19979712 Trend Analysis of SAIL
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Transcript of 19979712 Trend Analysis of SAIL
TREND ANALYSIS
GROUP
• ABHISHEK CHOWDHURY -117• ABHIVANDANA JAIN - 92• ANSHITA SHEDHA - 64• HONEY AGARWAL - 82• JAYSHREE - 99 • SHRAY TANEJA - 89
CONTENT…
• Introduction• Liquidity Ratio • Leverage Ratio• Activity Ratio • Profitability Ratio • Conclusion
OVERVIEW…• A fully integrated producer of steel in India.• About 86% outstanding shares owned by Indian
government.• With a turnover of 48,681 crore.• Company is among top five highest earning
corporate of the country.• Company manufactures broad range of steel
products, sheets, structural, railway products etc.
SCOPE…
• Company’s strengths and weaknesses and areas of development or decline are analyzed.
• Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.
• Financial, strategic and operational factors are considered.
PROFIT / LOSS A/C
BALANCE SHEET
Liquidity Ratio
•Liquidity ratio is the ability of a firm to satisfy its short term obligations as they become due and reflect the financial strength..
31/3/2006 31/3/2007 31/3/20080
0.5
1
1.5
2
2.5
1.42
1.82 1.91
Current Ratio
31/3/2006 31/3/2007 31/3/20080
0.5
1
1.5
2
2.5
3
1.66
2.37
2.8
Quick Ratio
Leverage Ratio
• It show the long term solvency of a firm as reflected its ability to assure the ability to assure the long term lenders.•Here is relationship between borrowed funds and owner’s capital.
31/3/2006 31/3/2007 31/3/20080
0.05
0.1
0.15
0.2
0.25
0.3
0.27
0.19
0.09
Debt/Equity ratio
31/3/2006 31/3/2007 31/3/20080
5
10
15
20
25
30
35
40
45
50
13.44
28.05
44.06
Interest Coverage
Activity Ratio
•It’s a relationship between sales and various assets of a firm.•It measure the speed with which various accounts / assets are converted into sales or cash.
31/3/2006 31/3/2007 31/3/200850
51
52
53
54
55
56
57
58
52.44
54.2
56.73
Inventory (days)
31/3/2006 31/3/2007 31/3/200819
20
21
22
23
24
25
20.9821.37
24.17
Receivables (days)
31/3/2006 31/3/2007 31/3/200837
38
39
40
41
42
43 42.69
39.1339.56
Creditors (days)
Profitability Ratio
•It measures the operating efficiency of the company.•It also depicts the Earning Per Share and Dividend Per Share
31/3/2006 31/3/2007 31/3/200824
25
26
27
28
29
30
31
32
26.73
31.05 31.34
Gross Margin (%)
31/3/2006 31/3/2007 31/3/20080
5
10
15
20
25
30
17.94
23.65 24.55
Operating Margin (%)
31/3/2006 31/3/2007 31/3/20080
2
4
6
8
10
12
14
16
18
20
10.96
18.05 18.85
Net Profit Margin (%)
Return Related Ratio
31/3/2006 31/3/2007 31/3/20080
5
10
15
20
25
30
35
40
27.63
35.38 35.48
Return on Investment or Total Assets (%)
31/3/2006 31/3/2007 31/3/200829
30
31
32
33
34
35
36
37
31.93
35.84
32.67
Return on Equity or Networth (%)
31/3/2006 31/3/2007 31/3/20080
2
4
6
8
10
12
14
16
18
20
9.72
14.98
18.25
Earnings Per Share (Rs)
31/3/2006 31/3/2007 31/3/20080
0.5
1
1.5
2
2.5
3
3.5
4
2
3.1
3.7
Dividend Per Share (Rs)
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