Presented by - Group 9 Gurpreet Singh Ritu Kashyap Sharad Rastogi Shikha Swati Jain Surya Dahiya

Common size Balance Sheets Current Assets Cash Short-term investments Receivables Inventories Other Current Assets Total Current Assets

VOGC(%) 7.62 5.08 8.31 0.13 22.45

NPPC(%) 7.37 10.46 5.51 0.54 3.64 27.53

EGAT(%) 5.4 6.31 0.42 1.4 0.24 13.79

Prepayment and other receivables 1.3

Long-term receivables
Long-term investments Fixed Assets Construction in Progress

0.43
4.22 64.43 8.1

0.58
1.16 70.36 -

1.05 56.83 20.97

Other Assets
Intangible Assets Total Assets Current Liabilities Trades Payable

0.35 100 0.68

0.36
100 5.42

7.34
100 9.83

VOGC(%) Other Payables Tax Payables Accrued Expenses Short-term Loans Provisions Total current Liabilities Long-term loans 2.5 2.02 1.16 0.04 6.42 6.46

NPPC(%) 1.69 0.41 1.73 10.19 19.45 24.43

EGAT(%) 0.66 1.14 5.23 16.84 53.12

Current portion of long-term Debt -

Other long-term liabilities

Total Debt Minority Interest Capital

0.17
13.06 37.75 37.32

0.87
44.76 4.2 14.29

3.2
73.17 2.67

Paid in Surplus
Revaluation Reserves Reserves and Surplus Reserves Surplus

10.73 0.82

7.42
24.58 4.47 0.72

0.8
20.23 3.12

VOGC(%) Foreign exchange translation gains Unrealized holding losses Equity 0.3 49.18

NPPC(%) (0.46) 51.03 100

EGAT(%) 26.83 100

Total liability and owners equity 100

Common size P&L account Operating Revenue COGS Administrative expenses Selling expenses Total Expenses Operating Profit Other Income Income from investments

VOGC(%) 100 44.14 1.1 0.82 46.08 53.91 0.64 1.56

NPPC(%) 100 75.15 0.14 6.29 81.6 18.39 1.64 1.33

EGAT(%) 100 76.2 2.83 1.82 80.85 19.14 0.5 1.09

PBIT
Financing Expenses Profit tax Minority interest

56.12
1.1 21.1 15.2

21.37
9.69 0.76 1.1

20.74
38.8 -

Net profit after tax

18.7

9.81

18.06

Financial Ratios current current ratio (CA/CL) Quick ratio ( CA-inventory/CL) Cash ratio (cash/ CL)

VOGC(%)

NPPC(%)

EGAT(%)

3.5 2.2 1.19

1.42 1.23 0.38

0.82 0.74 0.32

Net working capital/total assets 0.16 Internal measure (CA/ Average Daily operating expenses)-days 380.33
Long term long term debt/total assets total debt/total equity total debt/ total assets Equtiy multiplier: (total assets/total equity) long term debt/(long term debt +equity) Interest Coverage: (profit before interest and tax/interest) 0.07 0.27 0.13 2.03 0.12 50.75

0.08
282.7

-0.03
183.78

0.25 0.88 0.45 1.96 0.33 2.2

0.56 2.73 0.73 3.73 0.68 0.53

Financial Ratios Asset Management

VOGC(%)

NPPC(%)

EGAT(%)

inventory turnover : COGS/Inventory 2.48 days COGS in inventory Account receivable turnover 147.07 9.19

9.01 40.52 7.9

18.43 19.8 5.36

collection period
NWC turnover : sales/NWC Payable turnover : COGS/payable credit availed

39.7
2.92 29.94 12.19

46.21
5.39 6.03 60.52

68.06
-11.13 2.63 138.94

Fixed asset turnover

total asset turnover profitability net income after tax/sales net income after tax/total assets net income after tax/ total equity

0.73
0.47

0.62
0.44

0.6
0.34

0.19 0.09 0.18

0.1 0.04 0.08

-0.18 -0.06 -0.23

Current ratio (current assets/current Liabilities) = 3.5 CA> CL The company is very much capable of paying its obligations. This infers that that company has too much cash (177 million US $)and inventories(193 million US$) on hand . Too much cash means that company has poor investing capabilities and to much inventories means that company is not yet rid of its old stock which in turn increases the storage cost and risk of holding obsolete goods Quick ratio = 2.2 Company in comfortable liquidity position. This infers that company has more amount of cash reserves and other liquid assets, which questions the investing capabilities of the company. VOGC-Cash ratio=1.19 This infers that company has cash reserves more than that of current liabilities, hence the company can meet its short term debts and also can keep some cash for future use LONG TERM DEBTS/TOTAL ASSETS VOGC=0.07 This infers that 0.07$ for long term debts for 1$ unit of assets which means that company has enough resources to meet the debts which are to be paid in a period of one year or more Internal measure: (CA/Average daily operating expenses) is 380.33, which is good. Interest coverage ratio is 50.75 times. Extremely Good interest paying capacity

Inventory holding period ((Avg. inventory/COGS)*365) is 147.07 days. No judgments can be made but company should try to reduce this period. Collection period is 39.7 days Net profit margin is highest among all the three companies at 19%. Good returns for investors. Return on Equity(Equity turnover*Net profit margin) is also the highest among all the three companies at 18%. Less amount of risk for shareholders. Highest (Net Working Capital/Total assets ) at 0.16 This infers that company has a positive ratio which says that companys liquidity is improving and it can meet its current obligations DEBT TO EQUITY VOGC=0.27 This infers company is not aggressive in financing its growth through debt. TOTAL DEBT / TOTAL ASSETS VOGC=0.13 This is the lowest ratio which means that company is at less risk of finances

Current ratio = 1.42 CA> CL NPPC has the current ratio of 1.42 this means that current asset is more than current liabilities the company can meet near-term operating needs sufficiency . Quick ratio = 1.23 This quick ratio of more than one indicates that the most liquid assets of a business exceed its total debts. And hence the company can meet the current obligations and also keeping some assets for further investments NPCC-Cash ratio=0.38 This infers that NPCC doesnt have cash reserves to meet its current liabilities, but it has other liquid assets which it must convert into cash for fulfilling the current debts LONG TERM DEBTS/TOTAL ASSETS NPCC=0.25 This infers that for 0.25$ of long term debts there are 1$ units of assets which company means that company has enough resources to meet the debts that are to be paid in a period of one year or more Interest coverage ratio is 2.2 times. Company can easily pay interest on outstanding debts.

Inventory holding period ((Avg. inventory/COGS)*365) in days is 40.52 days

Collection period is 46.21 days Net profit margin is 10%. Average returns for investors.

Return on Equity is 8%
Net Working Capital/Total assets at 0.08. Company can meet its current obligations. DEBT TO EQUITY NPCC=0.88 This is quiet a good ratio which refers that company is aggressive in financing in its growth through debt TOTAL DEBT / TOTAL ASSETS NPCC=0.45 This is a mid range ratio which means that company is at some risk of finances

Current ratio = 0.82 , CA< CL Low values for the current (values less than 1) indicate that a firm may have difficulty meeting current obligations. Low values, however, do not indicate a critical problem. If an organization has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
Quick ratio is also less than 1 , 0.74 This infers that most liquid assets of the company cannot meet the current liabilities Total debt accounts for 73.17% of the total liabilities Negative working capital (-0.03) This infers that the company has decreasing ration which says that companys liquidity is decreasing and hence company will have difficulty meeting its current debts Cash ratio ( Cash/ CL) is 0.32 This infers that EGAT doesnt have cash reserves to meet its current liabilities and it also doesnt have other liquid assets to meet its current debts Interest coverage ratio is 0.53, EBIT < Interest . Company is burdened by Debt expense.

Inventory holding period ((Avg. inventory/COGS)*365) in days is 19.8 days

Collection period is 68.06 days. Highest among all. Gives more time to its debtors for payment. Net profit margin is -0.18. Negative figure indicates that the company is making losses. Return on Equity is also negative. Company was unable to generate any profits from shareholders money. DEBT TO EQUITY EGAT=2.73 This is nt a good sign because the company has too many debts which could even lead to bankruptcy. TOTAL DEBT / TOTAL ASSETS EGAT=0.73 This is quiet high which means that company is at a very high financial risk.

VOGC heavily dependent on Long term liabilities, (93.58% of total liabilities)

VOGC most conservative wrt capital structure, only 13.06% debt, 86.94% equity While VOGC uses cash majorly to finance its working capital, NPCC uses short term investments. EAGT uses receivables for the same. COGS is largest for EGAT at 76.2% .

VOGC is most efficient in operations and NPCC least efficient. Low operating expenses result in high Net Profit margin.
Among all the companies, long term investments have had only marginal impact on the companys performance. Both EGAT and VOGC are expanding as we see construction in progress in their balance sheet.

ROE is broken down into net profit margin (how much profit the company gets out of its revenues), asset turnover (how effectively the company makes use of its assets), and equity multiplier (a measure of how much the company is leveraged).

VOGC: ROE= 0.19*0.47*2.03 = 0.18 = 18%. Highest among all the companies. Better operating and asset use efficiency among all the three. NPCC: ROE= 0.10*0.44*1.96 = 0.086= 8.6% EAGT: ROE= -0.18*0.34*3.72= -0.23 which is negative due to net profit margin. Indicates loss. The company is highly leveraged.