Ratio Analysis (Financial Accounting)
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![Page 1: Ratio Analysis (Financial Accounting)](https://reader036.fdocuments.us/reader036/viewer/2022062306/58eeb4391a28ab1a298b4637/html5/thumbnails/1.jpg)
RatioAnalysis
Of
SINGER Company.
Financial
Liquidity
Profitability
Investments
Share holders
Earnings per share
Price earnings
Current
Acid Test
Net Profit
Gro
ss P
rofit
ROCE
rates
risk debtInventory
Equity
Wo
rkin
g c
ap
ital
Margin
solvency Assets
Lia
bili
ties
Turnover
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Purpose Of Ratio Analysis.
• Measuring the efficiency of an organization
• Measuring the liquidity position of the
company.
• Measuring the capacity of companies to
borrow in the future
• Understanding the overall financial position
of organization
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Five Main Areas.
Liquidity
Investment/shareholder
Gearing
Profitability
Financial
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Current Ratio.
Year 2013 2012
Current Ratio
1.23 1.07
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Interpretation.
2013 2012
1.23
1.07
Current Ratio
Current Ratio
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Quick Ratio.
Year 2013 2012
Quick Ratio 0.83 0.74
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Interpretation.
2013 2012
0.83
0.74
Quick Ratio
Quick Ratio
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Earnings Per Share.
Year 2013 2012
Earnings Per Share
3.69 9.26
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Interpretation.
2013 2012
3.69
9.26
Earnings per share.
Earnings per share.
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Price Earning Ratio.
Year 2013 2012
Price Earning Ratio
24.12 11.05
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Interpretation.
2013 2012
36.99
12.45
Price earning ratio
Price earning ratio
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Dividend Yield.
Year 2013 2012
Dividend Yield
2.8% 5.8%
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Interpretation.
2013 2012
2.8
5.8
Dividend yield
Dividend yield
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Gearing Ratio.
Year 2013 2012
Gearing Ratio
28% 36%
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Interpretation.
2013 2012
0.28
0.36
Gearing ratio
Gearing ratio
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Net Profit Margin
Year 2013 2012
Net ProfitMargin
2.01% 4.78%
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Interpretation.
2013 2012
2.5
4.78
Net Profit Margin
Net Profit Margin
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Gross Profit Margin.
Year 2013 2012
Gross Profit Margin
33.91% 34.48%
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Interpretation.
2013 2012
33.91
34.48
Gross Profit Margin.
Gross Profit Margin.
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Return On Capital Employed
Year 2013 2012
ROCE 4.95% 13.54%
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Interpretation.
2013 2012
4.95
13.54
ROCE
ROCE
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Asset Turnover Ratio.
Year 2013 2012
Asset Turnover
2.24 2.97
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Interpretation.
2013 2012
2.24
2.97
Asset Turnover
Asset Turnover
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Stock Turnover Ratio.
Year 2013 2012
Stock Turnover
3.42 4.22
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Interpretation.
2013 2012
3.42
4.22
Stock Turnover
Stock Turnover
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Debtor Days.
Year 2013 2012
Debtor days 67 60
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Interpretation.
2013 2012
67
60
Debtor Days
Debtor Days
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Comparison.
Ratio Singer (2013)
Softlogic(2013)
Current Ratio 1.23 0.83
Quick Ratio 0.83 0.67
Earnings Per Share 3.69 0.24
Price Earnings Ratio 24.12 43.33
Dividend Yield 2.8% 2.89%
Gearing Ratio 0.28% 32.4%
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Comparison.
Ratio Singer (2013)
Softlogic(2013)
Net Profit Margin 2.01% 1.9%
Gross Profit Margin 33.91% 32.4%
Return On Capital Employed
4.95% 8%
Asset Turnover 2.24 0.83
Stock Turnover 3.42 4.63
Debtor Days 67 days 62 days
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Questions & Answers
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