Financial Ratios Saurav Das Chandrakant Reddy
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Financial Ratios
Saurav DasChandrakant Reddy
Agenda
Profitability
Net Profit Ratio
Operating Ratio
Return
Return on Investment
Return on Shareholders
’ Funds
Liquidity
Current Ratio
Quick Ratio
Solvency
Debt-Equity Ratio
Debt Service Ratio
Total Revenue
L&T BCS INFY ITC Jet Air. Axis Bank0
10000
20000
30000
40000
50000
60000
70000
58479.81
3336.1
52797
34345.74
17403.17
38046.3
59300.78
3811.2
56749
38050.53
17713.47
43843.6
Total Revenue
PY FY
14.24%
7.48%
10.78%
1.78%
15.23%
1.40%
Rupee Crores
Net Profit Ratio
Net Profit Ratio
L&T BCS INFY ITC Jet Air. Axis Bank
-30.00
-20.00
-10.00
0.00
10.00
20.00
30.00
9.39 8.68
20.18
25.58
-2.79
16.34
8.5310.05
21.8025.25
-20.71
16.78
Net Profit Ratio
PY FY
0.86% 1.37%
1.62%0.03%
17.92%
0.44%
In Percentage
Operating Ratio• Operating Ratio
Operating Ratio
L&T BCS INFY ITC Jet Air. Axis Bank0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
88.58 86.79
72.1063.14
103.40
69.89
89.30 84.95
69.5463.21
116.63
69.47
Operating Ratio
PY FY
In Percentage
0.72%1.84%
2.56% 0.07%
13.23%
0.42%
Return on Investment
Return on Investment
L&T BCS INFY ITC Jet Air. Axis Bank
-60.00
-40.00
-20.00
0.00
20.00
40.00
60.00
80.00
26.89 25.6235.90
58.43
11.67 8.72
21.8528.48
36.34
55.83
-353.7
8.23
Return on Investment
PY FY
In Percentage
Jet Airways out of scale
5.04% 2.86%0.44%
2.6%
0.49%342.0%
Return on Shareholders funds
L&T BCS INFY ITC Jet Air. Axis Bank0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
21.5016.64
25.97
40.63
20.62
43.40
17.64 18.87
26.01
38.23
61.18
39.88
Return on Shareholders Funds
PY FY
2.4% 3.52%
In Percentage
5.04%2.23%
0.04%
Current ratio
1.44
Current ratio
L&T BCS INFY ITC Jet Air. Axis Bank0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1.33
3.12
3.58
1.82
0.35
2.05
1.44
3.45
3.05
2.05
0.30
2.40
Current Ratio
py FY
0.33 0.53
0.350.23
0.11
0.05
Liquid Ratio
L&T BCS INFY ITC Jet Air. Axis Bank0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
1.28
2.18
3.57
1.18
0.27
2.05
1.39
2.66
3.04
1.38
0.23
2.40
Liquid Ratio
PY FY
0.53
0.04
0.35
0.11
0.48
0.20
Debt Equity Ratio
𝐷𝑒𝑏𝑡 𝐸𝑞𝑢𝑖𝑡𝑦 𝑅𝑎𝑡𝑖𝑜=𝑡𝑜𝑡𝑎𝑙𝑏𝑜𝑟𝑟𝑜𝑤𝑖𝑛𝑔𝑠
h𝑠 𝑎𝑟𝑒𝑐𝑎𝑝𝑖𝑡𝑎𝑙+𝐹𝑟𝑒𝑒𝑟𝑒𝑠𝑒𝑟𝑣𝑒𝑠Debt equity
291%
Debt Equity Ratio
L&T BCS INFY ITC Jet Air.
-1.20
-1.00
-0.80
-0.60
-0.40
-0.20
0.00
0.20
0.40
0.60
0.37
0.00 0.00 0.0023
-3.9
0.42
0.00 0.00 0.0015
-1.4
Debt-Equity Ratio
PY FY
0.0008
2.5
0.05
Debt-Service Ratio
L&T BCS INFY ITC Jet Air.
-20.000
0.000
20.000
40.000
60.000
80.000
100.000
120.000
140.000
160.000
7.754
92.833
0.000
4292.224
0.4715.722
125.674
0.000
244.774
-1.934
Debt Service Ratio
PY FY
32.84
2.372.03
4047
Summary• Net Profit Ratio- ITC 25%• Operating Ratio- ITC 63%• Return on Investment- ITC 56%• Return on Shareholders’ Funds- Axis Bank 43% • Current Ratio- INFY 3.5• Quick Ratio- INFY 3.5• Debt-Equity Ratio– All Indian Companies are poorly Leveraged• Debt Service Ratio- Low Finance Cost in ITC results in very high DSR
Thank You
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