Ratio
Current Ratio Interpretation From the calculation of the current ratio it is evident that the company’s current ratio for the year 2010 is 1.30:1 ,2011 is 1.80:1, 2012 is 1.54:1 and 2013 is a 1,53:1, that is company’s current assets in year 2013 was Rs. 1.53 for every 1Re of current liability, while in the year 2012 the current asset was Rs 1.54 Re of its current liability, while in the year 2011 the current assets was Rs 1.80 Re of its current liability, and while in the year 2010 the current assets was Rs 1.30 Re of its current liability. This signifies that the company’s ability to pay off its debt in year 2010, 2011 was not good as compare to its current liabilities.
Fixed Turnover Ratio
Interpretation
The ratio indicates the ability of the firm to generate sales from its capital assets. It indicates how well the company can generate sales from every rupee of capital assets available with the company. The ratio is continuous increasing as compare to preceding year. It is a good sign since aim of the company should decrease its efficient rather than increases.
Debt-Equity Ratio
Interpretation
Interpretation Debt equity ratio in year 2010 was 0.42:1 it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.42 paisa by way of debt from outside. Debt equity ratio in the year 2011 is 0.42:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.42 by way of debt from outside. Debt equity ratio in the year 2012 is 0.46:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.46 by way of debt from outside. Debt equity ratio in the year 2013 is 0.52:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.52 by way of debt from outside. Comparing ratio of the years one can say company has major fixed liability of payment of interest and other obligation to debt. The ratio decrease little bit in year
Fixed Turnover Ratio
Interpretation
The ratio indicates the ability of the firm to generate sales from its capital assets. It indicates how well the company can generate sales from every rupee of capital assets available with the company. The ratio is continuous increasing as compare to preceding year. It is a good sign since aim of the company should decrease its efficient rather than increases.
Debt-Equity Ratio
Interpretation
Interpretation Debt equity ratio in year 2010 was 0.42:1 it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.42 paisa by way of debt from outside. Debt equity ratio in the year 2011 is 0.42:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.42 by way of debt from outside. Debt equity ratio in the year 2012 is 0.46:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.46 by way of debt from outside. Debt equity ratio in the year 2013 is 0.52:1; it means for every 1 Re. invested by way was of equity, the company has borrowed Rs.0.52 by way of debt from outside. Comparing ratio of the years one can say company has major fixed liability of payment of interest and other obligation to debt. The ratio decrease little bit in year