Financial Analysis of TATA Consultancy Services

Presented By Syndicate I
Name Chaitanya Pande PRN 12020541095

Deepanker Ray
Manish Chandra Renu Shaliesh Jain Sonal Meshram Paramveer Singh Khosa Sakshi Bateja

12020541097
12020541107 12020541129 12020541132 12020541151 12020541153

RATIO ANALYSIS
Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of interpretation of financial statements with the help of accounting ratios derived from the balance sheet and profit and loss account. E.g. : Profitability Ratios, Liquidity Ratios etc.

Liquidity Ratios
Definition: A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. E.g. : Current Ratio, Quick Ratio, Cash Ratio etc.

Liquidity Ratios
Ratio Formula Total Current Assets/Total Current Liabilities 2013 2012 2011

Current Ratio

2.429

1.8715

2.428

Quick Ratio

(Total Current AssetsInventory)/Total Current Liabilities Cash & Cash Equivalents/Total Current Liabilities

2.428

1.871

2.427

Cash Ratio

1.576

1.402

1.639

Profitability Ratios
Definition: A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well.

E.g. : Gross Profit Ratio, Operating Profit Ratio, Return on Shareholders Fund (ROE), Return on Capital Employed (ROI)

Profitability Ratios
Ratio Formula 2013 2012 2011

Gross Profit Ratio

(EBITDA/Sales)* 100

32.64

33.87

31.1

Operating Profit Ratio Return on Shareholders Fund (ROE)

(EBIT/Sales)*100

31.06

32.213

29.29

(PAT/Shareholde rs fund)*100

39.27

44.16

38.66

Profitability Ratios
Ratio Return on Capital Employed (ROCE) Formula EBIT/Capital Employed*100 2013 2012 2011

47.2

52.64

44.29

Activity/Turnover Ratios
Activity ratios indicate the performance of an organization This indicate the effective utilization of the various assets of the organization Most of the ratios falling under this category are based on turnover and hence these ratios are called as turnover ratios

Total Assets Turnover Ratio

Indicates efficiency of assets for the purpose of generating revenue

Higher ratio indicates company has acquired more assets which are productive in nature
NAME FORMULA RATIO 2012-13 2011-12 2010-11

Total Assets Net Turnover Sales/Avg Service Revenue/Avg Ratio Total Assets total assets 1.25 1.17 1.27 REMARK:- Rate of increase of assets is much more than rate of increase of Sales, hence the ratio is declining

Fixed Asset Turnover Ratio

This ratio gives an indication of how efficiently a company uses its fixed assets in doing its business

A High fixed asset turnover ratio indicates the capability of the firm to earn maximum sales with the minimum investing in fixed assets
NAME FORMULA RATIO 2012-13 2011-12 2010-11

Fixed assets Net turnover Sales/Avg Service revenue/avg fixed ratio Fixed Assets assets 7.85 7.65 7.14 REMARK:- Rate of increase of net sales is more than rate of increase of revenue, hence the increasing revenue

Inventory Turnover Ratio

This financial ratio measures the number of times inventory is turned over during the year High inventory turnover suggests good levels of liquidity

NAME

FORMULA

RATIO 2012-13 2011-12 2010-11

Inventory Cost of goods turnover sold/Avg Sales Revenues/Avg ratio inventory inventory 9241.6 8013.5 10903 REMARK:- (I) since the inventory is very less hence high ratio (II) higher ratio is preferred since lesser inventory is good for company

Debtors Turnover Ratio

Indicates the speed with which amount is collected from debtors Higher the ratio, better it is Lower ratio indicates inefficient credit sales policy of the management Assessment of sales policy of the management can be done
NAME FORMULA RATIO 2012-13 2011-12 2010-11

Net Credit Debtors sales /Average Service revenue/avg turnover ratio Receivables trade receivables 4.77 5.48 6.09 Debt Collection Period 365/DTR 365/DTR 76.54 66.64 59.93 REMARK:- (I) Although there is an increase in sales, but the increase in receivables is much more than that.so it is bad for the business (II)Because of decline in DTR there is considerable increase in Debt collection period, so the company will have to depend more on recovery which is bad for the company

Working Capital Turnover Ratio

Measures efficiency in working capital usage. It establishes relationship between cost of sales and working capital Positive working capital means that the company is able to pay off its short-term liabilities Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets
NAME FORMULA RATIO 2012-13 2011-12 2010-11

Working Capital Net Service Revenue/ Turnover Sales/Working (current assets-current Ratio Capital Employed liabilities) 3.50 4.95 3.18 REMARK:- (I) A high ratio indicates efficient utilization of working capital and a low ratio indicates otherwise (II)But a very high working capital turnover ratio may also mean lack of sufficient working capital which is not a good situation

Leverage Ratios
A leverage ratio is a comparison of a combination of a company's debt, equity, assets and interest payments to ascertain its longterm solvency and ability to meet its financial obligations Leverage refers to the use of loans or other forms of debt to finance acquisitions or investments The goal of using these financing options is to earn a higher rate of return than the rate of interest on the loan and amplify gains Companies with a high degree of leverage are considered risky and highly vulnerable to economic downturns because they must continue to meet obligations to the debt in spite of poor production or sales

Debt/Equity Ratio
Debt-to-Equity ratio is the ratio of total liabilities of a business to its shareholders equity It is a leverage ratio and it measures the degree to which the assets of the business are financed by the debts and the shareholders equity of a business
NAME FORMULA RATIO 2012-13 2011-12 2010-11

(Non current Debt-Equity liabilities+Current Debt/Equity Ratio liabilities) / (Share capital+reserve & surplus) 0.32 0.37 0.33 REMARK:- Ideal ratio can be 2:1,since it is much less than that, the company can take much more debt to increase the degree of financial leverage

Fixed Asset ratio

This ratio establishes the relationship between long term funds (equity plus long-term loans) and fixed assets.
It is advised that fixed assets should be purchased out of long term funds only
NAME FORMULA RATIO 2012-13 2011-12 2010-11

Fixed Fixed assets/Non current Fixed asset assets/long Liabilities(long term ratio term funds borrowings & provisions) 11.36 12.18 18.54 REMARK:- Since this ratio looks bad as the company seems to be using short term funds for its fixed assets but actually the company is using its reserve and surplus to buy those assets

Total Debt Ratio

Debt-to-assets ratio or total debt ratio is the ratio of total liabilities of a business to its total assets It measures the portion of the assets of a business which are financed through debt Total liabilities include both the current and non-current liabilities
NAME FORMULA RATIO 2012-13 2011-12 2010-11

total Total debt debt/total Non current+current ratio assets liabilities/Total assets 0.24 0.27 0.21 REMARK:- Since the debt is about 1/4th of the total assets, so the company can remove its debt liability very easily

Coverage Ratios
It is a measure of a company's ability to meet its financial obligations. In broad terms, the higher the coverage ratio, the better the ability of the enterprise to fulfill its obligations to its lenders. Types: Debt Service Coverage Ratio Interest Service Coverage Ratio Dividend Coverage Ratio Total Fixed Charge Coverage Ratio Total Cash Flow Coverage Ratio

Debt Service Coverage Ratio

In corporate finance, debt service coverage ratio is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments. Formula used:
(net operating income) / (total debt service) OR (Annual Net Income + Amortization/Depreciation + Interest Expense + other non-cash and discretionary items (such as non-contractual management bonuses)) / (Principal Repayment + Interest payments + Lease payments)

Values for TCS:

FY 2010-11 17.184067
Inference:

FY 2011-12 18.810358

FY 2012-13 16.765679

Value of ratio is well above the ideal value of 1. this means that enough income is being generated in order to service the debt obligations.

Interest Service Coverage Ratio

Interest service coverage ratio is used to determine how easily a company can pay interest on outstanding debt. Formula used: (EBIT) / (Interest Expense) Values for TCS:

FY 2010-11 433.8041

FY 2011-12 814.02012

FY 2012-13 511.84063

Inference: the interest coverage ratio of value well above 1 indicates that the company is generating sufficient revenues to satisfy interest expenses.

Dividend Coverage Ratio

It indicates the capacity of an organization to pay dividends out of profit attributable to the share holders. A dividend cover of 3 implies that a company has sufficient earnings to pay dividends amounting to 3 times of the present dividend payout during the period. Formula used:
(Profit after tax - Dividend paid on Irredeemable Preference Shares)/(Dividend paid to Ordinary Shareholders)

Values for TCS:

Inference:

FY 2010-11 2.7626692

FY 2011-12 2.2431822

FY 2012-13 2.9695068

Generally, companies would aim to sustain a dividend cover of at least 2 times in order to avail adequate financing through retained earnings while providing a reasonable cash return on shareholder's investment. A high dividend cover here of more than 2 suggests that TCS is retaining a higher portion of its earnings to meet its financing requirements which may result in higher dividend payouts in the future.

Total Fixed Charge Coverage Ratio

It indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. Formula used: (EBIT + fixed charges before tax) / (fixed charged before tax + interest) Values for TCS:

FY 2010-11 1.4218029

FY 2011-12 1.4850458

FY 2012-13 1.4580297

Inference: A ratio over 1 indicates that TCS is able to pay its fixed charges.

Total Cash Flow Coverage Ratio

It is an indicator of the ability of a company to pay interest and principal amounts when they become due. This ratio tells the number of times the financial obligations of a company are covered by its earnings. Formula used:
(net earnings+depreciation+amortization) / (total debt)

Values for TCS:

FY 2010-11 132.63226
Inference:

FY 2011-12 103.56166

FY 2012-13 70.141427

A ratio equal to one or more than one means that the company is in good financial health and it can meet its financial obligations through the cash generated by operating activities.

Earnings per Share

The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. Formula used: (PAT-Preference dividend) / (no. of shares) Values for TCS:
FY 2010-11 433.8041 FY 2011-12 814.02012 FY 2012-13 511.84063

Inference: Two companies could generate the same EPS number, but one could do so with less equity (investment) - that company would be more efficient at using its capital to generate income and, all other things being equal, would be a "better" company.

Appraisal Of Management Of Long Term Funding

Long Term Funds

Shared Capital
The Authorised, Issued, Subscribed and Fully paid-up share capital comprises of equity shares and redeemable preference shares having a par value of Re. 1 each as follows:
As at March 31, 2013 (Rs. Cr) Authorised 225,00,00,000 equity shares of Re. 1 each (March 31, 2012: 225,00,00,000 equity shares of Re. 1 each) 100,00,00,000 redeemable preference shares of Re. 1 each (March 31, 2012: 100,00,00,000 redeemable preference shares of Re. 1 each) Issued, Subscribed and Fully paid up 195,72,20,996 equity shares of Re. 1 each (March 31, 2012: 195,72,20,996 equity shares of Re. 1 each) 100,00,00,000 redeemable preference shares of Re. 1 each (March 31, 2012: 100,00,00,000 redeemable preference shares of Re. 1 each) 225.00 100.00 As at March 31, 2012 (Rs. Cr) 225.00 100.00 As at March 31, 2011 (Rs. Cr) 225.00 100.00

325.00 195.72

325.00 195.72

325.00 195.72

100.00

100.00

100.00

295.72

295.72

295.72

Share capital is very less as compared to reserves & surplus

Long Term Borrowings

Long - term borrowings consist of the following:
Long Term borrowings As at March 31, 2013 (Rs. Cr) 81.58 As at March 31, 2012 (Rs. Cr) 93.47 As at March 31,2011 (Rs. Cr) 32.33

(a) Secured loans Long term maturities of obligations under finance Lease (b) Unsecured loans Other borrowings (from entities other than banks)

1.52

2.76

4.00

83.10

96.23

36.33

Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements. Secured loan and unsecured loan is decreased but in a negligible amount as compared to reserve and surplus. The company has not taken any more loans as its reserves and surplus are huge.

Reserves and Surplus

As at March 31, 2013 Rs. 5515.11 Cr Rs. 174.61 Cr
Rs. 32266.53 Cr (31% increase)

General Reserve Foreign Currency Translation Reserve Reserve & Surplus

As at March 31, 2012 Rs. 4280.74 Cr Rs. 152.46 Cr

Rs. 24560.91 Cr (27.37% increase)

As at March 31, 2011 Rs. 3183.14 Cr Rs. 101.61 Cr

Rs. 19283.77 Cr (30.11% increase)

The company has huge reserves and surplus It is almost a zero debt company

Other Long -Term Liabilities

As at March 31, 2013 (Rs. Cr) 251.87 251.87 As at March 31, 2012 (Rs. Cr) 10.63 186.96 197.59 As at March 31,2011 (Rs. Cr) 129.91 129.91

Trade Payables Other Liabilities

Trade payables are settled as compare to last year & other liabilities are increased due to capital creditors It has been increased from Rs. 31.63Cr to Rs. 54.34Cr in FY 2012-13

Capital Gearing Ratio

Debt-Equity Ratio= Debt/Equity (Non-current liabilities + Current liabilities) / (Share capital+ reserve & surplus) Ideal ratio should be less than 1; since it is much less than ideal ratio The company can take much more debt to increase the degree of financial leverage
Financial Year Debt- Equity Ratio

FY 2012-13
FY 2011-12 FY 2010-11

0.32
0.37 0.33

Total Debt Ratio

Total debt ratio= total debt/total assets i.e. (Non-current liabilities +current liabilities)/Total assets Since the debt is about 1/4th of the total assets, so the company can remove its debt liability very easily
Financial Year FY 2012-13 FY 2011-12 FY 2010-11 Total Debt Ratio 0.24 0.27 0.25

Proprietary Ratio ( Shareholders Equity Ratio)

Proprietary ratio= shareholders funds/total assets i.e. (Share Capital + Reserve & Surplus)/total assets

It represents the amount of assets on which shareholders have a residual claim. The higher the ratio, the more shareholders may receive.
Financial Year
FY 2012-13 FY 2011-12 FY 2010-11

Proprietary(Shareholders Equity) Ratio 0.76

0.73 0.75

Degree of Financial Leverage (DFL)

Degree of Financial Leverage= EBIT/EBT i.e. (EBT + Interest)/EBT It represents that higher the interest higher is degree of financial leverage Since DFL is 1.00 from past financial years, it indicates that the company has not taken any advantage of the financial leverage
Financial Year FY 2012-13 FY 2011-12 FY 2010-11 DFL 1.00 1.00 1.00

Degree of Operation Leverage (DOL)

Degree of Operation Leverage (DOL) = Contribution/Operating Profit
There is no mentioning of variable cost in annual reports

Financial Year FY 2012-13 FY 2011-12 FY 2010-11

DOL Nil Nil Nil

Appraisal of Investment Decision

Assets
As at March 31, 2013
Tangible assets Intangible assets Capital work in progress Fixed Assets Deferred tax assets (net) Long-term loans and advances Non-Current Assets 5059.48 44.80 1763.85 8141.87 310.22 5234.13 20690.66

March 31, 2012

4012.16 51.46 1399.82 5463.44 139.74 4332.81 17723.02

March 31, 2011

3363.78 58.40 1072.86 4495.04 52.03 2864.09 15472.33

Total Assets

43012.14

34258.81

26042.81

Current Assets
Particulars Current investments Trade receivables
Cash and bank balances Short term loans and advances Other current assets Total Current Assets 2013

2012 538.24 9107.72

3280.07 1648.72 389.43

2011
337.58 4806.67 3120.52 1369.05 94.92 15428.04

348.65 11202.32
4054.16 4911.48 682.34

23508.64

16535.79

Proportion of fixed assets

= Fixed assets/ Total assets

Particulars
Fixed Assets/ Total Assets

2013
0.19

2012
0.16

2011
0.17

Proportion of current assets

= Current assets/ Total assets Particulars
Current Assets/ Total Assets

2013
0.55

2012
0.48

2011
0.59

Current Ratio
Current ratio = Total current assets/ Total current liabilities

Year 2011 2012 2013

Calculation 15428.04 / 6353.18 16535.79 / 8835.48

Current Ratio 2.429 1.8715 2.428

23508.64 / 9676.91

Quick Ratio
Quick ratio = (Current Assets Inventory)/Current liabilities

Year 2011 2012

2013

Calculation
15428.04 / 6353.18 16535.79 / 8835.48 23508.64 / 9676.91

Quick Ratio 2.427 1.871

2.428

Fixed Asset Turnover Ratio

Fixed Asset Turnover Ratio = Net Sales/Average Fixed Assets
Fixed asset Turnover Ratio
7.14 7.65

Year
2011 2012

Calculations
29275.41/4098.14 38104.23/4979.24

2013

48426.14/6165.78

7.85

 Current Ratio is well above the standard ratio of 2:1 hence Margin of Safety for the liabilities is sufficient and the company is in a healthy position to pay its current liabilities out of its current assets. Quick Ratio has increased in 2012-13 compared to 2010-11 which means, cash or cash equivalent are more and, if there is any favorable Investment opportunity, company would be able to capitalize on it. The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues. In other words, the fixed assets are adequately being utilized to generate sales for the company Investments are justified.

Financial Highlights
Company rewarded their shareholders with regular dividend and paid total dividend of Rs 22 per share including Rs 13 proposed as final dividend Company added 80 new customers across globe making active customer base to 1156 Company acquired Computational Research Laboratories Limited (CRL)

The Company had 58 subsidiaries as on March 31, 2013

No public deposits accepted by the company and hence no interest on public deposits was outstanding

Appraisal of Working Capital Management

WORKING CAPITAL
Working Capital = Current Assets Current Liabilities
Rs Crore Year 2013-2012 2012-2011 2011-2010

Current Assets (A)

Current Liabilities (B) Working Capital (A-B)

23508.64
9676.91 13831.73

16535.79
8835.48 7700.31

15428.04
6227.76 9200.28

The company has shown a steady increase in its working Capital from year 2012 to 2013 The current assets have risen on account of increase in current investments and trade receivables. The current liabilities have also substantially risen on account of rising of short term borrowings.

CURRENT RATIO
Current Ratio= Total Current Assets / Total Current Liabilities
Rs Crore Year 2013-2012 23508.64 9676.91 2.4293 2012-2011 16535.79 8835.48 1.8715 2011-2010 15428.04 6227.76 2.4773

Total Current Assets (A) Total Current Liabilities (B) Current Ratio (A/B)

Current Ratio of 2:1 is considered satisfactory Higher value of current ratio is indication of margin of safety that TCS has The firm is in a good position to pay back its liabilities from its current assets Also FY 2012-2013, the trade receivables amounts to Rs 11202.32 crore, which is much higher than its combined total current liabilities

QUICK RATIO
Quick Ratio= (Total Current Assets Inventory) Total Current Liabilities
Rs Crore Year 2013-2012
23508.64 9676.91 6.34 2.4286

2012-2011
16535.79 8835.48 4.14 1.8710

2011-2010
15428.04 6227.76 64.7 2.4773

Total Current Assets (A) Total Current Liabilities (B) Inventory (C) Quick Ratio {(A-C)/B}

Quick Ratio of 1:1 is considered to represent a satisfactory current financial condition There is very small evident difference in value of current and quick ratio. This is because TCS has very little inventory Increasing quick ratio for TCS indicates that the company is experiencing top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations

WORKING CAPITAL TURNOVER RATIO

Working Capital Turnover Ratio = Net Sales/ Net Working Capital
Rs Crore Year 2013-2012 2012-2011 2011-2010

Total Current Assets (A)

Total Current Liabilities (B) Net Sales (C) Working Capital Turnover {C/(A-B)}

23508.64
9676.91 48426.14 3.50

16535.79
8835.48 38858.54 5.04

15428.04
6227.76 29770.14 3.23

Net Sales has increased over the period of analysis. However working capital has shown rise, which is more in proportion to sales This ratio has declined from 2012-2011 to 2013-2012, which indicates that company was not able to use its working capital for generating sales TCS has much lower time period of conversion of working capital into sales

ASSET TURNOVER RATIO

Asset Turnover Ratio = Net Sales/ Total Assets
Rs Crore Year 2013-2012 2012-2011 2011-2010

Total Current Assets (A)

Total Non Current Assets (B) Net Sales (C) Asset Turnover {C/(A+B)}

23508.64
19503.5 48426.14 1.12

16535.79
14575.94 38858.54 1.24

15428.04
10906.98 29770.14 1.13

Asset turnover measures a firm's efficiency at using its assets in generating sales or revenue - the higher the number the better There is a minor decrease in Asset Turnover in FY2013 from FY 2012 owing to increase in the Total assets of the company Compared with Infosys (1.2 FY 2013-12), TCS is maintaining same industry standard

Appraisal of Working Capital

FY 2011-2010 : 1) TCS' working capital management has consistently lagged its primary peer, Infosys, particularly over the financial year 2010 - 11. On an average, Infosys' Operating Cash Flow (OCF) had been 134% as against TCS' 99% since FY09 to FY11 2) TCS attributed this to the increased proportion of revenue from geographies such as India and Latin America 3) Much of the work done in India relates to servicing the government sector, where the cash cycles tend to be longer 4) Debtor days declined during 2010-11, but were still higher than Infosys. FY 2012-2011 1) In FY12, debtor and unbilled revenue days rose significantly to 103 days from 93 days in FY11 and taxes paid also surged nearly 80% YoY. 2) This was the key reason for the slow 6% YoY growth in OCF, despite a healthy 29% YoY growth in EBIT.

Appraisal of Working Capital

FY 2013-2012 : 1) TCS working capital management improved in FY13 compared with FY12 because of better debtor management. The IT majors debtor days witnessed an improvement from 86 days in FY12 to 82 days in FY13. On the unbilled revenue front, unbilled revenue days rose slightly to 18 from 17 in FY12. 2) Thus, overall debtor and unbilled revenue days declined from 103 in FY12 to 100 in FY13, the key reason for improved working capital management. 3) Thus, in FY13, significant improvement in working capital management ensured that healthy EBIT growth also translated into strong OCF growth.

Appraisal Of Overall Financial Management Of Tata Consultancy Services

Revenue growth showing 6 fold increase in 9yrs CAGR of 26.27% Realization and offshore leverage Exchange rate fluctuation

Financial Performance

EBITDA

Growth of 24.97%

PBT

Growth of 29.92

PAT

Growth of 33.65%

DIVIDEND

Gross Dividend paid was to the tune of Rs 5,024.06 crores Growth of 33.77%

EPS

Critical Analysis-EBITDA
EBITDA as a percentage of revenue(in crores)
Year EBITDA/Revenue 2013 Rs 18,039.91 2012 Rs 14,435.31

There is a decrease of 0.88% mainly because Increase in Employee and BA related costs by 1.23% Increase in operation and other expenses by 0.37%

Effect Of High WC, In Business

In FY2013, an additional amount of Rs 1,766.54 crores (Rs 3,458.36 crores in fiscal 2012) was used in working capital to meet the expanding business requirements.

Strategic Alliances and Subsidiaries

In fiscal 2013 TCS acquired Computational Research Laboratories Limited for Rs 162.62 crores TCS has 54 Subsidaries and 4 subsidaries were set up in the year 2012 (i) Tata Consultancy Services Qatar S.S.C. (ii) Nippon TCS Solution Center Limited (iii) Tata Consultancy Services Osterreich GmbH (iv) Tata Consultancy Services Danmark ApS

Financial Performance on Ratio Basis

Current ratio -2.429 Higher current ratio implies healthier short term liquidity comfort level Company has not been facing liquidity problems to meet its short term objectives Debt/equity ratio- 0.32% This ratio indicates the proportion of equity and debt used by the company to finance its assets TCSs long term debt to equity ratio for FY 2013 is 0.32 and its average long term debt to equity ratio over the last 5 financial years has been 0.003 times which indicates that the Company is operating with very low levels of debt

 Return on Capital Employed (ROCE)-47.2% Amount of profit which the company generates on money invested by the equity shareholders. Also called as Return on investment There is a slight drop in the ratio value which indicates there is a marginal reduction in the returns available to the firm, yet overall figures still holds good for the firm

Operating profit ratio-31.06% Tells the overall profitability of the company

 Quick Ratio -2.428% Indicates companies ability to pay out quick liabilities from quick assets Indicates o Liquidity position o Short term financial position Ability to meet commitments without delay It has increased from 1.871% to 2.428% indicating the capacity of the company to pay out obligations