# Financial Ratios Analysis 2020 with Source Data

## 1. Liquidity Ratios

### Current Ratio

2020: 13,568.76 / 25,810.82 = 0.53

Components:

- Current Assets: 13,568.76 cr (Total of section 2 under ASSETS)

- Current Liabilities: 25,810.82 cr (Total of section 2 under LIABILITIES)

### Quick Ratio

2020: (13,568.76 - 3,831.92) / 25,810.82 = 0.38

Additional Components:

- Inventories: 3,831.92 cr (Item 2(a))

### Cash Ratio

2020: (2,145.30 + 1,386.89) / 25,810.82 = 0.14

Components:

- Cash and cash equivalents: 2,145.30 cr (Item 2(c)(iii))

- Bank balances: 1,386.89 cr (Item 2(c)(iv))

## 2. Leverage Ratios

### Debt-Equity Ratio

2020: (14,776.51 + 6,121.36) / 18,387.65 = 1.14

Components:

- Long-term borrowings: 14,776.51 cr (Item 1(a)(i) under LIABILITIES)

- Short-term borrowings: 6,121.36 cr (Item 2(a)(i))

- Total Equity: 18,387.65 cr (Total EQUITY section)

### Interest Coverage Ratio

Components:

- EBIT: -4,616.42 cr (Item V. Profit/(loss) before exceptional items and tax)

- Finance costs: 1,973.00 cr (Item IV(e))

### Debt-Asset Ratio

2020: (14,776.51 + 6,121.36) / 62,589.87 = 0.33

Additional Component:

- Total Assets: 62,589.87 cr (TOTAL ASSETS)

## 3. Activity Ratios

### Inventory Turnover Ratio

2020: 26,171.85 / 3,831.92 = 6.83

Components:

- Cost of materials consumed: 26,171.85 cr (Item IV(a))

- Inventories: 3,831.92 cr

### Debtors Turnover Ratio

2020: 43,485.76 / 1,978.06 = 21.98

Components:

- Revenue from operations: 43,485.76 cr

- Trade receivables: 1,978.06 cr (Item 2(c)(ii))

### Creditors Turnover Ratio

2020: 31,851.83 / 8,102.25 = 3.93

Components:

- Total Purchases (Cost of materials + Purchases): 26,171.85 + 5,679.98 = 31,851.83 cr

- Trade payables: 8,102.25 cr (Sum of 101.56 + 8,000.69 from Item 2(a)(iii))

### Total Asset Turnover Ratio

Components:

- Revenue from operations: 43,485.76 cr

- Total Assets: 62,589.87 cr

### Fixed Asset Turnover Ratio

2020: 43,485.76 / 18,870.67 = 2.30

Components:

- Revenue from operations: 43,485.76 cr

- Property, plant and equipment: 18,870.67 cr (Item 1(a))

## 4. Profitability Ratios

### Gross Profit Margin

2020: (43,485.76 - 26,171.85) / 43,485.76 × 100 = 39.82%

Components:

- Revenue from operations: 43,485.76 cr

- Cost of materials consumed: 26,171.85 cr

### Net Profit Margin

2020: -7,289.63 / 43,485.76 × 100 = -16.76%

Components:

- Net Profit/(loss): -7,289.63 cr (Item IX)

- Revenue from operations: 43,485.76 cr

### Return on Assets

2020: -7,289.63 / 62,589.87 × 100 = -11.65%

Components:

- Net Profit/(loss): -7,289.63 cr

- Total Assets: 62,589.87 cr

2020: Not meaningful (negative earnings)

Component:

- Basic EPS: -21.06 (Item XII(A)(i))

# Financial Ratios Analysis with Source Data

## 1. Liquidity Ratios

### Current Ratio

2022: 15,618.61 / 26,992.81 = 0.58

2021: 15,854.69 / 26,251.55 = 0.60

- Current Assets 2022: 15,618.61 cr

- Current Liabilities 2022: 26,992.81 cr

- Current Assets 2021: 15,854.69 cr

- Current Liabilities 2021: 26,251.55 cr

### Quick Ratio

2022: (15,618.61 - 3,718.49) / 26,992.81 = 0.44

2021: (15,854.69 - 4,551.71) / 26,251.55 = 0.43

- Current Assets minus Inventories

- Inventories 2022: 3,718.49 cr

- Inventories 2021: 4,551.71 cr

### Cash Ratio

2022: (2,141.78 + 155.20) / 26,992.81 = 0.085

2021: (2,254.52 + 1,953.40) / 26,251.55 = 0.16

- Cash and cash equivalents 2022: 2,141.78 cr

- Bank balances 2022: 155.20 cr

- Cash and cash equivalents 2021: 2,254.52 cr

- Bank balances 2021: 1,953.40 cr

### Debt-Equity Ratio

2022: (14,102.74 + 9,129.91) / 19,944.15 = 1.17

2021: (16,326.77 + 5,421.95) / 19,055.97 = 1.14

- Total Debt (Long-term + Short-term borrowings)

- Total Equity

### Interest Coverage Ratio

2022: (-1,723.46) / 2,121.73 = -0.81

2021: (-1,967.17) / 2,110.83 = -0.93

- EBIT (Profit before exceptional items and tax)

- Finance costs

### Debt-Asset Ratio

2022: (14,102.74 + 9,129.91) / 63,899.87 = 0.36

2021: (16,326.77 + 5,421.95) / 65,059.66 = 0.33

- Total Debt

- Total Assets

## 3. Activity Ratios

### Inventory Turnover Ratio

2022: 31,693.11 / ((3,718.49 + 4,551.71)/2) = 7.68

2021: 19,050.74 / 4,551.71 = 4.19

- Cost of materials consumed

- Average Inventory

### Debtors Turnover Ratio

2022: 46,880.97 / ((2,111.78 + 2,087.51)/2) = 22.34

2021: 29,769.07 / 2,087.51 = 14.26

- Average Trade Receivables

### Creditors Turnover Ratio

2022: 36,723.11 / ((5,956.00 + 7,947.78)/2) = 5.27

2021: 22,207.54 / 7,947.78 = 2.79

- Total Purchases (Cost of materials + Purchases)

- Average Trade Payables

### Total Asset Turnover Ratio

2022: 46,880.97 / 63,899.87 = 0.73

2021: 29,769.07 / 65,059.66 = 0.46

- Revenue from operations

- Total Assets

### Fixed Asset Turnover Ratio

2022: 46,880.97 / 11,733.44 = 4.00

2021: 29,769.07 / 19,153.47 = 1.55

- Revenue from operations

- Property, plant and equipment

## 4. Profitability Ratios

### Gross Profit Margin

2022: (46,880.97 - 31,693.11) / 46,880.97 = 32.40%

2021: (29,769.07 - 19,050.74) / 29,769.07 = 36.01%

- Revenue from operations

- Cost of materials consumed

### Net Profit Margin

2022: -1,390.86 / 46,880.97 = -2.97%

- Profit/(loss) for the year

- Revenue from operations

### Return on Assets

2022: -1,390.86 / 63,899.87 = -2.18%

2021: -2,395.44 / 65,059.66 = -3.68%

- Profit/(loss) for the year

- Total Assets

### P/E Ratio

2022: Not meaningful (negative earnings)

2021: Not meaningful (negative earnings)

- Both years show negative EPS, making P/E ratio calculation not meaningful

- Basic EPS 2022: -3.63

- Basic EPS 2021: -6.59

I'll calculate ratios for both years (2024 and 2023) side by side:

1. LIQUIDITY RATIOS:

Current Ratio = Current Assets / Current Liabilities

2024: 15,171.06 / 27,326.16 = 0.55

2023: 11,499.95 / 25,803.53 = 0.45

Quick Ratio = (Current Assets - Inventories) / Current Liabilities

2024: (15,171.06 - 3,470.38) / 27,326.16 = 0.43

2023: (11,499.95 - 3,027.90) / 25,803.53 = 0.33

Cash Ratio = (Cash & Cash equivalents + Bank balances) / Current Liabilities

2024: (3,344.89 + 1,806.07) / 27,326.16 = 0.19

2023: (1,121.43 + 293.22) / 25,803.53 = 0.05

Debt-Equity Ratio = Total Debt / Total Equity

2024: (5,235.67 + 8,535.37) / 30,143.05 = 0.46

2023: (10,445.70 + 8,426.74) / 22,469.85 = 0.84

Interest Coverage Ratio = EBIT / Finance Costs

2024: (7,850.82 + 1,705.74) / 1,705.74 = 5.60

2023: (1,254.80 + 2,047.51) / 2,047.51 = 1.61

Debt-Asset Ratio = Total Debt / Total Assets

2024: 13,771.04 / 66,083.74 = 0.21

2023: 18,872.44 / 61,770.77 = 0.31

3. EFFICIENCY RATIOS:

Inventory Ratio = Inventory / Total Assets

2024: 3,470.38 / 66,083.74 = 0.05

2023: 3,027.90 / 61,770.77 = 0.05

Inventory Turnover = COGS / Average Inventory

2024: 52,188.80 / 3,249.14 = 16.06

2023: 49,272.82 / 3,027.90 = 16.27

Debtor Turnover = Net Sales / Average Trade Receivables

2024: 72,745.92 / 2,536.44 = 28.68

2023: 65,298.84 / 2,307.72 = 28.30

Creditor Turnover = Net Credit Purchases / Average Trade Payables

2024: 7,764.19 / 7,994.54 = 0.97

Total Asset Turnover = Net Sales / Average Total Assets

2024: 72,745.92 / 63,927.26 = 1.14

2023: 65,298.84 / 61,770.77 = 1.06

Fixed Asset Turnover = Net Sales / Average Fixed Assets

2024: 72,745.92 / 11,635.82 = 6.25

2023: 65,298.84 / 11,707.87 = 5.58

4. PROFITABILITY RATIOS:

Gross Profit Margin = (Sales - COGS) / Sales × 100

2024: (72,745.92 - 52,188.80) / 72,745.92 × 100 = 28.26%

2023: (65,298.84 - 49,272.82) / 65,298.84 × 100 = 24.54%

Net Profit Margin = Net Profit / Sales × 100

2024: (7,902.08 / 72,745.92) × 100 = 10.86%

2023: (2,728.13 / 65,298.84) × 100 = 4.18%

Return on Assets = Net Profit / Total Assets × 100

2024: (7,902.08 / 66,083.74) × 100 = 11.96%

2023: (2,728.13 / 61,770.77) × 100 = 4.42%

EPS (Basic)

2024: ₹20.61

2023: ₹7.11

Key Observations:

1. Liquidity ratios improved in 2024 compared to 2023

2. Debt-Equity ratio significantly improved from 0.84 to 0.46

4. Profitability metrics showed significant improvement:

- Net profit margin increased from 4.18% to 10.86%

- ROA increased from 4.42% to 11.96%

5. EPS nearly tripled from ₹7.11 to ₹20.61

Would you like a detailed analysis of any particular aspect of these ratios?