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AN APPLICATION OF RATIO ANALYSIS
FOR CELLO PLASTIC PRODUCTS LTD
Submitted in partial fulfillment of the requirement for the Degree of
Master of Business Administration)

Under the supervision of:
Ms Neha Aggarwal

Submitted by:
Sonali Kukreja
CONTENTS
S.NO.

TITLE

1

CELLO AN INTRODUCTION

2

OBJECTIVES OF THE STUDY

3

RATIO ANALYSIS

4

RESEARCH METHODOLOGY

5

DATA ANALYSIS

6

SUGGESTIONS AND FINDINGS

7

CONCLUSIONS
CELLO-AN INTRODUCTION
 Cello plastic products ltd founded by Mr G.D. RATHOD
in May 10,1986, at a small factory in Goregaon ,
Mumbai,with just 60 workers and 7 machines
First and largest Manufacturer of Branded household
products in India ,having wide range of plastic moulded
products.
 Largest Exporter of Insulated Thermoware from India

 2100 employees-more than 300 engineers and plastic
technologist.
OBJECTIVES OF THE STUDY
 To have an indepth knowledge of ratio
analysis of the company
 To make comparisons between the ratios
during different periods(2years data from 2011
to 2012 )
RATIO ANALYSIS
 Ratio analysis is a technique of analysis
,comparison and interpretation of financial statements.
 According to Accountants Handbook by
Wixon, Kell and Bedford, a ratio is an expression of
the quantitative relationship between two numbers
 It
is
helpful
to
know
about
the
liquidity, solvency, capital structure and profitability
of an organization.
CLASSIFICATION OF RATIO
Types of
ratios

Liquidity
ratio

Leverage
ratio

Activity
ratio

Profitability
ratio
RESEARCH METHODOLOGY
 DATA COLLECTION:

-Primary Data: No primary data was collected in this project
-Secondary Data: Balance sheet,Profit and loss account of the
company ,Newspapers and Journals

TOOLS USED :
Tables
Bar graphs
diagram
DATA ANALYSIS
1) LIQUIDITY RATI0
a) Current ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Current assets

98.77

127.38

Current liabilities

21.97

25.34

CURRENT RATIO

4.49

4.49

CURRENT RATIO
6
4
2
0

CURRENT RATIO
2010-11

2011-12
b) Quick ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Quick assets

66.68

84.64

Current liabilities

21.97

25.34

QUICK RATIO

3.03

3.34

QUICK RATIO
3.4
3.3
3.2
3.1
3
2.9
2.8

QUICK RATIO

2010-11

2011-12
2) LEVERAGE RATIO
a) Debt equity ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Long term loans

0.89

1.36

Shareholders fund

118.41

151.12

DEBT EQUITY RATIO 0.007

0.009

DEBT EQUITY RATIO
0.01
0.005

DEBT EQUITY
RATIO

0
2010-11

2011-12
b) Proprietary ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Shareholders funds

118.41

151.12

Long term loan

.89

1.36

PROPRIETARY RATIO

99.25%

99.11%

PROPRIETARY RATIO
99.30%
99.20%

PROPRIETARY
RATIO

99.10%
99.00%
2010-11

2011-12
3) ACTIVITY RATIO
a) Stock turnover ratio
(RS IN CRORE)

YEAR

2010-11

2011-12

Cost of good sold

122.95

134.24

Average stock

24.49

37.41

STOCK TURNOVER
RATIO

5.02

3.588

STOCK TURNOVER RATIO
6
4
STOCK TURNOVER
RATIO

2
0
2010-11

2011-12
b) Debtor turnover ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Sales

162.71

174.47

Average debtor

48.57

65.90

DEBTOR TURNOVER
RATIO

3.35

2.64

DEBTOR TURNOVER RATIO
4
3
2
1
0

DEBTOR
TURNOVER RATIO
2010-11

2011-12
4) PROFITABILITY RATIO
a) Gross profit ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Gross profit

39.76

40.23

Net sales

162.71

174.47

GROSS PROFIT RATIO

24.43%

23.05%

STOCK TURNOVER RATIO
25.00%
24.00%
STOCK TURNOVER
RATIO

23.00%
22.00%
2010-11

2011-12
b) Net profit ratio
(RS IN CRORE)
YEAR

2010-11

2011-12

Net profit

22.41

15.23

Net sales

162.71

174.47

NET PROFIT RATIO

13.77%

8.72%

NET OROFIT RATIO
15.00%
10.00%
NET OROFIT RATIO

5.00%
0.00%
2010-11

2011-12
SUGGESTIONS AND FINDINGS
SUGGESTIONS
The profit ratio is decreased in current year so the company
should pay attention to this because profit making is the prime
objective of every business
The company should make the balance between liquidity and
solvency position of the company

FINDINGS
CONCLUSIONS
Liquidity ratio is increasing from the last year , fixed
assets are also increasing compare to the previous year
and equity share capital remain same in the current
year.
Debtors turnover ratio has decreased which shows
that the company is not utilizing its debtors efficiency
and creditors turnover ratio has also reduced which
indicates less period of credit enjoyed by the business.
 Profitability ratio decreases which is not the good
indicator for the company
THANK YOU
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Ratio analysi

  • 1. AN APPLICATION OF RATIO ANALYSIS FOR CELLO PLASTIC PRODUCTS LTD Submitted in partial fulfillment of the requirement for the Degree of Master of Business Administration) Under the supervision of: Ms Neha Aggarwal Submitted by: Sonali Kukreja
  • 2. CONTENTS S.NO. TITLE 1 CELLO AN INTRODUCTION 2 OBJECTIVES OF THE STUDY 3 RATIO ANALYSIS 4 RESEARCH METHODOLOGY 5 DATA ANALYSIS 6 SUGGESTIONS AND FINDINGS 7 CONCLUSIONS
  • 3. CELLO-AN INTRODUCTION Cello plastic products ltd founded by Mr G.D. RATHOD in May 10,1986, at a small factory in Goregaon , Mumbai,with just 60 workers and 7 machines First and largest Manufacturer of Branded household products in India ,having wide range of plastic moulded products. Largest Exporter of Insulated Thermoware from India 2100 employees-more than 300 engineers and plastic technologist.
  • 4. OBJECTIVES OF THE STUDY To have an indepth knowledge of ratio analysis of the company To make comparisons between the ratios during different periods(2years data from 2011 to 2012 )
  • 5. RATIO ANALYSIS Ratio analysis is a technique of analysis ,comparison and interpretation of financial statements. According to Accountants Handbook by Wixon, Kell and Bedford, a ratio is an expression of the quantitative relationship between two numbers It is helpful to know about the liquidity, solvency, capital structure and profitability of an organization.
  • 6. CLASSIFICATION OF RATIO Types of ratios Liquidity ratio Leverage ratio Activity ratio Profitability ratio
  • 7. RESEARCH METHODOLOGY DATA COLLECTION: -Primary Data: No primary data was collected in this project -Secondary Data: Balance sheet,Profit and loss account of the company ,Newspapers and Journals TOOLS USED : Tables Bar graphs diagram
  • 8. DATA ANALYSIS 1) LIQUIDITY RATI0 a) Current ratio (RS IN CRORE) YEAR 2010-11 2011-12 Current assets 98.77 127.38 Current liabilities 21.97 25.34 CURRENT RATIO 4.49 4.49 CURRENT RATIO 6 4 2 0 CURRENT RATIO 2010-11 2011-12
  • 9. b) Quick ratio (RS IN CRORE) YEAR 2010-11 2011-12 Quick assets 66.68 84.64 Current liabilities 21.97 25.34 QUICK RATIO 3.03 3.34 QUICK RATIO 3.4 3.3 3.2 3.1 3 2.9 2.8 QUICK RATIO 2010-11 2011-12
  • 10. 2) LEVERAGE RATIO a) Debt equity ratio (RS IN CRORE) YEAR 2010-11 2011-12 Long term loans 0.89 1.36 Shareholders fund 118.41 151.12 DEBT EQUITY RATIO 0.007 0.009 DEBT EQUITY RATIO 0.01 0.005 DEBT EQUITY RATIO 0 2010-11 2011-12
  • 11. b) Proprietary ratio (RS IN CRORE) YEAR 2010-11 2011-12 Shareholders funds 118.41 151.12 Long term loan .89 1.36 PROPRIETARY RATIO 99.25% 99.11% PROPRIETARY RATIO 99.30% 99.20% PROPRIETARY RATIO 99.10% 99.00% 2010-11 2011-12
  • 12. 3) ACTIVITY RATIO a) Stock turnover ratio (RS IN CRORE) YEAR 2010-11 2011-12 Cost of good sold 122.95 134.24 Average stock 24.49 37.41 STOCK TURNOVER RATIO 5.02 3.588 STOCK TURNOVER RATIO 6 4 STOCK TURNOVER RATIO 2 0 2010-11 2011-12
  • 13. b) Debtor turnover ratio (RS IN CRORE) YEAR 2010-11 2011-12 Sales 162.71 174.47 Average debtor 48.57 65.90 DEBTOR TURNOVER RATIO 3.35 2.64 DEBTOR TURNOVER RATIO 4 3 2 1 0 DEBTOR TURNOVER RATIO 2010-11 2011-12
  • 14. 4) PROFITABILITY RATIO a) Gross profit ratio (RS IN CRORE) YEAR 2010-11 2011-12 Gross profit 39.76 40.23 Net sales 162.71 174.47 GROSS PROFIT RATIO 24.43% 23.05% STOCK TURNOVER RATIO 25.00% 24.00% STOCK TURNOVER RATIO 23.00% 22.00% 2010-11 2011-12
  • 15. b) Net profit ratio (RS IN CRORE) YEAR 2010-11 2011-12 Net profit 22.41 15.23 Net sales 162.71 174.47 NET PROFIT RATIO 13.77% 8.72% NET OROFIT RATIO 15.00% 10.00% NET OROFIT RATIO 5.00% 0.00% 2010-11 2011-12
  • 16. SUGGESTIONS AND FINDINGS SUGGESTIONS The profit ratio is decreased in current year so the company should pay attention to this because profit making is the prime objective of every business The company should make the balance between liquidity and solvency position of the company FINDINGS
  • 17. CONCLUSIONS Liquidity ratio is increasing from the last year , fixed assets are also increasing compare to the previous year and equity share capital remain same in the current year. Debtors turnover ratio has decreased which shows that the company is not utilizing its debtors efficiency and creditors turnover ratio has also reduced which indicates less period of credit enjoyed by the business. Profitability ratio decreases which is not the good indicator for the company