CALCULATION OF RATIO ANALYSIS

1) Profit margin : To find the profit margin that means net profit dividing by total incomes. Profit margin= Net Profit *100 Total income

Year 2012 2011 2010 2009 Ratio(%) 12.76 12.75 13 12.67 (Sources : http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

2008 12.24

Ratio(%)
13 12.8 12.6 Ratio 12.4 12.2 12 11.8 2012 2011 2010 2009 Ratio(%)

2008

Interpretation : Generally this ratio is required under 10 to 15%. If this ratio is highest 13 % in 2010 that means good for company.

2) Gross Profit Ratio: Gross Profit*100 Net Sales

Ratio %
19 18.5 18 Ratio % 17.5 17 16.5 2012 2011 2010 2009 2008

Ratio(%) (Sources :

2012 18.59

2011 18.48

2010 17.87

2009 17.58

2008 17.20

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

3) Operating Profit Ratio: Operating Profit*100 Net Sales Operating Profit = Net Sales Operating Cost

Year Ratio(%)

2012 21.92

2011 20.53

2010 19.91

2009 19.74

2008 19.33

(Sources :

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

4) Net Profit Ratio: Net Profit*100 Net Sales

Year Ratio(%)

2012 12.76

2011 12.75

2010 13.80

2009 12.67

2008 12.24

(Sources :

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI

5) Current Ratio:

Current Asset Current Liabilities

Year Ratio(%)

2012 0.54

2011 0.42

2010 0.62

2009 0.60

2008 0.66

(Sources :

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

6) Quick Ratio : Quick Asset Current Liabilities Quick Asset = Current Assest - Stock

Year Ratio(%) (Sources :

2012 0.22

2011 0.24

2010 0.27

2009 0.24

2008 0.66

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

7) Debt Equity Ratio : External Equity Internal Equity

Year Ratio(%)

2012 0.58

2011 0.76

2010 -

2009 -

2008 -

(Sources :

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

8) Debtors Turnover Ratio :

Credit Sales Average Debtors

Year Ratio(%) (Sources :

2012 82.04

2011 83.83

2010 98.22

2009 93.68

2008 87.37

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

9) Fixed Asset Turnover Ratio : Net Sales Net Fixed Asset Net Fixed Asset = Gross Fixed Asset - Depreiciation

Year Ratio(%) (Sources :

2012 1.91

2011 3

2010 5.49

2009 3.24

2008 3.20

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

10) Interest coverage ratio:

EBIT FIXED INTEREST CHARGE Year Ratio(%) (Sources : 2012 59.37 2011 157.92 2010 1075.28 2009 666.25 2008 473.22

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

11) Stock Turnover Ratio :

= Cost of Good Sold Avarage stock Year Ratio(%) (Sources : 2012 11.55 2011 11.60 2010 12.33 2009 11.61 2008 11.39

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

12) Total asset ratio:

Long assets Long term debt

Year Ratio(%) (Sources :

2012 2.92

2011 3.43

2010 7.86

2009 9.75

2008 10.29

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

13) Investment turnover ratio:

Net sales Capital employed Capital employed= share holder fund + long term debt OR C.E= net fixed assets + long term investment + working capital

Year Ratio(%) (Sources :

2012 11.08

2011 11.60

2010 12.33

2009 11.61

2008 11.39

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

14) Dividend per share

Dividend paid to equity share Number of equity share

Year Ratio(%) (Sources :

2012 48.50

2011 48.50

2010 48.50

2009 48.50

2008 42.50

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)

15) Dividend payout ratio Dividend per share Earning per share Year Ratio(%) (Sources : 2012 43.78 2011 48.63 2010 66.54 2009 83.52 2008 89.76

http://www.moneycontrol.com/financials/nestleindia/ratios/NI#NI)