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    Profitability: 2008 2010 Operating Profit Margin (%)

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    prarak7283
    The document compares financial metrics for a company in 2008 and 2010. It shows that in 2008 the company had negative operating profit margins of -316.22% and return on capital employed of -7.14%, but by 2010 the operating profit margin improved to -1.91% and return on capital employed improved to -0.84%, still negative but better than 2008. Gross profit margin, net profit margin, and asset turnover also improved from highly negative levels in 2008 to positive levels in 2010, indicating some overall financial improvement during this period despite metrics still being negative.

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    Profitability: 2008 2010 Operating Profit Margin (%)

    Uploaded by

    prarak7283
    52 views4 pages
    The document compares financial metrics for a company in 2008 and 2010. It shows that in 2008 the company had negative operating profit margins of -316.22% and return on capital employed of -7.14%, but by 2010 the operating profit margin improved to -1.91% and return on capital employed improved to -0.84%, still negative but better than 2008. Gross profit margin, net profit margin, and asset turnover also improved from highly negative levels in 2008 to positive levels in 2010, indicating some overall financial improvement during this period despite metrics still being negative.

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    RATIO ANALYSIS

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    © Attribution Non-Commercial (BY-NC)

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    The document compares financial metrics for a company in 2008 and 2010. It shows that in 2008 the company had negative operating profit margins of -316.22% and return on capital employed of -7.14%, but by 2010 the operating profit margin improved to -1.91% and return on capital employed improved to -0.84%, still negative but better than 2008. Gross profit margin, net profit margin, and asset turnover also improved from highly negative levels in 2008 to positive levels in 2010, indicating some overall financial improvement during this period despite metrics still being negative.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    52 views4 pages

    Profitability: 2008 2010 Operating Profit Margin (%)

    Uploaded by

    prarak7283
    The document compares financial metrics for a company in 2008 and 2010. It shows that in 2008 the company had negative operating profit margins of -316.22% and return on capital employed of -7.14%, but by 2010 the operating profit margin improved to -1.91% and return on capital employed improved to -0.84%, still negative but better than 2008. Gross profit margin, net profit margin, and asset turnover also improved from highly negative levels in 2008 to positive levels in 2010, indicating some overall financial improvement during this period despite metrics still being negative.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    PROFITABILITY

    2008 2010
    Operating Profit Margin (%) -316.22 -1.91

    Operating Profit Ratio = Operating Profit / Sales * 100


    Operating margin is a measurement of what proportion of a company's revenue is left over after paying
    for variable costs of production such as wages, raw materials, etc. A healthy operating margin is required
    for a company to be able to pay for its fixed costs, such as interest on debt. 

    Operating margin gives analysts an idea of how much a company makes (before interest and taxes) on
    each dollar of sales. When looking at operating margin to determine the quality of a company, it is best to
    look at the change in operating margin over time and to compare the company's yearly or
    quarterly figures to those of its competitors. If a company's margin is increasing, it is earning more per
    dollar of sales. The higher the margin, the better.

    For example, if a company has an operating margin of 12%, this means that it makes $0.12 (before
    interest and taxes) for every dollar of sales. Often, nonrecurring cash flows, such as cash paid out in a
    lawsuit settlement, are excluded from the operating margin calculation because they don't represent a
    company's true operating performance. 

    2008 2010
    Return On Capital Employed (%) -7.14 -0.84

    Return on Capital Employed = Operating Profit / Capital Employed * 100

    GROSS PROFIT MARGIN:

    Revenue - Cost of Goods Sold

    Revenue

    PARTICULARS 2010 2008


    GROSS PROFIT RATIO 1.28 -104.13

    Gross profit margin is not an exact estimate of the company’s pricing strategy but
    it does give a good definition of financial health. Without an adequate gross
    margin, a company will be unable to pay its operating and other expenses and build
    the future.

    NET PROFIT MARGIN:

    PARTICULARS 2010 2008


    NET PROFIT RATIO 1.28 -104.13

    Net profit

    Revenue
    he profit margin tells you how much profit a company makes for every $1 it generates in revenue or sales. Profit margins vary by
    industry, but all else being equal, the higher a company's profit margin compared to its competitors, the better.

    ASSET TURNOVER:

    PARTICULARS 2010 2008


    ASSET TURNOVER 0.16 -

    Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher
    the number the better. It also indicates pricing strategy: companies with low profit margins tend to have
    high asset turnover, while those with high profit margins have low asset turnover.
    Return on Net Worth

    2008 2010
    Net worth 78.96 7.15

    Return on Net worth = PAT/ Net Worth

    INCOME STATEMENT COMPARISON:

    PARTICULARS 31 MARCH 201 31 DEC 2008


    PROFIT/LOSS /AC Rs mn Rs mn
    Net sales 204.30 5.47
    Increase decrease inventories -5.96 -0.86
    Personal expenses 5.37 8.11
    Manufacturing expenses 0.34 0.30
    Gross profit 3.20 -7.51
    Admisnitration selling and 7.10 9.87
    distribution expenses
    EBITA -3.90 -17.38
    Depreciation depletion and 5.87 8.96
    amortization
    EBIT -9.77 -26.34
    INTRESET EXPENSE 0.59 3.90
    OTHER INCOME 4.69 0.00
    PRETAX INCOME -5.67 -30.24
    PROVSION FOR TAX 0.55 21.11
    EXTRA ORDINARY & PRIOR 35.25 313.54
    PERIOD ITEMS NET
    NET PROFIT 676.80 536.20
    ADJUSTED NET PROFIT 641.56 222.66

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