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Ratio analysi
1. AN APPLICATION OF RATIO ANALYSIS
FOR CELLO PLASTIC PRODUCTS LTD
Submitted in partial fulfillment of the requirement for the Degree of
Master of Business Administration)
Under the supervision of:
Ms Neha Aggarwal
Submitted by:
Sonali Kukreja
3. CELLO-AN INTRODUCTION
Cello plastic products ltd founded by Mr G.D. RATHOD
in May 10,1986, at a small factory in Goregaon ,
Mumbai,with just 60 workers and 7 machines
First and largest Manufacturer of Branded household
products in India ,having wide range of plastic moulded
products.
Largest Exporter of Insulated Thermoware from India
2100 employees-more than 300 engineers and plastic
technologist.
4. OBJECTIVES OF THE STUDY
To have an indepth knowledge of ratio
analysis of the company
To make comparisons between the ratios
during different periods(2years data from 2011
to 2012 )
5. RATIO ANALYSIS
Ratio analysis is a technique of analysis
,comparison and interpretation of financial statements.
According to Accountant’s Handbook by
Wixon, Kell and Bedford, “a ratio is an expression of
the quantitative relationship between two numbers”
It
is
helpful
to
know
about
the
liquidity, solvency, capital structure and profitability
of an organization.
7. RESEARCH METHODOLOGY
DATA COLLECTION:
-Primary Data: No primary data was collected in this project
-Secondary Data: Balance sheet,Profit and loss account of the
company ,Newspapers and Journals
TOOLS USED :
•Tables
•Bar graphs
•diagram
8. DATA ANALYSIS
1) LIQUIDITY RATI0
a) Current ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Current assets
98.77
127.38
Current liabilities
21.97
25.34
CURRENT RATIO
4.49
4.49
CURRENT RATIO
6
4
2
0
CURRENT RATIO
2010-11
2011-12
9. b) Quick ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Quick assets
66.68
84.64
Current liabilities
21.97
25.34
QUICK RATIO
3.03
3.34
QUICK RATIO
3.4
3.3
3.2
3.1
3
2.9
2.8
QUICK RATIO
2010-11
2011-12
10. 2) LEVERAGE RATIO
a) Debt equity ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Long term loans
0.89
1.36
Shareholder’s fund
118.41
151.12
DEBT EQUITY RATIO 0.007
0.009
DEBT EQUITY RATIO
0.01
0.005
DEBT EQUITY
RATIO
0
2010-11
2011-12
11. b) Proprietary ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Shareholder’s funds
118.41
151.12
Long term loan
.89
1.36
PROPRIETARY RATIO
99.25%
99.11%
PROPRIETARY RATIO
99.30%
99.20%
PROPRIETARY
RATIO
99.10%
99.00%
2010-11
2011-12
12. 3) ACTIVITY RATIO
a) Stock turnover ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Cost of good sold
122.95
134.24
Average stock
24.49
37.41
STOCK TURNOVER
RATIO
5.02
3.588
STOCK TURNOVER RATIO
6
4
STOCK TURNOVER
RATIO
2
0
2010-11
2011-12
13. b) Debtor turnover ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Sales
162.71
174.47
Average debtor
48.57
65.90
DEBTOR TURNOVER
RATIO
3.35
2.64
DEBTOR TURNOVER RATIO
4
3
2
1
0
DEBTOR
TURNOVER RATIO
2010-11
2011-12
14. 4) PROFITABILITY RATIO
a) Gross profit ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Gross profit
39.76
40.23
Net sales
162.71
174.47
GROSS PROFIT RATIO
24.43%
23.05%
STOCK TURNOVER RATIO
25.00%
24.00%
STOCK TURNOVER
RATIO
23.00%
22.00%
2010-11
2011-12
15. b) Net profit ratio
(RS IN CRORE)
YEAR
2010-11
2011-12
Net profit
22.41
15.23
Net sales
162.71
174.47
NET PROFIT RATIO
13.77%
8.72%
NET OROFIT RATIO
15.00%
10.00%
NET OROFIT RATIO
5.00%
0.00%
2010-11
2011-12
16. SUGGESTIONS AND FINDINGS
SUGGESTIONS
The profit ratio is decreased in current year so the company
should pay attention to this because profit making is the prime
objective of every business
The company should make the balance between liquidity and
solvency position of the company
FINDINGS
17. CONCLUSIONS
Liquidity ratio is increasing from the last year , fixed
assets are also increasing compare to the previous year
and equity share capital remain same in the current
year.
Debtors turnover ratio has decreased which shows
that the company is not utilizing its debtor’s efficiency
and creditors turnover ratio has also reduced which
indicates less period of credit enjoyed by the business.
Profitability ratio decreases which is not the good
indicator for the company
