4.

1 DEBTORS TURNOVER RATIO

DEBTORS TURNOVER RATIO = NET SALES

AVERAGE DEBTORS

Table showing calculation of Debtors Turnover Ratio

YEAR NET SALES AVERAGE DEBTORS

DEBTORS TURNOVER
RATIO

2016 -2017 526542555.23 8311819.77 63.34

2017-2018 458630370.03 14769928.62 31.051

2018-2019 470412484.78 18877170.38 24.919

2019-2020 330171344.77 13728382.3 24.05

2020-2021 365405000 8962891.76 40.76

Source: Secondary Data
Figure showing Debtors Turnover Ratio

70

60

50

40

30

2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Interpretation:

The debtor turnover ratio of firm is shown in the above figure. Here, in the year 2016 2017 it is 63.34,
and 31.051 for 2017-2018, 24.919 for 2018-2019, 24.919 for 2019-2020 and 40.76 for 2020-2021. It
shows decreasing of the ratio in the beginning of 5 year and then increase in the last year.

4.2 DEBT EQUITY RATIO

OUTSIDERS FUND
DEBIT EQUITY RATIO =
SHAREHOLDERS FUND

Table showing calculation of Debit Equity Ratio

YEAR DEBT EQUITY DEBT EQUIY

RATIO

2016 -2017 455861226.4 816770477.3 0.55

2017-2018 488858271.4 698001383.7 0.70

2018-2019 468144795.4 660643083.3 0.70

2019-2020 414364534.4 575815903 0.71

2020-2021 358907000 535294000 0.67

Source: Secondary Data

Figure showing Debit Equity Ratio

 0.8

0.7

0.6

0.5

0.4

0.3 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Interpretation:

The debt equity ratio of the firm is shown in the above. That is 0.55 in 2016-2017, 0.70 in 2017-
2018, 0.70 in 2018-2019, 0.71 in 2019-2020 and 0.67 in 2020-2021.

4.3 TREND IN RECEVABLES

Table showing trend analysis in receivables

YEAR RECEIVABLES TREND

PRECENTAGE
11.42 100
2016-2017
18.19 159.2
2017-2018
19.63 171.89
2018-2019
78.22 654.9
2019-2020
101.04 884.7
2020-2021
Source: Secondary Data
 Figure showing trend analysis in receivables

1000

900

800

700

600

500

400

300

200

100

0
2016-17 2017-18 2018-19 2019-20 2020-21

INTERPRETATION
Trend analysis in receivables management shows an increase in nature comparing with
previous years.

4.4 DEBT COLLECTION PERIOD

𝐷𝑒𝑏𝑡𝑜𝑟𝑠
𝐷𝑒𝑏𝑡 𝑐𝑜𝑙𝑙𝑒𝑐𝑡𝑖𝑜𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 = *360
𝑆𝑎𝑙𝑒𝑠

Table showing debt collection period

YEAR DEBTORS SALES PERIOD

2016 -2017 11420497.55 526542555.23 8 days

2017-2018 18119359.69 458630370.03 14 days

2018-2019 19634981.06 470412484.78 15 days

 2019-2020 7821783.53 330171344.77 9 days

2020-2021 10135241.04 365405000 10 days

Source: Secondary Data

Figure showing debt collection period

DEBT COLLECTION PERIOD

16

14

12

10

0
2016 -2017 2017-2018 2018-2019 2019-2020 2020-2021

INTERPRETATION
The debt collection period in the year 2016-2017 was 8 days and in the year 2017-2018 it
increased to 14 days and in 2018-2019 it shows 15 days. After that it is showing a decreasing
trend which is a good sign that the debtors amount is collected early.

4.5 DEBT POSITION RATIO

Debt Position Ratio – Long Term Liabilities / Shareholders fund

Table showing debt position ratio

YEAR LONG TERM SHAREHOLDERS RATIO

LIABILITIES FUND
2016 -2017 104582752.40 816770477.3 0.128
 2017-2018 123599128.40 698001383.7 0.177

2018-2019 97437328.40 660643083.3 0.147

2019-2020 98517213.40 575815903 0.171

2020-2021 101619000 535294000 0.189

Source: Secondary Data

Figure showing Debt position ratio

DEBT POSITION RATIO

0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2016 -2017 2017-2018 2018-2019 2019-2020 2020-2021

INTERPRETATION
The above table represents the consistency of the debt position ratio from the year 2015- 2016
to 2020-2021. The debt has increased from 2016-2017 onwards. In the last year 2021-2022 the
debt position ratio is 0.189. This indicates obligation meeting the debt cost. Hence Company
is required to manage the receivables effectively.

Source: Secondary Data

4.6 SALES PER DAY

Sales per day = net sales / no of working days
 Table showing sales per day

Year Net sales No of working days Sales per day

2016 -2017 526542555.23 365 1442582.343

2017-2018 458630370.03 365 1256521.561

2018-2019 470412484.78 365 1288801.328

2019-2020 330171344.77 365 904579.0267

2020-2021 365405000 365 1001109.589

Source: Secondary Data

Figure showing sales per day

SALES PER DAY

2020-2021

2019-2020

2018-2019

2017-2018

2016 -2017

0 200000 400000 600000 800000 1000000 1200000 1400000 1600000

INTERPRETATION
Net sales in the range of 2016-2017 is 526542555.23 and in the year 2017-2018 it shows that
decrease to 458630370.03,470412484.78 is the net sales of the year 2018-2019. After that it
shows decrease in sales and in the year 2020-2021their is a slight increase. Number of working
day is 365 days. Sales per day in the range of to 1442582.343 to 1001109.589 .The company
norms of working days in a year is fixed to 360 days
4.7 INTEREST RATIO
Interest ratio = Average account receivables *12/10

Year Average receivables 12/100 Interest ratio

2016 -2017 14022068.55 0.12 1682648.226

2017-2018 23829608.46 0.12 2859553.015

2018-2019 28694660.90 0.12 3443359.308

2019-2020 17339274.06 0.12 2080712.887

2020-2021 48963769.05 0.12 5875652.286

Source: Secondary Data

Figure showing interest ratio

INTEREST RATIO

6000000

5000000

4000000

3000000

2000000

1000000

0
2016 -2017 2017-2018 2018-2019 2019-2020 2020-2021

Column4

INTERPRETATION
Above the information states interest ratio is highly increased in the year 2020-2021
5875652.286 and from 2016-19 it was increased in a decreasing rate. And in 2019-2020 interest
ratio is decreased slightly than previous years.
4.8 RECEIVABLE OUTSTANDING

Receivable outstanding = Receivables \ sales *no of days

Table showing receivable outstanding

Days sales
Year Receivables Sales No of days
outstanding

2016 -2017 78313570.20 526542555.23 365 54

2017-2018 114182538.04 458630370.03 365 90

2018-2019 113499770.98 470412484.78 365 88

2019-2020 77719267.90 330171344.77 365 86

2020-2021 100598121.70 365405000 365 99

Source: Secondary Data

Figure showing Receivable Outstanding

120

100

80

60

40

20

0
2016 -2017 2017-2018 2018-2019 2019-2020 2020-2021
INTERPRETATION
The table shows that Receivables range from 2016-2017 to 2020-2021 are
78313570.20,114182538.04, 113499770.98, 77719267.90, 100598121.70 respectively.Sales
are in range of Rs 526542555.23 in 2016-2017,in 2017-2018 is 458630370.in 2018-2019 is
03,470412484.78,330171344.77 in 2019-2020,In the last year 365405000.No of working days
is fixed to 365 days and the Days sales outstanding are range of 54-99

4.9 TREND ANALYSIS

CURRENT YEAR AMOUNT

TREND PERCENTAGE = *100
BASE YEAR AMOUNT

Table showing calculation of trend analysis in sales

YEAR SALES TREND PRECENTAGE

2016-2017 526542555.23 100%

2017-2018 458630370.03 87.102%

2018-2019 470412484.78 89.33%

2019-2020 330171344.77 62.705%

2020-2021 365405000 69.397%

Source: Secondary Data

 Figure showing trend analysis in sales

120

100

80

60

40

20

0
2016- 2017- 2018- 2019- 2020-
2017 2018 2019 2020 2021

INTERPRETATION:
The trend analysis in sales shows slight increase in the last year. The financial year 2016- 2017
is taken as base year for analysing trend in sales of the company. The above graph showing the
decrease in sales trend in 2017-2018 to 87.102%. Then, it increases in 2018- 2019 to 89.33%
and it is decrease in the next year to 62.705%. In 2020-2021, it increases the sales trend to
69.397%

4.10 TREND IN DEBTORS

Table showing trends of debtors

YEAR DEBTORS PERCENTAGE

2016-2017 11420497.55 100

2017-2018 18119359.69 158.6564824

2018-2019 19634981.06 171.927545

2019-2020 7821783.53 68.48899092

2020-2021 10135241.04 88.74609005

Source: Secondary Data
 Figure showing trend in debtors

TREND IN DEBTORS

200

150

100

50

0
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021

INTERPRETATION
There is a rise in debtors from the year 2016-17 to 2018-19. It decreases in the next year. This
could be due to various internal or external purposes. Also it slightly increases in the next year.
Hence, the company has more receivables to manage as the debtors increase.