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Liquidity and Solvency Ratio

Current Ratio

Quick Ratio
Cash Ratio
Profitability Ratio

Gross profit margin


Operating profit margin

Net profit margin


Return ratios

Return on assets

Return on equity
Return on Capital employed
financial levrage

Debt Ratio
Debt Equity Ratio
Activity ratios
Fixed asset turnover ratio
Shareholder ratios

EPS

P/E Ratio

Mahindra & Mahindra

2016

Current asset/Current liability

1.0878585182

Current asset-inventories/Current liability


(Cash+casheq+investment fund)/current liability

0.8365014069
0.1973174479

Gross profit /netsales

0.9680300624

Operating profit/netsales

0.9482043827

Net income /sales

0.0734601905

Net income /Average total assets

0.0913381608

Net income/Shareholder equity


Net income/capital employed

10.6893898488
0.1459184722

Total Debt/Total Assets

0.4038507275

Total Debt/ Shareequity

49.6259111771

Revenue/Fixed asset

1.7387022292

PAT/No of shares

51

Stock price per share/EPS

22.8049019608

2015

2014

1.1285831605

1.2876913899

0.8569989537
0.1939063654

0.9678901856
0.2253964297

0.9804150383

0.968325338

0.959240399

0.9514531866

0.0828653133

0.0882759006

0.6239531945

0.0585107277

11.2313493405
0.1724795885

12.7332633148
0.2238286864

0.4155360152

0.4633456541

46.2958403788

49.117292316

1.7565546403

1.3607183436

53.66

61.07

22.3630264629

17.8688390372

Interpretation
Current ratio is acceptable but in future they may need
more current asset to pay of their short-term obligations.
This ratio shows that company is less liquid in terms of
inventories which means company belive in keeping
invenotry ready with them.

This ratio that M&M have a good gross income


consistently in all the years.
This is showing a higher profit margin which is also
consistent in all years.
Net profit margin is very less which can be because
company is having a lot of inventories which is not
turning into sales so ther inventory turnover ratio is also
less.

Return on asset was good in the year 2015 but fall down
in the year 2016 which is because of its inventories
Return on equity shows a good number with which we
can say shareholders are having a good investment in
M&M.

Lower finacial risk because this ratio shows that company


is hving good amount of current asset in order to pay off
debt.
debt are more than equity which is not good for company.

This shows that fixed asset are generating slow revenues.

EPS is higher which shows shareholders are having good


returns but not getting dividend from the company.

On each share there is good return for shareholders.

Liquidity and Solvency Ratio

Current Ratio

Quick Ratio
Cash Ratio
Profitability Ratio
Gross profit margin
Operating profit margin

Net profit margin


Return ratios

Return on assets
Return on equity
Return on Capital employed
Financial levrage ratios

Debt Ratio

Debt Equity Ratio


Activity ratios
Fixed asset turnover ratio
Shareholders ratios

EPS
P/E Ratio

Eicher Motors Pvt.Ltd.

2016

Current asset/Current liability

0.9819788193

Current asset-inventories/Current liability


(Cash+casheq+investment fund)/current liability

0.7309193644
0.6304905673

Gross profit /netsales

0.9115532977

Operating profit/netsales

0.8860320333

Net income /sales

0.1760958651

Net income /Average total assets

0.3597946288

Net income/Shareholder equity

0.5718158064

Net income/capital employed(Equity+Non-current


Liabilities)

12.5476992144

Total Debt/Total Assets

1.0786595279

Total Debt/ Shareequity

0.5891908982

Revenue/Fixed asset

3.1134143786

PAT/No of shares
Stock price per share/EPS

451.54
57.0444304726

In the year 2015 company has adapted a new policy to follow


AS-21 which is why their financial statement were not
audited for that year and not publicaly released. And that
shows some of the major ups and downs in that year.

2015

2014

1.14391354

1.2840973224

0.8576941615
0.4499881929

0.2212428275
0.9803097761

0.1313277228

0.9479825193

0.1248630271

0.9129548254

0.0804381769

0.1683377356

0.230481691

0.5015231797

0.2729648009

0.4530583791

1.9018607745

8.5188233501

0.4349140616

0.4465137355

1.0301500268

0.8067295689

3.6021299274

3.319433336

346.25
57.4729241877

205.37
114.0262893945

Interpretation

Current ratioof company has go down from year


2014 to 2016 that shows company has taken more
debt but having less current asset to pay off their
debt.
company's inventory is turning very fast into sales
that is why they are having higher quick ratio.
Company is having good amount of cash to pay off its debts.
Less sales return are there so company is having a
higher gross profit.
Higher operating profit less operating cost.
Net profit is lower because may be there are too much
assets having depreciating and amotsing cost.

company is having and using its resources at its best


which shows ideal return on assets.
Company is generatin g higher profit from its
shareholders.

Comapany is managing a higher amount of current


ratio which shows its having less financial risk.
Companyb is having higher equity than debt which is
showing less risk and liabilities.

company's fixed asset are genrating a higher amount


of sales.

EPS is very high which shows a good return for


shareholders and market capitalization goes higher.
Share holders earning good returns on it.