Description
Gross Profit Margin Ratio, Operating Profit Margin Ratio, Net Profit margin Ratio. Return on Total Assets, Return on Net Asset
TATA STEEL LTD. ‘PROFITABILITY RATIOS’
Profit & Loss A/c
Mar ' 05 Income : Operating Income 14,498.95 10,699.31 8,716.54 Mar ' 04 Mar ' 03
Expenses Material Consumed Manufacturing Expenses 2,730.87 2,726.30 3,391.82 1,854.92 2,246.06 1,692.97
Depreciation
618.78
625.11
555.48
Gross Profit
8,423.00
4,827.46
4,222.03
Personnel Expenses
Selling Expenses Administrative Expenses Expenses Capitalized Financial Expenses ( Interest) Other Write offs
1,403.84
0 1,997.30 -204.82 228.8 0
1,349.59
81.9 701.43 -155.28 230.56 0
1,217.72
782.96 770.78 -60.79 342.41 44.38
3,425.12 Operating Profit 4,997.88
2,208.20 2,619.26
3,097.46 1,124.57
Other Recurring Income
299.40
209.1
66.07
Adjusted PBT
5,297.28
2,828.36
1,190.64
Tax Charges
1,823.12
920.44
250.79
Adjusted PAT
3,474.16
1,907.92
939.85
Profit Margin Ratio
1.Gross Profit Margin Ratio = Gross Profit / Net Sales = 8,423.00 / 14,498.95
= 58.09 %
2.Opreating Profit Margin Ratio = Operating Profit / Net Sales = 4,997.88 / 14,498.95
= 34.47 %
3.Net Profit Margin Ratio = Net Profit/Net Sales = 3,474.16 / 14798.35
= 23.47 %
Profitability Ratio Investment Based
ROTA ( Return on Total Assets ) = Operating Profit / Total Asset = 4,997.88 / 12143.30
1.
= 41.15
2. RONA ( Return on Net Asset ) = Operating Profit / Net Asset = 4,997.88 / 11556.2 (9112.24+2432.65+2701.14-2689.83) = 43.24
Yearwise Comparison
Year 2004-05 2003-04 2002-03
Operating Margin (%)
40.31
32.47
23.71
Net Profit Margin (%)
23.47
16
11.52
Reported Return On Net Worth (%)
50.75
40.05
31.78
Industry Comparison
OPM NPM RONW (%) (%) (%) 31.95 9.67 49.4
Company name Essar Steel Ltd. Steel Authority of India (SAIL) Ltd. Tata Steel Ltd.
35.24 22.99 40.31 23.47
68.08 50.75
doc_319407232.ppt
Gross Profit Margin Ratio, Operating Profit Margin Ratio, Net Profit margin Ratio. Return on Total Assets, Return on Net Asset
TATA STEEL LTD. ‘PROFITABILITY RATIOS’
Profit & Loss A/c
Mar ' 05 Income : Operating Income 14,498.95 10,699.31 8,716.54 Mar ' 04 Mar ' 03
Expenses Material Consumed Manufacturing Expenses 2,730.87 2,726.30 3,391.82 1,854.92 2,246.06 1,692.97
Depreciation
618.78
625.11
555.48
Gross Profit
8,423.00
4,827.46
4,222.03
Personnel Expenses
Selling Expenses Administrative Expenses Expenses Capitalized Financial Expenses ( Interest) Other Write offs
1,403.84
0 1,997.30 -204.82 228.8 0
1,349.59
81.9 701.43 -155.28 230.56 0
1,217.72
782.96 770.78 -60.79 342.41 44.38
3,425.12 Operating Profit 4,997.88
2,208.20 2,619.26
3,097.46 1,124.57
Other Recurring Income
299.40
209.1
66.07
Adjusted PBT
5,297.28
2,828.36
1,190.64
Tax Charges
1,823.12
920.44
250.79
Adjusted PAT
3,474.16
1,907.92
939.85
Profit Margin Ratio
1.Gross Profit Margin Ratio = Gross Profit / Net Sales = 8,423.00 / 14,498.95
= 58.09 %
2.Opreating Profit Margin Ratio = Operating Profit / Net Sales = 4,997.88 / 14,498.95
= 34.47 %
3.Net Profit Margin Ratio = Net Profit/Net Sales = 3,474.16 / 14798.35
= 23.47 %
Profitability Ratio Investment Based
ROTA ( Return on Total Assets ) = Operating Profit / Total Asset = 4,997.88 / 12143.30
1.
= 41.15
2. RONA ( Return on Net Asset ) = Operating Profit / Net Asset = 4,997.88 / 11556.2 (9112.24+2432.65+2701.14-2689.83) = 43.24
Yearwise Comparison
Year 2004-05 2003-04 2002-03
Operating Margin (%)
40.31
32.47
23.71
Net Profit Margin (%)
23.47
16
11.52
Reported Return On Net Worth (%)
50.75
40.05
31.78
Industry Comparison
OPM NPM RONW (%) (%) (%) 31.95 9.67 49.4
Company name Essar Steel Ltd. Steel Authority of India (SAIL) Ltd. Tata Steel Ltd.
35.24 22.99 40.31 23.47
68.08 50.75
doc_319407232.ppt