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Fa case3 4

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Fa case3 4

  1. 1. Common Size Balance SheetSOURCES OF FUNDSOwner’s Fund A B C D E F G HEquity 2.73 1.59 6.69 9.93 4.77 6.7 0.93 6.76ShareCapitalReserve 50.99 98.41 86.04 90.06 82.27 44.95 90.13 33.55s&SurplusLoan FundsSecured 43.55 0.00 2.95 0.00 9.74 28.18 5.48 43.69LoansUnsecure 2.74 0.00 4.32 0.00 3.22 20.18 3.47 16.00d LoansTotal 100.0 100 100 100 100 100 100 100 0
  2. 2. USES OF FUNDSFixed Assets Gross 52.35 46.1 53.00 101.68 61.48 120.88 3.04 131.16 Block 8 Less : Acc 17.58 18.8 18.16 52.72 39.05 50.95 0.45 43.75 Dep. 9 Net Block 34.78 27.2 34.83 48.96 22.42 69.93 2.59 87.71 8 Capital 4.79 7.24 0.54 0.00 1.59 2.95 0.23 4.92 Work in progress Investment 32.70 2.14 29.30 0.00 4.99 24.93 79.89 9.84 s & Other Net Current Assets Assets Current 43.90 85.42 76.86 143.88 173.69 59.76 23.28 34.57 Asset, loans & Advances Less CL & 16.17 22.08 41.54 92.85 102.60 57.57 5.99 37.04 P Total net 27.73 63.34 35.32 51.04 71.01 2.19 17.29 -2.47
  3. 3. Selected Financial RatiosPROFITABILITY RATIOSOperating 15.9 39.88 14.35 26.11 9.12 7.73 31.69 15.89Margin (%) 0Net Profit 13.2 30.41 12.11 18.34 6.60 -0.85 16.51 4.58Margin (%) 0Return On -0.62 38.20 11.84 32.20 8.72 -4.16 2.41 11.40Net Worth(%)Return On 4.66 44.74 14.65 43.70 13.14 5.10 4.56 17.67Cap.Employed(%) Leverage Ratios Long Term 0.81 0.00 0.03 0.00 0.18 0.79 0.04 0.68 Debt/Equity Total 0.86 0.00 0.07 0.00 0.14 0.93 0.09 1.48 Debt/Equity
  4. 4. LIQUIDITY RATIOSCurren 2.72 3.87 1.85 1.55 1.69 1.04 3.90 0.93t RatioQuick 2.60 3.87 1.21 1.33 1.26 0.64 3.37 0.61RatioACTIVITY RATIOInventory 83.27 n.a. 5.09 16.63 3.97 9.90 2.99 18.30TurnoverRatioFixed Assets 0.68 2.71 2.36 1.85 2.18 1.27 2.99 0.84TurnoverRatio
  5. 5. Analysis …. A :- Indian Hotels ◦ High reserves and surplus for operations and future expansions. ◦ Huge fund raising through secured loans. ◦ Higher proportion of fixed assets. ◦ Higher Investments in lands, infrastructures and other subsidiaries. ◦ High proportions of current assets due to debtors and service management. ◦ Higher operating margin being a service sector. ◦ Higher inventory turnover ratio.
  6. 6. Analysis cont…… B :- Infosys Ltd. ◦ Company doesn’t rely on external sources of funding. ◦ Huge cash reserves & surplus for operating expenses, training of employees and as contingency reserves. ◦ Negligible inventory being service sector. ◦ Moderate fixed assets in the form of infrastructure. ◦ Current assets are high as they have large debtors because of outsourcing services. ◦ Higher profit and return on net worth because of service sector. ◦ Company has a good financial structure that is why high capital and quick ratio.
  7. 7. Analysis cont… C :- RANBAXY ◦ Huge reserves and surplus for R&D. ◦ High fixed assets in form of production houses. ◦ High investments for patents and advancements in technology. ◦ High current assets as debtors are high.
  8. 8. Analysis cont… D:-PROCTER AND GAMBLE(P&G) ◦ Huge reserves and surplus for meeting operating expenses. ◦ Company does not rely on external sources for fund raising. ◦ Huge gross block in form of stores, factories and warehouses. ◦ High current assets as high inventory and high current liabilities as creditors are more ◦ Net profit margin is good and high return on net worth ◦ Inventory turnover ratio is high as fast moving goods.
  9. 9. Analysis cont… E:- BHEL ◦ High reserves and surplus for purchase of machines and contingency reserves ◦ Current assets are high as manufacturing sector has high inventory. ◦ High current liabilities as large creditors.
  10. 10. Analysis cont… F:- TATA ◦ Depends on external sources of funds. ◦ Higher unsecured loans for meeting short term obligations. ◦ Being a manufacturing sector it has huge gross block ◦ Operating profit is +ve but net profit margin and return on net worth is negative because company has to bear huge interest on secured as well as unsecured loans. ◦ High inventory turnover ratio being a manufacturing sector.
  11. 11. Analysis Cont… G:- Zee TV ◦ Being a service sector has high reserves and surplus. ◦ Lower gross blocks for low area of production. ◦ Higher investments in technological advancements and necessary equipments . ◦ Lower current liabilities.
  12. 12. Analysis Cont… H :- ACC Cements ◦ Manufacturing sector demands higher loans for operating expenses. ◦ Huge gross blocks for inventory management and stores. ◦ Greater current liabilities than current assets due to more creditors and interests. ◦ Higher inventory turnover ratio being a manufacturing sector.
  13. 13. THANK YOU

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