Financial statement Analysis of Reliance Industries Ltd..pdf

This report includes balance sheet, Profit and Loss Statement, Cash Flow Statement of Reliance industries Limited and its ratio analysis like Current ratio, Quick ratio, Cash ratio, Net Working Capital , Debt Equity ratio, Proprietory ratio, Inventory Turnover ratio, Debtors turnover ratio, Gross Profit margin, Net profit margin, Return on Equity, Price earning ratio, Dividend Payout ratio etc.

1. FINANCIALSTATEMENT
ANALYSISOf
RELIANCEINDUSTRIESLIMITED
Name-NirupamaMaharana
Regd.No.-200409120038
Subject-BusinessAccounting
Branch-BBA2
nd
sem
CenturionUniversityofTechnologyandManagement,
BhubaneswarCampus

3. dt

5. LIQUIDITYRATIOS
1.CurrentRatio=CurrentAssets=1,66,597=0.54
CurrentLiabilities 3,10,183
2.QuickRatio=CurrentAssets-Inventories
CurrentLiabilities
=1,66,597-38,802=1,27,795=0.41
3,10,183 3,10,183
3.CashRatio=Cash+Short-termInvestments
Currentliabilities
=Cash+(Investments+Tradereceivable+otherfinancialassets)
Currentliabilities
=8,443+70,030+7,483+16,100=1,02,056=0.329
3,10,183 3,10,183
4.NetWorkingCapitalRatio=Networkingcapital(NWC)
NetAssets(NA)
=Currentassets-CurrentLiabilities
Netcurrentassets+NetFixedassets
= 1,66,597-3,10,183
(1,66,597-3,10,183)+(8,02,315-2,34,145
= -1,43,586 =-1,43.586
-1,43,586+5,68,170 4,24,584
=-0.338
LEVERAGERATIOS
1.DebtEquityRatio=TotalLong-Termdebt=2,34,145=0.55
Shareholder’sfund 4,24,584

6. 2.TLtoTARatio=Totalliabilities=5,44,328=0.56
TotalAssets 9,68,912
3.ProprietaryRatio=Proprietor’sfund=4,24,584=0.438
Totalassets 9,68,912
ACTIVITYRATIOS
1.InventoryTurnover=Costofgoodssold(Totalexpenses)= 3,20,860
AverageInventory (38,802+44,144)/2
= 3,20,860=7.736
41,473
2.DebtorsTurnover=Creditsales
Averagedebtors
Heredebtorsturnoverratioiscalculatedas=Sales(RevenuefromOperations)
AverageDebtors
= 3,50,880 =3,50,880
(7,483+12,110)/219,593/2
=3,50,880=35.81
9,796.5
3.AssetTurnoverRatio= Sales(Revenuefromoperations)
NetAssets(Netcurrentassets+Netfixedassets)
=3,50,880=0.826
4,24,584
PROFITABILITYRATIOS
1.Grossprofitmargin=grossprofit=Revenue-Costofgoodssold
sales sales(RevenuefromOperations)
=3,65,202-3,20,860=44,342=0.126
3,50,880 3,50,880

7. 2.NetprofitMargin=NetProfit(PAT)=30,903=0.088
Sales 3,50,880
(Revenuefromoperations)
3.ReturnonInvestment=Earningbeforeinterest&taxes(EBIT)
Totalassets
=44,561=0.045
9,68,912
4.ReturnonEquity=ProfitafterTax(PAT)= Profitaftertax(PAT)
Networth TotalAssets-Totalliabilities
= 30,903 =30,903=0.07
9,68,912-5,44,328 4,24,584
5.EarningPershare=ProfitAfterTaxes(PAT)(inrupees)
No.Ofsharesoutstanding
=30,90,30,00,0000=48.75
6,33,90,76,923.07
6.Priceearningratio=Marketpricepershare
Earningpershare(EPS)
=1103.29=22.63
48.75
7.Dividendpay-outRatio=Dividendpershare=Dividendpaid/No.Ofsharesoutstanding
Earningpershare EarningPerShare
=45,84,00,00,000/6,33,90,76,923.07=7.23=0.148
48.75 48.75