4.

DATA ANALYSIS AND INTERPRETATION

To summarize findings of any project study the data collected needs analysis of the raw
data can be made meaningful simple and appropriate presentation of such interpretation help to
draw conclusion from the analyzed data this analysis is based on the data collected from the
companies belongs to the sectors namely.

• Manufacturing

• IT(software development)

• Marketing(software marketing)

Health care

• Medical transcription

• Publication

• Consultants

• Cotton

• Construction

Companies are grouped depending on the staff size and infrastructure of the company as follows:

• Small

• Small to medium

• Medium

• Medium to large

• Large
CURRENT RATIO:
The current ratio indicates the firm’s commitment to meet short liabilities. The ideal
current ratio is 2:1 but very high current ratio also not preferable.

CURRENT ASSETS
CURRENT RATIO =
CURRENT LIABILITIES

TABLE 4.1

CURRENT RATIO

YEAR CURRENT CURRENT CURRENT RATIO

ASSETS LIABILITIES

2012-2013 62318297.42 62383979.97 0.99

2013-2014 88467813.69 65711484.37 1.35

2014-2015 76642215.28 133987967.8 0.57

2015-2016 81882229.27 75124759.97 1.08

2016-2017 85663838.56 9429626.18 0.91

 GRAPH-4.1

GRAPH SHOWING CHANGES IN CURRENT RATIO FROM 2012-2017

CURRENT RATIO
1.6

1.4

1.2

0.8
CURRENT RATIO
0.6

0.4

0.2

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table 2012-13 the current ratio is 0.99, in the year 2013-14 it is increased by
1.35, in the year 2014-15 it is increased to 0.57, in the year 2015-16 it is increased by 1.08 and in
the year 2016-17 it is decreasing trend.
LIQUID / QUICK RATIO:
The ratio which determines the financial solvency positions of the company is quick
ratio. It is also called as acid test ratio.

LIQUID ASSETS
LIQUID RATIO =
CURRENT LIABILITIES

QUICK RATIO

TABLE 4.2

YEAR LIQUID ASSETS CURRENT LIQUID RATIO

LIABILITIES

2012-2013 113558917.7 62383979.97 1.82

2013-2014 116237998.2 65711484.37 1.76

2014-2015 67828411.87 133987967.8 0.51

2015-2016 79154586.87 75124759.97 1.05

2016-2017 72956348.43 9429626.18 0.77

 GRAPH-4.2

GRAPH SHOWING CAHNGES IN QUICK RATIO FROM 2012-2017

LIQUID RATIO
2
1.8
1.6
1.4
1.2
1
LIQUID RATIO
0.8
0.6
0.4
0.2
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the quick ratio is 1.82, in the year 2013-14 it is
decreased to 1.76, in the year 2014-15 again it was decreased to 0.51, in the year 2015-16 it is
increased by 1.05 and in the year 2016-17 it is decreasing trend.
EQUITY RATIO:
The equity ratio is an investment leverage or solvency ratio that measures the amount of
company to the total assets.

TOTAL EQUITY
EQUITY RATIO =
TOATL ASSETS

EQUITY RATIO
TABLE 4.3

YEAR TOTAL EQUITY TOTAL ASSETS EQUITY RATIO

2012-2013 11288464.76 183104649.2 0.06

2013-2014 11288464.76 205426279.5 0.05

2014-2015 11288464.76 145017432.2 0.09

2015-2016 11288464.76 164251547.1 0.07

2016-2017 11288464.76 240505996.1 0.04

 GRAPH 4.3

GRAPH SHOWING CHANGES IN EQUITY RATIO FROM 2012-2017

EQUITY RATIO
0.1
0.09
0.08
0.07
0.06
0.05
EQUITY RATIO
0.04
0.03
0.02
0.01
0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the equity ratio is 0.06,in the yea 2013-14 it is
decreased to 0.05, in the year 2014-15 it is increased nu 0.09, and the next two years i.e.; 2012-
17 it is in decreasing trend.
DEBT TOTAL ASSETS RATIO:
The debt total assets ratio is an indicator of financial leverage. It is calculated by dividing a
corporation’s total liabilities by its total assets

TOTAL LIABILITIES
DEBT TO TOTAL ASSETS RATIO =
TOTAL ASSETS

DEBT TO TOTAL ASSETS RATIO

TABLE 4.4

YEAR TOTAL TOTAL ASSETS DEBT TO EQUITY

LIABILITIES RATIO

2012-2013 172572972.9 183104649.2 0.94

2013-2014 184459681.9 205426279.5 0.89

2014-2015 286268411.9 145017432.2 1.97

2015-2016 232760522 164251547.1 1.42

2016-2017 240505996.1 240505996.1 1.00

 GRAPH 4.4

GRAPH SHOWING CHANGES IN DEBY TO TOTAL ASSETS RATIO FROM 2012 -

2017

DEBT TO EQUITY RATIO

2.5

DEBT TO EQUITY RATIO

2

1.5

0.5

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the debt to total assets ratio is 0.94, in the year 2013-14
it is decreased to 0.89, in the year 2014-15 it is increased by 1.97, and the next two years i.e.
2015-17 it is in decreasing trend.
FIXED ASSETS TURNOVER RATIO:
This ratio measures the efficiency of the assets use. It shows how well the fixed assets are
being to generate sales in the business.

SALES
FIXED ASSETS TURNOVER RATIO =
CAPITAL ASSETS

FIXED ASSETS TURNOVER RATIO

TABLE 4.5

YEAR SALES CAPITAL ASSETS FIXED ASSETS

TURNOVER RATIO

2012-2013 311684082.7 114941475.7 2.71

2013-2014 389468321.5 116958465.8 3.33

2014-2015 389468322.2 68375216.87 5.69

2015-2016 433851115 82369317.87 5.26

2016-2017 464026378.6 81057543.82 5.72

 GRAPH 4.5

GRAPH SHOWING CHANFES IN FIXED ASSETS TURNOVER RATIO FROM 2012-

2017

FIXED ASSETS TURNOVER RATIO

7
FIXED ASSETS TURNOVER RATIO
6

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13, the fixed assets turnover ratio is 2.71, and the next two
years i.e. 2014-15 it is in increasing trend, in the year 2015-16 it is decreased to 5.26, and in the
year 2016-17 it is in increasing trend.
INVENTORY TURNOVER RATIO:
Inventory turnover is a ratio showing how many times a company’s inventory is sold and
replaced over a period. It is also known as.

STOCK TURNOVER RATIO

INVENTORY TURNOVER RATIO =

AVERAGE INVENTORY

INVENTORY TURNOVER RATIO

TABLE 4.6

YEAR SALES AVERAGE INVENTORY INVENTORY

TURNOVER RATIO

2012-2013 311684082.7 1450918.75 214.8

2013-2014 389468321.5 2294424.25 169.7

2014-2015 389468322.2 2294424.25 169.7

2015-2016 433851115 9612555 45.1

2016-2017 464026378.6 4028306 115.2

 GRAPH 4.6

GRAPH SHOWING CHANGES IN INVENTORY TURNOVER RATIO FORM 2012-

2017

INVENTORY TURNOVER RATIO

250

INVENTORY TURNOVER RATIO

200

150

100

50

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATTION:

From the above table in the year 2012-13 the inventory turnover ratio is 214.8, and the next two
years i.e. 2013-15 it remains constant. In the year 2015-16 it is decreased to 45.1, and in the year
2016-17 it is in increasing trend.
DEBTORS TURNOVER RATIO:
Accounts receivable turnover is efficiency ratio or activity ratio that measures how many
times a business can turn its accounts receivable into cash during a period.

CREDIT SALES
DEBTORS TURNOVER RATIO =
AVERAGE ACCOUNTS RECEIVABLE

DEBTORS TURNOVER RATIO

TABLE 4.7

YEAR CREDIT SALES AVERAGE ACCOUNTS DEBTORS

RECEIVABLE TURNOVER RATIO

2012-2013 311684082.7 12114617.91 25.72

2013-2014 389468321.5 12888304.42 30.22

2014-2015 389468321.8 14673014.43 26.54

2015-2016 433851115 13460440.13 32.23

2016-2017 464026378.6 12161114.43 38.15

 GRAPH 4.7

GRAPH SHOWING CHANGES IN DEBTORS TURNOVER RATIO FROM 2012-2017

DEBTORS TURNOVER RATIO

45
DEBTORS TURNOVER RATIO
40

35

30

25

20

15

10

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the Debtors turnover ratio is 25.72, in the year 2013-14
it is in increased by 30.22, in the year 2014-15 it is decreased to 26.54, and in the next two years
i.e. 2015-17 it is in increasing trend.
TOTAL ASSETS TURNOVER RATIO:
The asset turnover ratio is efficiency ratios that measure a company’s ability to generate sales
from its assets by comparing net sales with average total assets.

SALES
ASSETS TURNOVER RATIO =
TOTAL ASSETS

TOTAL ASSETS TURNOVER RATIO

TABLE 4.8

YEAR SALES TOTAL ASSETS ASSETS TURNOVER

RATIO

2012-2013 311684082.7 183104649.2 1.70

2013-2014 389468321.5 205426279.5 1.89

2014-2015 389468322.2 145017432.2 2.68

2015-2016 433851115 164251547.1 2.64

2016-2017 464026378.6 240505996.1 1.93

 GRAPH 4.8

GRAPH SHOWING CHANGES IN ASSETS TURNOVER RATIPO FROM 2012-2017

ASSETS TURNOVER RATIO

3

2.5

1.5
ASSETS TURNOVER RATIO

0.5

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the assets turnover ratio is 1.70, the next 2 years i.e.
2014-15 it is in increasing trend. And in the next two years 2014-17 it is in decreasing trend.
GROSS PROFIT RATIO:
Gross profit ratio is a profitability ratio that showsthe relationship between gross profit and
total net sales revenue. It is popular toll to evaluate the operational performance of the business.
The ratio is computed by dividing the profit figure by net sales.

GROSS PROFIT
GROSS PROFIT RATIO = *100
SALES

GROSS PROFIT RATIO

TABLE 4.9

YEAR GROSS PROFIT SALES GROSS PROFIT RATIO

2012-2013 5063382.36 311684082.7 16.24

2013-2014 59768120.12 389468321.5 15.35

2014-2015 59768120.5 389468322.2 15.34

2015-2016 62744645.11 433851115 14.46

2016-2017 67461148.31 464026378.6 14.54

 GRAPH 4.9

GRAPH SHOWING CHANGES IN GROSS PROFIT RATIO FROM 2012-2017

GROSS PROFIT RATIO

16.5

16

15.5

15
GROSS PROFIT RATIO

14.5

14

13.5
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the gross profit ratio is 16.24, the next year i.e. 2013-
16 it is in decreasing trend. And in the year 2016-17 it is in increasing trend.
OPERATING PROFIT RATIO:
Operating profit ratio is calculated by dividing the operating profit by sales. This ratio helps in
determining the ability of the management in running the business.

OPERATING PROFIT
OPERATING PROFIT RATIO = *100
SALES

OPERATING PROFIT RATIO

TABLE 4.10

YEAR OPERATING SALES OPERATING

PROFIT PROFIT RATIO

2012-2013 3127978.03 311684082.7 1.00

2013-2014 5313567.4 389468321.5 1.36

2014-2015 4938897.05 389468322.2 1.27

2015-2016 4733769.88 433851115 1.09

2016-2017 3009581.55 464026378.6 0.65

 GRAPH 4.10

GRAPH SHOWING CHANGES IN OPERATING PROFIT RATIO FROM 2012-2017

OPERATING PROFIT RATIO

1.6
OPERATING PROFIT RATIO
1.4

1.2

0.8

0.6

0.4

0.2

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the year 2012-13 the operating profit ratio is 1.00, in the year 2014-15 it
is increased by 1.36, and the next three years i.e. 2014-17 it is decreasing trend.
NET PROFIT RATIO:
Net profit ratio is a popular profitability ratio that shows relationship between net profit after
tax and sales. It is computed by dividing the net profit (after tax) by net sales.

NET PROFIT
NET PROFIT RATIO = *100
SALES

NET PROFIT RATIO

TABLE 4.11

YEAR NET PROFIT SALES NET PROFIT

RATIO

2012-2013 5005675.73 311684082.7 1.61

2013-2014 10434921.33 389468321.5 2.68

2014-2015 10060255.33 389468322.2 2.58

2015-2016 3200681.13 433851115 0.74

2016-2017 3742330.31 464026378.6 0.81

 GRAPH 4.11

GRAPH SHOWING CHANGESIN NET PROFIT RATIO FROM 2012 - 2017

NET PROFIT RATIO

3

2.5

1.5
NET PROFIT RATIO

0.5

0
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

INTERPRETATION:

From the above table in the tear 2014-15the net profit ratio is 1.61, in the year 2013-2014 it is
increased by 2.68, and the next two years i.e. 2014-16 it is in decreasing trend. And the year
2016-17 it is in increasing trend.