Gaurav

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Gaurav

  1. 1. Submitted To : Prepared By :Gaurav Bagra Gaurav BhattacharyaSr. Faculty MBA (G) Sec – AAmity Business School
  2. 2. Bajaj Auto Ltd. Bajaj Auto Ltd a , BSE listed, World’s Third largest Two wheeler manufacturing Company, and tried to interpret these ratios on basis of their calculations. The Ratios which I have calculated are as follows :1. Earning Price Per Share (EPS)2. Gross Profit Ratio3. Net Profit Ratio4. Current Ratio5. Quick Ratio6. Operating Profit Ratio7. Return on Equity
  3. 3. Earning Price per Share (EPS) Earning Price Per Share = Earnings after Tax ∕ Number of Equity SharesYear 2008 2009 2010 2011 2012EPS 5.039 4.37 11.35 11.13 10.01
  4. 4. EPS Year EPS 10.01 11.13 11.35 4.375.039 2012 2011 2010 20092008 1 2 3 4 5
  5. 5. Trend Line of EPS 12 10 8EPS 6 EPS 4 2 0 1 2 3 4 5 Years
  6. 6. Interpretation of Earnings PerShare In the year 2008 the EPS Ratio was 5.03, while in the next year i.e.. in 2009 it got reduced to 4.37 but in the year 2010 it saw a big jump in the EPS rate up to 11.35 after its reducing in a slow pace i.e. 11.13 in 2011 and 10.01 in 2012 t indicates that the Company’s earning share is increased but still it is earning low.
  7. 7. Gross Profit Ratio Gross Profit Ratio = Gross Profit / Net Sales * 100Year 2008 2009 2010 2011 2012Gross Profit 14.93 14.71 21.35 22.81 13.62
  8. 8. Gross Profit Year Gross Profit 22.81 21.35 13.62 14.7114.93 2011 2012 2009 20102008 1 2 3 4 5
  9. 9. Trend Line of Gross Profit 25 20 15 Gross ProfitGross Profit 10 5 0 1 2 3 4 5 Years
  10. 10. Interpretation of Gross ProfitRatio In 2008 Co. earned a Gross Profit of 14.93%, which got somewhat reduced in 2009 came up to 14.71%, in 2010 it got increased and got up to 21.35% in 2011 again showed a increment and got up to 22.81 but in the year 2012 it reduced and came up to 13.62 which indicated there is a loss compared to previous years and corrective measures has to be taken to increase the profit margin
  11. 11. Net Profit Ratio  Net Profit Ratio =  Net Profit/ Net Sales * 100Year 2008 2009 2010 2011 2012Net Profit 8.72 7.34 14.14 21 15.91
  12. 12. Net Profit Year Net Profit 21 15.91 14.148.72 7.34 2011 2012 2009 20102008
  13. 13. Trend Line of Net Profit 25 20 15Net Proft Net Profit 10 5 0 1 2 3 4 5 Years
  14. 14. Interpretation of Net Profit Ratio In the year 2008 Bajaj Auto Ltd earned a Net Profit of 8.72% which got reduced in 2009 upto 7.34% but in the year 2010 came with up good news and a profit margin of 14.14% and in the year 2011 again showed a +7 increment in the profit margin upto 21% but in the year 2012 profit got reduced and stood upto 15.91 which shows company suffered loss this FY and corrective measures must be taken to overcome it.
  15. 15. Current Ratio Current Ratio = Current Assets / Current LiabilitiesYear 2008 2009 2010 2011 2012Current Ratio 0.87 0.95 0.701 0.786 1.122
  16. 16. Current Ratio Year Current Ratio 1.122 0.786 0.701 0.950.87 2012 2011 2010 20092008 1 2 3 4 5
  17. 17. Trend Line of Current Ratio 1.2 1 0.8Cureent Ratio 0.6 Current Ratio 0.4 0.2 0 1 2 3 4 5 Years
  18. 18. Interpretation of Current RatioIn the years of 2008, 2009 Current Ratio of Bajaj Auto Ltd shown a increase but it 2010 it got decreased and come upto .71 and after tht its rising at a good pace at which shows that they are in the position to meet their short term liquidity it the market and are moving in a good direction which indicates they can meet their short term requirement quickly whenever there is a emergency in the company.
  19. 19. Quick Ratio Quick Ratio = Current Assets – Stock / Current LiabilitiesYear 2008 2009 2010 2011 2012Quick Ratio 0.69 0.81 0.59 0.64 0.97
  20. 20. Quick Ratio Year Quick Ratio 0.97 0.64 0.59 0.81 20120.69 2011 2010 20092008 1 2 3 4 5
  21. 21. Trend Line of Quick Ratio 1.2 1 0.8Quick Ratio 0.6 Quick Ratio 0.4 0.2 0 1 2 3 4 5 Years
  22. 22. Interpretation of Quick Ratio Same like Current Ratio, Bajaj Auto Ltd Quick Ratio shows and indicates the exact short term solvency for the past 5 years Quick ratio showed a increase in 2008, 2009 and shown a downfall in 2010 and is increasing after that in 2011 it showed a rise upto .64 and in 2012 it showed rise upto .97
  23. 23. Operating Ratio Operating Profit = Operating Profit / Total Operating income * 100Year 2008 2009 2010 2011 2012OperatingProfit 14.29 13.64 21.75 19.35 19.6
  24. 24. Operating Profit Year OP 19.6 21.75 19.35 13.6414.29 2011 2012 2009 20102008 1 2 3 4 5
  25. 25. Trend Line of Operating Ratio 25 20 15Operating Profit OP 10 5 0 1 2 3 4 5 Years
  26. 26. Interpretation of OperatingRatio Bajaj Auto Ltd Operating profit ratio showed a rise in % in 2008 and in 2009, 2010 but in 2011 it got reduced upto 19.35% again in 2012 the company made some improvement and the operating profit ratio gone upto 19.6 % which is a good sign for the company
  27. 27. Return on Equity Return on Equity = Profit after Tax / Shareholder’s Fund * 100Year 2008 2009 2010 2011 2012ROE 47.61 35.11 58.17 61.17 55.28
  28. 28. Return on Equity Year ROE 61.17 58.17 55.2847.61 35.11 2009 2010 2011 20122008 1 2 3 4 5
  29. 29. Trend Line of ROE 70 60 50Return on Equity 40 ROE 30 20 10 0 1 2 3 4 5 Years
  30. 30. Interpretation of Return onEquity Return on Equity of Bajaj Auto Ltd showed a good increase in the year 2008 but got reduced in 2009 then in 2010, 2011 it showed again a rise and then in 2012 it got again somewhat reduced and stood up to 55.28 this indicates that how much a investor is getting return on his Equity.
  31. 31. THANK YOU

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