Ratio analysisof a company ppt for education

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1. FINANCIAL ANALYSIS OF PARLE – G BY – DEEPTI MEENA M.COM FINAL YEAR

2. Vijay Chauhan is the chairman of Parle Products, a leading Indian FMCG company known for its iconic Parle-G biscuits. As part of the Chauhan family, which has been at the helm of Parle since its inception, Vijay Chauhan has played a pivotal role in expanding the company’s product portfolio and market presence. Under his leadership, Parle has maintained its strong brand identity while innovating across categories like snacks, confectionery, and beverages, making it a household name in India and globally. Overview of Vijay Chauhan

3. Overview of Parle – G Parle-G, a flagship product of Parle Products Pvt. Ltd., is one of India's most iconic biscuit brands, known for its affordability and quality. Launched in 1939, Parle-G biscuits have become a staple in Indian households, often associated with nostalgia and comfort. The brand is renowned for its glucose biscuits, which are rich in nutrients and provide energy, making them a popular choice for children and adults alike. Parle-G's extensive distribution network ensures its availability across urban and rural markets, contributing to its widespread popularity. With a commitment to quality and innovation, Parle-G continues to be a beloved brand in India and beyond.

4. Particulars 2024 2023 1. Non-current assets a. Property, Plant and Equipment 1,740.95 1,723.40 b. Deferred Tax Assets (net) 6.67 0.22 c. Other Non-current assets 12.26 13.10 Total Non-current assets 1,759.88 1,736.72 2. Current assets a. Inventories 397.41 357.26 b. Trade receivables 19.09 22.03 c. Cash and cash equivalents 103.02 80.50 d. Other current assets 18.59 14.32 Total Current assets 538.11 474.11 Total Assets 2,298.00 2,210.83 Balance Sheet of Parle Industries Limited As at March 31, 2024 (Rs. in Lacs) ASSETS

5. Particulars 2024 2023 Equity a. Equity Share capital 1,400.00 1,400.00 b. Other Equity 640.38 636.50 Total Equity 2,040.38 2,036.50 2. Non-current liabilities a. Financial Liabilities (Borrowings) 19.85 14.64 b. Other Non-current liabilities 0.92 1.00 Total Non-current liabilities 20.77 15.64 3. Current liabilities a. Financial Liabilities (Borrowings) 126.13 80.50 b. Trade payables 4.52 6.15 c. Other current liabilities 10.79 3.05 d. Current Tax Liabilities (Net) 0.69 0.38 Total Current liabilities 142.13 89.08 Total Liabilities 162.90 104.72 TOTAL EQUITY AND LIABILITIES 2,298.00 2,210.83 EQUITY AND LIABILITIES

6. Fiscal Period 2024 2023 2022 2021 Period End Date Mar 24 Mar 23 Mar 22 Mar 21 Revenue $0.00 $0.01 $0.01 $0.01 Total Revenue $0.00 $0.01 $0.01 $0.01 Cost of Revenue Total $0.00 $0.15 $0.00 $0.00 Gross Profit $0.00 -$0.14 $0.01 $0.01 Selling/Gen/Admin Expenses Total $0.04 $0.07 $0.10 $0.09 Depreciation/Amortization $0.00 $0.00 $0.00 $0.00 Unusual Expense (Income) $0.00 $0.04 $0.01 $0.00 Other Operating Expense (Total) $0.00 $0.00 $0.00 $0.00 Total Operating Expenses $0.48 $0.56 $1.33 $0.76 Operating Income -$0.46 -$0.54 -$1.32 -$0.76 Interest (Net Exp) Non-Op Total $0.00 $0.00 $0.00 $0.00 Other Net $0.00 $0.00 $0.00 $0.00 Net Income Before Taxes -$0.02 -$0.04 -$1.32 -$0.49 PROFIT & LOSS A/c OF PARLE –G ALL FIGURES IN CRORES

7. Provision for Income Taxes $0.02 $0.00 $0.00 $0.00 Net Income After Taxes $0.00 -$0.04 -$1.32 -$0.49 Net Income Before Extra Items $0.03 $0.00 -$0.50 $0.00 Net Income $0.00 -$0.04 -$0.50 -$0.49 Income Available to Com Excl Extra Ord Items $0.03 $0.00 -$0.50 -$0.49 Diluted Net Income $0.03 $0.00 -$0.50 -$0.49 Diluted Weighted Average Shares $0.00 $0.00 $0.00 $0.00 Diluted EPS Excluding Extra Ord Items $0.03 $0.00 -$0.41 -$0.49 Diluted Normalized EPS $0.03 $0.00 -$0.41 -$0.49 Total Adjustments to Net Income $0.00 $0.00 $0.00 $0.00 Gain/Loss on Sale of Assets - - - -$6.85

8. Balance Sheet and Ratio Analysis of Parle Industries Ltd. This presentation delves into the financial health of Parle Industries Ltd. by analyzing its balance sheet and key financial ratios. We'll explore the company's asset structure, liabilities, equity, and liquidity, solvency, profitability, and efficiency metrics to gain insights into its financial performance and potential areas for improvement.

9. Introduction to Parle Industries Parle Industries Ltd. is a prominent player in the food and beverage industry, renowned for its diverse range of consumer products. The company boasts a rich history, dating back to the early 20th century, and has evolved into a household name across India. Its portfolio spans biscuits, confectionery, beverages, and other food items, catering to a vast consumer base. Parle Industries is known for its commitment to quality, innovation, and affordability, making it a trusted brand among consumers. Product Portfolio Biscuits, Confectionery, Beverages, Snacks, and Other Food Products. Key Brands Parle-G, Monaco, Krackjack, Hide & Seek, Frooti, and more. Distribution Network Wide network of distributors across India.

10. Understanding the Balance Sheet A balance sheet is a financial statement that presents a company's assets, liabilities, and equity at a specific point in time. It provides a snapshot of the company's financial position and helps stakeholders understand how the company is financed and what it owns. The balance sheet follows the fundamental accounting equation: Assets = Liabilities + Equity. Understanding the balance sheet is crucial for investors, creditors, and other stakeholders to assess a company's financial health and make informed decisions. Assets Liabilities Equity What the company owns What the company owes What the owners have invested Current Assets Current Liabilities Share Capital Non-Current Assets Non-Current Liabilities Retained Earnings

11. Key Balance Sheet Items: Assets Assets represent the resources owned by a company that have a future economic value. They can be categorized as current assets and non-current assets. Current assets are expected to be converted into cash within a year, while non-current assets have a lifespan exceeding a year. Current assets include items like cash, accounts receivable, and inventory. Non-current assets encompass property, plant, and equipment (PP&E), intangible assets like patents and trademarks, and long-term investments. 1 Current Assets Cash, Accounts Receivable, Inventory 2 Non-Current Assets Property, Plant & Equipment (PP&E), Intangible Assets, Long-Term Investments

12. Key Balance Sheet Items: Liabilities & Equity Liabilities represent the financial obligations that a company owes to its creditors. They can be classified as current liabilities and non-current liabilities. Current liabilities are due within a year, while non-current liabilities have a maturity period exceeding a year. Common examples of current liabilities include accounts payable, salaries payable, and short-term loans. Non-current liabilities include long-term loans, bonds payable, and deferred tax liabilities. Liabilities Financial obligations owed to creditors. Current Liabilities Non-Current Liabilities Equity Represents the owners' investment in the company. Share Capital Retained Earnings

13. Liquidity Ratios: Current Ratio & Quick Ratio Liquidity ratios measure a company's ability to meet its short-term financial obligations. They are crucial for investors and creditors to assess a company's ability to pay its bills on time. The current ratio and quick ratio are two commonly used liquidity ratios. 1 Current Ratio Measures a company's ability to pay current liabilities with its current assets. It is calculated by dividing current assets by current liabilities. 2 Quick Ratio Similar to the current ratio, but it excludes inventory from current assets. It is calculated by dividing quick assets (current assets - inventory) by current liabilities. The quick ratio is a more conservative measure of liquidity as it focuses on liquid assets that can be readily converted into cash.

14. Solvency Ratios: Debt-to-Equity Ratio & Interest Coverage Ratio Solvency ratios assess a company's ability to meet its long-term financial obligations. They are essential for lenders and investors to evaluate a company's long-term financial stability and its ability to avoid bankruptcy. The debt-to-equity ratio and interest coverage ratio are two widely used solvency ratios. Debt-to-Equity Ratio Measures the proportion of debt financing to equity financing. It is calculated by dividing total debt by total equity. A higher debt-to-equity ratio indicates a greater reliance on debt financing, which can increase financial risk. Interest Coverage Ratio Indicates a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). It is calculated by dividing EBIT by interest expense. A higher interest coverage ratio implies a greater ability to meet interest obligations.

15. Profitability Ratios: Gross Profit Margin & Net Profit Margin Profitability ratios measure a company's ability to generate profits from its operations. They are crucial for investors and stakeholders to assess a company's financial performance and its capacity to generate returns. The gross profit margin and net profit margin are two key profitability ratios. Gross Profit Margin Measures the profit generated from sales after deducting the cost of goods sold (COGS). It is calculated by dividing gross profit by revenue. Net Profit Margin Measures the percentage of net income earned on each dollar of revenue. It is calculated by dividing net income by revenue. A higher net profit margin indicates greater profitability.

16. Efficiency Ratios: Inventory Turnover & Asset Turnover Efficiency ratios evaluate how effectively a company uses its assets to generate sales and profits. They are important for managers and investors to identify potential areas for improvement in operational efficiency. The inventory turnover ratio and asset turnover ratio are two key efficiency ratios. Inventory Turnover Ratio Measures how quickly a company sells its inventory. It is calculated by dividing cost of goods sold (COGS) by average inventory. A higher inventory turnover ratio indicates efficient inventory management. Asset Turnover Ratio Measures how efficiently a company generates sales from its assets. It is calculated by dividing revenue by average total assets. A higher asset turnover ratio suggests greater asset utilization efficiency.

17. Conclusion and Recommendations The analysis of Parle Industries Ltd.'s balance sheet and financial ratios provides valuable insights into the company's financial health. Overall, the company appears to be in a strong financial position, demonstrating good liquidity, solvency, profitability, and efficiency. However, there are always opportunities for improvement. Parle Industries could consider streamlining its operations, optimizing inventory management, and exploring strategic investments to enhance its financial performance and competitive edge. 1 Optimize Inventory Management Parle Industries could explore just-in-time inventory management techniques to reduce storage costs and minimize waste. 2 Strategic Investments The company could invest in research and development to innovate new products and expand its product portfolio. 3 Enhance Marketing Efforts Parle Industries could invest in digital marketing campaigns to reach a wider audience and increase brand awareness.