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TREND ANALYSIS

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GROUP

ABHISHEK CHOWDHURY -117

ABHIVANDANA JAIN - 92 ANSHITA SHEDHA - 64

HONEY AGARWAL - 82

JAYSHREE - 99 SHRAY TANEJA - 89

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CONTENT Introduction

Liquidity Ratio

Leverage Ratio

Activity Ratio Profitability Ratio

Conclusion

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OVERVIEW A fully integrated producer of steel in India.

About 86% outstanding shares owned by Indiangovernment.

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.

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SCOPE Companys strengths and weaknesses and

areas of development or decline areanalyzed.

Financial ratios include profitability, marginsand returns, liquidity and leverage, financial

position and efficiency ratios.

Financial, strategic and operational factorsare considered.

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PROFIT / LOSS A/C

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BALANCE SHEET

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Liquidity Ratio

Liquidity ratio is the ability of a firm to

satisfy its short term obligations as they

become due and reflect the financialstrength..

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1.42

1.821.91

0

0.5

1

1.5

2

2.5

31/3/2006 31/3/2007 31/3/2008

Current Ratio

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1.66

2.37

2.8

0

0.5

1

1.5

2

2.5

3

31/3/2006 31/3/2007 31/3/2008

Quick Ratio

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Leverage Ratio

It show the long term solvency of afirm as reflected its ability to assure the

ability to assure the long term lenders.

Here is relationship between borrowed

funds and owners capital.

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0.27

0.19

0.09

0

0.05

0.1

0.15

0.2

0.25

0.3

31/3/2006 31/3/2007 31/3/2008

Debt/Equity ratio

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13.44

28.05

44.06

0

5

10

15

20

25

30

35

40

45

50

31/3/2006 31/3/2007 31/3/2008

Interest Coverage

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Activity Ratio

Its a relationship between sales andvarious assets of a firm.

It measure the speed with which various

accounts / assets are converted into sales

or cash.

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52.44

54.2

56.73

50

51

52

53

54

55

56

57

58

31/3/2006 31/3/2007 31/3/2008

Inventory (days)

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20.9821.37

24.17

18

19

20

21

22

23

24

25

31/3/2006 31/3/2007 31/3/2008

Receivables (days)

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26.73

31.05 31.34

24

25

26

27

28

29

30

31

32

33

31/3/2006 31/3/2007 31/3/2008

Gross Margin (%)

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10.96

18.05 18.85

0

5

10

15

20

25

31/3/2006 31/3/2007 31/3/2008

Net Profit Margin (%)

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Return Related Ratio

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27.63

35.38 35.48

0

5

10

15

20

25

30

35

40

31/3/2006 31/3/2007 31/3/2008

Return on Investment or

Total Assets (%)

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31.93

35.84

32.67

29

30

31

32

33

34

35

36

37

31/3/2006 31/3/2007 31/3/2008

Return on Equity or

Networth (%)

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9.72

14.98

18.25

0

2

4

6

8

10

12

14

16

18

20

31/3/2006 31/3/2007 31/3/2008

Earnings Per Share (Rs)

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THANK YOU