Vous êtes sur la page 1sur 8

PROFITABILITY

RATIO
YEAR(MARCH)
IN
PERCENTAGE

20
10

OPERATING
PROFIT
RATIO
NET PROFIT
MARGIN

10.65 10.58 10.03 11.96 12.33 12.27

RETURN ON
CAPITAL
EMPLOYED
SHARE HOLDER
INVESTMENT

5.03

20
11

20
12

20
13

20
14

4.56

3.71

4.88

10.64 9.55

9.39

12.45 13.63 13.76

8.71

7.86

10.40 12.24 11.6

8.31

5.27

201
5

4.52

INTERPRETATION
OPERATING PROFIT RATIO High or Increasing operating margin
is preferred because if the operating margin is increasing ,the company is
earning per Rs of sales.

IN LlOYD THE COMPANYS EARNING PER RS OF SALES


FROM MARCH 2010 TO 2011 TO 2012 IS DECREASED FROM
10.65% TO 10.58% TO 10.03 IT COULD BE BECAUSE OF
COMPETITON.BUT IN 2013 IT INCREASES TO 11.96 AND
FURTHER.
COMPARING WITH BENCHMARKRECENT FIGURE OF
OPERATING RATIO OF INDUSTRY IN MARCH 2014 (8%) AND

COMPARING IT WITH LlOYD OPERATING PROFIT [ITS


EARNING PER RS OF SALES] WHICH IS GREATER
THANINDUSTRIES OPR (5.9%) WHICH SHOWS ITS
OPERATING PROFIT ARE GOOD THAN OTHER COMPANIES.

NET PROFIT MARGIN--

Net profit margin is an indicator of how


efficient a company is and how well controls its costs. The higher the
marginis, the more effective the company is in converting revenue into
actual profit.
IN LlOYD THE COMPANY S EFFECTIVENESS IN CONVERTING REVENUE INTO
ACTUAL PROFIT AS THE PERCENTAGE IS FLUCTUATING EVERY YEAR HIGHEST
IN 2014 (5.27%) AND LOWEST IN 2012 (3.71%)

COMPARING WITH BENCHMARKRECENT FIGURE OF THE


NET PROFIT MARGIN OF THE INDUSTRY IN MARCH 2014 (5%)
ANDCOMPARING WITH A LlOYD NET PROFIT MARGIN IS (5.27%)
WHICH IS GOOD .SHOWS THAT COMPANY IS EFFECTIVE IN
CONVERTING REVENUE IN ACTUAL PROFIT THAN OTHER COMOANIES.

RETURN ON CAPITAL EMPLOYED

The return on capital


employee shows how much profit each RS of employed capital generates.
Obviously ,A higher ratio would be more favourable because it means that
more RS of profit generated by each RS of capital employed.

IN LlOYD THE CAPITAL WHICH IS EMPLOYED IN THE


COMPANY IS DECREASED IN 2011 & 2012 IN
COMPARISION OF 2013,2014,2015 WHICH IS
(12.45%,13.63%,13.76%) RESPECTIVELY.

SHARE HOLDER INVESTMENT-

Higher ratio means


higher returns on shareholdersinvestment. Investors always search for the
highest return on their investment and a company that has ahigher ROE.

IN LlOYD THE RATIO OR PERCENTAGE IS HIGHLY


FLUCTUATIVE FROM 2010 TO 2015 .ITS RANGING

FROM (7.86% TO 12.24%) SHOWS HUGE


DIFFERENCE BETWEEN THE YEARS.
COMPARING WITH BENCHMARK- RECENT FIGURE OF
RETURN ON EQUITY OF INDUSTRY IS IN MARCH 2014 (18%)
AND THAT OF LlOYD IS IN MARCH 2014(12.24%) WHICH IS
LESSER THAN THE BENCHMARK WHICH SHOWS THAT
LlOYD IS PROVIDING LOWER RETURNS TO THEIR
INVESTORS COMPARING TO THE MOST OF THE OTHER
COMPANIES IN THE INDUSTRIES.

LIQUIDITY RATIO
YEAR
(MARCH)
CURRENT
RATIO
QUICK RATIO

2010

2011

2012

2013

2014

201
5

1.41

1.64

1.39

1.35

1.45

1.43

0.8

0.95

0.52

0.48

0.63

0.63

INTERPRETATION
CURRENT RATIO- If current ratio is below 1 (current liablities
eceed current assets),then the company may have problems paying its
bills on time.

IN LlOYD IN MARCH 2010 TO 2015 RATIO IS ABOVE


THAN 1 WHICH SHOWS THE POSITIVE INDICATION
THAT THE COMPANY HAVE NO PROBLEM IN PAYING
BILLS.

COMPARING WITH BENCHMARK- RECENT


FIGURE OF CURRENT RATIO OF THE INDUSTRY
MARCH 2014(1.3) AND TO OF LlOYD FIGURES
MARCH 2014 (1.45) WHICH IS HIGHER THAN 1.THAT
MEANS COMPANYS LIQUIDITY IS AT THE POSITIVE
SIDE.

QUICK RATIOQuick ratio specifies whether the assets that can be


quickly converted into cash are suuficient to cover liabilities.

IN LlOYD THE QUICK RATIO FROM MARCH


2010 TO MARCH 2015 IS LOW RANGES
FROM( 0.48 TO 0.95) WHICH MEANS
COMPANY HAVE LOW CASH AT HAND.
C0MPARING WITH BENCHMARKWHOLE
INDUSTRY QUICK RATIO IN MARCH 2014 (0.50) AND
TO LlOYD IN MARCH 2014(0.63)WHICH IS HIGHER
THAN THE INDUSTRY.WHICH SHOWS THAT
COMPARING WITH OTHER COMPANY IN THE
INDUSTRY BUT LlOYD RATIO SPECIFIES THAT THE
ASSET CAN BE QUICKLY CONVERTED INTO CASH.

EFFICIENCY RATIO
YEAR (MARCH) 2010 2011 2012 2013 2014 2015
TOTAL ASSET
TURNOVER
RATIO

1.14

1.04

1.16

1.19

1.19

1.29

DEBTORS
TURNOVER
RATIO
INVENTORY
TURN OVER
RATIO

3.83

3.94

5.43

5.42

5.23

4.77

4.47

3.86

2.91

2.67

2.60

2.62

TOTAL ASSET TURN OVER RATIO-This ratio shows


how efficiently accompany can use it s to generate sales .Higher
turnover ratios mean the company using its asset more efficiently.

LlOYD AIR CONDITIONER IS ABLE TO MAKE


UTILIZATION OF ASSETS BECAUSE ITS RATIO IS
GOOD ACCORDINGLY WHILE COMPARING TO SALES
FIGURES ARE MARCH 2010 TO 2015 (1.14 TO1.04
TO 1.16 TO 1.19 TO 1.19 TO 1.29)
COMPARING WITH BENCHMARK-WHILE COMPARING
WITH WHOLE INDUSTRY COMPANY IS MAKING NOT SO
MUCH FULL UTILIZATION OF ASSETS .
FIGURES OF LlOYD MARCH 2014 (1.19)AND FIGURE OF
INDUSTRY MARCH 2014(2.15).

DEBTORS TURN OVER RATIOA HIGH RECIVABLES


TURN OVER RATIO IMPLIES EITHER THAT THE COMPANY OPERATES
ON A CASH BASIS OR THAT ITS EXTENTION OF CREDIT AND
COLLECTION OF ACCOUNTS RECEIVABLES ARE EFFICIENT.

DEBTORS TURN OVER RATIO IS FLUCTUATING


EVERY YEAR UP AND DOWN IT IMPLIES THAT
COLLECTION EFFORTS IS IMPROVING AND AND
DECREASING EVERY YEAR AND ALSO SALES IS

INCREASING AND DECREASING. FIGURES ARE


RANGING FROM (3.83 TO 5.92).

INVENTORY TURN OVER RATIO IT IMPLIES


THAT HOW EFFECTIVELY INVENTORY IS MANAGED
BY COMPARING COST OF GOODS SOLD WITH
AVERAGE INVENTORY FOR A PERIOD

LlOYD INVENTORY TURN OVER RATIO


FLUCTUATING EVERY YEAR
IT RANGES MARCH 2010 TO MARCH 2015
(LOWEST 2.60 TO 4.47).

GROWTH
YEAR
(MARCH)
PAYOUT
RATI0
RETENTION
RATIO
(PERCENT)
DEBT
EQUITY
RATIO

2010 2011 2012 2013 2014 2015


9.01

9.22

6.28

4.63

5.62

91.4
8

12.8
9
87.1
1

90.7
88

93.7
2

95.3
7

94.3
8

0.48

0.76

0.74

0.85

0.98

1.01

INTERPRETATION
PAYOUT RATIO

The dividened pay out ratio

measures the percentage of net income that is

distributed to shareholders in the form of dividends


during the year

IN LlOYD COMPANY PAYOUT RATIO IS


FLUCTUATES EVERY YEAR WITH
BIGDIFFERENCE IN LOWEST (4.63 TO 12.89)
SHOWS THAT COMPANY PAID TO IT SHARE
HOLDRERS MORE OR LESS.
RETENTION RATIO the retention rate is the
percentage of profits that are with held by the
companyand not distributed as dividends at the
end of the year.
IN LlOYD CASE COMPANY WITH HELD
DIVIDENDS AT THE END OF THE ACCOUNTING
YEAR THIS CAN BE SHOWN FROM FIGURE
MARCH 2010 TO 2015 RANGING FROM
(LOWEST 87.11 TO 95.37) COMPANY IS USING
AMOUNT FOR GROWTH INVESTORS JUDGE
THE FUTURE GROWTH

DEBT EQUITY RATIO The debt to equity


ratio shows the percentage of company
financing that comes from creditors and
investors
The assets of the company are funded 2-to-1
buy investors to creditors.This means that
investors own 66.6 cents of every assets

while creditors only own 33.3 cents on the


dollar.

Capital market ratio


YEAR
(MARCH)
BO0K VALUE
OF SHARE
(RS)

2010

2011

2012 2013 2014 2015

129.
62

142.4
0

152.
64

179.
61

179. 202.
63
59

INTERPRETATION
BOOK VALUE OF SHARE THE AMOUNT OF
MONEY THAT A HOLDER OF A COMMON
SHARE WOULD GET IF A COMPANY WERE TO
LIQUIDATE. BOOK VALUE OF SHARES
COUNTINUOS INCRESING TO FROM) MARCH
2010 2015 (129.62 TO 202.59).IMPLIES THAT
BOOK VALUE OF SHARE INCREASING EVERY
YEAR.

Vous aimerez peut-être aussi