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Ratio Analysis
It refers to systematic use
of ratios to interpret the
financial statements in
terms of operating
performan...
Consumer Durable
•A durable is a good that does not wear out quickly.
•Consumer Durable industry is growing by Leaps
and b...
Meaning
•It measures the ability of the firm to meet
short time liabilities.
•In other words capacity of the firm to pay i...
Meaning
•It is also know as turnover ratio.
•Using this a firm manages its current asset
and we can know how efficient the...
Meaning
•It throws light on long-term solvency of a firm
reflecting its ability to pay the long term creditors.
•It reflec...
Meaning
There are 2 groups of profitability-
I. Profitability in relation to sales.
II. Profitability in relation to inves...
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Ratio Analysis Consumer Durable Industry

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Ratio Analysis Consumer Durable Industry

  1. 1. Ratio Analysis It refers to systematic use of ratios to interpret the financial statements in terms of operating performance and financial position of the firm.
  2. 2. Consumer Durable •A durable is a good that does not wear out quickly. •Consumer Durable industry is growing by Leaps and bounds. •The Indian consumer have just not grown in numbers but also in preferences. •Its divided into two groups-Consumer Electronics and Consumer Appliances. •Industry has seen many changes in past few years.
  3. 3. Meaning •It measures the ability of the firm to meet short time liabilities. •In other words capacity of the firm to pay its current liabilities as and when they fall due. It Includes 1. Current Ratio 2. Quick Ratio 3. Cash Ratio Liquidity Ratio
  4. 4. Meaning •It is also know as turnover ratio. •Using this a firm manages its current asset and we can know how efficient the firm is. It Includes 1. Inventory Turnover Ratio 2. Receivable Turnover Ratio 3. Payable Turnover Ratio Efficiency Ratio
  5. 5. Meaning •It throws light on long-term solvency of a firm reflecting its ability to pay the long term creditors. •It reflects the firms ability to repay the principal amount when due and regular payment of interest. It Includes 1. Debt Ratio 2. Debt Equity Ratio 3. Interest Coverage Ratio Solvency or Leverage Ratio
  6. 6. Meaning There are 2 groups of profitability- I. Profitability in relation to sales. II. Profitability in relation to investments. It Includes 1. EBITDA Margin 2. Operating Profit Margin 3. Net Profit Margin 4. Return on Assets 5. Return on Equity Profitability Ratio
  7. 7. Thank You

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