Description
The report explains about Ratio Analysis on Unitech.
Ratio Analysis of Unitech Constructions
About Unitech Constructions
? Established in 1971 by a group of technocrats led by Mr. Ramesh Chandra. ? Over 3 decades of experience in infrastructure and real estate development ? Market capitalization of ~US$ 6 billion ? Land reserves of nearly 14,000 acres spread across major centres of economic activity in India.
Unitech’s Business Model
Liquidity Ratio
Mar 05 0.43 Mar 06 0.48 Mar 07 0.95 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 2:1 ratio because it is a high investment sector and majorly works with loans and debts.
Mar '05 Total Current Assets 592.09
Mar '06 1,136.40
Mar '07 4,017.01
Mar '08 8,749.16
Mar '09 6,396.35
Liquidity Ratio
Mar 05 0.43 Mar 06 0.48 Mar 07 0.95 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 2:1 ratio because it is a high investment sector and majorly works with loans and debts.
Liquidity Ratio
Mar 05 0.40 Mar 06 0.46 Mar 07 0.94 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 1:1 ratio because it is a high investment sector and majorly works with loans and debts. However during the peak period it reached near to the desired.
Liquidity Ratio
Mar 05 0.04 Mar 06 0.032 Mar 07 0.03 Mar 08 0.03 Mar 09 0.01
The Industry does not maintain a high ratio because it is a high investment sector and majorly works with loans and debts.
Profitability Ratio
Mar 05 14.81 Mar 06 24.57 Mar 07 59.04 Mar 08 55.52 Mar 09 60.66
It measures the percentage of each sales rupee remaining after the firm has paid for its goods. The sales declined from 2008 to 2009 , however the Gross profit increased due to the decrease in the raw materials and Manufacturing expenses.
Profitability Ratio
Mar 05 10.37 Mar 06 19.85 Mar 07 57.48 Mar 08 53.40 Mar 09 57.65
The operating Expenses does not change significantly hence it follows a same trend as Gross profit.
Profitability Ratio
Mar 05 17.20 Mar 06 31.01 Mar 07 84.72 Mar 08 48.08 Mar 09 25.87
Initially, the company had a low ROI, but later on the ROI kept on increasing and later on it felt to 25%, meaning that the return on investment is decreasing when compared to the previous years. So the investors might look out for an opportunity to invest in other stocks. During the Boom in the real estate market, Unitech gave a very high return on Investment, but with the slowdown hitting the Indian Economy, the ROI fell down tremendously.
Profitability Ratio
The Return on Capital Employed is fluctuating in nature.
Mar 05 10.42 Mar 06 11.72 Mar 07 24.70 Mar 08 13.88 Mar 09 13.87
This is unfavorable for Company’s image as it may result in decrease in the confidence among the investor’s about the company’s performance, as investors invest in those companies which more often have a constant ROCE or whose ROCE keeps on increasing. The company should take measures to improve it's Return on Capital Employed, so that the investors and the shareholders regain the confidence in the company.
Profitability Ratio
Mar 05 0.17 Mar 06 0.31 Mar 07 0.85 Mar 08 0.48 Mar 09 0.26
This ratio is used to analyze the ability of the firm's management to realize an adequate return on the capital invested by the owners of the firm. Tendency is to look increasingly to this ratio as a final criterion of profitability. With the slowdown in the real estate market, the net profits of the company have fallen. The Net Worth of the company has risen tremendously but the profits of the company have not increased in lines with the Net worth and hence
Ratio
Mar 05 24 Mar 06 56 Mar 07 12 Mar 08 6 Mar 09 5
•Shows the portion of company's profit allocated to each outstanding share of common stock •Indicator of company’s profitability •Stock split
Profitability Ratio
Mar 05 4 Mar 06 1 Mar 07 0.5 Mar 08 0.25 Mar 09 0.1
DPS shows how much the shareholders were actually paid by way of dividends. Like EPS, there is a constant decrease in DPS over the years.
Profitability Ratio
Mar 05 16.71 Mar 06 23.31 Mar 07 4.13 Mar 08 3.94 Mar 09 2.76
It measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. D/P Ratio is significant in the years 2005 & 2006, however, it does on decreasing in the subsequent years.
Profitability Ratio
Mar 05 83.29 Mar 06 76.69 Mar 07 95.87 Mar 08 96.06 Mar 09 97.24
Retention Ratio indicates what percentage share of the net profits is retained in the business. The D/P Ratio is low in the years 2007, 2008 & 2009, the earnings retained by the company is high.
Profitability Ratio
Mar 05 1.46 Mar 06 0.04 Mar 07 0.00 Mar 08 0.00 Mar 09 0.00
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. Dividend Yield Ratio has almost reached zero in the later years.
Turnover Ratio
Mar 06 16.01 Mar 07 30.76 Mar 08 47.65 Mar 09 57.60
Stock turn over ratio / Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. The Inventory T/o Ratio has increased from 16 to 57 in the given period. This is largely due to decrease in the inventory level of the company.
Turnover Ratio
Mar 05 8.91 Mar 06 8.53 Mar 07 25.03 Mar 08 3.36 Mar 09 2.23
Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. The Debtors T/o Ratio has gone down considerably which is not good. A high Debtors T/o Ratio reflects the liquidity position of a company to meet its short term obligations.
Turnover Ratio
Mar 05 -0.64 Mar 06 -0.52 Mar 07 -10.57 Mar 08 1.48 Mar 09 -8.31
Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets In the real estate companies, products are delivered and sold to the customer before the company ever pays for them and hence these companies do not feel the need to maintain huge Current Assets. Only in the year, 2008 the company had a positive working capital as the company had generated huge current assets from selling it's products.
Turnover Ratio
Capital Turnover Ratio
Mar 05 40.78 Mar 06 52.29 Mar 07 27.93 Mar 08 10.21 Mar 09 5.44
Capital turnover is used to calculate the rate of return on common equity, and is a measure of how well a company uses its stockholders' equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital. As the ratio is falling in the years, the company is becoming less efficient. It might lead to the outflow of the
Solvency Ratio
Mar 05 3.65 Mar 06 6.92 Mar 07 5.77 Mar 08 7.34 Mar 09 4.61
•Indicates the relative proportions of debt and equity in financing the assets of the firm •Largely financed by the creditors of the firm •Capital intensive in nature •New strategy adopted to tackle high debt
Solvency Ratio
Mar 05 35 Mar 06 25 Mar 07 24 Mar 08 21 Mar 09 27
•Indicates to what extent of the total assets is financed through the owner’s capital •Ratio does not give a good picture •Highly dependent on external funding
Solvency Ratio
Mar 05 53.71 Mar 06 32.7 Mar 07 32.2 Mar 08 26.41 Mar 09 37.24
•Shows the relationship between equity share capital including reserves and surpluses to preference share capital and other fixed interest bearing loans •Company is highly geared •Burden of interest and loan repayment •Might have problems getting loans
Presented By : Sharath Bangera Dolly Basantani Dimple Bharil Sumit Bhati 05 06 07 08
doc_453740688.pdf
The report explains about Ratio Analysis on Unitech.
Ratio Analysis of Unitech Constructions
About Unitech Constructions
? Established in 1971 by a group of technocrats led by Mr. Ramesh Chandra. ? Over 3 decades of experience in infrastructure and real estate development ? Market capitalization of ~US$ 6 billion ? Land reserves of nearly 14,000 acres spread across major centres of economic activity in India.
Unitech’s Business Model
Liquidity Ratio
Mar 05 0.43 Mar 06 0.48 Mar 07 0.95 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 2:1 ratio because it is a high investment sector and majorly works with loans and debts.
Mar '05 Total Current Assets 592.09
Mar '06 1,136.40
Mar '07 4,017.01
Mar '08 8,749.16
Mar '09 6,396.35
Liquidity Ratio
Mar 05 0.43 Mar 06 0.48 Mar 07 0.95 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 2:1 ratio because it is a high investment sector and majorly works with loans and debts.
Liquidity Ratio
Mar 05 0.40 Mar 06 0.46 Mar 07 0.94 Mar 08 1.24 Mar 09 0.97
The Industry does not maintain the ideal 1:1 ratio because it is a high investment sector and majorly works with loans and debts. However during the peak period it reached near to the desired.
Liquidity Ratio
Mar 05 0.04 Mar 06 0.032 Mar 07 0.03 Mar 08 0.03 Mar 09 0.01
The Industry does not maintain a high ratio because it is a high investment sector and majorly works with loans and debts.
Profitability Ratio
Mar 05 14.81 Mar 06 24.57 Mar 07 59.04 Mar 08 55.52 Mar 09 60.66
It measures the percentage of each sales rupee remaining after the firm has paid for its goods. The sales declined from 2008 to 2009 , however the Gross profit increased due to the decrease in the raw materials and Manufacturing expenses.
Profitability Ratio
Mar 05 10.37 Mar 06 19.85 Mar 07 57.48 Mar 08 53.40 Mar 09 57.65
The operating Expenses does not change significantly hence it follows a same trend as Gross profit.
Profitability Ratio
Mar 05 17.20 Mar 06 31.01 Mar 07 84.72 Mar 08 48.08 Mar 09 25.87
Initially, the company had a low ROI, but later on the ROI kept on increasing and later on it felt to 25%, meaning that the return on investment is decreasing when compared to the previous years. So the investors might look out for an opportunity to invest in other stocks. During the Boom in the real estate market, Unitech gave a very high return on Investment, but with the slowdown hitting the Indian Economy, the ROI fell down tremendously.
Profitability Ratio
The Return on Capital Employed is fluctuating in nature.
Mar 05 10.42 Mar 06 11.72 Mar 07 24.70 Mar 08 13.88 Mar 09 13.87
This is unfavorable for Company’s image as it may result in decrease in the confidence among the investor’s about the company’s performance, as investors invest in those companies which more often have a constant ROCE or whose ROCE keeps on increasing. The company should take measures to improve it's Return on Capital Employed, so that the investors and the shareholders regain the confidence in the company.
Profitability Ratio
Mar 05 0.17 Mar 06 0.31 Mar 07 0.85 Mar 08 0.48 Mar 09 0.26
This ratio is used to analyze the ability of the firm's management to realize an adequate return on the capital invested by the owners of the firm. Tendency is to look increasingly to this ratio as a final criterion of profitability. With the slowdown in the real estate market, the net profits of the company have fallen. The Net Worth of the company has risen tremendously but the profits of the company have not increased in lines with the Net worth and hence
Ratio
Mar 05 24 Mar 06 56 Mar 07 12 Mar 08 6 Mar 09 5
•Shows the portion of company's profit allocated to each outstanding share of common stock •Indicator of company’s profitability •Stock split
Profitability Ratio
Mar 05 4 Mar 06 1 Mar 07 0.5 Mar 08 0.25 Mar 09 0.1
DPS shows how much the shareholders were actually paid by way of dividends. Like EPS, there is a constant decrease in DPS over the years.
Profitability Ratio
Mar 05 16.71 Mar 06 23.31 Mar 07 4.13 Mar 08 3.94 Mar 09 2.76
It measures the relationship between the earning belonging to the ordinary shareholders and the dividend paid to them. D/P Ratio is significant in the years 2005 & 2006, however, it does on decreasing in the subsequent years.
Profitability Ratio
Mar 05 83.29 Mar 06 76.69 Mar 07 95.87 Mar 08 96.06 Mar 09 97.24
Retention Ratio indicates what percentage share of the net profits is retained in the business. The D/P Ratio is low in the years 2007, 2008 & 2009, the earnings retained by the company is high.
Profitability Ratio
Mar 05 1.46 Mar 06 0.04 Mar 07 0.00 Mar 08 0.00 Mar 09 0.00
A financial ratio that shows how much a company pays out in dividends each year relative to its share price. Dividend Yield Ratio has almost reached zero in the later years.
Turnover Ratio
Mar 06 16.01 Mar 07 30.76 Mar 08 47.65 Mar 09 57.60
Stock turn over ratio / Inventory turn over ratio indicates the number of time the stock has been turned over during the period and evaluates the efficiency with which a firm is able to manage its inventory. The Inventory T/o Ratio has increased from 16 to 57 in the given period. This is largely due to decrease in the inventory level of the company.
Turnover Ratio
Mar 05 8.91 Mar 06 8.53 Mar 07 25.03 Mar 08 3.36 Mar 09 2.23
Debtors turnover ratio or accounts receivable turnover ratio indicates the velocity of debt collection of a firm. The Debtors T/o Ratio has gone down considerably which is not good. A high Debtors T/o Ratio reflects the liquidity position of a company to meet its short term obligations.
Turnover Ratio
Mar 05 -0.64 Mar 06 -0.52 Mar 07 -10.57 Mar 08 1.48 Mar 09 -8.31
Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets In the real estate companies, products are delivered and sold to the customer before the company ever pays for them and hence these companies do not feel the need to maintain huge Current Assets. Only in the year, 2008 the company had a positive working capital as the company had generated huge current assets from selling it's products.
Turnover Ratio
Capital Turnover Ratio
Mar 05 40.78 Mar 06 52.29 Mar 07 27.93 Mar 08 10.21 Mar 09 5.44
Capital turnover is used to calculate the rate of return on common equity, and is a measure of how well a company uses its stockholders' equity to generate revenue. The higher the ratio is, the more efficiently a company is using its capital. As the ratio is falling in the years, the company is becoming less efficient. It might lead to the outflow of the
Solvency Ratio
Mar 05 3.65 Mar 06 6.92 Mar 07 5.77 Mar 08 7.34 Mar 09 4.61
•Indicates the relative proportions of debt and equity in financing the assets of the firm •Largely financed by the creditors of the firm •Capital intensive in nature •New strategy adopted to tackle high debt
Solvency Ratio
Mar 05 35 Mar 06 25 Mar 07 24 Mar 08 21 Mar 09 27
•Indicates to what extent of the total assets is financed through the owner’s capital •Ratio does not give a good picture •Highly dependent on external funding
Solvency Ratio
Mar 05 53.71 Mar 06 32.7 Mar 07 32.2 Mar 08 26.41 Mar 09 37.24
•Shows the relationship between equity share capital including reserves and surpluses to preference share capital and other fixed interest bearing loans •Company is highly geared •Burden of interest and loan repayment •Might have problems getting loans
Presented By : Sharath Bangera Dolly Basantani Dimple Bharil Sumit Bhati 05 06 07 08
doc_453740688.pdf