476 1.5132 1.2296 3.47 2007 0.5678 0.4342 0.0490 2.6320 1.3224 4.35
Cost of Capital
Year 2006 – 07 2007 – 08 Beta 1.20 1.05 Rf 7.5% 6% Rm 13.5% 13.5 % Ke – CAPM 14.7% 13.88%
Year
Int
Tax
TOTAL LOANS
Kd
06 – 07 07 – 08
89.76 185.27
30% 30%
1,299.58 2,191.78
7.0% 8.4%
Cost of Capital (contd …)
Year We Ke Wd Kd Ko (%)
06 – 07
0.456
14.7
0.544
7
10.52
07 – 08
0.457
13.88
0.543
8.4
10.90
Leverage
2008 % increase in EBIT % increase in sales % increase in EPS Operation Leverage Financial Leverage Overall Leverage 50.92 55.98 - 4.2 0.90 -0.082 -0.074 2007 105.58 73.18 72.13 1.44 0.68 0.979 2006 59.34 77.52 44.32 0.77 0.74 0.569
Projections for next 5 years
Current Year Expansi on in retail space Sales 8 million 2009 2010 2011 2012 2013 12 million 15 million 20 million 26 million 26 million
5,048.91
7321
10715
15391
22316
26780
Total Cost PBT
4,588.39
6791
10050
14573
21277
25532
195.62
202
214
310
395
474
PAT
125.97
141
151
217
277
331
Assumptions for Free Cash Flow
? ?
Current Ratio will remain constant Ratio of sales to current assets will be constant (based on trend) Investment expenses based on expansion plan in report
?
Free Cash Flows
2013 Net Profit Depreci ation/ Amortiz ation +/- Net WC Investm ent in fixed assets Free Cash Flows 331 275 2012 277 228 2011 217 188.14 2010 151 140 2009 141 100.7 2008 125.97 83.39 2007 119.99 36.86
-698 0
-1082 1874
-730 1563
-531 937.95
-505 1249
- 601.05 937.95
- 790.82 502.44
-92
- 2451
-1888
-1177
- 1512
- 1398
- 1436
doc_727799104.pptx