TATA COMM.

FINANCIAL ANALYSIS

Liquidity Ratio:

(a)Current Ratio (Working Capital Ratio) (b) Quick Ratio:

Years (Ending) Current Ratio
Years (Ending) Quick Ratio
2014 1.33
20142 2014 1.33
2015 0.99
2015 1.06
2016 1.06
2017 0.88 2016 1.24
2018 1.06 2017 1.01
2018 1.12

(c)Debt Equity Ratio (d) Long term Debt Equity Ratio

Years (Ending) Debt Equity Ratio Years (Ending) Quick Ratio
2014 0.12 20142 2014 0.08
2015 0.06 2015 0.02
2016 0.08 2016 0.02
2017 0.08 2017 0.02
2018 0.06 2018 0.02

Interpretation: (a) Current ratio had decreased slightly from 1.33 in 2014 to 1.06 in 2018. 1.06 shows
that company has sufficient current assets to meet current obligations.
(b) 1.12 is the Quick Ratio of Tata Comm. in 2018. It shows that it has sufficient near cash assets to
meet any current Liabilities.
(c) Debt Equity Ratio is in 2018 is 0.06. Which is good.
(d) Long term Debt Equity Ratio is also less, I.e, 0.02. Which is good.
 Profitability Ratio

(a)Net Profit Margin (%) (b)Return on Capital Employed (%)

Years (Ending) Net Profit Years (Ending) Return on Capital
Margin% Employed
20142 2014 12.39 20142 2014 5.98
2015 15.61 2015 7.40
2016 8.19 2016 4.02
2017 13.61 2017 6.81
2018 5.21 2018 2.76

(c)Return on Assets(%) (d) Assets Turnover Ratio(%)

Years (Ending) Return on Years (Ending) Assets Turnover
Assets(%) Ratio(%)
20142 2014 12.39
20142 2014 38.32
2015 15.61
2015 36.81
2016 8.19
2017 13.61 2016 38.25
2018 5.21 2017 38.55
2018 39.65

Interpretation: (a) Net Profit Margin has decreased lot over time. I.e, from 12.39% from 2014 to
5.21% in 2018. It shows Company is lacking in making Money.
(b)ROCE has declined, I.e, 5.98% in 2014 to 2.76% in 2018.
(c) Return on Assets has declined from 12.39% from 2014 to 5.21% from 2018. It shows that
Company’s Efficiency managing its Assets had gone down.
(d) Assets Turnover Ratio has increased approx. 1% from 2014 to 2018 but Assets Turnover Ratio
is only 39.65%.
 FINANCIAL ANALYSIS OF TATA COMM. COMPETITORS
ANALYSIS:
1. BHARTI AIRTEL

Profitability RATIO

(a)Net Profit Margin (%) (b) Return on Capital Employed (%)

Years Net Profit
(Ending) Margin(%) Years(Ending) ROC (%)
2014 13.22 2014 8.34
2015 23.78 2015 12.76
2016 12.90 2016 4.94
2017 -15.93 2017 7.49
2018 0.14 2018 3.09

Liquidity Ratio
(a)Current Ratio (b) Quick Ratio
Years Current Ratio
(Ending) Years (Ending) Quick
Ratio
2014 0.35 2014 0.35
2015 0.64
2015 0.64
2016 0.41
2016 0.41 2017 0.47
2017 0.47 2018 0.49
2018 0.49
Reliance Comm.
Liquidity Ratio
a) Current Ratio b)Quick Ratio
Years Current Years Quick Ratio
(Ending) Ratio (Ending)
2014 1.26 2014 1.25
2015 0.72 2015 0.71
2016 0.61 2016 0.61
2017 0.95 2017 0.95
2018 0.95 2018 0.95

Profitability Ratio
(a)Net Profit Margin (%) (b) Return on Capital Employed (%)
Years Net Profit Years (Ending) Return on
(Ending) Margin Capital
(%) Employed (%)
2014 -1.42 2014 -0.24
2015 -3.79 2015 -0.67
2016 -50.77 2016 0.29
2017 -442.40 2017 0.34
2018 -442.40 2018 -52.56
 Comparison of Financial Ratios among Tata Comm., Bharti Airtel and
Reliance Comm.

Current Ratio Comparison of Tata Comm, Bharti Airtel, Reliance Comm.

100 12.39
13.22 15.61
23.78 8.1912.9 13.61 5.210.14

0
1 -1.42 2 -3.79 3 -15.93
4 5
-100 -50.77
1=2014
-200 2=2015
3=2016
-300 4=2017
5=2018
-400
-500 -442.4 -442.4
Tata Comm airtel reliance

Interpretation: Current Ratio of all the 3 Companies had declined but Bharti Airtel has better
current ratio among the 3. If we see the data Reliance Comm. Had maintained neutral Current
Ratio. Whereas Tata Comm. And Bharti Airtel’s Current Ratio has fallen significantly.
2.76 Current Ratio of Tata Comm. Is still healthy to meet any short term debt.

Q UI CK RAT I O CO MPA RI SO N 1=2014

2=2015
Tata Comm airtel reliance 3=2016
4=2017
23.78
15.61

13.61
13.22
12.39

5=2018
12.9
8.19

5.21
0.14
-1.42

-3.79

1 2 3 4 5
-15.93
-50.77

-442.4

-442.4

Interpretation: From the data we can see that the Quick Ratio is decreasing of all the 3
Companies Tata Comm. At 2018 Quick ratio of Tata Comm. Is 2.76 is lower than that of
Bharti Airtel which Airtel has higher cash equivalent resources to meet any short cash
condition.
We can conclude from the data that Tata Comm. has better Quick Ratio than Reliance Comm.
But lower than Airtel.
NET PROFIT MARGIN (%) COMPARISON

Tata Comm airtel reliance

23.78
15.61

13.61
13.22
12.39

12.9
8.19

5.21
0.14
-1.42

1 2 3 4 5

-3.79

-15.93
-50.77

-442.4

-442.4
Interpretation: Net Profit Margin of all the 3 Companies is 5 years low. Which shows all 3
Companies are not making money. Here, in the year ending 2018 Bharti Airtel has the highest
Profit Margin percent. I.e, 3.09% and second highest is Tata Comm. Bharti Airtel has an
competitive edge over Tata Comm. In terms of Net Profit Margin percentage.