Ratio Analysis of Bajaj Auto LTD
Ratio Analysis of Bajaj Auto LTD
Ratio Analysis of Bajaj Auto LTD
BALANCE SHEET:
YEAR RATIOS
Mar 2019 1.45
Mar 2018 2.25
Interpretation:
The standard Current Ratio is 2:1. From the above table it is clear that company’s liquidity is
high. The reason is company’s current asset have increased. It is very clear that the company
has a good liquidity position in selected 2 years
2. QUICK RATIO
Quick ratio=Quick Assets/Quick liabilities
YEAR RATIOS
Mar 2019 1.25
Mar 2018 2.07
Interpretation:
A quick ratio is greater than 1 means the company has enough quick assets to pay for
its current liabilities and it can be converted into cash very easily.
YEAR RATIOS
Mar 2019 17.03
Mar 2018 16.64
Interpretation: ROA over 5% are considered good, it indicates that has a solid performance
and it is able to make maximum use of its assets for getting more profit
4. RETURN ON EQUITY
Return on equity = Net income/shareholders equity*100
YEAR RATIOS
Mar 2019 21.25
Mar 2018 20.71
Interpretation:
ROEs of 15-20% is are generally considered good. It indicates that the company
is increasing its ability to generate profit and effective use of funds by the management for
the growth of the company.
YEAR RATIOS
Mar 2019 30%
Mar 2018 31%
Interpretation:
It indicates that the company is efficiently generating its profits from its capital
employed
YEAR RATIOS
Mar 2019 1.049
Mar 2018 1.003
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