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.
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Subhrajyoti Parida
A project report by a group of Management stundents of NITIE, Mumbai on Organizational Structure & Leadership Style in L&T \'s Aerospace SBU in Mumbai.
A Study on Financial Performance of Infosys Ltd using Ratio Analysiskulbirsingh100
This paper is regarding analysis of financial performance of Infosys Limited.Financial
Statements are those statements which deliver information about profitability, efficiency,
performance and financial position of the concern. Financial statements analysis is a powerful
contrivance for a variety of users of financial statements. Different users have different
objectives in wisdom about the financial circumstances of the concern. Financial statements
deliver information to investors, debtors, creditors, stakeholder and public about the financial
position, financial condition, efficiency and performance of the business. It is study about
accounting ratios among various items included in balance sheet.
A Report On The Financial Analysis Of Hindustan Unilever Limited (HUL)Navitha Pereira
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India. On any given day, nine out of ten Indian households use their products. In this report we do financial analysis of Balance Sheets and Profit & Loss A/Cs of the company. We also analyze the impact of demonetization and GST on the company and also look at the FMCG sector as a whole.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,
reducing regional imbalances, assuring more equitable distribution of national income and
wealth. MSMEs are complementary to large industries as ancillary units and this sector
contributes enormously to the socio-economic development of the country. The Sector
consisting of 36 million units, as of today, provides employment to over 80 million persons.
The Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The MSME sector has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth.
This is the Power point presentation which shows the information about the HCL Technology. This project is Drafted by a student "Krushang Thakor" . I am A Management Student .
This data is showing the overall Information about the HCL technology till the year 2018
Organizational Structure & Leadership Style in M/s Larsen & Toubro , ...Subhrajyoti Parida
A project report by a group of Management stundents of NITIE, Mumbai on Organizational Structure & Leadership Style in L&T \'s Aerospace SBU in Mumbai.
A Study on Financial Performance of Infosys Ltd using Ratio Analysiskulbirsingh100
This paper is regarding analysis of financial performance of Infosys Limited.Financial
Statements are those statements which deliver information about profitability, efficiency,
performance and financial position of the concern. Financial statements analysis is a powerful
contrivance for a variety of users of financial statements. Different users have different
objectives in wisdom about the financial circumstances of the concern. Financial statements
deliver information to investors, debtors, creditors, stakeholder and public about the financial
position, financial condition, efficiency and performance of the business. It is study about
accounting ratios among various items included in balance sheet.
A Report On The Financial Analysis Of Hindustan Unilever Limited (HUL)Navitha Pereira
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company with a heritage of over 80 years in India. On any given day, nine out of ten Indian households use their products. In this report we do financial analysis of Balance Sheets and Profit & Loss A/Cs of the company. We also analyze the impact of demonetization and GST on the company and also look at the FMCG sector as a whole.
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,
reducing regional imbalances, assuring more equitable distribution of national income and
wealth. MSMEs are complementary to large industries as ancillary units and this sector
contributes enormously to the socio-economic development of the country. The Sector
consisting of 36 million units, as of today, provides employment to over 80 million persons.
The Sector through more than 6,000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country. The MSME sector has the potential to spread industrial growth across the country and can be a major partner in the process of inclusive growth.
This is the Power point presentation which shows the information about the HCL Technology. This project is Drafted by a student "Krushang Thakor" . I am A Management Student .
This data is showing the overall Information about the HCL technology till the year 2018
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
3. 3
Larsen & Toubro Limited (L&T) is amongst one of the India’s largest technology,
engineering construction and manufacturing conglomerate.
• L&T is considered to be the "bellwether of India's engineering sector“, and
was recognized as the company of the year in 2010.
• L&T’s business structure has a dominant presence in India's infrastructure,
power, hydrocarbon, machinery, shipbuilding and railway
sectors.
• L&T has an international presence.The company's businesses are supported
by a wide marketing and distribution network, and have established a
reputation for strong customer support.
• With more than a seven decades of dedicated customer-focused service and
continuous quest for world class quality have established them as the leader of
the E&C sector in India.
4. 4
The evolution of L&T into the country's largest engineering and construction
organization is among the most remarkable success stories in Indian industry.
• L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers,
Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly
committed to developing India's engineering capabilities to meet the
demands of industry.
• In the year 1950, L&T became a Public Company with a paid-up capital of Rs.2
million and a sales turnover of Rs.10.9 million that year.
And now, In 2012 the company generated a total revenue of US $13.5 billion.
10. 0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2006 2007 2008 2009 2010 2011
CR
CR
It is a measure of the firm’s short term solvency i.e., it indicates the
availability of current assets in rupees for every one rupee of current
liability. It represents a margin of safety for the creditors of the firm.
CR
(times)
YEAR
1.10 2006
1.03 2007
0.92 2008
1.18 2009
1.02 2010
1.02 2011
10
11. 0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
2006 2007 2008 2009 2010 2011
QR
QR
Quick Ratio a.k.a. Acid-Test Ratio establishes relationship between quick
assets and current liabilities,where quick assets refer to those assets which
can be converted into cash immediately or reasonably soon without loss of
value.
QR
(times)
YEAR
0.79 2006
0.71 2007
0.61 2008
0.86 2009
0.69 2010
0.60 2011
11
12. 12
Liquidity refers to the readiness of assets to be converted to cash.They give
a general idea of the firm's ability to pay its short-term debts.
Ideally the current ratio should be greater than 1.5.Though there can be
exceptions, some good companies can have less than 1 or even a negative
current ratio when they receive money faster from their customers than they
have to pay to their vendors.
So, we can say that L&T will not be able to meet its current obligations as long
as they do not use their inventories efficiently as its inventories form a large
part of their current assets.
ANALYSIS: (LIQUDITY RATIOS)
13. Financial
Leverage
Ratios
• Debt Ratio
• Debt-Equity
Ratio
• Debt-Asset Ratio
Coverage
Ratios
• Interest
Coverage Ratio
13
What debt-
equity mix do
they prefer ??
14. DR
(times)
YEAR
15.88 2006
17.91 2007
22.63 2008
25.67 2009
23.53 2010
19.33 2011
1414
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2006 2007 2008 2009 2010 2011
DR
DR
It tells us about the proportion of the interest-bearing debt in the capital
structure of the firm.Total debt will include short & long-term borrowings
from financial institutions, debentures/bonds, deferred payment
arrangements , bank borrowings, public deposits, etc.
DEBT RATIO
15. DER
(times)
YEAR
0.32 2006
0.36 2007
0.38 2008
0.53 2009
0.37 2010
0.33 2011 1515
0.00
0.10
0.20
0.30
0.40
0.50
0.60
2006 2007 2008 2009 2010 2011
DER
DER
This ratio describes the lender’s contribution for each rupee of the owner’s
contribution.
DEBT-EQUITY RATIO
16. DAR
(times)
YEAR
10.83 2006
11.79 2007
13.06 2008
17.40 2009
14.06 2010
12.05 2011 16
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2006 2007 2008 2009 2010 2011
DAR
DAR
DEBT-ASSET RATIO
It measures the extent to which borrowed funds i.e., debt support the firm’s
assets. It indicates the proportion of debt invested in getting assets for the
firm.
17. 17
ANALYSIS: (FINANCIAL LEVERAGES)
Financial leverage indicates the reliability of a business on its debts in order
to operate.
Lower value of debt ratio is favorable and a higher value indicates that higher
portion of company's assets are claimed by it creditors which means higher
risk in operation.
In case debt ratio is less than 0.5.This indicates that company’s assets are
financed through equity and less of debt, lower values of debt-to-equity ratio
are favorable indicating less risk.Thus, the company is less riskier.
L&T has low proportion of debt in its capital structure and thus the assets
supported by them and cost of debt against a rupee of equity show a similar
trend.
18. ICR
(times)
YEAR
12.47 2006
24.29 2007
28.63 2008
12.94 2009
13.47 2010
10.90 2011
18
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2006 2007 2008 2009 2010 2011
ICR
ICR
INTEREST COVERAGE
RATIO
ICR a.k.a. times-interest-earned is used to test the firm’s debt servicing
capacity. It shows the number of times the interest charges are covered by
funds that are ordinarily available for their payment.
19. 19
ANALYSIS: (COVERAGE RATIOS)
The higher the coverage ratios the less a company is burdened by debt. If a
company has no debt or the loan interest is being paid by interest income
from investments or other activities the ratio is zero which of course is
excellent.
A negative ratio tells us that the company cannot even pay its interest on loans
from its operating income, stay far away from such companies.
In case of L&T the ratios are comparatively moderate.
20. Inventory Turnover Ratio
Debtors Turnover Ratio
Average Collection Period
Asset Turnover Ratios
• Days of Inventory Holding
• Total Assets Turnover Ratio
20
What do the
turnovers
depict??
21. ITR
(times)
YEAR
6.80 2006
5.99 2007
5.88 2008
5.92 2009
4.84 2010
3.54 2011
21
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2006 2007 2008 2009 2010 2011
ITR
ITR
INVENTORY TURNOVER
RATIO
It indicates the efficiency of the firm in producing and selling its product. It
shows how rapidly the inventory is turning into receivables through sales.
22. DIH
(days)
YEAR
53 2006
60 2007
61 2008
61 2009
74 2010
102 2011
22
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
2006 2007 2008 2009 2010 2011
DIH
DIH
Days of Inventory
Holding
It gives us an idea of the stock management of the company.
23. DTR
(times)
YEAR
2.98 2006
2.61 2007
1.96 2008
1.11 2009
1.05 2010
0.93 2011
23
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2006 2007 2008 2009 2010 2011
DTR
DTR
DEBTORS TURNOVER
RATIO
The debtors turnover ratio is the is the relationship between net sales and
average debtors. It is also called account receivable turnover ratio because
we debtor and bill receivables' total is used for calculation.
24. ACP
(months)
YEAR
4.02 2006
4.59 2007
6.11 2008
10.84 2009
11.38 2010
12.91 2011
24
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2006 2007 2008 2009 2010 2011
ACP
ACP
AVERAGE COLLECTION
PERIOD
The average collection period is the ratio of the number of days in a period
and the inventory turnover ratio.
25. ATR
(times)
YEAR
1.12 2006
0.85 2007
0.55 2008
0.40 2009
0.31 2010
0.25 2011
25
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2006 2007 2008 2009 2010 2011
ATR
ATR
ASSET TURNOVER
RATIO
The asset turnover ratio is the measure of the ability of a company or a firm
to use its assets efficiently in order to generate sales.
26. 26
ANALYSIS: (TURNOVER RATIOS)
A low turnover implies poor sales and, therefore, excess inventory. A
high ratio implies either strong sales or ineffective buying. From the year
2006 to 2008 the ratio is high but for the latter part the ratio is low.
Debtors turnover indicates the velocity of debt collection of a firm.
Lower debtor turnover ratio is bad because it means, slowly, money is
being collected and liquidity position will become weak.
Companies with low profit margins tend to have high asset turnover,
while those with high profit margins have low asset turnover. Thus, the
company has high profit margins.
27. • Gross Profit Margin Ratio
• Net Profit Margin Ratio
• Expenses Ratio
Profit
Margin
Ratios
• Return on Investment
• Return on Equity
• Earnings per Share
• Dividend per Share
• Dividend-Payout Ratio
Rate of
Return
Ratios
• Operating Expenses Ratio
27
How are the
profits
shaping up?
28. GPM
(%)
YEAR
9.20 2006
11.15 2007
12.56 2008
13.56 2009
15.76 2010
13.13 2011
28
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
2006 2007 2008 2009 2010 2011
GPM
GPM
GROSS PROFIT MARGIN
RATIO
The gross profit margin reflects the efficiency with which management
produces each unit of product. It implies how cost efficiently a firm can
produce its goods.
29. NPM
(%)
YEAR
6.73 2006
7.80 2007
8.59 2008
10.13 2009
11.70 2010
8.93 2011
29
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2006 2007 2008 2009 2010 2011
NPM
NPM
NET PROFIT MARGIN
RATIO
It establishes a relationship between net profit and sales and indicates the
firms efficiency in manufacturing, administering and selling its products.
30. OER
(%)
YEAR
90.44 2006
89.98 2007
91.21 2008
87.88 2009
85.57 2010
87.70 2011
30
82.00
83.00
84.00
85.00
86.00
87.00
88.00
89.00
90.00
91.00
92.00
2006 2007 2008 2009 2010 2011
OER
OER
OPERATING EXPENSES
RATIO
It indicates the operating expenses incurred by the company in its
production and working.
31. 31
ANALYSIS: (PROFIT MARGIN RATIOS)
Since the profitability ratios are high, it indicates that the company has an
efficient management.
It also indicates that the cost of goods sold remains constant and there is
an increase in the proportionate volume of higher margin items.
The company has increasing profits till the year 2010 after which there is a
slight depreciation which can be a result of the global economic
slowdown.
33. ROTA
(%)
YEAR
7.54 2006
7.95 2007
7.92 2008
9.24 2009
9.04 2010
6.66 2011
33
0.00
2.00
4.00
6.00
8.00
10.00
2006 2007 2008 2009 2010 2011
ROTA
ROTA
Return on Total Assets
ROTA tells us about the how effectively the investment in the firm i.e., pool
of funds supplied by shareholders and lenders is being used in terms of
total assets.
34. RONA
(%)
YEAR
76.73 2006
79.97 2007
74.53 2008
84.62 2009
79.67 2010
59.56 2011
34
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2006 2007 2008 2009 2010 2011
RONA
RONA
Return on Net Assets
RONA tells us about the how effectively the investment in the firm i.e., pool
of funds supplied by shareholders and lenders is being used in terms of net
assets.
35. ROE
(%)
YEAR
22.04 2006
24.47 2007
22.81 2008
28.00 2009
23.92 2010
18.13 2011 35
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2006 2007 2008 2009 2010 2011
ROE
ROE
Return on Equity
ROE indicates how well the firm has used the resources of owners. It is
calculated to see the profitability of owner’s investment in the firm.
36. 36
ANALYSIS: (ROTA, RONA, ROE)
ROTA-Higher values of return on assets show that business is more
profitable.
RONA- . An improving trend in this ratio indicates that the institution is
increasing its net assets and is likely to be able to set aside financial
resources to strengthen its future financial flexibility.
ROE-Higher values are generally favorable meaning that the company is
efficient in generating income on new investment.The company follows a
favorable outcome as values are generally increasing till 2010.
Overall, the company’s return on investment and equity is considerably
good till the year 2009.After that the company’s position deteriorates to a
little extent.
37. EPS
(Rs.)
YEAR
7.36 2006
4.95 2007
7.43 2008
5.94 2009
7.27 2010
6.50 2011 37
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
2006 2007 2008 2009 2010 2011
EPS
EPS
Earnings Per Share
This is the amount of income that the common stockholders are entitled
to receive (per share of stock owned). This income may be paid out in
the form of dividends, retained and reinvested by the company, or a
combination of both.
38. DPS
(Rs.)
YEAR
1.17 2006
0.66 2007
0.63 2008
0.57 2009
0.64 2010
0.65 2011
38
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
2006 2007 2008 2009 2010 2011
DPS
DPS
Dividend Per Share
Dividend per share (DPS) is the total dividends paid out over an entire
year (including interim dividends but not including special dividends)
divided by the number of outstanding ordinary shares issued.
39. DPR YEAR
0.16 2006
0.13 2007
0.09 2008
0.10 2009
0.09 2010
0.19 2011
39
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
2006 2007 2008 2009 2010 2011
DPR
DPR
Dividend-Payout Ratio
The percentage of earnings paid to shareholders in dividends.
40. 40
ANALYSIS: (EPS, DPS, D/P)
Having a growing in the dividend per share can be a sign that the
company's management believes that the growth can be sustained.
More mature companies tend to have a higher payout ratio. A stable
dividend payout ratio indicates a solid dividend policy by the
company's board of directors.Thus, the company is stable.
42. 0.00
1.00
2.00
3.00
4.00
5.00
6.00
2006 2007 2008 2009 2010 2011
PER
PER
PER
(times)
YEAR
4.54 2006
4.09 2007
4.39 2008
3.57 2009
4.18 2010
5.51 2011
42
The P/E ratio reflects the price currently being paid by the market
for each rupee of currently reported EPS. It is widely used by the
security analysts to analyze the firm’s performance as expected by
the investors.
43. 43
ANALYSIS: (VALUATION RATIOS)
Valuation ratio measures different ways of looking at the relative value of a
company's stock.
A high P/E ratio may signify that the company is overvalued, which means
that eventually market forces will drive the price down.
On the other hand, a high P/E could indicate great earning power and the
possibility that profitability will increase over time, justifying the higher
price.Thus, the company has high earning power.
45. 45
The analysis of a company's financial statements by comparing current
data with that of a previous year, or base year. Base-year analysis allows
for comparison between current performance and historical
performance.
49. 49
FINDINGS:
Index analysis of a company's financial statements is important to be able
to determine whether a company is growing or shrinking.
The positive inter-annual trends in the income statement components, both
income and expense, have lifted the company's profit margins.
In the case of L&T, it experienced a major increase in sales for the period
reviewed and was also able to control the expense side of its business.
That's a sign of a very efficient management.
51. 51
Financial statement analysis displays all items as percentages of a
common base figure.
This type of financial statement allows for easy analysis between
companies or between time periods of a company.
55. 55
FINDINGS:
Formatting financial statements in this way reduces the bias that can occur
when analyzing companies of differing sizes.
It also allows for the analysis of a company over various time periods,
revealing, for example, what percentage of sales is cost of goods sold and how
that value has changed over time.
In this case, the sales had been considerably good till 2010 and then from the
year 2010 to 2011 the income or the earnings of the company decreased.
57. 57
• L&T has successfully outperformed its rival
companies (HCC, NCC, Punj Lloyd) due to superior
product performance.
• An awesome brand image, being India’s largest
E&C company.
• L&T has great infrastructure spending plans that
build a strong business prospect.
• Lower response time with effective and efficient
service that ensures a high degree of customer
satisfaction.
• L&T has a dedicated workforce of over 45000
employees, aiming at making a long-term career in
the company.
58. 58
• In spite of L&T’s global presence, it is not very
popular in the international market.
• The customer service staff still needs training
specially in the delivery and help desk areas, that
threaten inviting new clients.
• Sectoral growth is constrained due to low
unemployment levels and competition for staff.
• There are some gaps in range for certain sectors
like global delivery management, processes and
systems, that somehow have management issues.
59. 59
• Demand of its services in Middle East, Europe and
South-East Asia.
• L&T is good at converting adversities into
opportunities and continue it’s march of progress .
• The end-users respond positively to new ideas, so
there exists a great possibility that L&T could
extend to overseas broadly.
• Mainframe management capabilities will give
opportunity to L&T-Ites to go for large
infrastructure deals and hosting biz.
60. 60
• Legislation could make an impact over L&T’s
business proceedings.
• In spite of being among the most dominant
conglomerate in the country, L&T may be
vulnerable to reactive attack by its major
competitors.
• Lack of infrastructure in rural areas could
constrain investment.
• The high volume/low cost market is intensely
competitive.
61. 61
Overall, the company is in a fairly good position till the year
2010.Although 2010 to 2011 period saw a downfall in the performance but
this can be due to global economic slowdown.
The company’s profit ratios indicate that is has high profit margins and
thus it is safe to invest in this company.
Other analysis techniques also reveal that sales of the company have been
considerably good.
Thus, the company is worth of the appreciation it has received.