Cipla ltd

CONTENTS

1) COMPANY PROFILE

2) BALANCE SHEETS

3) FINANCIAL RATIO

a) Liquidity ratio
b) solvency ratio
c) Efficiency
d) profitability
4) EARNING PER SHARE

5) CONCLUSION

COMPANY PROFILE

Founded : 1935

Founded by : Khwaja Abdul Hamied

 Headquarters : Mumbai, India

Key people : Y.K Hamied Chairman

Industry : Pharmaceuticals

Product : Low cost drugs to treats

HIV +ve patients, cardiovascular disease, arthritis,
diabetes,weight control, depression and many
more health conditions

Market : 180+ Countries

Revenue : Rs. 37.6 billion (939M USD)

(2016)

Net income : Rs 9.1 billion(2006)

Employee : 7000+

Website : www.cipla.com
BALANCE SHEETS
FINANCIAL RATIO

2017 2016
Working capital 3789.51 3382.7
Current ratio 2.481 2.10
Liquidity ratio Cash flow ratio 0.86 0.56
Cash ratio 0.272 0.192
Quick ratio 1.03 0.808
Debt to equity 0.32 0.438
ratio
Debt to total 0.24 0.299
Solvency ratio
asset ratio
Total debt to 0.328 0.438
total capital
ratio
Inventory 4.14 4.18
turnover ratio
Efficiency
turnover ratio Debt turnover 5.72 6.08
ratio
Fixed turnover 2.22 1.87
ratio
Total asset 0.85 0.90
turnover ratio
Profitability Basic EPS 12.12 17.42
ratio
Operating profit
margin
0.14 0.170
 percentage

LIQUIDITY RATIO - Dity ratio expresses Liquia

company'sability to repay
short-term creditors out of its total
cash.

Working capital = current Asset - current liabilities

In 2017 = 6345.34 cr - 2555.83 cr

= 3789.51 cr
In 2016 = 6463.90 cr - 3081.20 cr
= 3382.7 cr

Current ratio = current asset / current liabilities

In 2017 = 6343.34 / 2555.83

= 2.481
In 2016 = 6463.90 / 3081.20
= 2.10
 Cash flow ratio = operating cash flow / current liabilities

In 2017 = 2205.56 / 2555.83

= 0.86
In 2016 = 1728.42 / 3081.20
= 0.56

Cash ratio = cash + marketable securities / current

liabilities

In 2017 = 58.46 + 638.18 / 2555.83

= 0.272
In 2016 = 53.01 + 539.00 / 3081.20
= 0.192

Quick ratio = cash + account receivable + marketable

securities / current liabilities
 In 2017 = 5846 + 1938.79 + 638.18 / 255
= 1.03
In 2016 = 53.01 + 1898.74 + 539.00 / 3081.20
= 0.808

SOLVENCY RATIO

Debt to equity ratio = total debt / total equity

In 2017 = 4112.59 / 12525.42

= 0.32
in 2016 = 5191.34 / 1184496
= 0.438

Debt to total asset ratio = total debt / total asset

In 2017 = 4112.59 / 17076.24

= 0.2
In 2016 = 5191.39 / 17305.98
= 0.299
Total debt to Total capital ratio = total debt / total capital

In 2017 = 4112.59 / 12525.42

= 0.328
In 2016 = 5191.39 / 11844.96
= 0.438

EFFICIENCY TURNOVER RATIO

Inventory turnover ratio = COGS / avg. inventory

In 2017 = /
= 4.14
In 2016 = /
= 4.18

Debtor turnover ratio = Sales / debtors

 In 2017 = 10974.58 / 1938.79
= 5.72
In 2016 = 1234.06 / 1898.74
= 6.08

Fixed asset turnover ratio = sales / fixed asset

In 2017 = 10974.58 / 4886.72

= 2.22
In 2016 = 12034.06 / 7034.68
= 1.87

Total asset turnover ratio = sales / total asset

In 2017 = 10974.58 / 13124.84

= 0.85
In 2016 = 12034.06 / 13462.13
= 0.90

PROFITABILITY RATIO
 Basic EPS = Income available to common shareholder
/ Weighted avg. no of common share
Outstanding

In 2017 = 12.12

In 2016 = 17.42

Operating profit margin percentage = operating Income / sales

In 2017 = 1596.26 / 10974.58

= 0.14

In 2016 = 2053.72 / 12034.06

= 0.170

CONCLUSION
By looking at this ratio we can surely tell that the company
Performance is not good in 2017.
- Sales has fallen down
- Expel the company has used its fixed asset very well in
generating in sales
- comapany debt has invised which is not good for the
COMPANY