Financial Ratio Analysis

FMCG INDUSTRY : MARICO & DABUR

Group 1 : Bright Sparks

7 Constellations

Ratio Analysis

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Ratio Analysis is a form of Financial Statement analysis that is used to obtain a quick indication of firm’s financial position in several key areas.

Let us see the various ratios of 2 FMCG industry:

BALANCE SHEET Dabur Marico

Financial Ratios

Ratios Formula Marico Dabur

Liquidity Ratios

Current Ratio Current Assets/ Current Liabilities

1.68 1.13

Quick Ratio Cash + Marketable securities + Accounts receivables/ Current Liabilities

0.85 0.66

Ratios Formula Marico Dabur

Activity Ratios

Inventory Turnover Ratio

Cost of Goods sold/ Average inventory

5.55 8.72

Fixed Assets Turnover Ratio

Net Sales / Net Fixed Assets

1.46 2.72

Capital Turnover Ratio

Net sales/ capital employed

1.54 2.50

Debtors Turnover Ratio

Net Credit sales in yr./ Average accounts receivables

27.05 16.84

Ratios Formula Marico Dabur

Profitability ratios

Gross Profit Ratio

Gross Profit *100/ Net Sales

13.93 15.84

Net Profit Ratio Net Profit*100/ Net Sales

14.73 13.49

Return on Investment Ratio

PBIT*100/ Capital Employed

31.39 45.27

Ratio Formula Marico Dabur

Capital Structure

RatiosDebt Equity Ratio

Total debt/ Total Equity

0.21 0.02

Earning per Share (EPS)

Profit after tax – Preference share dividend / No. of Equity shares

8.95 3.85

Book Value Net Worth/ No. of Equity shares

30.60 10.91

Ratios of 3 Financial Years of MaricoRatios Marico

2014 2013 2012

Current Ratio 1.32 1.69 1.69Quick Ratio 0.80 1.27 1.39ITR 5.55 4.81 6.26FATR 1.46 1.58 1.92CTR 1.54 1.20 1.77DTR 27.05 30.30 27.07GPR 13.93 14.35 12.90NPR 14.73 12.41 11.41ROI 31.39 20.36 25.37Debt equity ratio 0.20 0.32 0.49EPS 8.95 6.65 5.47Book Value 30.60 30.89 18.28

Ratio of 3 Financial Years of DaburRatios Dabur

2014 2013 2012Current Ratio 1.08 1.17 1.15Quick Ratio 0.66 0.97 0.85ITR 8.72 8.70 7.19FATR 2.72 2.55 2.57CTR 2.50 2.36 2.38DTR 16.84 18.14

17.62GPR 15.84 15.66 16.56NPR 13.49 13.32 12.17ROI 45.27 41.82 40.51Debt equity ratio 0.02 0.15 0.21EPS 3.85 3.39 2.66Book Value 10.91 9.15 7.48

Thank YouPRESENTED BY :

GROUP 1

Aditya ; Ankit ; Apurva ; Parul ; Ompal ; Sakshi ; Surbhi(M)

7 Constellations