RATIO ANALYSIS OF RIL

PRESENTED BY-
MANJUSHREE DEKA , BAM 17004
ABHIJIT SONOWAL , BAM 17007
SUBHAM JALAN BAM 17011
ADITYA BAID , BAM 17013
KANKANA KALITA, BAM 17020
OVERVIEW OF RELIANCE INDUSTRIES
LIMITED

RIL is India’s largest private sector company on key financial parameters

It is a significant global player in the integrated energy value chain, and
has a growing presence in the retail and digital services in India.

Businesses at a glance

•Refining and marketing( Petroleum Refining)

•Petrochemicals (Polymers, Polyester, Fibre intermediates)

•Oil and Gas

•Retail

•Digital Services

•Media and Entertainment

RATIO ANALYSIS

•It is a method or process by which the relationship of

the items or groups of items in the financial statements
are computed and presented.

•It is an important tool of financial statements.

•It is used to interpret the financial statements so that

the strengths and weaknesses of the firm, its historical
performance and current financial condition can be
determined.
CLASSIFICATION OF RATIOS
•Ratios can be broadly classified into 5 categories namely :

•Liquidity Ratios

•Leverage Ratios

•Profitability Ratios

•Turnover Ratios

•Valuation ratios
LIQUIDITY RATIOS
•These ratios analyse the short term financial position of a firm and the
indicate the ability of the firm to meet its short term commitments out
of its short term resources.
Liquidity Ratio
4.00

3.50

3.00

2.50
Cash Ratio
2.00
Quick Ratio
1.50 Current Ratio

1.00

0.50

0.00
2016-17 2015-16 2014-15 2013-14 2012-13
LEVERAGE RATIO
•Leverage ratio indicates the long term solvency of a firm and
indicate the ability of the firm to meet its long term commitment
with respect to periodic payment of interest during the period of
the loan.
Interest Coverage Ratio

Debt Total Asset Ratio

Leverage Ratio
Debt Net Worth Ratio
14.00 Debt Equity Ratio

12.00

10.00

8.00

6.00

4.00

2.00

0.00
2016-17 2015-16 2014-15 2013-14 2012-13
TURNOVER RATIO
Turnover ratios measure how efficiently the assets are employed by a firm
these ratios are based on the relationship between the level of activity.

600.00

500.00

400.00
Inventory turnover ratio
Debtors turnover ratio
300.00
Average Collection Period
Fixed Assets Turnover Ratio
200.00
Total Assets Turnover Ratio

100.00

0.00
2016-17 2015-16 2014-15 2013-14 2012-13
PROFITABILITY RATIOS
•These ratios measure the operating efficiency of a firm and its ability to
ensure adequate returns to its share holders.

Return On Net Worth

Profitability Ratio
Return On Investment

Return On Assets
0.50
0.45 Net Profit Margin
0.40
Gross Profit Margin
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
2016-17 2015-16 2014-15 2013-14 2012-13
VALUATION RATIO

It shows the relationship between the price per share and its earnings, growth
and assets. As such it’s a good indicator of the relative value of a company.

Valuation Ratio
0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2016-17 2015-16 2014-15 2013-14 2012-13
Dividend Payout Ratio
CONCLUSION
• Based on the study conducted on the topic “Ratio Analysis of
Reliance India Limited for the period 2012 – 2017”, we can conclude
that the performance of Reliance India Limited has low fluctuations
but in the last year i.e. 2016-17 it had a high increase One of the
major contributing factors towards the increase is the “Reliance Jio”
where the company earned high profits as the customer base
increased and that led to increase in the share price of Reliance
Industries which also led to high Dividend Payout ratio in 2016-17.

• A further study of the ratios for the evaluation period 2012-2017

resulted in good dividend payouts for the initial years, which is a
good indicator for potential investors looking for short term gains.
However, looking at the trend and the brand name of “Reliance” it is
expected that stakeholders can expect a better return in the near
future.