Ratio analysis is a useful management tool that allows managers to analyze financial results and trends over time to identify organizational strengths and weaknesses. It involves calculating and comparing various types of ratios related to profitability, liquidity, asset usage, debt, and investor returns. Higher ratios may indicate better performance, with targets varying by industry. The document then provides examples of specific profitability, liquidity, turnover, valuation, and leverage ratios, calculating them for Hindustan Unilever for 2014 and 2015 to analyze the company's financial performance.
Hindustan Unilever Limited Presentation.
History and background.The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.
HUL is the largest FMCG company in India.
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.
in this presentation we discussed about basic of ratio, types of ratio, comparison of ratios of hul and itc limited.
some ratios and graphs are taken from moneycontrol.com
Hindustan Unilever Limited Presentation.
History and background.The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.
HUL is the largest FMCG company in India.
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.
in this presentation we discussed about basic of ratio, types of ratio, comparison of ratios of hul and itc limited.
some ratios and graphs are taken from moneycontrol.com
Patanjali Ayurved Limited is an Indian FMCG company
Located in the industrial area of Haridwar
Manufactures mineral and herbal products.
Patanjali is the fastest growing fast-moving consumer company in India.
Self-independence of India from Swadeshi.
To promote Indian product.
Make a largest retail chain in all over India both rural and urban market
To Provide reasonable price for farmers
To fulfill the demand of customers across the India on reasonable price.
To Support Indian industries by creating demands of Swadeshi products.
To generate employment for youth, skilled/unskilled and professionals.
To establish Ayurveda and create biggest market chain for herbal products.
To Strengthen Indian economy by replacing foreign products with Swadeshi products.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
An Internship Project Report on Reliance Industries LimitedSagar Sharma
I had interned in Reliance Industries Ltd. jaipur in the marketing field, during my internship i learnt the marketing strategies which are adopted by the reliance in retail zone.
My project was on "Launch of a new retail store 'Reliance Super' at Element Mall, Jaipur.
Vishal Mega Mart is India's leading Fashion hypermarket with 170 stores spread across 110 cities and Vishal Mega Mart Stores provide shoppers with wide range of fashion clothing for all age groups, Home and Grocery products at unbelievable prices. Vishal Mega Mart stores offers thousands of high quality products
Maruti Suzuki India Ltd Financial Statement AnalysisMaruthi Nataraj K
Maruti Suzuki India Ltd Financial Statement Analysis
We have considered Tata Motors in whole as its competitor but it is advised to take the related segments for better results.
Patanjali Ayurved Limited is an Indian FMCG company
Located in the industrial area of Haridwar
Manufactures mineral and herbal products.
Patanjali is the fastest growing fast-moving consumer company in India.
Self-independence of India from Swadeshi.
To promote Indian product.
Make a largest retail chain in all over India both rural and urban market
To Provide reasonable price for farmers
To fulfill the demand of customers across the India on reasonable price.
To Support Indian industries by creating demands of Swadeshi products.
To generate employment for youth, skilled/unskilled and professionals.
To establish Ayurveda and create biggest market chain for herbal products.
To Strengthen Indian economy by replacing foreign products with Swadeshi products.
We have picked up HUL balance sheets of years from ACE-Equity and applied some ratio analysis to analyze the trend and predict next year results of the company.
An Internship Project Report on Reliance Industries LimitedSagar Sharma
I had interned in Reliance Industries Ltd. jaipur in the marketing field, during my internship i learnt the marketing strategies which are adopted by the reliance in retail zone.
My project was on "Launch of a new retail store 'Reliance Super' at Element Mall, Jaipur.
Vishal Mega Mart is India's leading Fashion hypermarket with 170 stores spread across 110 cities and Vishal Mega Mart Stores provide shoppers with wide range of fashion clothing for all age groups, Home and Grocery products at unbelievable prices. Vishal Mega Mart stores offers thousands of high quality products
Maruti Suzuki India Ltd Financial Statement AnalysisMaruthi Nataraj K
Maruti Suzuki India Ltd Financial Statement Analysis
We have considered Tata Motors in whole as its competitor but it is advised to take the related segments for better results.
for full text article go to : www.accountingchimp.com/ratio-analysis/
In this article of Ratio Analysis, you will learn how they can be used to analyze a company. Understand the meaning and formulas associated with Liquidity ratios, Profitability ratios, Turnover ratios, and Debt ratios
Introduction to ratio analysis. This slide show is an analysis of accounting ratios to introduce students and those interested in taking accounting as their future career into ratio analysis. It's been simplified and made concise. The writer is a lecturer in engineering and a financial engineer. You can always follow the writer on LinkedIn, Twitter of Facebook. You comments are also welcome for future work.
This powerpoint presentations briefs about:
Financial ratios
Categories of Financial ratios
Generating stock ideas
The Due diligence – Checklist
Equity Research
Financial Analysis tool containing all four types of ratios (liquidity ratio, capital structure or leverage ratio, turnover or activity ratio and profitability ratio)
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
3. Ratio Analysis
Ratio analysis is a useful management tool that
will improve your understanding of financial
results and trends over time, and provide key
indicators of organizational performance.
Managers will use ratio analysis to pinpoint
strengths and weaknesses from which
strategies and initiatives can be formed.
5. ProfitabilityRatios
A profitability ratio is a measure of profitability, a way of
measuring a company's performance. Profitability is simply
the capacity to make a profit.
Types of Profitability Ratios
Gross Margin Ratio
Return on Assets Ratio
Net Profit Ratio
Operating Profit Ratio
Return On Capital Employed
6. • Ratio measures how effectively the company
produces income from its assets.
• It measures how efficiently a company can
manage its assets to produce profits during a
year.
• Return on Assets = net income/assets x 100,
here., Assets = Fixed Assets + Current Assets.
• The net income can be found on the income
statement.
Return on Assets
7. Return on Assets = Net Income x 100
Assets
Hindustan Unilever 2014 2015
Ratio 67.021 74.443
8. Gross Margin Ratio
• It tells you about the profitability of your goods
and services. It tells you how much it costs you
to produce the product.
• It indicates the efficiency of the production
department.
• One of the popular tools to evaluate operational
performance of the business.
9. Gross Margin = Gross Profit x 100
Net Sales
Hindustan Unilever 2014 2015
Ratio 17.131 17.928
10. • The net profit percentage is the ratio of after-
tax profits to net sales.
• It reveals the remaining profit after all costs of
production, administration, and financing have
been deducted from sales, and income taxes
recognized.
Net Profit Ratio
11. Net Profit Ratio = Net Profit Before Tax x 100
Net Sales
Hindustan Unilever 2014 2015
Ratio 17.774 18.308
12. LiquidityRatios
The term liquidity is defined as the ability of a company to meet
its financial obligations as they come due. The liquidity ratio, then,
is a computation that is used to measure a company's ability to
pay its short-term debts.
Types of Liquidity Ratios
Absolute Liquid Ratio
Quick Ratio or Acid Test Ratio
Current Ratio
13. Absolute Liquid Ratio
• It shows the relationship between absolute liquid or super quick
current assets and liabilities. Absolute liquid assets include cash,
bank balances, and marketable securities.
• It indicates the adequacy of the 50% worth absolute liquid assets
to pay the 100% worth current liabilities in time.
14. Absolute Liquid Ratio = Absolute Liquid Assets
Current Liabilities
• Absolute liquid assets : Cash + Bank+ Marketable
Securities.
Hindustan Unilever 2014 2015
Ratio 0.270 0.296
15. Quick Ratio Or Acid Test Ratio
• The acid test ratio is a stringent and meticulous test
of a firm's ability to pay its short-term obligations 'as
and when they are due.
• It is a measure of how well a company can meet its
short-term financial liabilities.
16. Quick Ratio = Liquid Assets
Current Liabilities
• Liquid assets : Current assets – Stock And Prepaid
Expenses.
Hindustan Unilever 2014 2015
Ratio 0.261 0.289
17. Current Ratio
• The current ratio is a financial ratio that measures
whether or not a firm has enough resources to pay its
debts over the next 12 months.
• It compares a firm's current assets to
its current liabilities.
• The ideal current ratio is 2: 1. It is a indication of the
financial soundness of a business concern. When
Current assets double the current liabilities, it is
considered to be satisfactory.
18. Current Ratio = Current Assets
Current Liabilities
Hindustan Unilever 2014 2015
Ratio 1.069 1.084
19. turnoverRatios
• It establish the relationship of sales with various assets.
These are expressed in integers or times rather than as
a percentage or proportion. These are mostly
computed to measure the efficiency.
Types of Turnover Ratios
Debtors turnover ratio
Total assets turnover ratio
Fixed Assets Turnover ratio
Working Capital turnover ratio
20. Debtor Turnover Ratio
• It is an accounting measure used to quantify a firm's
effectiveness in extending credit as well as collecting
debts.
• The receivables turnover ratio is an activity ratio,
measuring how efficiently a firm uses its assets.
• This ratio establishes the relationship between net
credit sales and average debtors for the year.
• It shows how quickly the credit sales of the company
have been converted into cash.
21. Debtors Turnover Ratio = Net Credit Sales
Average Account Receivable
Hindustan Unilever 2014 2015
Ratio 34.298 39.30
22. Total Assets Turnover Ratio
• Total assets turnover ratio shows the relationship between total
assets and sales.
• Total assets turnover ratio indicates how well the firm's total
assets are being used to generate its sales.
Hindustan Unilever 2014 2015
Ratio 2.055 2.369
Total Assets Turnover Ratio = Net Sales
Total Assets
23. Fixed Assets Turnover Ratio
• Fixed assets turnover ratio is also termed as the ratio of sales
to fixed assets.
• Fixed assets turnover ratio indicates how efficiently the fixed
assets are used.
• It measures the efficiency with which the firm has been using
its fixed assets to generate sales.
Hindustan Unilever 2014 2015
Ratio 7.646 8.336
Fixed Assets Turnover Ratio = Net Sales
Net Fixed Assets
24. Creditors Turnover Ratio
• It is a ratio of net credit purchases to average
trade creditors. Creditors turnover ratio is
also know as payables turnover ratio
Creditors Turnover Ratio = Total supplier purchases
(Beginning accounts payable + Ending accounts payable) / 2
Ratio 0.24 0.28
Hindustan Unilever 2014 2015
25. Working Capital Turnover Ratio
• The working capital turnover ratio measures how well a
company is utilizing its working capital to support a given
level of sales.
• Working capital is current assets minus current liabilities.
• A high turnover ratio indicates that management is being
extremely efficient in using a firm's short-term assets and
liabilities to support sales
Fixed Assets Turnover Ratio = Net Sales
Beginning working capital + Ending
working capital
2
Hindustan Unilever 2014 2015
Ratio 4.382 4.639
26. Valuation Ratio
It is a measure of how cheap or expensive a business is, compared to
some measures of profit or value
Earning Per Share
Types of Valuation Ratios
27. Earnings per Share Ratio
• The earnings per share ratio (EPS ratio) measures the amount of a
company's net income that is theoretically available for payment to
the holders of its common stock.
• A company with a high earnings per share ratio is capable of
generating a significant dividend for investors, or it may plow the
funds back into its business for more growth; in either case, a high
ratio indicates a potentially worthwhile investment, depending on
the market price of the stock
28. Earnings per Share Ratio = Net income after tax - Preferred stock dividends
Average number of common shares outstanding
Hindustan Unilever 2014 2015
Ratio 3.277 3.725
29. Proprietary Ratio
• The proprietary ratio (also known as the equity ratio) is
the proportion of shareholders' equity to total assets,
and as such provides a rough estimate of the amount
of capitalization currently used to support a business
Proprietary Ratio = Shareholders' equity
Total tangible assets
Ratio 0.24 0.28
Hindustan Unilever 2014 2015
30. debt-to-equity ratio
• The debt-to-equity ratio (D/E) is a financial ratio
indicating the relative proportion of shareholders'
equity and debt used to finance a company's assets.
Closely related to leveraging, the ratio is also known
as Risk, Gearing or Leverage
Leverage/Solvency Ratios
Ability of the firm to use fixed
costs to magnify the returns to
the shareholders
Hindustan Unilever 2014 2015
Ratio 2.48 3.02
31. Leverage Ratio
• Companies rely on a mixture of owners
equity and debt to finance their operations.
• A leverage ratio is any one of several financial
measurements that look at how much capital comes
in the form of debt (loans), or assesses the ability of
a company to meet financial obligations.
Hindustan Unilever 2014 2015
Ratio 2.63 2.38
32. Solvency Ratio
• A key metric used to measure an enterprise's
ability to meet its debt and other obligations.
• The solvency ratio indicates whether a
company's cash flow is sufficient to meet its
short-term and long-term liabilities.
Hindustan Unilever 2014 2015
Ratio 0.317 0.336
34. Inventory Turnover Ratio
Hindustan Unilever 2014 2015
Ratio 0.317 0.336
The inventory turnover ratio is a key measure for evaluating just
how efficient management is at managing company inventory and
generating sales from it. Inventory Turnover. Like a typical turnover
ratio, inventory turnover details how much inventory is sold over a
period of time.
Ratio = Net Sales
Average Inventory At Cost
35. Return On Investment Ratio
Hindustan Unilever 2014 2015
Ratio 1.46 1.48
Return on investment (ROI) is the benefit to the investor resulting
from an investment of some resource. A high ROI
means the investment gains compare favorably
to investment cost.
Ratio = Net Profit Before Tax
Net Working Capital
36. Capital Turnover Ratio
Hindustan Unilever 2014 2015
Ratio 5.117 7.308
• Working Capital Turnover' A measurement comparing the
depletion of working capital to the generation of sales over a
given period.
• This provides some useful information as to how effectively a
company is using its working capital to generate sales.
Ratio = Net Sales
Capital Employed
37. Operating Profit Ratio
Hindustan Unilever 2014 2015
Ratio 15.86 16.84
• Operating margin is a margin ratio used to measure a
company's pricing strategy and operating efficiency.
• Operating margin is a measurement of what proportion of a
company's revenue is left over after paying for variable costs of
production such as wages, raw materials, etc.
Ratio = Operating Profit x 100
Net Sales
38. Equity Ratio
Hindustan Unilever 2014 2015
Ratio 0.30 0.24
Equity Ratio is a good indicator of the level of leverage used by a
company. The Equity ratio measures the proportion of the total
assets that are financed by stockholders and not creditors.
Ratio = Total Equity
Total Assets
39. Evaluation sheet
Serial No. Roll No. Name Of Student Marks
1 12 Arka Das Gupta
2 49 Shreel Dwivedi
3 38 Raj Karan Marhas
4 2 Aarya
5 9 Anwesha Chatterjee
6 57 Varun Mani Tiwari
7 20 Gaurav Deshmukh
Editor's Notes
Creditors Turnover Ratio = Total supplier purchases (Beginning accounts payable + Ending accounts payable) / 2
Working Capital Turnover Ratio = Net sales (Beginning working capital + Ending working capital) / 2
Earnings per Share Ratio = Net income after tax - Preferred stock dividends Average number of common shares outstanding
Proprietary Ratio = Shareholders' equity Total tangible assets