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ANALYSIS OF TWO
COMPANIES
BBM 504
SUBMITTED TO:
AASHISH SIR
SUBMITTED BY:
SHIKHA AGARWAL
BBM 5TH SEM.
SEC B
ICG/2009/ 9334
WHAT IS RATIO ?
Ratio can be define as between
relationship between two figures
expressed
in
arithmetical
terms
called ratio.
ACCORDING TO R.N ANTHONY:
A
Ratio
is
simply
one
number
expressed in terms of another .It is
found by dividing one number into
another.
ADVANTAGES OF RATIO
Helpful
in
analysis
of
financial
statements.
Simplification of accounting data.
Helpful in comparative study.
Helpful in forecasting.
Effective control
Study of financial soundness
LIMITATIONS OF RATIO
VOLTAS
SALES
40,00,000
48,00,000
32,00,000
37,44,000
GROSS PROFIT
8,00,000
10,56,000
2,50,000
3,00,000
5,50,000
7,56,000
2,20,000
75,600
4,000
2,76,000
90,000
4,000
2,99,600
3,70,000
2,50,400
3,86,000
36,000
56,000
2,14,400
3,30,000
BALANCE
SHEETS
Liabilities
Panasonic
Voltas
15,00,000
19,20,000
8,00,000
10,00,000
Secured loans:
9% debentures
Unsecured loans
Current liabilities &
provisions:
(a)Current liabilities
creditors
(b)provisions
Income tax provision
8,40,000
Panasonic
Voltas
Fixed assets:
land
Plant & machinery
5,00,000
19,16,000
6,00,000
18,50,000
investments
1,00,000
3,00,000
7,20,000
8,00,000
80,000
11,00,000
12,00,000
1,00,000
24,000
20,000
41,40,000
51,70,000
10,00,000
9,64,000
10,64,000
36,000
56,000
41,40,000
ASSTES
51,70,000
Miscell. expenditure
Preliminary exp.
Question
Liquidity ratios
Solvency ratios:
COMMENT:
Activity ratio
Profitability ratios
THANK
YOU