Yamaha Ratioanalysis

7/29/2019 Yamaha Ratioanalysis

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RATIO ANALYSIS AND

INTERPRETATION

RD350


2/15

COMPANY PROFILE

ABOUT INDIA YAMAHA MOTOR PVT. LTD.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-

venture with the Escorts Group in 1996.

However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary

of Yamaha Motor Co., Ltd, Japan (YMC).

In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor

in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)".I

CURRENT SCENARIO

Yamaha continues to soar high, Domestic Sales up by 35.2 % in September.

Sep 06, 2011

Yamaha zips ahead with the launch of the YZF-R15 version 2.0

Sep 05, 2011Fourth Leg of Yamaha YZF-R15 One Make Race - Season 2011 rounds off in style.

Sep 01, 2011

Yamaha upbeat about upcoming festive season, registers a domestic sales growth of 32% in August.

Aug 01, 2011

Yamaha continues to ride high on sales in July 2011.


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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

Sources Of Funds

Total Share Capital 289.37 144.68 144.68 144.68 101.18

Equity Share Capital 289.37 144.68 144.68 144.68 101.18

Share Application Money 0 0 0 0 0

Preference Share Capital 0 0 0 0 0

Reserves 4,620.85 2,783.66 1,725.01 1,442.91 5,433.14

Revaluation Reserves 0 0 0 0 0

Networth 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32

Secured Loans 23.53 12.98 0 6.95 22.46

Unsecured Loans 301.62 1,325.60 1,570.00 1,327.39 1,602.97

Total Debt 325.15 1,338.58 1,570.00 1,334.34 1,625.43

Total Liabilities 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75

Application Of Funds

Gross Block 3,395.16 3,379.25 3,350.20 2,994.68 3,178.54

Less: Accum. Depreciation 1,912.45 1,899.66 1,807.91 1,726.07 1,904.94

Net Block 1,482.71 1,479.59 1,542.29 1,268.61 1,273.60

Capital Work in Progress 149.34 120.84 106.48 34.74 107.62

BALANCE SHEET


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Investments 4,795.20 4,021.52 1,808.52 1,857.14 6,447.53

Inventories 547.28 446.21 338.84 349.61 309.7

Sundry Debtors 362.76 272.84 358.65 275.31 529.83

Cash and Bank Balance 155.45 100.2 135.68 54.74 62.16

Total Current Assets 1,065.49 819.25 833.17 679.66 901.69

Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24

Fixed Deposits 401.04 1.21 1.19 1.33 21.32

Total CA, Loans &

Advances

5,358.19 3,111.75 2,401.45 1,780.67 3,848.25

Deffered Credit 0 0 0 0 0

Current Liabilities 2,624.35 2,218.06 1,378.20 1,185.19 1,683.46

Provisions 3,925.72 2,248.72 1,224.15 834.04 2,833.79

Total CL & Provisions 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25

Net Current Assets -1,191.88 -1,355.03 -200.9 -238.56 -669

Miscellaneous Expenses 0 0 183.3 0 0

Total Assets 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75

Contingent Liabilities 959.66 818.25 924.96 1,129.29 811.66

Book Value (Rs) 169.69 202.4 129.23 109.73 546.96


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PROFIT AND LOSS ACCOUNT


Income

Sales Turnover 17,386.51 12,420.95 9,310.24 9,856.66 10,741.91

Excise Duty 934.71 607.7 610.07 1,029.51 1,321.67

Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24

Other Income 1,176.00 22.5 -6.2 170.27 567.16

Stock Adjustments 82.79 47.6 -24.49 67.85 -0.9Total Income 17,710.59 11,883.35 8,669.48 9,065.27 9,986.50

Expenditure

Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50

Power & Fuel Cost 86.61 70.35 60.89 69.2 79.34

Employee Cost 494.33 411.76 366.67 350.09 310.07

Other Manufacturing

Expenses 61.77 57.54 57.08 53.72 74.53

Selling and Admin

Expenses 450.18 407.61 381.73 390.15 457.17

Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89

Preoperative Exp

Capitalised -16.66 -15.67 -14.42 -23.04 -32.05

Total Expenses 13,279.29 9,340.64 7,579.61 7,809.79 8,089.45

Operating Profit 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89


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PBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05

Interest 1.69 5.98 21.01 5.16 5.34

PBDT 4,429.61 2,536.73 1,068.86 1,250.32 1,891.71

Depreciation 122.84 136.45 129.79 173.96 190.26

Other Written Off 0 0 0 1.12 0.39

Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06

Extra-ordinary items 46.77 26.87 18.72 59.32 26.6

PBT (Post Extra-ord

Items)4,353.54 2,427.15 957.79 1,134.56 1,727.66

Tax 1,011.02 710.12 301.61 378.78 490.09Reported Net Profit 3,339.73 1,702.73 656.48 755.95 1,237.96

Total Value Addition 1,313.99 1,153.53 1,077.51 1,049.75 1,119.95

Preference Dividend 0 0 0 0 0

Equity Dividend 1,157.47 578.73 318.3 289.37 404.73

Corporate Dividend

Tax

187.77 96.12 54.1 49.18 68.78

Per share data

(annualized)

Shares in issue (lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84

Earnings Per Share (Rs) 115.42 117.69 45.37 52.25 122.35

Equity Dividend (%) 400 400 220 200 400

Book Value (Rs) 169.69 202.4 129.23 109.73 546.9


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Mar, 11 Mar , 10 Mar , 09 Mar , 08 Mar , 07

Investment Valuation RatiosFace Value 10 10 10 10 10

Dividend Per Share 40 40 22 20 40

Operating Profit Per Share (Rs) 112.4 173.02 75.64 75.01 131.39

Net Operating Profit Per Share (Rs) 568.54 816.49 601.32 610.1 931.01

Free Reserves Per Share (Rs) 158.97 190.09 106.56 99.73 535.16

Bonus in Equity Capital 89.45 78.91 78.91 78.91 112.84

Profitability Ratios

Operating Profit Margin (%) 19.76 21.19 12.57 12.29 14.11

Profit Before Interest And Tax

Margin (%) 18.56 19.78 10.88 10.03 11.65

Gross Profit Margin (%) 19.02 20.03 11.08 10.32 12.09

Cash Profit Margin (%) 15.7 16.2 10.55 10.48 12.18

Adjusted Cash Margin (%) 15.7 16.2 10.55 10.48 12.18

Net Profit Margin (%) 19.8 14.23 7.4 8.32 12.66

Adjusted Net Profit Margin (%) 19.8 14.23 7.4 8.32 12.66Return On Capital Employed (%) 67.57 59.01 32.8 39.71 20.9

Return On Net Worth (%) 68.01 58.14 38.92 47.61 22.36

Adjusted Return on Net Worth (%) 51.42 61.53 47.78 48.91 18.09

Return on Assets Excluding

Revaluations 169.69 202.4 116.56 109.73 546.96

Return on Assets Including

Revaluations 169.69 202.4 116.56 109.73 546.96

Return on Long Term Funds (%) 69.67 59.19 35.36 39.71 20.97

RATIO INTERPRETATION


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Liquidity And Solvency Ratios

Current Ratio 0.8 0.69 0.84 0.88 0.84

Quick Ratio 0.71 0.55 0.73 0.64 0.76

Debt Equity Ratio 0.07 0.46 0.84 0.84 0.29

Long Term Debt Equity Ratio 0.03 0.45 0.71 0.84 0.29

Debt Coverage Ratios

Interest Cover 2,093.39 421.06 53.71 224.91 280.28

Total Debt to Owners Fund 0.07 0.46 0.84 0.84 0.29

Financial Charges Coverage Ratio 2,166.08 443.88 59.89 258.84 315.98

Financial Charges Coverage Ratio Post Tax 2,049.86 308.56 38.42 181.43 268.53

Management Efficiency Ratios

Inventory Turnover Ratio 32.8 28.87 28.64 29.33 36.88

Debtors Turnover Ratio 51.77 37.41 27.45 21.93 22.66

Investments Turnover Ratio 32.8 28.87 28.64 29.33 36.88

Fixed Assets Turnover Ratio 4.85 3.5 2.6 2.95 2.96

Total Assets Turnover Ratio 3.14 2.77 2.53 3.02 1.32

Asset Turnover Ratio 4.85 3.5 2.6 2.95 2.96Average Raw Material Holding 5.58 7.91 6.39 5.24 5.08

Average Finished Goods Held 9.15 9.13 9.97 10.73 8.14

Number of Days In Working Capital -26.08 -41.29 -8.31 -9.73 -25.57

Profit & Loss Account Ratios

Material Cost Composition 72.72 69.3 74.73 76.58 73.98

Imported Composition of Raw Materials

Consumed 4.06 3.59 2.35 2.37 5.56

Selling Distribution Cost Composition 2.45 3.23 3.97 3.98 4.45

Expenses as Composition of Total Sales 27.74 27.67 30.82 23.53 18.36

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 40.27 39.63 56.72 44.78 38.24

Dividend Payout Ratio Cash Profit 38.85 36.69 47.36 36.36 33.14

Earning Retention Ratio 46.73 62.55 53.79 56.41 52.71

Cash Earning Retention Ratio 49.2 65.19 60.2 64.43 60.28

Adjusted Cash Flow Times 0.12 0.69 1.68 1.4 1.36Earnings Per Share 115.42 117.69 45.37 52.25 122.35

Book Value 169.69 202.4 129.23 109.73 546.96


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0.80.69

0.84 0.88 0.84


Current Ratio

Current Ratio

INTERPRETATION

The ideal figure should always

be greater than 1.Thecompany has a current ratio

of 0.8 and it should look to

improve it. The higher the

better.

The relationship between current assets and current liabilities is called current ratio.

It is a measure of general liquidity and is most widely used to make the

INTERPRETATION for short term financial position or liquidity of a firm.

Current Ratio = Current Assets / Current Liabilities


10/15

0.71

0.55

0.730.64

0.76


Liquid Ratio

Liquid Ratio

INTERPRETATION

A Companys liquidity ratio

should ideally be more than1.a liquidity ratio of 1:1 is

considered satistaftory.since

the ratio is 0.71 the company

needs to work on its liquidity

ratio.

It is the ratio of liquid assets to current liabilities. The true liquidity refers to the

ability of a firm to pay its short term obligations as and when they become due.

Liquid Ratio = Liquid Assets / Current Liabilities


11/15

32.828.87 28.64 29.33

36.88


Inventory Turnover RatioINTERPRETATION

The higher the better. A

higher inventory turnoverratio shows either strong sales

or ineffective buying.

This ratio is a relationship between the cost of goods sold during a particular period

of time and the cost of average inventory during a particular period. This ratio

indicates whether investment in stock is within proper limit or not.

Inventory Turnover Ratio = Cost of goods sold / Average

inventory at cost

Inventory turnover ratio


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0.07

0.46

0.84 0.84

0.29


Debt Equity Ratio

INTERPRETATION

Debt Equity Ratio

INTERPRETATION

Manufacturing companies tend

to have a debt equity ratio of

above 2.The company has a debt-

equity ratio of 0.7 which means

the company is not been wanting

to take risks.

Debt-to-Equity ratio indicates the relationship between the external equities or

outsiders funds and the internal equities or shareholders funds.

Debt Equity Ratio = External Equities /

Internal Equities


13/15

19.8

14.23

7.4 8.3212.66


Net Profit Margin(%)

Net Profit ratio

INTERPRETATION

This ratio also indicates the

firms capacity to face adverse

economic conditions such as

low demand price

competition etc.

Net profit ratio is the ratio of net profit (after taxes) to net sales. It is expressed as

percentage. The two basic components of the net profit ratio are the net profit andsales. The net profits are obtained after deducting income-tax and, generally, non -

operating expenses and incomes are excluded from the net profits for calculating this

ratio.

Net Profit Ratio = (Net profit / Net sales) 100


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Gross profit ratio

INTERPRETATION

Gross profit margin isfluctuating ,till 2010 Yamaha

was enjoying good profits but

again profit went down in

2011.

19.0220.03

11.0810.32

12.09

0

5

10

15

20

25


Gross Profit Margin(%)

Gross Profit Margin(%)

Gross profit ratio (GP ratio) is the ratio of gross profit to netsales expressed as a percentage. It expresses the

relationship between gross profit and sales.


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YAMAHAS FINANCIAL POSITION IS NOT AS PER STD.

WORKING CAPITAL RATIO IS NEGATIVE FOR ALL THE YEAR

WHICH IS NOT GOOD FOR THE COMPANY

CURRENT RATIO AND LIQUID RATIO IS ALSO SHOWING A

DECREASING TREND

YAHAMA SHOULD TRY TO IMPROVE ITS CURRENT

RATIO

Conclusion

Yamaha Ratioanalysis

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