RIL(2007)

Current Ratio Gross Profit / Sales= 1.109286 It shows how the gross profit and sales are related after deducting the expenses which are related to the production process. Quick RaTio Current Assets - Inventory/Current Liabilities= 0.639935 It is used to evaluate the firms ability to pay its short term debt. In case of RIL the quick ratio signifies that RIL can pay its short term debt easily. Debtors Turnover Ratio =NET SALES/AVERAGE DETORS= 28.29242 How effectively you are converting your detors into cash.

VENTORY TURNOVER RATIO = NET SALES/AVERAGE INVENTORY= 10.03751 The number of days sales in inventory is an alternative measure of the companys efficiency in managing inventory. It is the number of days between the dates of the item of inventory is purchased and the date it is sold. Inventory Turnover period 365/ITOR= 36.36361 Itor tell about how effectively you are mobilizing your inventory or stock.(in to cash). Debt Equity Ratio Long term debt/share holder fund= 0.435 It indicates what proportion of equity and debt the company is using to finance its assets. Investing in a company with a higher debt/equity ratio may be risky, especially in terms of rising interest rates due to the additional interest that has to be paid out for the debt. If the ratio is greater than 1, the majority of the assets are financed through debt. If it is smaller than 1, assets are primarily financed through equity. A ratio > 1 = assets are mainly financed with debt.

A ratio <1 = equity provides a majority of the financing

Return on Capital Employed Ebit/total capital employed= 24.74341 The ROCE shows the company earnings on the funds employed by the company. It indicates the efficiency and profitability of a companys capital investments. It should always be higher than the rate at which the company borrows, otherwise increase in borrowing will reduce the shareholders earnings. Gross profit Ratio Gross profit/net sales= It shows how the gross profit and sales are related after deducting the expenses which are related to the production process. Operating Profit Ratio Operating profit/ net sales= 0.182687 It measures the earnings before interest and tax. It shows how much profit is earned before deducting interest and tax. It also shows the relation of sales with regard to profit. If the sales increase the profit also increases Returrn on Assets Profit after tax/average assest=0.14613 How effectively you are using your assets to generate return.

Earning per Share PROFIT AFTER TAX/NO. OF EQUITY SHARES OUTSTANDING *100= 85.70793 It tells an investor how much of the company's profit belongs to each share of stock. Debt Equity Ratio LOAN CAPITAL / EQUITY CAPITAL= 0.435 A ratio > 1 = assets are mainly financed with debt. A ratio <1 = equity provides a majority of the financing

Dividend Yield Dividend per share/market price of share=0.007543 Capitalization Rate Eps/ market price of share=0.062548 How much you are getting on market price.

Earning Power
Ebit/average asset=0.00339 It indicates whats firm earning power over its assets. P/E Ratio Market price/eps=15.98802 Indicates the number of the time investor willing to pay Dividend Coverage Ratio Eps/dps=8.291494 Prospect of dividend increase.