Ratio analysis of gsfc and GNFC

1. RATIO ANALYSIS
OF
GSFC AND GNFC
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2. 1. Return on net worth = ×100
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2016
=
8.01%
=
8.48%
2015
= ×100 8.97%
=
-18.22%
2014
=
8.17% = 9.92%
Net worth = Equity capital + Reserves & Surplus – Miscellaneous Expenditure GSFC
(Rs. In crore) GNFC (Rs. In crore)
2016 Net Worth=79.7 + 4658.35 – 0 Net Worth= 155.42 + 2,513.71 -0
=4,738.05 =2,669.13
2015 Net Worth=79.70 + 4,384.51 – 0 Net Worth= 155.42 + 2,324.76 -0
=4,464.21 =2,480.18
2014 Net Worth=79.70 + 4,110.85 – 0 Net Worth= 155.42 + 2,790.14 -0
=4,190.55 =2,945.56
This ratio is most important to equity holders and stakeholders both. A high ratio
usually means high dividend, more internal accruals, willing to extend more
favourable terms, loyal customers .so, in this case GSFC is better than GNFC.
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3. 2. Debt Equity =
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2016
=
0.25
Times
=
1.32 Times
2015
=
0.16
Times
=
1.73 Times
2014
=
0.18
Times
= 1.54 Times
Debt equity ratio is lower in GSFC so it is high capital content company. While in
GNFC debt equity ratio is more than 1.7 in 2015 so ti is higher the debt company.
3. Current Ratio =
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2016
=
2.6
Times
=
2.01Times
2015
=
2.53
Times
=
2.26 Times
2014
=
2.22
Times
= 2.37 Times
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4. As comparing current ratio both companies has equal ratio. So, both companies are
good in current ratio.
4. Quick Ratio =
(Acid Ratio)
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
2.07
Times
=
1.82 Times
2014
=
1.78
Times
= 1.91 Times
2016
=
2.23
Times
=
1.59Times
In comparison of GNFC in year 2016& 2015 GSFC is more better as its quick ratio is
high, which suggest that GSFC can pay all debts more efficiently against GNFC.
5. Inventory Holding Period =
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
54.45
Days
=
72.62 Days
2014
=
57.96
Days
= 77.35 Days
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5. 2016
=
45.62
Days
=
74.06Days
In GSFC inventory holding period is around 45 days and in GNFC it is around 70 days.
So GSFC is better than GNFC. Because inventory holding period is less in GSFC.
6. Fixed Assets Turnover Ratio =
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
2.72
Times
=
1.04 Times
2014
=
2.68
Times
= 0.99 Times
2016
=
3.15
Times
=
1.06 Times
In GNFC total asset turnover is around 1% and in GSFC total asset turnover is around
3% in every year so GSFC is better than GNFC. Because GSFC is more efficient in
management and utilization of assets.
7. Net worth turnover Ratio =
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6. YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
1.19
Times
=
1.87 Times
2014
=
1.29
Times
= 1.65 Times
2016
=
1.30
Times
=
1.70 Times
Net worth in GSFC is around 1.20 times while in GNFC is 1.70 times. So Net worth
turnover is high in GNFC compare to GSFC.
8. Gross Profit Ratio = ×100
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
20.00 %
=
16.67 %
2014
=
19.89 % = 20.52 %
2016
=
18.63 %
=
20.72%
Gross profit ratio of GNFC is around 17 % and gross profit ratio of TCS is around 20%
every year. So, GSFC is better than GNFC .
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7. 9. Net Profit Ratio = ×100
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
7.52 %
=
-9.74 %
2014
=
6.32 % = 6.03 %
2016
=
6.15 %
=
4.98 %
Net profit ratio of GNFC is around 5 % and occurring losses of around 10% in 2016
and Net profit ratio of GSFC is around 6 % so GSFC is better than GNFC so GSFC is
better than GNFC.
10. Proprietary Ratio = ×100
YEAR GSFC GNFC
(Rs. In crore) Result (Rs. In crore) Result
2015
=
86.40 %
=
36.58 %
2014
=
84.84 % = 39.38 %
2016
=
79.92 %
=
43.05 %
This ratio measure proportion of owners fund in total asset. In GSFC proprietors fund
is around 80 % , While it is in GNFC only around 38%. So GSFC is better than GNFC.
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