Ratio Analysis

1. Ratio Analysis
Shoppers Stop
Presented by:
Deepak Gupta 25
Deepak Madaan 027 1

2. ABOUT SHOPPER’S STOP
 Shopper’s Stop, a pioneer in Indian Retailing was promoted by the K Raheja Corp Group (Chandru L
Raheja Group), started in the year 1991 with its first store in Andheri,Mumbai
 International and Domestic brands across various categories such as apparel, accessories, cosmetics,
home and kitchenware and also its private labels.
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3. KEY PEOPLE
Mr. Chandru L Raheja Mr. Govind Shirkande
Chairman & Non Executive Director MD and CEO
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4. VISION & MISSION
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5. COMPETITORS
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6. ROE  It indicates how profitable a company is by comparing its
net income to its average shareholder equity.
 It measures how much the share holder earn for their
investment in the company.
 Higher the ratio percentage the more efficient is in utilising
its equity base and better return to investors.
NET PROFIT/EQUITY
2013
3,917 /4148.98=0.944051309
2014
6207 /4,160.79 =1.49
2015
6958/4168.39 =1.66
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7. ROA
 This ratio indicates how profitable a company is
relative to its total assets.
 A higher ROA is considered “better”.
 Higher ROA indicates the company is more
efficient in using assets to generate profit.
 Lower ROA indicates the company is less efficient
in using assets to generate profit.
2014
2015
Net Profit 6338
0.038
Total Assets 165884.55
Net Profit 6,956
0.038853815
Total Assets 179,030.04
2013
Net profit 3917
Total asset 1,43,504.19 0.027294325
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8.  It measures the ability of a company to use its assets to
efficiently generate sales.
 Lower the turnover the more sluggish the firm sales.
ASSETS TURNOVER RATIO
Sales 340613
1.90
Total Assets 179,030.04
2015
2014
Sales 305215
1.84
Total Assets 165884.55
2013
Sales 340613
Total asset 1752.095 4.747081 8

9. ASSETS TO EQUITY
 It is a measurement of a companies financial leverage
 Company finance the purchase of assets either through
debt or equity, so a high equity multiplier indicates that a
large portion of assets financing is been done through
debt
Total Assets/Equity
2014
=165884.55/4160.79
=39.86
2015
=179030.04/4168.39
=42.94
2013
= 179,030.04/4148.5 = 43.15 9

10. CURRENT RATIO
 The current ratio measures the company's ability to repay
the principal amounts of its liabilities.
 The current ratio is closely related to the concept of
working capital. Working capital is the difference between
current assets and current liabilities.
 The company has weak current ratio which indicates they
are having low capacity to meet its current obligation.
 If shoppers stop has good long term prospects it may be
able to borrow against those prospects to meet current
obligation.
Current Assets 38915.3
0.5402069
Current Liabilities 72037.76
2014
2015
Current Assets 43,095.66
0.5454471Current
Liabilities 79,009.78
2013
Current asset 33,742.20
Current liabilities 62,246.56 0.542073329
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11. QUICK RATIO
 It is a fairly stringent measure of liquidity.
 This indicates the relationship between amount of assets
that can quickly be turned into cash versus the amount of
current liabilities.
 The company is having low quick ratio so it shows there
short term financial position is not sound.
2014
2015
Current Assets-
Inventory 10134.33
0.1282667
Current Liabilities 79009.78
current assets -
inventory 9361.730.1299558
Current Liabilities 72037.76
2013
Current asset –inventory 9359.71
Current liabilities 62246.56 0.150365096
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12. DEBT-TO WORTH
 This ratio is measurement of how much suppliers ,lenders,
creditors have committed to the company versus what the
shareholders have committed.
 This ratio assess long term financial position and
soundness of long term financial policies.
 As the ratio is higher it means the company has been
heavily taking on debt and thus has high risk.
Total Liabilities 165884.55
2.2765306
Net Worth 72867.26
2014
2015
Total Liabilities 179030.04
2.339381
Net Worth 76528.8
2013
Total liabilities 1,43,504.19
Net worth 69,382.20 2.068314207
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13. GROSS PROFIT RATIO
 This ratio is used to analyse how efficiently a company is
using its raw material, labour and related fixed assets to
generate profit.
 It asses overall performance of enterprise.
 The companies gross profit ratio has increased over the
year and indicates the good health of the company.
Gross Profit 116711
0.34
Sales 340613
2015
2014
Gross Profit 102537
0.33
Sales 305215
2013
Gross profit 116711
Sales 340613 0.342649869 13

14. NET PROFIT RATIO
 Its indicates higher level of profitability of the business.
 Companies net profit ratio is stable over two years.
Indicating stability in companies revenue generating
capability
2014
Net Profit 6,338
= 0.020765
Sales 305215
2015
Net Profit 6,956 = 0.020422
Sales 340613
2013
Net profit 3917
Sales 2,56,050 =0.015
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15. SALES TO ASSETS
 How well a company is utilising its assets to produce
revenue.
 Shopper stop ratio has shown increase over the year so its
indicates the better performance of the company
Sales 305,215.00 = 1.84
Total Assets 165,884.55
2014
2015
Sales 340613
= 1.90
Total Assets 179,030.04
2013
Sales 2,56,050
Total assets 1,43,504.19 =1.78
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16. INVENORY TURNOVER
 This ratio measures how fast the stock is moving through
the firm and generating sales.
 It indicates whether investment in stock is within proper
limit or not.
2014
2015
Cost of Goods
Sold 207806 7.03
Inventory 29553.57
Cost of Goods
Sold 207806 6.30
Inventory 32,961.33
2013
Cogs 207806
Inventory 32,961.33 = 6.304539289
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17. ACCOUNTS RECEIVABLE
TURNOVER
 This ratio indicates economy and efficiency in collection of
amount due from investors.
 Higher the ratio better it is.
2014
2015
Sales 305215
117.37Accounts
Receivable 2600.3
Sales 340613
152.50Accounts
Receivable
2,233.52
2013
Sales 340613
Acc receivable 2,233.52 =152.5005373
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18. ACCOUNTS RECEIVABLE
TURN-DAYS
 It refers to each time a company collects its average
receivables
2014
2015
360 360
2.36
Accts. Rec.
Turnover 152.500
360 360
3.067Accts. Rec.
Turnover 117.376
2013
360 360
Accts rec turnover 152.5005373 =2.360647421
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19. ACCOUNTS PAYABLE
TURNOVER
 It indicates the number of times the creditors are turnover
in relation to purchase.
2014
2015
Cost of Goods
Sold 207806 6.71
Accounts Payable 30969.5
Cost of Goods
Sold 207806 6.27
Accounts Payable 33,135.40
2013
Cogs 207806
Acc payable 33135.50 =6.27141969 19

20. AVERAGE PAYMENT
PERIOD
 Measures number of days that company takes to pay its
supplier.
2014
2015
360 360
53.65Accts. Pay.
Turnover 6.71
360 360
57.40
Accts. Pay.
Turnover 6.27
2013
360 360
Accts pay turnover 6.27141969 =57.40327036
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21. Receivable To Sales Ratio
 Receivables To Sales Ratio: Receivables/Net Sales
 It gives a indication of company’s credit policy.
2014
2015
Receivables 2600.3
0.00852
Net Sales 305125
Receivables
2233.52 0.00655
7
Net Sales
340613
2013
Receivable
s
2233.52 0.00872
Net Sales 256050
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22.  Asset Turn Over=Net Sales/ Average Asset
 It’s a indicator of the size and strength of its moat, if a
company is able
ASSETS TURNOVER RATIO
2015
2014
Net Sales 305215
1.97
Average Assets 154694.3
2013
Net Sales 340613 4.74
Average Asset 71752.095
Sales 340613
1.90
Total Assets 179,030.04
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23. Fixed Asset Turnover
 Fixed Asset Turnover=Total Assets/Equity
 It measures the efficiency with which a company uses its
fixed asset to generate its sales revenue.
2013
2014
=39.86
2015
=179030.04/4168.39
=42.94
Total Assets 340613 4.411
Equity 77210.37
Total Assets 305215 3.63
Equity 154694.3
Total Assets 340613 5.71
Equity 59572.85
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24. Investment Turnover Ratio
 Investment Turnover Ratio=Net Sales/Total Average Capital
 It tells the investor how efficiently a company uses its
resources to generate revenue.
Net Sales 305215
3.78Average Net Fixed
Asset
80595.34
2014
2015
Net Sales 340613
4.55Average Net Fixed
Asset 74698
2013
Net Sales 340613 5.125
Total Average
Capital
66449.3
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25. Profit Margin Ratio
 Profit Margin=Net Income/Net Sales
 a higher Profit Margin is usually considered “better”.
 If your Profit Margin is higher now than last years’, then
it might indicate better cost and expense management
than before and/or a more profitable company.
 If your Profit Margin is lower now than last years’, then
this might indicate lousier cost and expense
management than them and/or a less profitable
company.
2014
2015
Net Income 6956
0.0204
Net Sales 340613
Net Income
3700.47 0.012124
Net Sales 305215
2013
Net Income
3917 0.0115
Net Sales
340613
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26. Return On Investment
 ROI=PBIT/Average Total Asset
PBIT
10527.04
Average Total Asset 154694.3 0.068051
2014
2015
PBIT 12078.48
ATA 172457.3 0.070038
2013
PBIT
9287.83 0.129443
Average Total Asset
71752.1
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27. Return On Total Asset
 ROA=Net Income/Total Average Asset
Net Income 6956 0.040335
Average Total
Asset 172457.3
2015
2014
Net Income 3700.47
Average Total
Asset 154694.3 0.023921
2013
Net Income
3917 0.054591
Average Total
Asset 71752.1
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28. Return On Total Capital
 Return On Total Capital=Net Income/Average Total Capital
 It’s a indicator of the size and strength of its moat, it tells
us how effective a company is , at turning its capital in to
profit.
2014
Net Income 3700.47 0.045914
Average Total
capital 80595.34
2015
Net Income 6956 0.093122
Average Total capital 74698.03
2013
Net Income 3917 0.058947
Average Total capital
66449.
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29. Return On Stock Holder’s
Equity
 Return On Stock Holder’s Equity: Net
Income/Average Stock Holder’s Equity
 It shows how many rupees of net income have been
earned for each rupees invested by the common
stockholder. the ratio is useful to measure the
profitability from the owner’s view point
Net Income 3700.47 0.889367
Average Stock Holder’s
Equity 4160.79
2014
2015
Net Income 6956 1.670272
Average Stock Holder’s
Equity 4164.59
2013
Net Income
3917 0.944
Average Stock
Holder’s Equity 4148.5
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30. Earning Per Share
 E.P.S=Net Income-Preffered Stock Dividend/Avg No.
of Shares
 This is a amount of money , each share of stock
would receive if all of the profits were distributed to
outstanding shareholders.
2014
2015
Net Income-Preffered Stock Dividend
3917 3.851877
Average No of common Shares 1016.9
07
Net Income-Preffered Stock
Dividend 3700.47
Average No of common
Shares 1027 3.603184
2013
Net Income-Preffered
Stock Dividend 6956 6.81748
Average No of common
Shares 1020.318
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31. PE Ratio
 P/E Ratio=Market Price/E.P.S
 It is a measurement for investor , compare how cheap or
expensive a firm’s share are, as stock price for lack of
better term.
 Higher the PE Ratio , better for the company, it reflects
future profit levels.
2014
2015
Market Price 405 112
E.P.S 3.60
Market Price 397 58.2
E.P.S 6.81
2013
Market Price 408 105.9224
E.P.S 3.851877
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32. Dividend Yield Ratio
 It refers to each time a company collects its average
receivables
 Its shows us dividend income on regular basis.
2014
2015
Cash Dividend Per
Share 0.75 0.001889
Price Per Share
397
Cash Dividend Per Share
0.75 0.001852
Price Per Share
405
2013
Cash Dividend
Per Share 0.75 0.00183824
Price Per Share
408
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