The following are the key Financial Ratios of Reliance Industries Ltd for the year 2016, 2017 and 2018. Analyze the different ratios and give suitable relevant interpretations for each category of ratios.
Answers
Explanation:
Key Financial Ratios of Reliance Industries
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15
Investment Valuation Ratios
Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 6.50 6.00 11.00 10.50 10.00
Operating Profit Per Share (Rs) 91.91 81.68 133.04 123.87 97.67
Net Operating Profit Per Share (Rs) 585.32 457.87 744.40 719.54 1,017.02
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 81.85 81.90 64.85 65.07 65.15
Profitability Ratios
Operating Profit Margin(%) 15.70 17.83 17.87 17.21 9.60
Profit Before Interest And Tax Margin(%) 12.53 14.13 13.87 12.69 6.84
Gross Profit Margin(%) 12.85 14.53 14.37 13.11 7.02
Cash Profit Margin(%) 12.01 14.48 15.90 15.36 9.23
Adjusted Cash Margin(%) 12.01 14.48 15.90 15.36 9.23
Net Profit Margin(%) 9.47 11.58 12.98 11.75 6.90
Adjusted Net Profit Margin(%) 9.24 11.26 12.53 11.38 6.72
Return On Capital Employed(%) 10.15 12.24 11.16 11.47 10.42
Return On Net Worth(%) 8.67 10.68 10.89 11.41 10.51
Adjusted Return on Net Worth(%) 8.67 10.68 10.89 11.41 10.51
Return on Assets Excluding Revaluations 639.44 496.68 886.76 741.20 668.05
Return on Assets Including Revaluations 639.44 496.68 886.76 741.20 668.05
Return on Long Term Funds(%) 10.91 12.71 11.85 11.99 10.88
Liquidity And Solvency Ratios
Current Ratio 0.44 0.41 0.35 0.47 0.89
Quick Ratio 0.40 0.25 0.21 0.31 0.63
Debt Equity Ratio 0.39 0.31 0.35 0.38 0.41
Long Term Debt Equity Ratio 0.29 0.26 0.27 0.32 0.35
Debt Coverage Ratios
Interest Cover 5.86 10.82 15.98 15.55 13.45
Total Debt to Owners Fund 0.39 0.31 0.35 0.38 0.41
Financial Charges Coverage Ratio 6.94 12.88 19.08 19.45 17.04
Financial Charges Coverage Ratio Post Tax 5.69 10.28 15.65 16.07 14.18
Management Efficiency Ratios
Inventory Turnover Ratio 9.08 7.97 7.79 8.96 9.32
Debtors Turnover Ratio 32.88 36.41 53.98 57.17 42.95
Investments Turnover Ratio 9.08 7.97 7.79 8.96 9.32
Fixed Assets Turnover Ratio 1.90 0.95 0.97 1.23 1.93
Total Assets Turnover Ratio 0.67 0.72 0.64 1.26 1.22
Asset Turnover Ratio 0.76 0.72 0.67 0.73 1.12
Average Raw Material Holding -- -- -- -- --
Average Finished Goods Held -- -- -- -- --
Number of Days In Working Capital -68.07 -131.04 -114.28 -71.10 16.13
Profit & Loss Account Ratios
Material Cost Composition 75.44 72.63 72.07 69.38 81.38
Imported Composition of Raw Materials Consumed -- -- -- 91.71 90.96
Selling Distribution Cost Composition -- -- -- 3.54 --
Expenses as Composition of Total Sales 57.76 58.53 -- 59.11 63.63
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 10.10 9.68 -- 11.28 12.95
Dividend Payout Ratio Cash Profit 7.77 7.53 -- 8.36 9.43
Earning Retention Ratio 89.90 90.32 100.00 88.72 87.05
Cash Earning Retention Ratio 92.23 92.47 100.00 91.64 90.57
AdjustedCash Flow Times 3.44 2.24 2.54 2.50 2.86