Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
13441.45
17362.89
19541.08
26614.36
33226.25
SALES GR SGR
0.291742 0.125451 0.36197 0.248433 0.353777 0.415601 0.435924 0.411553 0.451077
The Sales Growth rate is less than SGR for all the years, the debt equity ratio is constant over the years as there is no requirement of additional funds.
Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
Industry (Industrial Electrical Equipments )
Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Profitability Ratios Gross Profit Margin(%) Operating Profit Margin(%) Net Profit Margin(%) Return On Equity(%) Return on Assets Debt Coverage Ratios Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Asset Turnover Ratio 3.68 2.05 3.54 4.24 2.06 4.27 3.88 1.8 4.48 3.7 1.9 5.2 3.77 1.81 5.15 39.28 87.78 127.55 157.51 198.19 1.53 1.17 0.08 1.43 1.13 0.01 1.38 1.09 0.01 1.36 1.02 0.01 1.37 1.04 0.01 2 1.5 0.39
26.53 16.54 12.19 46.60 28.77
26.63 20.42 13.51 58.26 42.12
28.80 19.17 13.87 62.76 40.82
25.40 15.72 11.36 59.66 37.01
19.54 18.36 12.55 65.28 41.72
29 6.3 16 7 25 5.8 5.1 0.9
TREND: The Overall trend shows that the financial health of the company is improving. The current ratio of the firm is marginally decreasing but is consistently greater than one so liquidity has remained the same which also shows better management of current assets. The debt-equity ratio has improved from Mar 07 and has remained the same even though the sales are increasing. The Earning Power of the firm has increased tremendously over the last five years. The firm has able to manage similar net profits with increase in sales. The company ability to pay the interest has also
increased. The company s efficiency has not changed significantly, its working the same way but asset turnover has increased. Industry Comparison: The liquidity of the firm is less than the industry average. Its debt to equity ratios is also less than the industry average as the company has very less debts. The gross margins are lower than the industry average but they are able to maintain their net profits higher than the industry average which is a good sign. Also, the company s earning power is better than the industry. The company s debtor s turnover and inventory turnover ratio are lower than the industry average and it should try and improve them. However, the asset turnover is much better than the industry average. Overall financial health The company s financial health is good. The debt is very less and the profitability is high. It is growing at a reasonable rate due to increase in private orders and also it is improving its efficiency by implementing information systems like ERP and SAP.
doc_731567814.docx
Mar '07
Mar '08
Mar '09
Mar '10
13441.45
17362.89
19541.08
26614.36
33226.25
SALES GR SGR
0.291742 0.125451 0.36197 0.248433 0.353777 0.415601 0.435924 0.411553 0.451077
The Sales Growth rate is less than SGR for all the years, the debt equity ratio is constant over the years as there is no requirement of additional funds.
Mar '06
Mar '07
Mar '08
Mar '09
Mar '10
Industry (Industrial Electrical Equipments )
Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Profitability Ratios Gross Profit Margin(%) Operating Profit Margin(%) Net Profit Margin(%) Return On Equity(%) Return on Assets Debt Coverage Ratios Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Asset Turnover Ratio 3.68 2.05 3.54 4.24 2.06 4.27 3.88 1.8 4.48 3.7 1.9 5.2 3.77 1.81 5.15 39.28 87.78 127.55 157.51 198.19 1.53 1.17 0.08 1.43 1.13 0.01 1.38 1.09 0.01 1.36 1.02 0.01 1.37 1.04 0.01 2 1.5 0.39
26.53 16.54 12.19 46.60 28.77
26.63 20.42 13.51 58.26 42.12
28.80 19.17 13.87 62.76 40.82
25.40 15.72 11.36 59.66 37.01
19.54 18.36 12.55 65.28 41.72
29 6.3 16 7 25 5.8 5.1 0.9
TREND: The Overall trend shows that the financial health of the company is improving. The current ratio of the firm is marginally decreasing but is consistently greater than one so liquidity has remained the same which also shows better management of current assets. The debt-equity ratio has improved from Mar 07 and has remained the same even though the sales are increasing. The Earning Power of the firm has increased tremendously over the last five years. The firm has able to manage similar net profits with increase in sales. The company ability to pay the interest has also
increased. The company s efficiency has not changed significantly, its working the same way but asset turnover has increased. Industry Comparison: The liquidity of the firm is less than the industry average. Its debt to equity ratios is also less than the industry average as the company has very less debts. The gross margins are lower than the industry average but they are able to maintain their net profits higher than the industry average which is a good sign. Also, the company s earning power is better than the industry. The company s debtor s turnover and inventory turnover ratio are lower than the industry average and it should try and improve them. However, the asset turnover is much better than the industry average. Overall financial health The company s financial health is good. The debt is very less and the profitability is high. It is growing at a reasonable rate due to increase in private orders and also it is improving its efficiency by implementing information systems like ERP and SAP.
doc_731567814.docx