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Statement data from of APPM LTD during the year

2004-05 to 2009-10

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(6)

Graphical representation of Inventory proportion ratio: APPM LTD duringthe year 2004-05 to 2009-2010:

INTERPRETATION:

According to conventional rule an Inventory proportion ratio of 1:1 is

considered satisfactory. The company’s Inventory proportion ratio is 0.58 in the

year 2004-05 which is high in all the five financial years. It decreases to 0.48 year

2009-10. The Inventory proportion ratio maintained by the company is satisfactory

because it is slowly decreasing this ratio i.e., 1:1. The current year Inventory

proportion ratio is 0.48.

0

0.2

0.4

0.6

2005 2006 2007 2008 2009 2010

RATIO

YEARS

INVENTORY PROPORTION RATIO

RATIO

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2004-05 to 2009-10

YEARS SALES DEBTORS RATIO

2004-2005 40860.40 2783.85 14.68

2005-2006 44943.88 2791.08 16.10

2006-2007 44339.06 2687.77 16.50

2007-2008 44577.62 2632.95 16.93

2008-2009 48702.68 3489.86 13.96

2009-2010 57,888.64 4587.70 12.62

SOURCE: Annual reports 2005 TO 2010

Table: 4DEBTORS TURNOVER RATIO = Sales / Debtors

(8)

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Graphical representation of Debtors turnover ratio: APPM LTD during theyear 2004-05 to 2009-2010:

INTREPRETATION:

The above table shows that the debtor’s turnover ratio is decreasing. It was

16.93 during 2007-2008 and reached to. In 2007-08 increased to 16.93. In 2009-10

decreased to 12.62. A higher ratio is an indicator of high speed with which debtors

/ accounts receivables are collected. This company has been adopting conservative

credit policy and possessing small percentage of credit sales on total sales in every

year this is the main reason behind high debtor’s turnover ratio.

0

5

10

15

20

2005 2006 2007 2008 2009 2010

RATIO

YEARS

DEBTOR'S TURNOVER RATIO

Ratio

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2004-05 to 2009-10

YEARS

No. Of DAYS IN A

YEAR

DEBTORS

TURNOVER

Avg.

COLLECTION

2004-2005 360 14.68 24.52

2005-2006 360 16.10 22.36

2006-2007 360 16.50 21.82

2007-2008 360 16.93 21.26

2008-2009 360 13.96 25.79

2009-2010 360 12.62 28.53

Table: 5

AVERAGE COLLECTION PERIOD RATIO = No. of Days in

year / Debtors turnover

SOURCE: Annual reports 2005 to 2010

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Graphical representation of Avg. collection period: APPM LTD during the

year 2004-05 to 2009-2010:

INTREPRETATION:

This ratio shows that the firm collected its debtors either in short time or not

the average collection period had least i.e., 21 days in 2006-2007. But it has an

improvement collection period has 29 days in 2008-2009 indicating an

improvement collection of debtors from 2008-2009. The company shows effective

collection methods had introduced reducing its collection period gradually. In

2008-2009 the Avg. collection period has 29 days.

(11)

0

10

20

30

2005 2006 2007 2008 2009 2010

RATIO

YEARS

AVERAGE COLLECTION PERIOD

Ratio

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2004-05 to 2009-10

YEARS SALES TOTAL ASSETS RATIO

2004-2005 40860.40 13865.78 2.952005-2006 44943.88 15233.97 2.95

2006-2007 44339.06 15300.09 2.90

2007-2008 44577.62 15602.95 2.86

2008-2009 48702.68 18165.08 2.68

2009-2010 57,888.64 22010.34 2.63


Table : 6

TOTAL ASSETS TURNOVER RATIO = Sales / Total assets

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Graphical representation of Total assets turnover ratio: APPM LTD during

the year 2004-05 to 2009-201O

INTERPRETATION:

Total asset turnover ratio is the relationship between Total assets and sales. Company

maintains high total assets turnover ratio in the Financial year 2004-2005 that is generate a sales

of Rs. 2.95 for one rupee investment in fixed and current assets together and it is maintaining

2.63 which is low in the present year 2009-2010.

2.4

2.5

2.6

2.7

2.8

2.9

3

2005 2006 2007 2008 2009 2010

RATIO

YEARS

TOTAL ASSETS TURNOVER RATIO

Ratio

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2004-05 to 2009-10

YEARS SALES NET CURRENT ASSETS RATIO

2004-2005 40860.40 5882.54 6.95

2005-2006 44943.88 7122.12 6.31

2006-2007 44339.06 6528.88 6.79

2007-2008 44577.62 1115.82 39.95

2008-2009 48702.68 5602.12 8.69

2009-2010 57,888.64 8665.77 6.68

Table: 7WORKING CAPITAL TURNOVER RATIO = Sales / Net current assets


Graphical representation of working capital turnover ratio: APPM LTD

during the year 2004-05 to 2009-2010:

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INTREPRETATION:

The working capital turnover ratio indicates the relationship between sales

and net current assets in the year 2004.2004-2005 and 6.95. In this year indicated

the increase in ratio 2007-08 assets was 39.95 In 2009-2010 the working capital

turnover ratio is 6.68.

0

10

20

30

40

2005 2006 2007 2008 2009 2010

RATIO

YEARS

WORKING CAPITAL TURNOVER RATIO

Ratio

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2004-05 to 2009-10

YEARS GROSS PROFIT SALES RATIO

2004-2005 2235.55 40860.40 18.28

2005-2006 2662.76 44943.88 16.88

2006-2007 6738.85 44339.06 6.58

2007-2008 7390.14 44577.62 6.03

2008-2009 7630.18 48702.68 6.38

2009-2010 8033.14 57,888.64 7.21


Table: 8

GROSS PROFIT RATIO = Gross profit / Sales

(15)

Graphical representation of Gross profit ratio: APPM LTD during the year

2004-05 to 2009-2010:

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INTERPRETATION:

Normally the ideal Gross Profit Ratio is 35 percent. The gross profit ratio

maintain the company in the financial year 2004-05 was 18.28 w high in, the

financial years but it decreases to 6.03 percent in the year 2006-07 which is low. It

shows that the position of the company is bad. The company maintain same gross

profit ratio in 2008-2009, the current year current ratio is 7.21.

0

5

10

15

20

2005 2006 2007 2008 2009 2010

RATIO

YEARS

GROSS PROFIT RATIO

Ratio

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2004-05 to 2009-10

YEARS NET SALES INVENTORY RATIO

2004-2005 42474.52 7977.23 5.32

2005-2006 46169.47 8703.94 5.30

2006-2007 44339.06 8524.29 5.20

2007-2008 44577.62 8093.28 5.51

2008-2009 48702.68 8946.3 5.44

2009-2010 57888.64 10481.36 5.52


Table: 9

INVENTORY TURNOVER RATIO = Net Sales /Inventory

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Graphical representation of Net profit ratio: APPM LTD during the year

2004-05 to 2009-2010:

INTERPRETATION:

The company maintaining 5.51 in the financial year 2007-2008 and 5.20 is

the lowest ratio in the period of 2006-07. The company maintaining same net profit

ratio in 2009-2010, is 5.52.

5

5.2

5.4

5.6

2005 2006 2007 2008 2009 2010

RATIO

YEARS

INVENTORY TURNOVER RATIO

Ratio

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2004-05 to 2009-10

YEARS No. DAYS

RATIO RATIO

2004-2005 360 5.32 67.67

2005-2006 360 5.30 67.92

2006-2007 360 5.20 69.23

2007-2008 360 5.51 65.34

2008-2009 360 5.44 66.18

2009-2010 360 5.52 65.22


Table: 10INVENTORY HOLDING PERIOD = No Of Days In A Year

/Inventory ratio

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Graphical representation of Return on equity ratio: APPM LTD during the

year 2004-05 to 2009-2010:

INTERPRETATION:

The company maintaining 67.67 in the financial year 2004-2005 which was low.

And it is decreases to 65.22 in the year 2009-2010

62

64

66

68

70

2005 2006 2007 2008 2009 2010

RATIO

YEARS

INVENTORY HOLDING PERIOD RATIO

Ratio

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