Introduction of Dr. Lal PathLabs Ltd.
Balance sheet of Dr Lal PathLabs Ltd.
Profit and loss statement of Dr Lal PathLabs Ltd.
Types of ratios:
1.LIQUIDITY RATIOS
2.PROFITABILITY RATIOS
3.FINANCIAL RATIOS
2. Dr. Lal PathLabs was started in 1949, by the late Dr. S. K. Lal.
Dr. Lal PathLabs Limited is an international service provider of diagnostic and related
healthcare tests. Based in Delhi, the company offers a broad range of tests on blood,
urine and other human body. Only Pathology reports available online. For X-Ray,
Ultrasound, ECG,TMT, Echo, PFT, Uroflowmetry reports please visit the concerned
center where test has been conducted.
The company has 200 laboratories and diagnostic centres with approximately 1500
collection centres across India.
Dr Lal PathLabs revenue grew from Rs 45 crore in 2005 to Rs 100 crore in 2007 and Rs 550
crore in March 2014, its valuation is expected to be Rs 12,000 crore by 2019–20.[
Dr Lal Path Labs is present in 800 cities and caters to around 10 million patients a year.
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9. 1) Current Ratio: Current assets/Current Liabilities
1) Current Ratio: Current assets/Current Liabilities
CurrentAssets = Inventories +Trade Receivable + Cash and Cash equivalent
Current Liabilities =Trade Payables + Provision for tax + Bank Overdraft
Year ended March 2021: Current ratio = 1573/252= 6.24
Year ended March 2020: Current ratio = 1318/211= 6.24
Year ended March 2019: Current ratio = 1066/134 =7.955
Year ended March 2018: Current ratio = 895/111= 8.06
Year ended March 2017: Current ratio = 676/82= 8.24
10. A). LIQUIDITY
RATIOS
2) Quick Ratio: QuickAssets/Current Liabilities
QuickAssets =Trade Receivable + Cash and Cash equivalents
Current Liabilities =Trade Payables + Provision for tax + Bank
Overdraft(other liabilities)
Year ended March 2021:1050.36 / 252.25 = 4.16:1
Year ended March 2020: 807.34/ 211.26 = 3.82:1
Year ended March 2019: 768.42/ 134.46= 5.71 :1
Year ended March 2018: 586.11/ 111.12 = 5.27 :1
Year ended March 2017: 478.73 / 82.58 = 5.79:1
11. B). PROFITABILITY RATIOS
1) Net Profit Ratio: Net Profit after tax/Revenue from Operation *
100
Net Profit = Gross Profit-Indirect Expense / Losses + other
Income –Tax
Year Ended March 2021 - 18.79 : 1
Year Ended March 2020 - 17.52: 1
Year Ended March 2019 - 16.77 : 1
Year Ended March 2018 - 16.43 : 1
Year Ended March 2017 - 17.29 : 1
Through this the rate of net profit earned on Revenue from
Operation .It shows the overall efficiency of the business Operation
.It shows improvement in the Overall efficiency & profitability of the
business
12. C). FINANCIAL RATIOS
1) Debt to Equity Ratio: Debt / Equity
or
LongTerm Debts / Share Holders Funds or Net worth
LongTerm Debts - LongTerm borrowing
Shareholder Fund – Reserve & Surplus + Equity share capital
Year Ended March 2021- 0.00
Year Ended March 2020- 0.00
Year Ended March 2019- 0.00
Year Ended March 2018- 0.00
Year Ended March 2017- 0.00
In this Company provides sufficient protection to long term lenders. It shows a rather
not risky Financial position from the long term point of view as it indicates that more
funds invested in the business are provided by long term lenders.
13. C). FINANCIAL RATIOS
2) Proprietor’s Ratio: Equity /Total Assets
Or
Proprietor's Funds or Shareholder Funds / Non Current Assets + Current Assets
Share Holder Funds = Reserve & Surplus + Equity Share Capital
Total Assets = Current Assets + Non Current Assets
Year Ended March 2021 - 25040.16/38998.83 = 0.64
Year Ended March 2020 - 24396.22/ 38410.33= 0.63
Year Ended March 2019 - 22843.61/ 37714.13 = 0.60
Year Ended March 2018 - 22322.61/36791.81 = 0.60
Year Ended March 2017 - 21012.47/ 33869.27 = 0.62
This ration Indicates what proportion of funds are provided by Long term debts in
Comparison to share holder’s funds. Debt Equity ratio of the above Company is 0.64/1
which indicates that Long term debts are only .64 in comparison to share holder funds
.Hence it may be considered that the long term financial position of the company is
very Sound
