comparison of ratios

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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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