Marico presentation final
- 1. MARICO •Industry: consumer goods •Founded: 1991 •Headquarter: Santacruz,mumbai •Chairman: harsh Mariwala •Key products: edible oil, hair oils,skin care ,fabric care etc. •Revenue: 5733.3 crore.
- 2. MISSION,2020 • The marico innovation foundation’s mission is to provide the nation with first; a belief that innovation is possible and is the way to leapfrog india into the center stage of global business leadership . • A framework to leverage innovation for quantum growth.
- 3. OPERATING MARGIN=OPERATING INCOME/SALES*100 YEAR OPERATING MARGIN RATIO 2012 11.46 2013 11.49 2014 13.97 2015 12.67
- 4. interpretation • The operating margin ratio, also known as the operating profit margin, is a profitability ratio that measures what percentage of total revenues is made up by operating income. In other words, the operating margin ratio demonstrates how much revenues are left over after all the variable or operating costs have been paid. Conversely, this ratio shows what proportion of revenues is available to cover non-operating costs like interest expense. • There has been positive growth in operating margin from .11 in year 2012 to .12 in year 2015. This change is due to the positive growth in operating income of the company over an year.
- 5. GROSS PROFIT MARGIN=(SALES – COSTOF GOOD)/SALES YEAR GROSS PROFIT MARGIN RATIO 2012 .3664 2013 .3728 2014 .3851 2015 .3932
- 6. interpretation • Gross margin ratio is the ratio of gross profit of a business to its revenue. It is a profitability ratio measuring what proportion of revenue is converted into gross profit (i.e. revenue less cost of goods sold). Gross margin ratio measures profitability. There has been increase in gross margin ration from .36 in 2012 to .39 in 2015 . Higher values indicate that more cents are earned per dollar of revenue which is favorable because more profit will be available to cover non- production costs. But gross margin ratio analysis may mean different things for different kinds of businesses.
- 7. RETURN OF EQUITY= NET INCOME /AVG.STOCK HOLDER EQUITY YEAR ROE 2012 .2071 2013 .2135 2014 .2393 2015 .2063
- 8. interpretation • This ratio indicates how profitable a company is by comparing its net income to its average shareholders' equity. The higher the ratio percentage, the more efficient management is in utilizing its equity base and the better return is to investors. When ROE has a negative value means the firm is of financial distress since ROE is a profitability indicator because ROE comprises aspects of performance. • As we have seen that there has been considerably increase in ROE from year 2012 which was 20.73%. and then it decrease in in year 2015 to 20.63%. This result indicates that organization have faced loss in current year.
- 9. RETURN ON ASSETS=DE-LEVERED NET INCOME/AVG. TOTAL ASSETS YEAR ROA 2012 .1616 2013 .1423 2014 .1592 2015 .1335
- 10. interpretation • The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets. • There was a decline in ROA from 16.16% in 2012 to 13% in year 2015.. The company is not efficientlymanaging its assets to produce greater amounts of net income.
- 11. ASSET TURNOVER RATIO=SALES/AVG. TOTAL ASSETS YEAR RATIO 2012 1.73 2013 1.53 2014 1.50 2015 1.48
- 12. interpretation • Asset turnover is a financial ratio that measures the efficiency of a company's use of its assets to product sales. It is a measure of how efficiently management is using the assets at its disposal to promote sales. The ratio was 1.73 in 2012. And 1.48 which mean asset are not used efficiently. • If a company can generate more sales with fewer assets it has a higher turnover ratio which tells it is a good company because it is using its assets efficiently. A lower turnover ratio tells that the company is not using its assets optimally. The higher the number, the better. If there is a low turnover, it may be an indication that the business should either utilize its assets in a more efficient manner or sell them. But 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
- 13. CURRENT RATIO=CA/CL YEAR CURRENT RATIO 2012 1.09 2013 1.39 2014 1.46 2015 1.19
- 14. interpretation • Current ratio is one of the most fundamental liquidity ratio. It measures the ability of a business to repay current liabilities with current assets. • Current assets are assets that are expected to be converted to cash within normal operating cycle, or one year. A current ratio of 1 or more means that current assets are more than current liabilities and the company should not face any liquidity problem. The company is maintaining its current ratio at around 1.19 over year which turns out to be favorable for the company.
- 15. QUICK RATIO=CURRENT ASSET- INVENTORIES/CURRENT LIABILTY YEAR QUICK RATIO 2012 .32 2013 .48 2014 .73 2015 .55
- 16. interpretation • Quick ratio is a liquidity ratio which measures the dollars of liquid current assets available per dollar of current liabilities. Liquid current assets are current assets which can be quickly converted to cash without any significant decrease in their value. Liquid current assets typically include cash, marketable securities and receivables. Quick ratio is expressed as a number instead of a percentage. • The company’s quick ratio has increased from 0.32 in year 2014 to 0.55 in year 2015. Still the company’s overall quick ratio is well and it has better overall liquidity particularly in a crunch situation.