CFV Assignment_slide_ Corporate valuation and financing document

CFV Assignment_slide_ Corporate valuation and financing document

1. Activity or Turnover Ratio Inventory Turnover Ratio = Cost of Goods sold / Average Inventory Inventory Turnover(in days) = 365 / Inventory Turnover Ratio Debtor’s Turnover Ratio = Net credit revenue from operations/ Average debtors

2. BAJAJ AUTO Audited FINANCIAL STATEMENTS / Page 1

3. BAJAJ AUTO Audited FINANCIAL STATEMENTS / Page 2

4. HERO MOTOCORP Audited FINANCIAL STATEMENTS

5. TVS MOTOR COMPANY Audited FINANCIAL STATEMENTS / Page 1

6. LIQUIDITY RATIOS Current Ratio = Current Assets / Current Liabilities Quick Ratio = Current Assets-(Inventories + Prepaid Expenses) Current Liabilities Liquidity Ratio BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Current Assets 8,870.41 9,435.33 3,667.50 Current Liabilities 5,198.04 6,012.62 6,008.54 Inventories 1,397.90 1,756.39 1,236.36 Prepaid Expenses Current Ratio 1.71 1.57 0.61 1.29 Quick Ratio 1.44 1.28 0.40 1.04 BAJAJ AUTO Audited FINANCIAL STATEMENTS / Page 1

7. SOLVENCY RATIOS Debt to Equity Ratio = Financial Borrowing / Shareholder’s funds Interest Coverage Ratio = Profit before interest and tax Interest on long term debts Solvency Ratio BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Financial Borrowing (Non-current) 33.35 20.09 1,211.54 Financial Borrowing ( Current) 293.15 1,033.04 Shareholder’s funds 25,425.86 16,780.63 6,047.85 Profit before interest and tax 7,408.64 3,863.62 2,003.37 Interest on Long Term Debts 2,406.63 3,870.53 2,365.49 Debt-Equity Ratio 0.001 0.019 0.371 0.130 Interest Coverage Ratio 3.07 0.99 0.84 3.0

8. Activity or Turnover Ratio Inventory Turnover Ratio = Cost of goods sold / Average Inventory Inventory Turnover in days = 365 / Inventory Turnover Ratio Debtor’s Turnover Ratio = Net credit revenue from operations/ Average Debtors (Where Average Debtors= (Opening Debtors and Bills Receivable + Closing Debtors and Bills Receivable)/2) Debtor’s Turnover in days = 365 / Debtor’s Turnover Ratio

9. TURNOVER RATIOS BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Cost of Goods Sold 24,009.01 24,060.29 19,609.61 22559.64 Average Inventory - 98.11 - 163.69 5.21 -85 Net Credit Revenue from Operations 36,427.6 34,158.38 26,378.09 32321.36 Opening Debtors and Bills Receivable [ 2022 Financial Statement N/A on Moneycontrol ] Closing Debtors and Bills Receivable 1,776.12 2,719.47 955.07 1816.89 Average Debtors [ Assumed as Closing Fig. for FY 2022-23 ] 1,776.12 2,719.47 955.07 1816.89 Inventory Turnover Ratio [Cost of goods sold / Average Inventory] 18.27 18.79 16.63 17.90 Inventory Turnover in Days [365 / Inventory Turnover Ratio] 19.97 19.42 21.94 20.44 Debtors Turnover Ratio [Net Credit Revenue from Operations / Average Debtors] 20.50 12.56 27.61 20.22 Debtors Turnover in days [365 / Debtor’s Turnover Ratio] 17.80 29.06 13.21 20.02

10. OPERATING CYCLE Operating Cycle = Inventory Cycle + Receivable Cycle = Inventory Turnover in Days + Debtors Turnover in days Operating Cycle BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Inventory Turnover in days 19.97 19.42 21.94 Debtors Turnover in days 17.80 29.06 13.21 Operating Cycle 37.77 48.48 35.15 40.46

11. Payable Turnover Payable Turnover = Annual Purchases / Average Payable Payable Turnover BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE COGS 24,009.01 24,060.29 19,609.61 Annual Purchases 2,143.85 47.43 378 Average Payable 5,198.04 6,012.62 6,008.54 Payable Turnover [Based on Annual Purchases] 0.412 .007 .062 0.160 Payable Turnover [Based on COGS] 4.61 4.00 3.26 Payable No. of Days [Based on COGS] 79.17 91.25 111.96

12. CASH CYCLE Cash Cycle = Operating Cycle – Payable no. of days Cash Cycle BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Operating Cycle 37.77 48.48 35.15 40.46 Payable no. of days 885.92 52,142.85 5887.09 Payable No. of Days [Based on COGS] 79.17 91.25 111.96 Cash Cycle [Based on COGS] -41.4 -42.77 -76.81

13. ASSETS TURNOVER RATIO Assets Turnover Ratio = Net Sales / Total Assets Assets Turnover Ratio BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Net Sales 36,427.60 34,158.38 26,378.09 Total Assets 31,127.69 23,917.03 13,992.39 Assets Turnover Ratio 1.17 1.42 1.88 1.49

14. Profitability Ratios Gross Margin = Net Sales – Cost of goods sold / Net sales Net Profit Margin = Net Profit after taxes / Net sales Operating Margin = Operating Income / Net Sales Profitability Ratios BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Net Sales 36,427.60 34,158.38 26,378.09 Cost of goods sold 24,009.01 24,060.29 19,609.61 Net Profit after taxes 5,627.60 2,799.90 1,491.03 Operating Income 7,086.72 3,058.24 1,231.48 Gross Margin 0.34 0.29 0.25 0.29 Net Profit Margin 0.154 0.089 0.047 0.10 Operating Margin 0.194 0.089 0.047 0.11

15. Return on Assets Return on Assets = Net Income / Total Assets Return on Assets BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Net Income 36,427.60 34,158.38 26,378.09 Total Assets 31,127.69 23,917.03 13,992.39 Return on Assets 1.17 1.42 1.89 1.49

16. Return On Capital Employed (ROCE) ROCE = Net Profit after Tax + Interest Total Equity + Non-Current Liabilities Return on Average Capital Employed = EBIT / Average Capital Employed EBIT = Profit before tax +/(-) Exceptional Items + Net finance charges Capital Employed = Total Equity + Non-Current Borrowings + Current Maturities of Non-Current Borrowings and Finance Lease Obligations + Current borrowings + Deferred Tax Liabilities

17. ROCE BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Net Profit after Tax 5,627.60 2,799.90 1,491.03 Interest 39.48 104.88 140.66 Total Equity 25,425.86 16,780.63 6,047.85 Non-Current Liabilities 503.79 1123.78 1936 Return On Capital Employed [(Net Profit after Tax + Interest) / (Total Equity + Non-Current Liabilities)] 0.21 0.16 0.20 0.20

18. Return On Average Capital Employed BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Profit Before Tax 7,408.64 3,863.62 2,003.37 Exceptional Items 3.11 00 Net Finance Charges 39.48 104.88 140.66 EBIT 7,448.12 3,971.61 2,144.03 Equity 25,425.86 16,780.63 6,047.85 Non Current Borrowings 20.09 1,211.54 Current maturities of non-current borrowings and finance lease obligations 0.19 415.96 350.38 Current Borrowings 293.15 1,033.04 Deferred Tax Liabilities 345.15 485.79 198.20 Capital Employed 25,771.20 17,995.62 8,841.01 Return on Average Capital Employed [Net Profit after Tax + Interest / Total Equity + Non-Current Liabilities] * Prev. FY Data N/A on Moneycontrol 0.21 0.16 0.20 0.20

19. PRICE to CASH FLOW Price to Cash Flow = Share Price / Cash Flow per share Price to Cash Flow BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Share Price 10 2 1 PAT + Depreciation 5,627.60 2,799.90 1,491.03 No. of Shares Issued 2,542 8,390 6,047 Cash Flow per Share 2.32 0.42 0.35 Price to Cash Flow 4.30 4.80 2.85 3.98

20. Price to Book Ratio Price to book ratio = Market price per share / Book Value per share Price to Book Ratio BAJAJ Auto HERO MotorCorp TVS Motor INDUSTRY AVERAGE Market Price per share 197.30 140.49 31.38 Book Value per share 10 2 1 Price to Book Ratio 19.73 70.25 31.38 40.45