Ratio Analysis on Maruti Suzuki

1. Presentation On
Ratio Analysis on Maruti Suzuki

2. • Maruti Suzuki is India and Nepal's 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. 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. 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. 100
90
80
70
60
50
40
30
20
10
0
2012 2011 2010 2009 2008

6. Return on Net Worth=
Net aftertax profits
Share holder capital + Retained earnings
Year calculation ans
2012 1633.60 11.30
144.50
2011 2307.10 15.96
144.50
2010 2545.00 17.62
144.50
2009 1231.70 8.52
144.50
2008 1789.90 12.38
144.50

7. 20
18
16
14
12
10
8
6
4
2
0
2012 2011 2010 2009 2008

8. •Net Annual Value =
Equity share holder Fund
No of Equity Share *100
Year Calculation Answer
2012 144.50 * 100 5%
2889.10
2011 144.50 * 100 5%
2889.10
2010 144.50 * 100 5%
2889.10
2009 144.50 * 100 5%
2889.10
2008 144.50 * 100 5%
2889.10

9. 6
5
4
3
2
1
0
2012 2011 2010 2009 2008

10. Debt Equity Ratio = Long Term Debt
Total Net worth
Year Calculation Answer
2012 1078.30 0.07
15187.40
2011 309.30 0.02
13877.50
2010 822.40 0.07
1835.10
2009 698.90 0.07
9344.90
2008 900.20 0.11
8415.40

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 financial
status of the creditors is more than that of the owners
 very low debt equity rate may mean that the borrowing
capacity of the Organization is being underutilized.

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. 1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2011 2010 2009 2008
ANALYSIS: The ideal level of current ratio is 2:1. The
current asset should be double that of current liability. This
ratio helps to discharge firm’s short term liabilities.

14. Quick Ratio =
Current Asset +Loan & advance-inventories+ ShortTerm investment
Current Liabilities+ Provision +short term Debt
Year Calculation Answer
2012 7310.30 -1796.50 0.90
6119.00
2011 6443.10-1415.00 1.15
4362.02
2010 3856.00-1208.80 0.69
3814.90
2009 5570.00-902.30 1.28
3631.70
2008 3190.50-1038.00 0.69
3088.50

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 assets
available with the organization
Generally, the acid test ratio should be 1:1 or higher, however
this varies widely by industry.

16. Inventory Turnover Ratio= Cost of Goods Sold
Average Inventory
years Calculation Answer
2012 33535.9 20.88
1605.75
2011 33590.8 25.60
1311.9
2010 25878.3 24.51
1055.55
2009 19041.3 19.63
970.15
2008 15659.1 15.08
1038

17. 30
25
20
15
10
5
0
2012 2011 2010 2009 2008
It is a ratio which shows relationship between cost of goods sold
and avg. stock. If this ratio is high i.e. concern is able to yield
high sales with low stock then marketing efficiency will be
considered good and if its low then it’s a indication of
slowdown of business or over-investment in stock.

18. •Net Profit Ratio =
Net Profit *100
Net Sales
Year Calculation Answer
2012 1633.60* 100 4.53%
36061
2011 2307.10 * 100 6.31%
36543.70
2010 2545.00 * 100 8.69%
29437.10
2009 1231.70 * 100 5.94%
20715.40
2008 1789.90 * 100 9.91%
28050.70

19. 12
10
8
6
4
2
0
2012 2011 2010 2009 2008
Net profit ratio shows the overall efficiency of business.
Higher the ratio its good for the business. Here we can see
there is decrease in the ratio in the comparison of last year.