Ratio Analysis

LIQUIDITY RATIO1)Current ratio: trustworthy assets / sure liabilities| marchland09=5,383,091/2,385,081=2.25| Mar10=5,900,138/3,176,802=1.85| 2)Quick ratio:Current assets-inventories/ menstruum liabilities| =5,383,091-2,663,311/2,385,081=1.14| =5,900,138-2,993,270/3,176,802=0.91| 3) coin ratio:Cash+ marketable securities/current liabilities| =318,695/2,385,081=0.13| =375,641/3,176,802=0.11| BERGER PAINTS Comments: 1) Current ratio measures the ability of the effort to meet its current obligations; higher current ratio is desirable, barely not much higher because too higher current ratio means partnership is not utilizing the available stocks or cash in proper way. In the twelvemonth 2008-09 the current ratio of 2.25 is an ideal ratio but whereas in the course 2009-10 current ratio decreased to 1.85 which implies that company has more current liabilities now as compare to precedent stratum or dismiss say has less current assets than comparison to previous year. 2) Again the quick ratio is better of year 2008-09 which is 1.14 than to 2009-10 which is 0.91.From the preceding(prenominal) figures, we can infer as the proportion of inventories in the year 2008-09 is 49.47% and the silver-tonguedity ratio of the plastered decreases from 2.25 to 1.14 and the proportion of inventories in the year 2009-10 is 50.73% so the liquidity here decreases from 1.

85 to 0.91. 3) Cash is the most liquid item and so this ratio shows the fast liquidity of firm and we can see that which is very low of this company. So we can conclude that liquidity of the company is not sound and the company has to work on managing working capital more efficiently. arrive atableness RATIO1)Gross profit margin ratio:(Gross profit/net sales)* deoxycytidine monophosphate| Mar09=(1,173,289/15,083,357)* coke=7.77| Mar10=(1,693,946/16,841,669)*100=10.05| 2)Net profit margin ratio:(net profit/net sales)*100| =(887,554/15,083,357)*100=5.88| =(1,201,378/16,841,669)*100=7.13| Operating Profit Margin Ratio:EBIT/gross revenue| =(1,173,289/15,083,357)*100=7.77|... If you want to get a full essay, site it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.