ratio analysis (financial accounting)

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

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

Five Main Areas.

Liquidity

Investment/shareholder

Gearing

Profitability

Financial

Current Ratio.

Year 2013 2012

Current Ratio

1.23 1.07

Interpretation.

2013 2012

1.23

1.07

Current Ratio

Current Ratio

Quick Ratio.

Year 2013 2012

Quick Ratio 0.83 0.74

Interpretation.

2013 2012

0.83

0.74

Quick Ratio

Quick Ratio

Earnings Per Share.

Year 2013 2012

Earnings Per Share

3.69 9.26

Interpretation.

2013 2012

3.69

9.26

Earnings per share.

Earnings per share.

Price Earning Ratio.

Year 2013 2012

Price Earning Ratio

24.12 11.05

Interpretation.

2013 2012

36.99

12.45

Price earning ratio

Price earning ratio

Dividend Yield.

Year 2013 2012

Dividend Yield

2.8% 5.8%

Interpretation.

2013 2012

2.8

5.8

Dividend yield

Dividend yield

Gearing Ratio.

Year 2013 2012

Gearing Ratio

28% 36%

Interpretation.

2013 2012

0.28

0.36

Gearing ratio

Gearing ratio

Net Profit Margin

Year 2013 2012

Net ProfitMargin

2.01% 4.78%

Interpretation.

2013 2012

2.5

4.78

Net Profit Margin

Net Profit Margin

Gross Profit Margin.

Year 2013 2012

Gross Profit Margin

33.91% 34.48%

Interpretation.

2013 2012

33.91

34.48

Gross Profit Margin.

Gross Profit Margin.

Return On Capital Employed

Year 2013 2012

ROCE 4.95% 13.54%

Interpretation.

2013 2012

4.95

13.54

ROCE

ROCE

Asset Turnover Ratio.

Year 2013 2012

Asset Turnover

2.24 2.97

Interpretation.

2013 2012

2.24

2.97

Asset Turnover

Asset Turnover

Stock Turnover Ratio.

Year 2013 2012

Stock Turnover

3.42 4.22

Interpretation.

2013 2012

3.42

4.22

Stock Turnover

Stock Turnover

Debtor Days.

Year 2013 2012

Debtor days 67 60

Interpretation.

2013 2012

67

60

Debtor Days

Debtor Days

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%

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

Questions & Answers