This document analyzes the financial performance of Radico Khaitan Ltd over several years using ratio analysis. It begins with an introduction and outlines the company profile. The analysis then calculates and compares various liquidity, profitability, and turnover ratios from 2016-2020. Key findings include the company's satisfactory but improving liquidity and profitability positions. The document concludes with recommendations to maintain profits and control costs, while acknowledging limitations of only considering monetary financial data.

1. Financial Performance Analysis
of
RADICO KHAITAN
LTD.
Presentation On
Under the guidance of:
Dr. NUDRAT MOINI REHMAN
Presented By:
TALHA KHAN
MBA 3rd Sem
Enroll. No. – 2019-502-113

2. Agenda
 Introduction
 Significance and Techniques of Financial Performance Analysis.
 Company Profile.
 Research Methodology
 Liquidity Ratio
 Profitability Ratio
 Cash Flow Statement Ratio
 Recommendation
 Conclusion
 Limitation of Financial Performance Analysis.

3. Click to edit Master title style
3
Introduction
• Financial Performance Analysis is defined as, “The
process of identifying financial strengths and
weaknesses of a business by establishing relationship
between the elements of balance sheet and income
statement.”
• A Financial Statement is an organized collection of data
according to logical and consistent accounting
procedures.
• There are three main financial statements:
1. Balance Sheet
2. Income Statement
3. Cash Flow Statement

4. Significance of Financial
PerformanceAnalysis
Financial Manager
Top Management
Lenders
Investors
Techniques of Financial
PerformanceAnalysis
Common Size
Statement
Financial Ratio
Analysis
Comparative
Statement Analysis
Cash Flow
Statement

5. Company Profile
• Radico khaitan is one of the India's oldest and
largest liquor manufacturers. formally known as
Rampur Distillery which was established in
1943.

6. Dr. Lalit Khaitan
(Chairman &
Managing director)
Mr. Abishek Khaitan
(Managing Director)
Mr. K.P.Singh
(Whole Time Director)

7. Research Methodology
1. Objectives
 To develop practical understanding of ratios based on financial statements.
 To develop clarity about different types of ratios and their significance in financial set up.
 To study and analyse the financial position of the Company through ratio analysis.
 To suggest measures for improving the financial performance of organization.
 To study and compare the financial position of company with its competitors through ratio analysis.
2. Research Design
 Descriptive Research Design
3. Data Source
 Secondary Data
4. Measurement tool
 Common Size Statement
 Ratio Analysis
 Cash Flow Statement

8. ANALYSIS
■ CLASSIFICATIONOF RATIOS ONTHE BASIS OF BALANCE
SHEET
■ CLASSIFICATIONONTHE BASIS OF INCOME STATEMENT
■ CLASSIFICATIONONTHE BASIS OF MIXED STATEMENTS

9. Liquidity Ratios
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2016 2017 2018 2019 2020
CURRENT RATIO
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2016 2017 2018 2019 2020
QUICK RATIO
CLASSIFICATION OF RATIOS ON
THE BASIS OF BALANCE SHEET

10. PROFITABILITY RATIOS
30.54
29.35
5.01
34.83
32.33
0
5
10
15
20
25
30
35
40
2016 2017 2018 2019 2020
GROSSPROFITRATIO(%)
4.65 4.79
6.74
8.96
9.37
0
1
2
3
4
5
6
7
8
9
10
2016 2017 2018 2019 2020
Net ProfitMargin (%)
CLASSIFICATION ON THE
BASIS OF INCOME STATEMENT

11. PROFITABILITY RATIOS
CLASSIFICATION ON THE
BASIS OF INCOME STATEMENT
0
2
4
6
8
10
12
14
16
18
2016 2017 2018 2019 2020
OPERATING PROFIT (%)
0
2
4
6
8
10
12
14
16
2016 2017 2018 2019 2020
Return on Investment Ratio (%)

12. PROFITABILITY RATIOS
CLASSIFICATION ON THE
BASIS OF INCOME STATEMENT
0
2
4
6
8
10
12
14
2016 2017 2018 2019 2020
Return on Asset (%)
0
2
4
6
8
10
12
14
16
18
20
2016 2017 2018 2019 2020
Return on Capital Employed (%)

13. CLASSIFICATION ON
THE BASIS OF MIXED
STATEMENTS
0
2
4
6
8
10
12
14
16
2016 2017 2018 2019 2020
Working Capital Turnover Ratio
0
2
4
6
8
10
12
14
16
18
2016 2017 2018 2019 2020
Earnings Per Share Ratio (Rs.)
0
20
40
60
80
100
120
2016 2017 2018 2019 2020
Asset Turnover Ratio (%)

14. Recommendations
 From the income statement of the company, it is clear that the net profit is increasing
which is a good sign. It has to maintain it further to run the business for long term.
 The company should take precautionary measures for investing in partnership firms and
collecting funds from receivables.
 The company should strive to keep a check on its Quick Ratio as it shrinks compared to
the company's competitors.This can be done by controlling current debts/liabilities.
 EPS is low compared to other companies in the industry.The company should take care of
it in order to retain its shareholders over time.
 The company's profits are based on each level and the industry as a whole. It is proposed
to ensure the maintenance of this stability or profit. Also, the company should take steps
to further improve profits.

15. Conclusion
 The Company’s liquidity position is satisfactory but there is scope for
better results.
 The Company’s profitability position is quite satisfactory.
 The company’s turnover ratios are indicating that company is in a
healthy position.

16. Limitation of Financial Performance Analysis
 Firms consider only the monetary aspects of the financial statements. They do not consider the
non-monetary aspect.
 The statements do not necessarily provide any value in predicting what will happen in the future.
 Intangible assets not recorded. Firms do not record many intangible assets. Instead, any
expenditure made to create an intangible asset is immediately charged to expense.