Ratio analysis of gsfc and gnfc
- 1. RATIO ANALYSIS OF GSFC AND GNFC 24
- 2. 1. Return on net worth = ×100 YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2016 = 8.01% = 8.48% 2015 = ×100 8.97% = -18.22% 2014 = 8.17% = 9.92% Net worth = Equity capital + Reserves & Surplus – Miscellaneous Expenditure GSFC (Rs. In crore) GNFC (Rs. In crore) 2016 Net Worth=79.7 + 4658.35 – 0 Net Worth= 155.42 + 2,513.71 -0 =4,738.05 =2,669.13 2015 Net Worth=79.70 + 4,384.51 – 0 Net Worth= 155.42 + 2,324.76 -0 =4,464.21 =2,480.18 2014 Net Worth=79.70 + 4,110.85 – 0 Net Worth= 155.42 + 2,790.14 -0 =4,190.55 =2,945.56 This ratio is most important to equity holders and stakeholders both. A high ratio usually means high dividend, more internal accruals, willing to extend more favourable terms, loyal customers .so, in this case GSFC is better than GNFC. 25
- 3. 2. Debt Equity = YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2016 = 0.25 Times = 1.32 Times 2015 = 0.16 Times = 1.73 Times 2014 = 0.18 Times = 1.54 Times Debt equity ratio is lower in GSFC so it is high capital content company. While in GNFC debt equity ratio is more than 1.7 in 2015 so ti is higher the debt company. 3. Current Ratio = YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2016 = 2.6 Times = 2.01Times 2015 = 2.53 Times = 2.26 Times 2014 = 2.22 Times = 2.37 Times 26
- 4. As comparing current ratio both companies has equal ratio. So, both companies are good in current ratio. 4. Quick Ratio = (Acid Ratio) YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 2.07 Times = 1.82 Times 2014 = 1.78 Times = 1.91 Times 2016 = 2.23 Times = 1.59Times In comparison of GNFC in year 2016& 2015 GSFC is more better as its quick ratio is high, which suggest that GSFC can pay all debts more efficiently against GNFC. 5. Inventory Holding Period = YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 54.45 Days = 72.62 Days 2014 = 57.96 Days = 77.35 Days 27
- 5. 2016 = 45.62 Days = 74.06Days In GSFC inventory holding period is around 45 days and in GNFC it is around 70 days. So GSFC is better than GNFC. Because inventory holding period is less in GSFC. 6. Fixed Assets Turnover Ratio = YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 2.72 Times = 1.04 Times 2014 = 2.68 Times = 0.99 Times 2016 = 3.15 Times = 1.06 Times In GNFC total asset turnover is around 1% and in GSFC total asset turnover is around 3% in every year so GSFC is better than GNFC. Because GSFC is more efficient in management and utilization of assets. 7. Net worth turnover Ratio = 28
- 6. YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 1.19 Times = 1.87 Times 2014 = 1.29 Times = 1.65 Times 2016 = 1.30 Times = 1.70 Times Net worth in GSFC is around 1.20 times while in GNFC is 1.70 times. So Net worth turnover is high in GNFC compare to GSFC. 8. Gross Profit Ratio = ×100 YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 20.00 % = 16.67 % 2014 = 19.89 % = 20.52 % 2016 = 18.63 % = 20.72% Gross profit ratio of GNFC is around 17 % and gross profit ratio of TCS is around 20% every year. So, GSFC is better than GNFC . 29
- 7. 9. Net Profit Ratio = ×100 YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 7.52 % = -9.74 % 2014 = 6.32 % = 6.03 % 2016 = 6.15 % = 4.98 % Net profit ratio of GNFC is around 5 % and occurring losses of around 10% in 2016 and Net profit ratio of GSFC is around 6 % so GSFC is better than GNFC so GSFC is better than GNFC. 10. Proprietary Ratio = ×100 YEAR GSFC GNFC (Rs. In crore) Result (Rs. In crore) Result 2015 = 86.40 % = 36.58 % 2014 = 84.84 % = 39.38 % 2016 = 79.92 % = 43.05 % This ratio measure proportion of owners fund in total asset. In GSFC proprietors fund is around 80 % , While it is in GNFC only around 38%. So GSFC is better than GNFC. 30