This financial analysis report summarizes Gree Electric Appliances' financial performance from 2009-2013. It analyzes Gree's short-term liquidity, financial leverage, operational capacity, profitability, and development capacity compared to its peers. While Gree maintains high debt ratios, its strong relationships with suppliers and non-interest bearing debts allow it to effectively control financial risk. The report also uses DuPont analysis to evaluate Gree's profitability, asset utilization, and financial structure.
This document provides an overview and analysis of financial statements and financial ratios. It begins with definitions and comparisons of key financial statements (balance sheet, income statement, cash flow statement) and accounting standards (HGB, IFRS, US-GAAP). Next, it describes types of financial ratios and their categories. Finally, it provides two case studies analyzing automaker ratios from 2015 and Volkswagen Group ratios from 2006-2016 to evaluate performance over time and relative to competitors/industry averages.
The document provides an analysis of the working capital management and financial performance of Tamil Nadu Newsprint and Papers Limited (TNPL). It includes an industry profile of the Indian paper industry, a company profile of TNPL, calculations of various working capital metrics like working capital days and cash conversion cycle, and financial ratios analyzing liquidity, leverage, turnover and profitability. Key findings are that TNPL's working capital requirements are high due to large inventories, and profitability has declined in recent years due to rising expenses. Suggestions include better inventory management, cost reduction, and diversification.
Ratio analysis on annual balance sheet of Bajaj Auto ltd. Shrey Kapoor
This document analyzes the ratio analysis of Bajaj Auto Ltd from 2011-2014. It provides background on Bajaj Auto, which was founded in 1926 and is one of the largest manufacturers of two and three-wheelers. It then examines various liquidity ratios like current ratio and quick ratio and profitability ratios like gross profit ratio, net profit ratio, EBITDA margin, return on equity and return on capital employed for Bajaj over the years. It finds that while liquidity and most profitability ratios improved from 2011-2013, return on equity and return on capital employed decreased in 2013-2014 possibly due to increased selling and distribution expenses. Areas for improvement include controlling expenses to boost returns.
Ratio Analysis in 'ROYAL CERAMIC LANKA PLC'miranga88
This document provides financial ratio analysis for Royal Ceramic Lanka PLC for the years 2013-2015. It includes profitability ratios like gross profit ratio, operating margin, net profit percentage, return on assets, return on equity, and return on capital employed. Liquidity ratios like current ratio, quick ratio, and cash ratio are also presented. The ratios indicate that while the company's sales have increased year-over-year, profitability has declined over this period as costs have risen faster than revenues. Liquidity has also decreased, suggesting the company may face challenges meeting short-term obligations.
China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK)asianextractor
1. The document analyzes financial and operating data from China Cord Blood Corp and finds inconsistencies that raise doubts about the accuracy of the reported numbers.
2. It notes a sudden spike in revenue and profits per new subscriber in 2013 that coincided with a large increase in prepayments, as well as dramatic rises in deferred income as a percentage of revenue in subsequent years.
3. The operating data shows each new subscriber contributing significantly more to unearned storage fees and deferred income between 2012-2015 despite no reported change in storage fee policies. This suggests the financial and operating data do not match.
This document provides an analysis of Indian Tobacco Company (ITC) over several years. It includes an introduction to ITC, the company's history established in 1910, vision, mission and product lines. Financial information is presented including balance sheets from 2009-2013, analysis of key ratios like current ratio, inventory turnover, and earnings per share. The document concludes that ITC promotes its brands through advertising and focuses on retailing and wholesaling, applying new concepts to overcome weaknesses in personal care markets.
ITC is an Indian conglomerate headquartered in Kolkata with diversified businesses including FMCG, hotels, paper, packaging, agriculture, and IT. According to the financial analysis, ITC has total assets of INR 62381.31 Cr. and total equity of INR 51400.07 Cr. as of 2018. While ITC's sales have decreased in recent years, the company has been able to increase net profits through cost reductions and other income sources. The ratio analysis shows ITC has a strong liquidity position and returns, though it could improve by addressing its declining sales and under-leveraging of debt.
This document analyzes the financial performance of a company over 5 years from 2009-2013 using various ratios and analyses. It summarizes key financial metrics like net income, sales, assets, and liabilities. Trend analyses show sales, costs, profits, and other figures generally increased year over year, with some fluctuations. The document provides a comprehensive review of the company's financial standing and growth over this period.
This document provides an overview and analysis of financial statements and financial ratios. It begins with definitions and comparisons of key financial statements (balance sheet, income statement, cash flow statement) and accounting standards (HGB, IFRS, US-GAAP). Next, it describes types of financial ratios and their categories. Finally, it provides two case studies analyzing automaker ratios from 2015 and Volkswagen Group ratios from 2006-2016 to evaluate performance over time and relative to competitors/industry averages.
The document provides an analysis of the working capital management and financial performance of Tamil Nadu Newsprint and Papers Limited (TNPL). It includes an industry profile of the Indian paper industry, a company profile of TNPL, calculations of various working capital metrics like working capital days and cash conversion cycle, and financial ratios analyzing liquidity, leverage, turnover and profitability. Key findings are that TNPL's working capital requirements are high due to large inventories, and profitability has declined in recent years due to rising expenses. Suggestions include better inventory management, cost reduction, and diversification.
Ratio analysis on annual balance sheet of Bajaj Auto ltd. Shrey Kapoor
This document analyzes the ratio analysis of Bajaj Auto Ltd from 2011-2014. It provides background on Bajaj Auto, which was founded in 1926 and is one of the largest manufacturers of two and three-wheelers. It then examines various liquidity ratios like current ratio and quick ratio and profitability ratios like gross profit ratio, net profit ratio, EBITDA margin, return on equity and return on capital employed for Bajaj over the years. It finds that while liquidity and most profitability ratios improved from 2011-2013, return on equity and return on capital employed decreased in 2013-2014 possibly due to increased selling and distribution expenses. Areas for improvement include controlling expenses to boost returns.
Ratio Analysis in 'ROYAL CERAMIC LANKA PLC'miranga88
This document provides financial ratio analysis for Royal Ceramic Lanka PLC for the years 2013-2015. It includes profitability ratios like gross profit ratio, operating margin, net profit percentage, return on assets, return on equity, and return on capital employed. Liquidity ratios like current ratio, quick ratio, and cash ratio are also presented. The ratios indicate that while the company's sales have increased year-over-year, profitability has declined over this period as costs have risen faster than revenues. Liquidity has also decreased, suggesting the company may face challenges meeting short-term obligations.
China Cord Blood Corp (NYSE: CO) and Golden Meditech (801 HK)asianextractor
1. The document analyzes financial and operating data from China Cord Blood Corp and finds inconsistencies that raise doubts about the accuracy of the reported numbers.
2. It notes a sudden spike in revenue and profits per new subscriber in 2013 that coincided with a large increase in prepayments, as well as dramatic rises in deferred income as a percentage of revenue in subsequent years.
3. The operating data shows each new subscriber contributing significantly more to unearned storage fees and deferred income between 2012-2015 despite no reported change in storage fee policies. This suggests the financial and operating data do not match.
This document provides an analysis of Indian Tobacco Company (ITC) over several years. It includes an introduction to ITC, the company's history established in 1910, vision, mission and product lines. Financial information is presented including balance sheets from 2009-2013, analysis of key ratios like current ratio, inventory turnover, and earnings per share. The document concludes that ITC promotes its brands through advertising and focuses on retailing and wholesaling, applying new concepts to overcome weaknesses in personal care markets.
ITC is an Indian conglomerate headquartered in Kolkata with diversified businesses including FMCG, hotels, paper, packaging, agriculture, and IT. According to the financial analysis, ITC has total assets of INR 62381.31 Cr. and total equity of INR 51400.07 Cr. as of 2018. While ITC's sales have decreased in recent years, the company has been able to increase net profits through cost reductions and other income sources. The ratio analysis shows ITC has a strong liquidity position and returns, though it could improve by addressing its declining sales and under-leveraging of debt.
This document analyzes the financial performance of a company over 5 years from 2009-2013 using various ratios and analyses. It summarizes key financial metrics like net income, sales, assets, and liabilities. Trend analyses show sales, costs, profits, and other figures generally increased year over year, with some fluctuations. The document provides a comprehensive review of the company's financial standing and growth over this period.
This document provides an overview of ratio analysis for Atlas Honda. It includes summaries of various financial ratios categorized as liquidity, activity, debt, profitability, and market ratios. Several ratios for Atlas Honda from 2008-2012 are presented, including current ratio, quick ratio, inventory turnover, average collection period, debt ratio, gross profit margin, return on assets, and price to earnings ratio. The document also briefly introduces the DuPont system of analysis for further assessing a company's financial condition.
Case Study on comparative finacial performance of BATA India & Shopper's Stop Amitava Sengupta
This document presents financial ratio analyses for two retailers, Shoppers Stop and BATA, for the years ending 2012 and 2011. It includes calculations of liquidity, leverage, asset utilization, and profitability ratios. Key ratios reported are the current ratio, quick ratio, inventory turnover, debt-to-equity ratio, gross profit margin, return on assets, and return on equity. The ratios provide insights into the financial performance and position of the two retailers over the periods analyzed.
This document analyzes the security of an investment in Under Armour. It provides financial highlights and ratios for 2013-2016 and projections through 2020. Key points include high debt/equity ratios that pose financial risk, increasing assets but decreasing asset turnover, and recommendations to hold the stock with a price target of $30.63 based on discounted cash flow valuation. Risks discussed are related to finances, markets, and operations.
Assignment on financial ratio by Md. Parvez Alam.MD. Parvez Alam
Here, I have calculated the financial ratio of British American tobacco of most recent five years. I have categorized the ratio in 5 segments and make a comment analyzing the data after each segment. this report also helpful for the investors to make the decision for their investing purpose.
The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
Financial analysis of BHEL and Bata IndiaKallol Sarkar
The document discusses financial reports of two Indian companies - Bata India Ltd and Bharat Heavy Electricals Ltd (BHEL). It summarizes key activities of both companies such as expansion plans, capital expenditures, earnings per share trends, and debt levels. It also includes financial ratios like liquidity, leverage, profitability and coverage ratios for both companies for years 2011-2008. Accounting policies of BHEL regarding valuation of assets, inventory, revenue recognition are also outlined.
This document provides information about Amazon and analyzes its financial performance. It begins with an introduction to Amazon's business model and competitors. It then presents a SWOT analysis and discusses Amazon's stock market performance and key financial statements from 2015-2013. The remainder of the document analyzes Amazon's financial ratios in areas such as liquidity, activity, profitability, and provides a reference section.
Financial Ratios Analysis of Square Pharmaceuticals Konok Mondal
This presentation analyzes the financial ratios of Square Pharmaceuticals over 2011-2015. Key findings include:
1. Liquidity ratios like current ratio were in poor condition for some years.
2. Efficiency ratios like accounts receivable turnover and inventory turnover fluctuated over the period.
3. Profitability ratios such as net profit margin and gross profit margin rose for most of the period.
Overall, the analysis found that net profit margin increased for Square Pharmaceuticals from 2011-2015 while some efficiency ratios varied during this time. The ratios provide insight into the company's financial performance and condition.
ACG Cup 2nd round case competition final presentationliujingyi
This document provides an analysis and recommendation for a potential leveraged buyout (LBO) of Topnotch Technologies. Key points include:
- The proposed LBO would generate an internal rate of return (IRR) of 30.24% over 5 years.
- Managers are key to the success of the deal and their continued involvement is important. They would receive equity rollover and incentive packages.
- The initial offer price is $170 million, financed with senior notes, management equity rollover, and equity from Clearshot Investment Bank.
- An exit strategy after 5 years assumes selling the company at 8.9x EBITDA, the same multiple as the initial valuation.
- The
Volkswagen Group is one of the largest car manufacturers in the world. The document analyzes Volkswagen's financial ratios from 2012-2013. It finds that profitability ratios like return on equity and net profit margin declined, indicating lower profits. Stability ratios like working capital ratio were also below requirements. As a result, the author recommends against investing in Volkswagen due to its unstable financial status and low profitability ratios over the period analyzed.
Financial ratio analysis for honda motor companyHITESH BHARTI
Honda Motor Company's financial ratios are analyzed over a five year period from 2007-2011. The document analyzes Honda's liquidity, profitability, turnover efficiency, leverage, and cash flow ratios and compares them to industry averages. Key findings are that Honda's current ratio, liquid ratio, and debt ratios are lower than industry averages, indicating less risk, while profitability ratios like net margin and return on equity are consistently higher. Turnover ratios declined over time, suggesting room for improvement in inventory management and asset utilization.
Ericsson is a Swedish telecommunications company that provides communication technology and services. A financial analysis of Ericsson from 2012-2014 found:
1) Ericsson's cash flows, net income, and net treasury have been declining in recent years despite some increases in 2014. Their working capital and capital employed have increased slightly.
2) Comparisons to Nokia show Ericsson had higher operating income and net income from 2012-2014. However, Nokia's acquisition of Alcatel-Lucent increases competition for Ericsson.
3) Ericsson's solvency ratio has been around 10% from 2012-2014, indicating some difficulty paying back debt given high short-term liabilities. However, their financial
The document provides an overview of Momentum Metropolitan Holdings Limited's 2014 year-end results. It summarizes the challenging operating environment in South Africa and the insurance industry. Financially, the group achieved strong growth in profits, new business, dividends and return on embedded value. Each of its operating divisions, including Momentum Retail, Metropolitan Retail, Momentum Employee Benefits and Metropolitan Health delivered solid results. The group also outlined its capital management strategy and transition to a new client-centric operating model effective July 2014. Its strategic focus remains on enhancing client-centricity and financial wellness.
The document analyzes the financial performance of SEPLAT, an independent Nigerian oil exploration company, between 2013-2014. It finds that while revenues fell 13.2% from 2013 to 2014 due to falling oil prices, SEPLAT improved its liquidity and working capital significantly over this period. The company's total assets increased 87.5% from 2013 to 2014 due to expanding operations. However, net profits fell sharply by 50.7% from 2013 to 2014 as revenue declines outpaced cost reductions. Overall, the analysis finds that while SEPLAT's financial results were negatively impacted by falling oil prices in 2014, the company strengthened its balance sheet and liquidity position during this period.
The document presents financial statement analysis of Square Pharmaceuticals Ltd. for the years 2012-2013 and 2011-2012. It includes horizontal analysis of the balance sheet, vertical analysis of the income statement, and various ratio analyses related to liquidity, profitability, and solvency. The ratio analyses show the company's current ratio, acid test ratio, inventory turnover, profit margin, EPS, and debt-to-total assets ratio for the periods presented.
During 2011-2012, HTC's profitability declined as return on equity decreased by 51.9% and net profit margin fell from 13.6% to 6.2%. HTC's stability also weakened as working capital ratio declined, debt levels increased, and inventory and accounts receivable turnover slowed. While HTC remains a leader in mobile phones, its financial performance has weakened, so investors are recommended to consider alternatives. The price-earnings ratio of 8.09 years also suggests other companies may offer better investment value. In summary, HTC remains investable but its financials suggest it may not be the best choice compared to other options available.
This document analyzes the relationship between working capital, liquidity, profitability, and solvency of ACC Limited, an Indian cement company, from 2000-2010. It finds that despite having negative working capital for most of the period, ACC was able to earn good returns through an aggressive working capital policy, but that this ultimately put its solvency at risk. The study uses various financial ratios and tests to evaluate ACC's liquidity, profitability, and risk over time.
This document analyzes the financial statements of Gul Ahmed Textile Mills Ltd from 2010-2013. It includes various liquidity, leverage, activity, and profitability ratios calculated from the company's balance sheets and income statements. The liquidity ratios show the company has a current ratio close to 1 and low quick ratios, indicating insufficient short-term assets to cover debts. Leverage ratios like debt-to-total assets of around 75% suggest high reliance on debt. Activity ratios show inventory turnover improving but average collection periods remaining high. Profitability ratios demonstrate fluctuating net profit margins and returns on assets and equity.
ppt on WORKING CAPITAL MANAGEMENT AT Silver Forge Pvt...jitharadharmesh
This document provides an analysis of the working capital management of Silver Forge Pvt. Ltd. over a four year period from 2009-10 to 2012-13. Key ratios such as the working capital turnover ratio, inventory turnover ratio, receivables turnover ratio, and current assets turnover ratio are calculated and interpreted. Liquidity ratios including the current ratio, quick ratio, and absolute liquid ratio are also analyzed. The analysis finds that the company's working capital and liquidity positions are generally strong, though inventory conversion periods and cash balances could be improved further. Recommendations include enhancing collection periods to reduce the net operating cycle and improving cash management.
This document provides an overview of ratio analysis for Atlas Honda. It includes summaries of various financial ratios categorized as liquidity, activity, debt, profitability, and market ratios. Several ratios for Atlas Honda from 2008-2012 are presented, including current ratio, quick ratio, inventory turnover, average collection period, debt ratio, gross profit margin, return on assets, and price to earnings ratio. The document also briefly introduces the DuPont system of analysis for further assessing a company's financial condition.
Case Study on comparative finacial performance of BATA India & Shopper's Stop Amitava Sengupta
This document presents financial ratio analyses for two retailers, Shoppers Stop and BATA, for the years ending 2012 and 2011. It includes calculations of liquidity, leverage, asset utilization, and profitability ratios. Key ratios reported are the current ratio, quick ratio, inventory turnover, debt-to-equity ratio, gross profit margin, return on assets, and return on equity. The ratios provide insights into the financial performance and position of the two retailers over the periods analyzed.
This document analyzes the security of an investment in Under Armour. It provides financial highlights and ratios for 2013-2016 and projections through 2020. Key points include high debt/equity ratios that pose financial risk, increasing assets but decreasing asset turnover, and recommendations to hold the stock with a price target of $30.63 based on discounted cash flow valuation. Risks discussed are related to finances, markets, and operations.
Assignment on financial ratio by Md. Parvez Alam.MD. Parvez Alam
Here, I have calculated the financial ratio of British American tobacco of most recent five years. I have categorized the ratio in 5 segments and make a comment analyzing the data after each segment. this report also helpful for the investors to make the decision for their investing purpose.
The second year MBA team from Rollins College assumed the role of the Investment Bank “MBA Investment Bankers,” consulting on strategic alternatives for a public company with a 550 mUSD market capitalization. The work included a market and industry overview, range of market and discounted cash flow (DCF) valuations, scenario analyses, bidding strategies, and appropriate deal structures. The team additionally developed a term sheet, letter of engagement, and a timeline of the M&A process including post transaction investor relation strategy.
The final recommendation represented an acquisition strategy for a private fashion company with a comprehensive bidding plan to increase value for shareholders, accelerate growth, improve margins, boost public confidence, maintain the legacy of the company’s founders, and benefit from the current economic conditions.
Presented to the "Board of Directors" consisting of 10 professionals from a variety of backgrounds including Investment Banking, Corporate Law, and Wealth Management.
2nd Place Overall
Financial analysis of BHEL and Bata IndiaKallol Sarkar
The document discusses financial reports of two Indian companies - Bata India Ltd and Bharat Heavy Electricals Ltd (BHEL). It summarizes key activities of both companies such as expansion plans, capital expenditures, earnings per share trends, and debt levels. It also includes financial ratios like liquidity, leverage, profitability and coverage ratios for both companies for years 2011-2008. Accounting policies of BHEL regarding valuation of assets, inventory, revenue recognition are also outlined.
This document provides information about Amazon and analyzes its financial performance. It begins with an introduction to Amazon's business model and competitors. It then presents a SWOT analysis and discusses Amazon's stock market performance and key financial statements from 2015-2013. The remainder of the document analyzes Amazon's financial ratios in areas such as liquidity, activity, profitability, and provides a reference section.
Financial Ratios Analysis of Square Pharmaceuticals Konok Mondal
This presentation analyzes the financial ratios of Square Pharmaceuticals over 2011-2015. Key findings include:
1. Liquidity ratios like current ratio were in poor condition for some years.
2. Efficiency ratios like accounts receivable turnover and inventory turnover fluctuated over the period.
3. Profitability ratios such as net profit margin and gross profit margin rose for most of the period.
Overall, the analysis found that net profit margin increased for Square Pharmaceuticals from 2011-2015 while some efficiency ratios varied during this time. The ratios provide insight into the company's financial performance and condition.
ACG Cup 2nd round case competition final presentationliujingyi
This document provides an analysis and recommendation for a potential leveraged buyout (LBO) of Topnotch Technologies. Key points include:
- The proposed LBO would generate an internal rate of return (IRR) of 30.24% over 5 years.
- Managers are key to the success of the deal and their continued involvement is important. They would receive equity rollover and incentive packages.
- The initial offer price is $170 million, financed with senior notes, management equity rollover, and equity from Clearshot Investment Bank.
- An exit strategy after 5 years assumes selling the company at 8.9x EBITDA, the same multiple as the initial valuation.
- The
Volkswagen Group is one of the largest car manufacturers in the world. The document analyzes Volkswagen's financial ratios from 2012-2013. It finds that profitability ratios like return on equity and net profit margin declined, indicating lower profits. Stability ratios like working capital ratio were also below requirements. As a result, the author recommends against investing in Volkswagen due to its unstable financial status and low profitability ratios over the period analyzed.
Financial ratio analysis for honda motor companyHITESH BHARTI
Honda Motor Company's financial ratios are analyzed over a five year period from 2007-2011. The document analyzes Honda's liquidity, profitability, turnover efficiency, leverage, and cash flow ratios and compares them to industry averages. Key findings are that Honda's current ratio, liquid ratio, and debt ratios are lower than industry averages, indicating less risk, while profitability ratios like net margin and return on equity are consistently higher. Turnover ratios declined over time, suggesting room for improvement in inventory management and asset utilization.
Ericsson is a Swedish telecommunications company that provides communication technology and services. A financial analysis of Ericsson from 2012-2014 found:
1) Ericsson's cash flows, net income, and net treasury have been declining in recent years despite some increases in 2014. Their working capital and capital employed have increased slightly.
2) Comparisons to Nokia show Ericsson had higher operating income and net income from 2012-2014. However, Nokia's acquisition of Alcatel-Lucent increases competition for Ericsson.
3) Ericsson's solvency ratio has been around 10% from 2012-2014, indicating some difficulty paying back debt given high short-term liabilities. However, their financial
The document provides an overview of Momentum Metropolitan Holdings Limited's 2014 year-end results. It summarizes the challenging operating environment in South Africa and the insurance industry. Financially, the group achieved strong growth in profits, new business, dividends and return on embedded value. Each of its operating divisions, including Momentum Retail, Metropolitan Retail, Momentum Employee Benefits and Metropolitan Health delivered solid results. The group also outlined its capital management strategy and transition to a new client-centric operating model effective July 2014. Its strategic focus remains on enhancing client-centricity and financial wellness.
The document analyzes the financial performance of SEPLAT, an independent Nigerian oil exploration company, between 2013-2014. It finds that while revenues fell 13.2% from 2013 to 2014 due to falling oil prices, SEPLAT improved its liquidity and working capital significantly over this period. The company's total assets increased 87.5% from 2013 to 2014 due to expanding operations. However, net profits fell sharply by 50.7% from 2013 to 2014 as revenue declines outpaced cost reductions. Overall, the analysis finds that while SEPLAT's financial results were negatively impacted by falling oil prices in 2014, the company strengthened its balance sheet and liquidity position during this period.
The document presents financial statement analysis of Square Pharmaceuticals Ltd. for the years 2012-2013 and 2011-2012. It includes horizontal analysis of the balance sheet, vertical analysis of the income statement, and various ratio analyses related to liquidity, profitability, and solvency. The ratio analyses show the company's current ratio, acid test ratio, inventory turnover, profit margin, EPS, and debt-to-total assets ratio for the periods presented.
During 2011-2012, HTC's profitability declined as return on equity decreased by 51.9% and net profit margin fell from 13.6% to 6.2%. HTC's stability also weakened as working capital ratio declined, debt levels increased, and inventory and accounts receivable turnover slowed. While HTC remains a leader in mobile phones, its financial performance has weakened, so investors are recommended to consider alternatives. The price-earnings ratio of 8.09 years also suggests other companies may offer better investment value. In summary, HTC remains investable but its financials suggest it may not be the best choice compared to other options available.
This document analyzes the relationship between working capital, liquidity, profitability, and solvency of ACC Limited, an Indian cement company, from 2000-2010. It finds that despite having negative working capital for most of the period, ACC was able to earn good returns through an aggressive working capital policy, but that this ultimately put its solvency at risk. The study uses various financial ratios and tests to evaluate ACC's liquidity, profitability, and risk over time.
This document analyzes the financial statements of Gul Ahmed Textile Mills Ltd from 2010-2013. It includes various liquidity, leverage, activity, and profitability ratios calculated from the company's balance sheets and income statements. The liquidity ratios show the company has a current ratio close to 1 and low quick ratios, indicating insufficient short-term assets to cover debts. Leverage ratios like debt-to-total assets of around 75% suggest high reliance on debt. Activity ratios show inventory turnover improving but average collection periods remaining high. Profitability ratios demonstrate fluctuating net profit margins and returns on assets and equity.
ppt on WORKING CAPITAL MANAGEMENT AT Silver Forge Pvt...jitharadharmesh
This document provides an analysis of the working capital management of Silver Forge Pvt. Ltd. over a four year period from 2009-10 to 2012-13. Key ratios such as the working capital turnover ratio, inventory turnover ratio, receivables turnover ratio, and current assets turnover ratio are calculated and interpreted. Liquidity ratios including the current ratio, quick ratio, and absolute liquid ratio are also analyzed. The analysis finds that the company's working capital and liquidity positions are generally strong, though inventory conversion periods and cash balances could be improved further. Recommendations include enhancing collection periods to reduce the net operating cycle and improving cash management.
This document provides an analysis of key financial ratios for Larsen & Toubro Limited (L&T), one of India's largest engineering and construction companies. It summarizes that L&T has low debt levels and good interest coverage, indicating low risk. Profit margins have increased over time but declined slightly in recent years. Asset turnover and returns on assets, equity, and net assets have generally decreased from 2006-2011, suggesting declining efficiency. Overall, the analysis finds that L&T has a relatively low-risk capital structure and has historically been profitable, though efficiency appears to have decreased in recent years.
Financial Ratio Analysis of Abbott Laboratories (JINCEY JOSE & SHRADDHA BHATT)JinceyJose
The document provides a financial ratio analysis of Abbott Laboratories for the years 2011-2013. It includes a balance sheet, calculation of key financial ratios like current ratio, quick ratio, gross profit ratio, net profit ratio, and operating profit ratio. The ratios are also compared to industry averages. Overall, the ratios indicate Abbott Laboratories' liquidity and profitability were generally satisfactory and improved from 2011-2012 but declined in 2013.
This document provides a financial ratio analysis of Abbott Laboratories for the years 2011-2013. It includes calculations and interpretations of key liquidity ratios (current ratio and quick ratio), profitability ratios (gross profit ratio, net profit ratio, operating profit ratio), and inventory turnover ratio. The ratios are also compared to industry averages. Overall, the analysis finds that Abbott's liquidity and profitability ratios were generally satisfactory and in line with industry averages, though some saw declines from 2012 to 2013.
The document provides an overview of the Indian textile sector and a case study on Anandam Manufacturing Company. It discusses key details about the Indian textile market size, growth drivers, challenges. It then presents the case of Anandam, a garment manufacturer established in 2012. By 2015, the company was facing financial problems due to working capital requirements and sought additional bank funding of Rs. 50 million. Ratio analyses are presented comparing Anandam's ratios to industry averages for current ratio, debt-to-equity, inventory turnover, and others, showing some areas where the company lags industry standards.
The document discusses various methods for measuring corporate performance, including return on equity, return on assets, economic value added, and accounting rates of return. It provides examples of using these metrics to analyze the performance of Sainsbury, a UK supermarket chain, over several years. Specifically:
1) Return on equity, return on assets, margins, and liquidity ratios like current ratio declined for Sainsbury from 2011 to 2012, indicating weaker performance.
2) Metrics like asset turnover and inventory turnover remained relatively stable, suggesting working capital efficiency did not change significantly.
3) Accounting income only considers operating costs and not capital costs, so economic value added is a better measure as it incorporates the full cost
The document summarizes a PwC report on working capital performance in the manufacturing sector from 2009-2013. It finds that while revenue growth has stalled, companies have improved working capital performance by focusing on inventory management. However, €100 billion remains trapped in working capital across the industry. The report also notes that performance varies widely, and that improving working capital could release €100-162 billion in additional cash for the industry.
Weatherford International public limited company (hereinafter re.docxcelenarouzie
Weatherford International is a multinational oilfield services company headquartered in Switzerland. It operates in 100 countries and reviews performance on a geographic basis. The company invests heavily in R&D to improve products and services. Key risks include litigation, asset impairments, currency risks, and tax rate fluctuations. Ratio analysis shows declining liquidity, with working capital decreasing 61% and days sales outstanding increasing to over 97 days. Profitability is also declining, with four straight years of losses. The company faces financial difficulties and risks bankruptcy.
The document discusses various liquidity, activity, profitability, and leverage ratios calculated for a company from 2011-2014. The key ratios discussed are:
- Current ratio - Decreased each year from 1.36 in 2011 to 1.27 in 2014, with 2012 being the most acceptable at 1.39.
- Quick (acid-test) ratio - Ranged from 0.39 in 2011 to 0.49 in 2014, with 2012 being the most acceptable at 0.58.
- Inventory turnover - Ranged from 3.24 in 2011 to 5.07 in 2012, with 2012 having the highest turnover.
- Gross profit margin - Ranged from 8.26% in 2011 to
The document analyzes various financial ratios for Scientex Berhad for 2012 and 2011. It finds that the company's liquidity ratios decreased slightly from 2011 to 2012, indicating weaker short-term financial health. Efficiency ratios also decreased slightly, suggesting the company was turning over inventory and collecting debts slightly slower. Debt ratios increased marginally from 2011 to 2012, demonstrating a small increase in leverage. Profitability ratios remained mostly stable, with operating and net profit margins rising slightly from 2011 to 2012. In conclusion, the company's financial performance was stable but showed some minor weaknesses in liquidity and efficiency from 2011 to 2012.
Ratio Analysis in 'ROYAL CERAMIC LANKA PLC'miranga88
This document provides financial ratio analysis for Royal Ceramic Lanka PLC for the years 2013-2015. It includes profitability ratios like gross profit ratio, operating margin, net profit percentage, return on assets, return on equity, and return on capital employed. Liquidity ratios like current ratio, quick ratio, and cash ratio are also presented. The ratios indicate that while the company's sales have increased year-over-year, profitability has declined over this period as costs have risen faster than revenues. Liquidity has also decreased, suggesting the company may face challenges meeting short-term obligations.
Vanderlay industries benchmark_analysis_(q3_2011-2012)Josephine Wong
This document provides a benchmark analysis of key performance indicators (KPIs) for Vanderlay Industries for Q3 2011/2012 compared to targets and industry benchmarks. Several of Vanderlay's KPIs are above or below targets, including accounts receivable days, accounts payable days, current ratio, debt to total assets, equity to assets, and growth equilibrium. The analysis also identifies alerts for accounts receivable days, cash conversion cycle, and current ratio based on thresholds exceeded.
The document provides background information on Lenovo Company, including its history, products, acquisitions and growth. It then analyzes Lenovo's financial ratios from 2012-2013, finding that most profitability and stability ratios improved, indicating better control of expenses. However, the share price is not suitable for investment given its extremely high price-to-earnings ratio of 200 years, meaning an investor would have to wait over 200 years to recover their investment. In conclusion, while Lenovo's financial performance has strengthened, its shares are too expensive for conservative investors.
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- Revenue has grown significantly over the past 4 years at a CAGR of 61% through both organic growth and acquisitions.
- Profits have also increased substantially, with net profit margin growing from 0.14 to 0.22 between 2007-2008.
- However, debt levels have also risen considerably to finance growth, with total debt increasing from Rs. 546 crores to Rs. 1225 crores.
- While growth has been strong, the company needs to improve its cash flows and working capital management to support further expansion in a sustainable manner. Tighter
5. Short-term Liquidity
Short-term liquidity indicates the ability to pay due debt of an entity. Proper analysis of short-term liquidity provides us an
insight of the operation and performance of an entity. For Gree, we selected some representative indicators including working
capital, current ratio, quick ratio, conservative quick ratio and cash ratio and compare them with those of Haier and the industry
average in order to present an overall evaluation of short-term liquidity.
CurrentRatio= Total CurrentAssets/Total CurrentLiabilities
Quick Ratio= (CurrentAssets-Inventories)/CurrentLiabilities
6. Peer Comparison
1.04 1.10 1.12 1.08 1.08
1.48 1.26 1.21 1.27 1.30
2.85
3.89 3.85
3.16 2.86
0.00
1.00
2.00
3.00
4.00
5.00
2009 2010 2011 2012 2013
Current Ratio Comparison
current ratio of Gree
current ratiio of Haier
average current ratio
0.90 0.87 0.85 0.86 0.94
1.28 1.07 0.98 1.04 1.12
2.42
3.38 3.26
2.60
2.33
0.00
1.00
2.00
3.00
4.00
2009 2010 2011 2012 2013
Quick Ratio Comparison
quick ratio of Gree quick ratio of Haier
average quick ratio
High Leverage&High Profitability Strategy
Bank-initiative Short-term Loan
Stable Relationship with Suppliers
High Quality of Accounts Payable
8. The Debt to Assets Ratio
a. Comparison with historical data
declining
more than 70% (40% and 60%)
high level of debt, more risk for creditors
b. Comparison with Haier and Industr
Average
Gree>Haier>Industry average
More than 60%
enough confidence to pay debts
Gree should debt more reasonably.
2009 2010 2011 2012 2013
Gree 79.33% 78.64% 78.43% 74.36% 73.47%
Haier 49.98% 67.58% 70.95% 68.95% 67.23%
Industry Average 45.53% 37.67% 36.42% 37.96% 39.70%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
TheDebttoAssetsRatio
9. Times Interest Earned
a. Comparison with historical data
The interest charges of Gree are negative, so interest income is larger than interest
expense in recent five years. In addition, in recent three years, the absolute value of
times interest earned is increasing, which means the support capability of interest is
strong.
Year 2009 2010 2011 2012 2013
GREE -33.8403 -15.3651 -12.9794 -17.9937 -92.8901
10. OPM Strategy
Management strategy: firms take full use of the large size to enhance its bargaining
power with suppliers and buyers
For the suppliers:
Extend the payment date of accounts payable which is no interest
Use the money to invest other projects
For the buyers:
Shorten the credit period of accounts receivable
Receive buyer’s partial payment in advance
By using these cash for expansion, the firm can further enhance the competitiveness
11. Analysis of Financial Leverage
High debt ratio of Gree Large debts especially current debts.
Financial expense is negative Interest revenue > Interest expense No
interest
Debt are mainly are accounts payable and unearned revenue
Thus, we can refer that the bargaining capacity of Gree with suppliers is strong
OPM strategy succeed
Although Gree maintain high debt ratio, thanks to good effect of the non-interest
debt strategy and OPM strategy, the financial risk can be controlled effectively.
13. 45%
55%
We can see clearly from the
chart that the inventory turnover
of GREE is little lower than the
industrial inventory turnover and
much lower than Haier’s, which
means Haier have lower
occupancy of assets level and
GREE’s inventory management
need to be improved. Besides,
Haier has high inventory turnover
because of JIT.
Inventory turnover
0
2
4
6
8
10
12
14
16
18
20
2009 2010 2011 2012 2013
Inventory
turnover
GREE
Inventory
turnover
Haier
Inventory
turnover
industry
14. 45%
55%
Accounts receivable
turnover of GREE is much
higher than that of
industry and Haier, which
is very outstanding. High
accounts receivable
turnover means its
inventory can be traded for
cash quickly, and the
quality of the current assets
is high (the current assets’
liquidity is good and the
bad debt loss is less).
Therefore, the profitability
is high.
0
10
20
30
40
50
60
70
80
2009 2010 2011 2012 2013
Accounts receivable
turnover GREE
Accounts receivable
turnover Haier
Accounts receivable
turnover industry
Accounts receivable turnover
15. Gross profit
margin
It measures the
relative
profitability of
the firm’s sales
after the cost of
sales has been
deducted
Profitability
Net profit margin
It measures how
profitable a
company’s sales
are after all
expenses,
including taxes
and interest,
have been
deducted.
ROA
It measures the
overall
profitability of
all assets, and it
is an important
index in the
evaluation of
asset operation
efficiency.
ROE
It measures the
rate of return
that the firm
earns on
stockholders’
equity
16. In recent
years, GREE has an
increasing trend in
gross margin ratio,
which shows the
profitability is
increasingly
strengthen. Maybe
GREE have taken
actions to increase its
sales and control the
cost of sales.
10%
20%
30%
40%
2009 2010 2011 2012 2013
Gree
Haier
Average
Gross Profit Margin
17. As we can see
from the chart, the net
profit margin of GREE is
obviously above Haier’s.
It may be the negative
financial expenses that
increases the EAT, which
means GREE’s financial
structure contains high
proportion of current
liabilities, especially the
non-interest liabilities like
accounts payable.
0%
2%
4%
6%
8%
10%
12%
2009 2010 2011 2012 2013
Gree
Haier
Average
Net Profit Margin
18. 0%
2%
4%
6%
8%
10%
12%
14%
2009 2010 2011 2012 2013
Gree
Haier
Average
We can see that Haier’s
ROA is higher than
GREE’s, showing its
assets operation is more
effective than GREE and
GREE needs to enhance
sales ability and cut down
the inefficient investment
project.
ROA
19. We can find that the
ROE of GREE and
Haier is larger than the
industry average. The
higher the ROE is, the
higher the level of
protection of investors
is. So GREE should
maintain this trend to
keep good profitability.
0%
10%
20%
30%
40%
2009 2010 2011 2012 2013
Gree
Haier
Average
ROE
22. Text1
Text2 Text4
.
0
10
20
30
40
50
60
70
80
P/E Analysis
GREE
HAIER
AVERA
GE
Price-to-Earnings Ratio=
Both GREE and Haier are below the
industry average. There are some
reasons:
Firstly, GREE’s high financial leverage
makes the investors feel unsecure.
Secondly, in order to achieve rapid
growth of revenue and profit, there must
be considerable capital spending. It will
bring unknown risk and investors don’t
have confident of GREE.
Thirdly, as the top of the industry,
GREE has a high EAT so that it has a
high EPS which may make its P/E lower.
Marketed-based Ratio
23. Dividend Policy
ROE
2009 2010 2011 2012 2013
Gree 32.26% 19.74% 26.88% 40.49% 41.55%
Haier 34.92% 6.58% 16.97% 30.38% 30.03%
Industry Average 35.92% 36.91% 37.52% 47.06% 35.32%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
50.00%
payoutratio
The payout ratio of
GREE is higher than Haier
but lower than industry. We
find that earning per share of
GREE is so high, comparing
with Haier and industry.
GREE’s dividend
per share is also higher than
Haier. GREE Company may
take the high earning and high
dividend policy. We think both
GREE and Haier are in a
steadily increasing condition.
Payout
24. Comprehensive Financial Analysis
In this part , we will use DuPont analysis for GREE
company to analyze the financial ratio in a
comprehensive way.
We make use of the internal relationship between each
financial ratio evaluate the company.
DuPont analysis is based on the ROE ratio, which
indicates the profitability, operating, capital structure of a
company.
25. Return on Equity
30.83%
Return on
investment
8.18%
Net profit
margin
9.22%
Earnings after
Tax
10,935,755,177.1
9
Total operating
revenues
120,043,070,00
5.50
Sales
118,627,948,20
8.59
Other operating
revenues
1,415,121,796.91
Total operating
costs
109,487,926,14
2.16
Cost of Sales
80,385,939,822
.61
Other operating
costs
27,394,050,849.6
8
Other
revenues
2,336,780,08
1.98
Income taxes
expenses
1,956,168,768.
13
Sales
118,627,948,20
8.59
Total Asset
Turnover
88.73%
Sales
118,627,948,20
8.59
Total Assets
133,702,103,359
.54
Equity multiplier
3.77
Debt ratio
73.47%
Total Debt
98,235,425,674.
76
Total Assets
133,702,103,35
9.54
Current Assets
103,732,522,181.
91
Cash
38,541,684,47
0.83
Marketable
Securities
1,246,106,661
.88
Accounts
Receivables
1,849,275,342.
79
Inventories
13,122,730,425
.78
Other Current
Assets
48,972,725,28
0.63
Non-current
Assets
29,969,581,177.
63
DuPont Analysis for Gree
2013
26. From the view of capital structure, the portion of liabilities keeps
going down. The increasing rate of asset is larger than liabilities
From the view of operation, the total assets turnover ratio is
steadily going down, which demonstrates the increasing rate of asset
is larger than sales. We may draw a conclusion that assets utilization
is low because the sales should keep pace with the increasing rate of
the assets.
From the view of the profitability, we find that the financial
expenses is negative, which indicates the interest revenue is larger
than interest expenses. We contribute the negative financial expenses
to the high level of current liabilities (especially the Accounts
payable) which has low interests expenses. Also, GREE Company
often invest in a lot of fields, which give it more interest revenues.
27. According to the financial ratio analysis all above, we can
see that the capital structure and the profitability is in a relatively
steady condition. The short-term liquidity of GREE is a little weaker
than Haier, which is based on the different policy of two company.
GREE lays stress on the high leverage policy so that the debt ratio is
much higher than the benchmark and the average industry. But I
don’t think that GREE is in danger. GREE is the top of the
appliance industry and it is confident of its liquidity. High leverage
makes the utilization more flexible. Here, we’d like to share some
suggestions about GREE Company.
Conclusions
28. Suggestions
The scale of the loan can be expanded befittingly. When computing
liquidity indices, we can get a debt ratio around 80%, which is theoretically high.
But take a close look at the balance sheet, notes payable, accounts payable and
advances from customers make up 60% of the liability. Large amount of
commercial credit indicates high ability of commercial credit financing. Similarly,
considerable amount of short-term loan also shows GREE’s favorable credit around
banking dealers. And only 5% of the liability is long-term, which reduces the
interest risk and assures sustainability.
According to previous DuPont Analysis, the larger the proportion of the debt, the
larger the equity multiplier. In the way, the entity can obtain higher ROE. Thus, the
scale of GREE’s loan is acceptable only if it takes full account of operating and
financing risk.
29. Suggestions
The profitability of GREE company shows that the net
profit margin rate and gross margin rate is lower than industry and Haier.
We may conclude that the portion of EAT in sales is low which means the
expenses and costs is so large. GREE Company must pay attention to the
large expenses and it may make full use of the ABC system or other
method of management to control the expenses in a relatively reasonable
level.
30. Suggestions
Operation capacity of GREE still has room for growth.
From the analysis of operation capacity, we can conclude that operation
capacity of GREE needs to be strengthened. All in all, the turnover rates
except accounts receivable turnover rate are lower than Haier’s.
Therefore, GREE’s utilization efficiency of assets needs to be enhanced,
through boosting the selling capacity, using JIT, expanding demand and
enhancing the company’s popularity, to become a leader in air-condition
market.