UTTARA FINANCE AND INVSTMENT LTD

2011

CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITIES

3.90%

NET PROFIT MARGIN=NET INCOME/SALES REVENUE

34%

RETURN ON EQUITY= NET INCOME/TOTAL EQUITY

17%

RETURN ON ASSET=NET INCOME/TOTAL ASSET

4.30%

TOTAL ASSET TURNOVER=SALES REVENUE/TOTAL ASSETS

0.13

INTEREST COVERAGE RATIO=EBIT/INTEREST EXPENSE

0.79

The above calculation shows us the ratio analysis of Uttara finance and investment ltd , IDLC finan
We can observe that there is a huge difference between these three finacial

In Current ratio we can see that in 2010 IDLC has 3.52% very less than Uttara Finance which is 93%
The current ratio is an excellent diagnostic tool as it measures whether or not business has enough
As uttara finance has greater current ratio it means uttara finance is doing well in the business.
Same goes for 2011, again we can see that the current ratio in Uttara Finance is higher which is 83

This number is an indication of how effective a company is at cost control. The higher the net profi
Here in both the years of 2010 and 2011 IDLC is at the top from Uttara finance which is 40.35% in

ROE reveals the profit a company generates using the money that shareholders have invested in t
In IDLC the ROE in 2010 was 46.82% then it decreased to 45.56%. And in Uttara finance it was 10%

ROA gives an ideaas to how efficientmanagement isat using its assets to generate earnings
In IDLC it was 4.85% in 2010 and then it increased to 4.97% and iand in Uttara finance it was 2.20%

The total asset turnover ratio measures the ability of a company to use its assets to efficiently gen
We can see that in 2010 it was 0.12 then it slightly increased to 0.13 in IDLC. And in Uttara it was 0
In ULC it was 0.17 in 2010 then it went down to 0.13 in 2011.
In Uttara finance it was 1.11 in 2010 nd it has also decreased to 0.79 in 2011.

2010

IDLC FINANCE LTD

2011

3%

2.25%

24%

38.35%

10%

45.56%

2.20%

4.97%

0.09

0.13

1.11

0.58

ment ltd , IDLC finance ltd & United Lease.

institution.

Finance which is 93%

And United Lease has a current ratio of 1.95% which is also less than uttara
business has enough resources to pay its bills over the next 12 months.
l in the business.
They are in the good position.
is higher which is 83.90% than IDLC with 2.25% and United lease with 2.25% They have all decreased than i

higher the net profit margin is, the more effective the company is at converting revenue into actual profit.
e which is 40.35% in 2010 and 38.35% in 2011 and same goes for ULC. IDLC is making more profit than Uttar

rs have invested in the company. ROE lets investors know how well their money is being utilized. It measures
ra finance it was 10% in 2010 and it increased to17% in 2011 and in ULC it was 19% in 2010, then it was 14%

nerate earnings
finance it was 2.20% in 2010 and later it increased to 4.30% and in ULC it was 2.25% in 2010 then it declin

ets to efficiently generate sales. This ratio considers all assets, current and fixed.
And in Uttara it was 0.09 in 2010. It has also increased to 0.13 same as IDLC in 2011.

2010

UNITED LEASE

2011

2010

3.52%

1.80%

1.95%

40.35%

30.39%

27.83%

46.82%

14.13%

19%

4.85%

1.90%

2.25%

0.12

0.15

0.17

0.77

0.69

0.74

which is also less than uttara finance.

hey have all decreased than its previous year.

g revenue into actual profit.

making more profit than Uttara finance and ULC.

y is being utilized. It measures the companys ability to generate profit.

19% in 2010, then it was 14% in 2011. Here if we compare we can see that the IDLC is again higher than th

s 2.25% in 2010 then it decline to 1.9% in 2011 but both are still less than IDLC.

DLC is again higher than the Uttara Finance and ULC.