RATIO ANALYSIS OF RAYMOND

Presented By: Swati Sharma Roll no 12210113

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RAYMOND
Raymond Ltd. Indias largest leading Textile and Branded Apparel company with interest in engineering business having its corporate headquarters in Mumbai.
Particular Growth rate Operating loss/profit before and after tax Status in 20122013 8.5% 6.82 crore( loss) Status in 20112012 25% 83.74 crore

Share capital Details

RATIO ANALYSIS
Ratio analysis is an attempt to derive quantitative measure or guides concerning the financial health and profitability of business enterprises. Objective of this study is to understand the information contained in financial statements with a view to know the strength or weaknesses of the firm and thereby enabling the financial analyst to take different decisions regarding the operations of the firm

Current Ratio
=
2013 2012 2011

Current assets
Current liabilities Current ratio

102169.48
119898.40 0.85

132563.231.44
92043.47 1.44

117875.04
76402.91 1.54

It is clear from the ratio that for the year 2011-2012 liquidity position of the company was sound but in 2013 company was not in good position there was .85 rupee available for 1rupee of liability
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Quick Ratio
=
2013 Quick assets Current liabilities Quick RATIO 90870.94 119898.40 1.18
Quick Assets Current liabilities

2012 86510.51 92043.47 0.94

2011 73816.17 76402.91 0.97

In the years 2011-2013 quick ratio is almost approaching to 1. There is slight increase in ratio in FY 2013 company follow low liquidity position to achieve high profitability

Absolute asset ratio

Absolute asset ratio =
2013 Absolute assets Current liabilities Absolute asset ratio 1825.47 119898.40 0.02 2012 1285.82 92043.47 0.014 2011 1551.24 76402.91 0.02

In 2012 ratio was decreased from 0.02 to 0.014 and again increased in 2013. According to conventions it should be 0.5:1.
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Inventory Turnover Ratio

Inventory Turnover ratio =
Cost of good sold Average Inventories

2013

2012

2011

Cost of good sold

Average Inventories Inventory Turnover ratio

213241.42
47532 4.49

187529.20
43038 3.89

147416.04
41309.10 3.57

The stock turnover ratio is 2011 was 3.57 times which indicate that the stock is being turned into sales 3.4 times during the year and has increased up to 4.49 times in 2013. Thus, the stock of the company is moving fast in the market.
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Inventory Conversion period

Inventory conversion period =
365 Inventory turnover ratio

2013 Inventory Turnover ratio Inventory conversion period 4.49 81.29 days

2012 3.89 94.08 days

2011 3.57 102.24days

Debt to Equity Ratio

Debt to Equity ratio =
2013 Long term Debt Shareholders Equity Debt to Equity Ratio 92613.97 103096.04 0.898
Total long term Debt Equity

2012 79116.15 110130.04 0.718

2011 98605.63 106558.49 0.925

The rate of debt equity ratio is increased from 0.898 to 0.718 during the year 2013-2012 to 2012-2011. This shows that with the increase in debt.

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Proprietary Ratio
Proprietary ratio =
2013
Shareholders Fund Total Assets Proprietary Ratio 103096.04 302111.15 0.34
Shareholders fund Total Assets

2012
110430.44 295087.48 0.37

2011
106558.49 280965.38 0.38

This ratio is used to determine the financial stability of the concern in general. Proprietary Ratio indicates the share of owners in the total assets of the company
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Solvency Ratio
solvency ratio =
2013 Long term Debt Total Assets Solvency Ratio 92613.97 302111.15 0.306
Long term Debt total Assets

2012 79116.15 295087.48 0.268

2011 98605.63 280965.38 0.351

This ratio shows the share of long term debt in total assets of the company. Smaller the ratio, better is the solvency position of the company. But as Tex reduction is concern having some portion of long term Debt is always profitable.
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Fixed assets to net worth Ratio

FANW ratio =
2013 Fixed assets Net worth Fixed Assets to NW ratio 97915.53 103096.04 94.98
fixed assets net worth

* 100
2011 93512.47 106558.49 87.76

2012 98376.61 110430.04 89.05

Due to decrease in net worth of Raymond in 2013 & slight increase in fixed asset from 2011 to 2013, the Fixed asset to net worth ratio has increased.
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Capital gearing Ratio

Capital Gearing ratio =
Euity share+Res.& surplus Prefernce share+Long term Debt

2013

2012

2011

Equity + reserve Long term debt

Capital gearing Ratio

103096.04 79116.15
1.30

110430.04 92613.97
1.19

106558.49 89166.21
1.20

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Capital gearing ratio compare the equity of the company with the long term debt. The higher the ratio, better equipped the company is. In 2013,as reserve of the company were taken and was used to pay some Debt. Despite the decrease in reserve and surplus this ratio has increased.

Operating Leverage Ratio

Contribution Operating leverage = EBIT
2013 2012 2011

Contribution
EBIT/LBIT Financial leverage

104912.43
(682.23) (153.77)

90211.5
8374.19 10.77

69145.48
(9853.94) (7.017)

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Gross Profit Ratio

Gross profit ratio =
2013 Gross Profit/loss (682.23)
Gross Profit Net sales

* 100
2011 (9853.94)

2012 8374.19

Net Sales
Gross Profit Ratio

203238.77
(0.33%)

187187.26
4.47%

149646.66
(6.58%)

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Operating Ratio
Operating ratio =
2013 Operating Cost Net Sales Operating Ratio 43782.58 203451.25 21.52%

operating expenses
Net sales

* 100
2011 29893.38 149653.25 19.98%

2012 38497.49 187463.49 20.54%

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Net Profit Ratio

Net Profit ratio =
Net Profit After Tex * Net sales

100

2013 NPAT/ (NLAT) Net sales Net Profit/ (Loss) ratio (4784.02) 203451.25 (2.35%)

2012 5635.01 187463.49 3.01%

2011 (10019.19) 149653.25 (6.69%)

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Operating Profit Ratio

Operating profit ratio = 100 Operating ratio
2013 Operating ratio Operating profit ratio 21.52% 78.48% 2012 20.54% 79.46% 2011 19.98% 80.02%

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Return on equity Ratio

Return on Equity =
Net Profit After Tex Avg.shareholders equity

* 100
2011 (10019.19) 111924.54 (8.95%)

2013 NPAT/(NLAT) Avg. Shareholders equity Return on Equity (4784.02) 106762.56 (4.48%)

2012 5635.01 108494.265 5.19%

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Earning per share

Earning Per share =
2013 Net Profit/(loss) After Tax Total no. of Shares Earning Per Share (478402000) 61380854 (7.79)
Net profit after tex Total Number of shares

2012 563501000 61380854 9.18

2011 (1001919000) 61380854 (16.32)

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Return on Gross capital

Return on Gross capital =
2013 NPAT/(NLAT) Gross capital employed Return on Gross capital (4784.02) 302111.15 (1.58%)

* 100
2011 (10019.19) 280965.38 (3.5%)

2012 5635.01 295087.48 1.91%

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Dividend payout ratio

Divident payout ratio =
20132013
Divident per share Earning per share

2012 2012

2011

Dividend per per share Dividend share

Earning per share Earning Per share Dividend payout ratio Dividend payout ratio

1.00
(7.79) (0.128)

2.50
9.18 .272

1.00
(16.32) (0.061)

Despite the loss in 2011 and 2013 company has paid dividend of re1 by withdrawing cash from reserve and in year 2012 about 27.2% of profit was shared with the share holders.
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Cost of good sold Ratio

Cost of good sold ratio =
2013 COGS Net sales COGS Ratio 202556.54 203238.77 99.66%
COGS Net sales

* 100
2011 139792.72 149646.66 93.41%

2012 178813.07 187187.26 95.52%

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Return on proprietary fund Ratio

Return on propritary fund =
2013 NPAT/(NLAT) Prop. Fund Return on proprietary fund (4784.02) 103095.04 (4.64%)
NPAT * Prop Fund

100
2011 (10019.19) 106558.493 (9.40%)

2012 5635.01 110430.04 5.10%

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Book value of share

Book value of share =
2013
Eq.+reserve Total no of shares Book value 103096.04 61380854 169.96
Equity+reserve and surplusLosses Total No.of shares

2012
110430.04 61380854 179.909

2011
106558.493 61380854 173.602

Because of the withdrawal of fund from reserve and surplus, the book value of shares has decreased. And the dividend paid (re. 1) in 2013 wasnt enough to cover the difference.
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THANK YOU
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