Ratio Analysis on Maruti Suzuki

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Ratio Analysis on Maruti Suzuki

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Ratio Analysis on Maruti Suzuki

  1. 1. Presentation OnRatio Analysis on Maruti Suzuki
  2. 2. • Maruti Suzuki is India and Nepals leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.
  3. 3. CLASIFICATION OF RATIOS• The ratios may be classified under various ways, which may use various criterions• to do the same. However for the convenience purpose, the ratios are classified under following groups.• EPS RNW NAV DEBT EQUITY RATIO CURRENT RATIO QUICK RATIO INVENTORY TURN RATIO NPR
  4. 4. RATIO ANALYSIS• Earning Par Share = Profit after tax No of equity share Year Calculation Answer 2012 1633.60 56.54% 2889.10 * 100 2011 2307.10 79.86% 2889.10 *100 2010 2545 88.09% 2889.10 *100 2009 1232.70 42.63% 2889.10 *100 2008 1784.90 61.95% 2889.10 *100
  5. 5. 100 90 80 70 60 50 40 30 20 10 0 2012 2011 2010 2009 2008
  6. 6. Return on Net Worth= Net aftertax profits Share holder capital + Retained earningsYear calculation ans2012 1633.60 11.30 144.502011 2307.10 15.96 144.502010 2545.00 17.62 144.502009 1231.70 8.52 144.502008 1789.90 12.38 144.50
  7. 7. 201816141210 8 6 4 2 0 2012 2011 2010 2009 2008
  8. 8. •Net Annual Value = Equity share holder Fund No of Equity Share *100Year Calculation Answer2012 144.50 * 100 5% 2889.102011 144.50 * 100 5% 2889.102010 144.50 * 100 5% 2889.102009 144.50 * 100 5% 2889.102008 144.50 * 100 5% 2889.10
  9. 9. 6543210 2012 2011 2010 2009 2008
  10. 10. Debt Equity Ratio = Long Term Debt Total Net worthYear Calculation Answer2012 1078.30 0.07 15187.402011 309.30 0.02 13877.502010 822.40 0.07 1835.102009 698.90 0.07 9344.902008 900.20 0.11 8415.40
  11. 11. 0.12 0.1 0.08 0.06 0.04 0.02 0 2012 2011 2010 2009 2008 A high debt-equity ratio may indicate that financialstatus of the creditors is more than that of the owners very low debt equity rate may mean that the borrowingcapacity of the Organization is being underutilized.
  12. 12. Current Ratio= Current Asset +Loan +Advance Current Liabilities + Provision Year Calculation Answer 2012 7310.30 1.20 6119 2011 6443.10 1.48 4300.00 2010 3856.00 1.01 3814.90 2009 5570.00 1.53 3631.70 2008 3190.50 1.03 3088.50
  13. 13. 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2012 2011 2010 2009 2008ANALYSIS: The ideal level of current ratio is 2:1. Thecurrent asset should be double that of current liability. Thisratio helps to discharge firm’s short term liabilities.
  14. 14. Quick Ratio = Current Asset +Loan & advance-inventories+ ShortTerm investment Current Liabilities+ Provision +short term DebtYear Calculation Answer2012 7310.30 -1796.50 0.90 6119.002011 6443.10-1415.00 1.15 4362.022010 3856.00-1208.80 0.69 3814.902009 5570.00-902.30 1.28 3631.702008 3190.50-1038.00 0.69 3088.50
  15. 15. 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2012 2011 2010 2009 2008Higher liquid ratio indicates that there are sufficient assetsavailable with the organizationGenerally, the acid test ratio should be 1:1 or higher, howeverthis varies widely by industry.
  16. 16. Inventory Turnover Ratio= Cost of Goods Sold Average Inventoryyears Calculation Answer2012 33535.9 20.88 1605.752011 33590.8 25.60 1311.92010 25878.3 24.51 1055.552009 19041.3 19.63 970.152008 15659.1 15.08 1038
  17. 17. 30 25 20 15 10 5 0 2012 2011 2010 2009 2008It is a ratio which shows relationship between cost of goods soldand avg. stock. If this ratio is high i.e. concern is able to yieldhigh sales with low stock then marketing efficiency will beconsidered good and if its low then it’s a indication ofslowdown of business or over-investment in stock.
  18. 18. •Net Profit Ratio = Net Profit *100 Net SalesYear Calculation Answer2012 1633.60* 100 4.53% 360612011 2307.10 * 100 6.31% 36543.702010 2545.00 * 100 8.69% 29437.102009 1231.70 * 100 5.94% 20715.402008 1789.90 * 100 9.91% 28050.70
  19. 19. 12 10 8 6 4 2 0 2012 2011 2010 2009 2008Net profit ratio shows the overall efficiency of business.Higher the ratio its good for the business. Here we can seethere is decrease in the ratio in the comparison of last year.

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