This will be very helpful for Anna University MBA Examination. I Did M.B.A 2011-2013 at Jei Mathaajee College of Engineering (Affiliated to Anna University).
Accounting
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Accounting
This research is carried out in the region of Chandigarh & Mohali. But, if we examine it in the broader sense, we can use it fpr the whole country.Full description
research project on comparative analysis of investment avenues submitted by kiran mongia
BIRLA INSTITUTE OF TECHNOLOG TECHNOL OGY Y
AN ASSIGNMENT ON FINANCIAL MANAGEMEN
TOPIC: COMPARATIVE RATIO ANALYSIS OF TWO COMPANIES: COMPANIES :
PANAS ANASON ONIC IC AND AND VOL VOLTAS
Submitted To: Prof.SHELL SH ELLY Y SRIVAST SRI VASTAV AVA A
Submitted By: Sweta (MBA/10084/16)
Ra!a" #umar (MBA/1008$/16)
A%i&! Ba%ia (MBA/100$$/16)
WHAT IS RATIO ? Ratio 'a% be defi%e a& betwee% reatio%&!i betwee% two fiure& e*re&&ed i% arit!meti'a term& 'aed ratio.
A++,R- T, R. AT,2:
3A Ratio i& &imy o%e %umber e*re&&ed i% term& of a%ot!er .t i& fou%d by di"idi% o%e %umber i%to a%ot!er.
ADVANTAGES OF RATIO
efu i% a%ay&i& of fi%a%'ia &tateme%t&.
Simifi'atio% of a''ou%ti% data.
efu i% 'omarati"e &tudy.
efu i% fore'a&ti%.
5ffe'ti"e 'o%tro
Study of fi%a%'ia &ou%d%e&&
MTAT,S ,7 RAT,
7a&e a''ou%ti% data i"e& fa&e ratio.
+omari&o% %ot o&&ibe if differe%t firm& adot differe%t a''ou%ti% oi'ie&.
imited u&e of &i%e ratio.
a' of roer &ta%dard&.
Ratio ao%e are %ot ade9uate for roer 'o%'u&io%&.
T!e foowi% i%'ome &tateme%t a%d baa%'e &!eet& reate to PAAS,+ a%d ,TAS. Income statement
COMMENT: &!ort term fi%a%'ia o&itio% of t!e 'oma%y i& 9uite &ati&fa'tory be'au&e t!e 'urre%t ratio of t!e 'oma%y i& =.14 : 1; w!i'! i& more t!e% t!e idea ratio of =: 1. t!e fa't i& a&o &uorted by 9ui' ratio; w!i'! more t!e% t!e idea ratio of 1: 1.
So!"#$%y ratio:
-ebt e9uity ratio : o% term debt&/ &!are!oderI& fu%d Pa%a&o%i': 8;40;000/ 1?;00;000 J 8;00;000 K =4;000 G 0.<> : 1 ota& : 10;00;000 / 1$;=0;000 J 11;<0;000 K =0;000 G 0.<< : 1
Tota a&&et& to debt ratio : tota a&&et&/ o% term debt& Pa%a&o%i' : 41;40;000 K =4;000 / 8;40;000 G 4.$ time& ota& : ?1;>0;000 K =0;000 G ?.1? time&
COMMENT : debt e9uity ratio i%di'ate& t!at roortio% of fu%d& ro"ided by o% K term e%der& i% 'omari&o% to t!e ow%er& i& o%y .<> i% t!e Pa%a&o%i' 'oma%y . T!i& roortio% !a& furt!er 'ome dow% to .<< i% ota& 'oma%y. t &!ow& t!at t!e o% term &o"e%'y o&itio% of t!e 'oma%ie& i& "ery &ou%d.
T!e fa't i& a&o &uorted by tota a&&et& to debt ratio. t i%di'ate& t!at o% term debt& are 'o"ered 4.$ time& by a&&et& i% t!e Pa%a&o%i' a%d t!i& mari% of &afety !a& i%'rea&ed to ?.1? time& i% t!e ota&.
A%ti"ity ratio
7i*ed a&&et& tur%o"er ratio : %et &ae& / fi*ed a&&et& Pa%a&o%i' :40;00;000 / =4;16;000 G 1.66 time& ota& : 48;00;00 / ==4;?0;000 G 1.$6 time&
COMMENTS: fixed assets turnover ratio has improved. It indicates better utilization of fixed assets eneratin sales
Pro&ita'i!ity ratio
ro&& rofit ratio : ro&& rofit / &ae& L 100 Pa%a&o%i' : 8;00;000/ 40;00;000 L 100 G =0 D ota& : 10;?6;000 / 48;00;000 L 100 G ==D
,erati% ratio: 'o&t of &ae& J oerati% e*. / &ae& L 100 Pa%a&o%i' G <=;00;000 J =;?0;000 / 40;00;000 L 100G 86.=? D ota& G <>;44;000 J <;00;000 / 48;00;000 L 100 G 84.=? D
et rofit ratio : %et rofit / &ae& L 100 Pa%a&o%i' : =;14;400 / 40;00;000 L 1oo G ?.<6 D ota& : <;<0;000 / 48;00;000 L 100 G 6.88 D
S!are!oderN& fu%d& G e9uity &!are 'aita J re&er"e& C &uru& K reimi%ary e*e%&e& Pa%a&o%i' : 1?;00;000 J 8;00; 000 K =4;0000 G ==;>6;000
ota& : 1$;=0;000 J 11;<0;000 K =0;000 G <0;<0;000 R.,.5. for Pa%a&o%i' G =;14;4000/ ==;>6;000 L 100 G $.4= D R.,.5. for ota& G <;<0;000 / <0;<0;000 L 100 G 10.8$ D
5ar%i% er &!are (5.P.S.): %et rofit after ta* / %o. of e9uity &!are& Pa%a&o%i' : =;14;400 / 1;?0;000 G 1.4< er &!are& ota& : <;<0;000 / 1;$=;000 G 1.>= er &!are&
COMMENT: ro&& rofit ratio !a& imro"ed by = D w!i'! refe't& a% i%'rea&e i% t!e &ae& ri'e of ood& &od wit!out 'orre&o%di% i%'rea&e i% t!e 'o&t of &ae&.
,erati% ratio !a& a&o 'ome dow% by = D. oweri% of oerati% ratio !a& re&uted i% !i!er mari% of rofit o% &ae&.
et rofit ratio !a& o%e u from ?.<6 D to 6.88 D w!i'! i& a% i%di'atio% of imro"eme%t i% t!e o"era effi'ie%'y a%d rofitabiity of t!e firm.
Retur% o% e9uity !a& a&o o%e u from $.4= D to 10.8$ D w!i'! i%di'ate& t!at &!are!oderN& fu%d& are bei% utiiOed more effi'ie%ty. T!ere are better ro&e't& of de'aratio% a%d 'reatio% of re&er"e&.
5ar%i% er &!are !a& a&o o%e u from 1.4< to 1.>= w!i'! i%di'ate& t!at o"era rofitabiity of t!e 'oma%y i&
imro"i% . T!i& ratio a&o i%di'ate& t!at maret ri'e of t!e&e 'oma%ie& &!are i& iey to o u.