INDIAN OILCORPORATION  LIMITED
• I ndianOil is also t he highest  r anked I ndian company in t he  pr est igious For t une  Global  500 list ing, having ...
FINANCIALSTATEMENT ANALYSIS    OF COMPANY
RATIO                       ANALYSISLiquidity   Leverage   Coverage              Profitability                            ...
LIQUIDITY            RATIOCURRENT    QUICK      CASH RATIO     RATIO      RATIO
CURRENT RATIOYEAR   C.R      1.62005   1.2921   1.4                1.22006   1.4053    12007   1.3996   0.8               ...
QUICK RATIOYEAR   Q.R                             QR2005   0.643985   0.7                  0.62006   0.629437             ...
CASH RATIOYEAR   C.R                            C.R2005   0.0553                0.062006   0.0458   0.052007   0.0313   0....
ANALYSIS• The cur r ent r at io f or t he last 6  year s is appox. 1.3:1 which is quit e  unsat isf act or y accor ding t ...
LEVERAGE                                 RATIOS   Debt         Preference        Debt          Equity         InterestEqui...
DEBT EQUITY RATIOYEAR D/E                              D/E2005   0.64845   1.2                  12006   0.78237           ...
DEBT ASSET RATIOYEAR D/A                                D/A2004   0.209052   0.352005   0.240617    0.3                  0...
ANALYSIS• Fr om t he debt -equit y, debt -asset and  equit y-asset r at ios, we int er pr et t hat  most of t he money inv...
TURNOVER                   RATIO                                      TOTALINVENTORY    DEBTORS    AVERAGE                ...
INVENTORY TURNOVER RATIO                                      ITRYEA    ITR(timeR      s)         122004   6.699831   1020...
DEBTORS TURNOVER RATIOYEAR DTR(times)                       DTR2004   14.48785   20                  182005   13.65056   1...
TOTAL ASSET TURNOVER RATIOYEAR TATR(times)                        TATR2004   1.89321     2.52005   1.79170      22006   1....
ANALYSIS• The avg. I nvent or y t ur nover r at io f or  t he last 6 yr s is appr ox 6 t imes per  year ,which is sat isf ...
PROFITABILITY                                RATIOS                                              Return   Gross           ...
NET PROFIT RATIOYEAR   NPR(%)                         NPR2004   5.79     0.062005   3.897    0.05                0.042006 ...
RETURN ON TOTAL ASSETYEAR ROTA(%)                          ROTA2004 10.9617    0.122005   6.9833    0.1                0.0...
EARNING PER RATIO                                       EPRYEAR EPR(%)2004   16.0656   0.18                 0.162005   9.8...
ANALYSIS• The Net Pr of it Mar gin (avg. of  6 yr s) is 3.25% which is a lit t le  low. But since t he invent or y  t ur n...
DU PONTANALYSIS
Pioneer ed by Du Pont Company of USA.I t analyses impor t ant int er -r elat ionshipsbased on inf or mat ion f ound in f i...
YEAR   2005 2006        2007      2008      2009      2010NPM    0.0579 0.03897   0.02654   0.03572   0.03298   0.00757TAT...
OVERALL ANALYSIS   Thus, we see t hat t he shor t -t er mf inancial st at e of t he company isslight ly weak but it is sat...
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  1. 1. INDIAN OILCORPORATION LIMITED
  2. 2. • I ndianOil is also t he highest r anked I ndian company in t he pr est igious For t une Global 500 list ing, having moved up 19 places t o t he 116t h posit ion in 2008. I t is also t he 18t h lar gest pet r oleum company in t he wor ld .
  3. 3. FINANCIALSTATEMENT ANALYSIS OF COMPANY
  4. 4. RATIO ANALYSISLiquidity Leverage Coverage Profitability Turnover Ratios Ratios Ratios Ratios Ratios
  5. 5. LIQUIDITY RATIOCURRENT QUICK CASH RATIO RATIO RATIO
  6. 6. CURRENT RATIOYEAR C.R 1.62005 1.2921 1.4 1.22006 1.4053 12007 1.3996 0.8 0.62008 1.3302 0.42009 1.5181 0.2 02010 1.2538 YEAR 2004 2005 2006 2007 2008 2009
  7. 7. QUICK RATIOYEAR Q.R QR2005 0.643985 0.7 0.62006 0.629437 0.52007 0.547197 0.4 QR 0.32008 0.540943 0.22009 0.679925 0.1 02010 0.616093 04 05 06 07 08 09
  8. 8. CASH RATIOYEAR C.R C.R2005 0.0553 0.062006 0.0458 0.052007 0.0313 0.04 0.03 C.R2008 0.0293 0.022009 0.0238 0.012010 0.0224 0 04 05 06 07 08 09
  9. 9. ANALYSIS• The cur r ent r at io f or t he last 6 year s is appox. 1.3:1 which is quit e unsat isf act or y accor ding t o t he st andar d nor ms, but in t his indust r y sect or it is f air enough.• The quick r at io is 0.6:1 which is again unsat isf act or y. I t implies t hat t he company may f ind it dif f icult t o pay it s cur r ent liabilit ies.
  10. 10. LEVERAGE RATIOS Debt Preference Debt Equity InterestEquity Ratio Dividend Asset Ratio Asset Ratio Coverage Ratio Coverage Ratio
  11. 11. DEBT EQUITY RATIOYEAR D/E D/E2005 0.64845 1.2 12006 0.78237 0.82007 1.02594 0.6 D/E2008 0.84554 0.4 0.22009 0.94480 0 04 05 06 07 08 092010 1.07531
  12. 12. DEBT ASSET RATIOYEAR D/A D/A2004 0.209052 0.352005 0.240617 0.3 0.252006 0.296022 0.2 D/A 0.152007 0.266715 0.12008 0.287211 0.05 02009 0.324213 04 05 06 07 08 09
  13. 13. ANALYSIS• Fr om t he debt -equit y, debt -asset and equit y-asset r at ios, we int er pr et t hat most of t he money involved is of owner ’s and it is saf e f or cr edit or s t o invest money in t his company.• Thus we can say t hat company can per f or m sat isf act or ily in long t er m.
  14. 14. TURNOVER RATIO TOTALINVENTORY DEBTORS AVERAGE ASSETTURNOVER TURNOVER COLLECTION TURNOVER RATIO RATIO PERIOD RATIO
  15. 15. INVENTORY TURNOVER RATIO ITRYEA ITR(timeR s) 122004 6.699831 102005 5.836031 82006 6.686472 6 ITR2007 6.915437 4 22008 7.885222 02009 11.08482 04 05 06 07 08 09
  16. 16. DEBTORS TURNOVER RATIOYEAR DTR(times) DTR2004 14.48785 20 182005 13.65056 16 142006 18.74085 12 10 DTR2007 17.55006 8 6 42008 13.02869 2 02009 17.18733 04 05 06 07 08 09
  17. 17. TOTAL ASSET TURNOVER RATIOYEAR TATR(times) TATR2004 1.89321 2.52005 1.79170 22006 1.89715 1.5 TATR2007 2.07175 1 0.52008 1.91765 02009 2.16625 04 05 06 07 08 09
  18. 18. ANALYSIS• The avg. I nvent or y t ur nover r at io f or t he last 6 yr s is appr ox 6 t imes per year ,which is sat isf act or y. I t implies t hat t he invent or ies have been sold f ast .• The avg. Debt or s t ur nover r at io is 15 t imes per year (indust r ial avg. is 7) which is quit e high and indicat es t hat t her e is a shor t t ime-lag bet ween sales and cash collect ion• The TATR is ar ound 1.8 (avg. of 6 yr s)
  19. 19. PROFITABILITY RATIOS Return Gross Operating Earning Net Profit on TotalProfit Margin Profit Ratio Power Ratio Assets Ratio Ratio
  20. 20. NET PROFIT RATIOYEAR NPR(%) NPR2004 5.79 0.062005 3.897 0.05 0.042006 2.654 0.03 NPR2007 3.572 0.022008 3.298 0.01 02009 0.757 04 05 06 07 08 09
  21. 21. RETURN ON TOTAL ASSETYEAR ROTA(%) ROTA2004 10.9617 0.122005 6.9833 0.1 0.082006 5.0367 0.06 ROTA2007 7.401 0.042008 6.3257 0.02 02009 1.6411 04 05 06 07 08 09
  22. 22. EARNING PER RATIO EPRYEAR EPR(%)2004 16.0656 0.18 0.162005 9.8272 0.14 0.122006 8.4142 0.1 EPR 0.082007 12.0844 0.06 0.042008 10.5712 0.02 02009 5.3833 04 05 06 07 08 09
  23. 23. ANALYSIS• The Net Pr of it Mar gin (avg. of 6 yr s) is 3.25% which is a lit t le low. But since t he invent or y t ur nover r at io is high it can ear n a high r at e of r et ur n on invest ment s.• Ther e is a huge dr op in ROTA f r om 2004 t o 2009. I n 2004 t he analysis shows t hat t he f ir m
  24. 24. DU PONTANALYSIS
  25. 25. Pioneer ed by Du Pont Company of USA.I t analyses impor t ant int er -r elat ionshipsbased on inf or mat ion f ound in f inancialst at ement s.I t is def ined as-Net P itrof = Net P it rof ×Net SalesTotal assets Net salesTotal assets R OTA NP M TATR Such a decomposit ion helps in under st andinghow t he r et ur n on t ot al asset s is inf luenced
  26. 26. YEAR 2005 2006 2007 2008 2009 2010NPM 0.0579 0.03897 0.02654 0.03572 0.03298 0.00757TATR 1.8932 1.79170 1.89715 2.07175 1.91765 2.16625NPM 0.1096 0.06983 0.05036 0.07401 0.06325 0.01641 XTATR = = = = = = =ROTA 0.1096 0.06983 0.05036 0.07401 0.06325 0.01641
  27. 27. OVERALL ANALYSIS Thus, we see t hat t he shor t -t er mf inancial st at e of t he company isslight ly weak but it is sat isf act or yin t he long-t er m. The asset s ar eemployed ef f icient ly by t he f ir m.The use of capit al employed is alsodone ef f icient ly. But t her e is a huge dr op inROTA, in t he year 2010. I n f actt he net pr of it has also dr opped agr eat ext ent in t his year . One of

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