Profitability Analysis: Tata Chemicals
Profitability Analysis
• In the last 5 years we can see the profitability ratios of the company taking a beating.
• Especially in the last 2 years, these margins have drastically dropped.
• As a result of this, the company’s profit margins have dipped and in this particular the company has incurred a loss.
• As we can see in the graph, Net margin ratio has been affected and has seriously dipped in the past years.
• Though gross margin and operating margin have looked like increasing, these two margins have gone down in the last two years.
• Company needs to come up with new and competitive strategy in order to survive and do well in the upcoming years.
• If the company fails to do so, company might be end incurring a lot of debt and might not be able to …show more content…
Many shares have been sold in the last 3 years.
• Its effective and efficient Management has resulted in company’s success over a constant period.
• Dividend yield Ratio is maximum from Tata Chemicals. This results in shareholders showing willingness to purchase more share and thus enabling the company to capture a major portion of the market share.
• BASF India Limited has been slowly capturing the market. Their growth has been constant. The company has been giving a strong competition.
• Phillips Carbon Black Limited has been increasing its debts. If this trend continues, the company might not be able to survive in the long run.
• Their profits have declined by 25% and 6% in the last two years.
• Phillips Carbon Black has a strong R&D team compared to its competitors and must come up with new technologies and ideas to recapture its market share.
• New strategies must be put into place and the company must try to address its debt issues.
• Overall, Chemical Industry has been growing but the profitability has been volatile over the last 5 years.
• However there is a potential for the industry to increase its profit as there is significant
• In the last 5 years we can see the profitability ratios of the company taking a beating.
• Especially in the last 2 years, these margins have drastically dropped.
• As a result of this, the company’s profit margins have dipped and in this particular the company has incurred a loss.
• As we can see in the graph, Net margin ratio has been affected and has seriously dipped in the past years.
• Though gross margin and operating margin have looked like increasing, these two margins have gone down in the last two years.
• Company needs to come up with new and competitive strategy in order to survive and do well in the upcoming years.
• If the company fails to do so, company might be end incurring a lot of debt and might not be able to …show more content…
Many shares have been sold in the last 3 years.
• Its effective and efficient Management has resulted in company’s success over a constant period.
• Dividend yield Ratio is maximum from Tata Chemicals. This results in shareholders showing willingness to purchase more share and thus enabling the company to capture a major portion of the market share.
• BASF India Limited has been slowly capturing the market. Their growth has been constant. The company has been giving a strong competition.
• Phillips Carbon Black Limited has been increasing its debts. If this trend continues, the company might not be able to survive in the long run.
• Their profits have declined by 25% and 6% in the last two years.
• Phillips Carbon Black has a strong R&D team compared to its competitors and must come up with new technologies and ideas to recapture its market share.
• New strategies must be put into place and the company must try to address its debt issues.
• Overall, Chemical Industry has been growing but the profitability has been volatile over the last 5 years.
• However there is a potential for the industry to increase its profit as there is significant