by: ChandraShekhEr Doot Nidhi Kesarwani Shanu AgRAwal Tanmay KULSHRESTHA

One of the major and fully vertically integrated composite mills player

in India. It has large production in denim, shirting and knitted garments It is now adding value by manufacturing denim apparel Sales: US$ 300 million Founded: 1931 Headquarters: Ahmedabad Brands
Flying Machine Newport Ruf & Tuf Excalibur

 Large, diversified integrated business model, which is spread across the

value chain from yarn to retail Specialized in Diversified woollen textiles Sales: US$ 254.4 million Founded: 1925 Headquarters: Mumbai Brands
Raymond Premium Apparel Apparel Manzoni

Park Avenue
ColorPlus Parx NottingHill

OVERVIEW
Analyze Liquidity Ratios Analyze Activity or Turnover Ratios

Analyze Financial Ratios

Analyze Profitability Ratios Conclusion References

FINANCIAL RATIOS
Liquidity Ratios

Current Ratio Quick ratio

Activity or Turnover Ratios

Asset Turnover Ratio Inventory Turnover ratio

Leverage Ratios

Debt Equity Ratio Interest Coverage Ratio

Profitability Ratios

Gross Profit Margin% Net Profit Margin % Return on Assets Earnings Per Share

LIQUIDITY RATIOS

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

4 3.5

3
2.5 2 ARVIND 1.5 1 0.5 0 mar,08 mar,09 mar,10 mar,11 mar,12 RAYMOND

ARVIND

3.72

2.62 2.06

3.26 2.21

2.77 2.08

1.84 1.36

RAYMOND 2.2

Current ratio
Arvind limited Current asset current liabilities Raymond limited Current asset Current liabilities March 2012(in crores) 1644.79 1835.1 March 2012(in crores) 1312.77 1001.0072 March 2011(in crores) 1705.67 1649.91 March 2011(in crores) 1178.7504 758.0126

For both companies current ratio is decreasing as compared to march 2011 But in Arvind limited it decreases due to decrease in current asset and in Raymond limited it decreases due to decrease in current liabilities.

QUICK RATIO = QUICK ASSETS/CURRENT LIABILITIES

2.5

1.5 RAYMOND ARVIND 1

0.5

0 mar,08 mar,09 mar,10 mar,11 mar,12

ARVIND RAYMOND

2.27 1.4

1.66 1.26

2.31 1.42

1.7 1.15

1.11 0.78

Quick ratio
Arvind limited Quick asset Quick liabilities March 2012 701.62 1835.1 March 2011 718.88 1649.91

Raymond limited Quick asset Quick liabilities

March 2012 1871.8726 1001.0072

March 2011 1496.4666 758.0126

ACTIVITY OR TURNOVER RATIOS

ASSET TURNOVER RATIO = NET SALES/AVERAGE TOTAL ASSETS

1.2
1 0.8 0.6 0.4 0.2 0 mar,08 mar,09 mar,10 mar,11 mar,12 RAYMOND ARVIND

ARVIND

0.85

0.86 0.83

0.78 0.8

0.85 0.88

0.97 0.85

RAYMOND 1.01

Asset turnover ratio

Arvind limited Net sales
Total asset

March 2012 3494.12

4624.97

March 2011 2683.26

4259.20

Raymond limited Net sales Total asset

March 2012 1871.87 2950.87

March 2011 1496.46 2809.65

For both companies this ratio is increasing because of increase in net sales.

INVENTORY TURNOVER RATIO = NET SALES/AVERAGE INVENTORY

6

4 RAYMOND 3 ARVIND

0 mar,08 mar,09 mar,10 mar,11 mar,12

ARVIND

4.13

4.03

5.84

3.99

4.82

RAYMOND 4.35

4.39

5.12

3.79

4.42

Inventory turnover ratio

Arvind limited Net sales Average inventory Raymond limited Net sales Average inventory March 2012 3494.12 713.79 March 2012 1871.87 430.38 March 2011 2683.26 640.315 March 2011 1496.46 348.79

For both companies this ratio is increasing because of increase in net sales.

LEVERAGE RATIOS

DEBT-EQUITY RATIO = EXTERNAL EQUITIES/INTERNAL EQUITIES

1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 MAR,08 MAR,09 MAR,10 MAR,11 MAR,12 RAYMOND ARVIND

ARVIND

0.87

0.74 1.36

0.75 1.6

0.82 1.25

0.67 0.95

RAYMOND 1.23

Debt equity ratio

Arvind limited External equities Internal equities March 2012 2604.78 2020.19 March 2011 2463.69 1795.51

Raymond limited
External equities Internal equities

March 2012
1846.57 1104.30

March 2011
1744.06 1065.58

For both companies this ratio decreases because of increase in intenal equities.

INTEREST COVERAGE RATIO = EBIT/INTEREST CHARGES

2 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1 2 3 4 5

RAYMOND
ARVIND

ARVIND

0.87

0.74 1.36

0.75 1.6

0.82 1.25

0.67 0.95

RAYMOND 1.23

Interest coverage ratio

Arvind limited EBIT Interest charges Raymond limited EBIT Interest charges March 2012 506.54 270.25 March 2012 184.01 131.89 March 2011 286.18 215.44 March 2011 173.58 101.88

PROFITABILITY RATIOS

GROSS PROFIT MARGIN % = GROSS PROFIT/NET SALES x 100

12 10 8 6 4 2 0 MAR,08 MAR,09 MAR,10 MAR,11 MAR,12 RAYMOND ARVIND

ARVIND

4.1

5.26

8.44

10.05

10.61

RAYMOND 0.78

2.18

1.28

7.51

Gross profit ratio

Arvind limited Gross profit Net sales Raymond limited Gross profit Net sales March 2012 236.29 3494.12 March 2012 83.74 1871.87 March 2011 134.80 2683.26 March 2011 98.53 1496.46

This ratio increases for arvind limited because of increase in gross profit and decreases for raymond limited because of increase in net sales.

NET PROFIT MARGIN% = NET PROFIT/NET SALES x 100

15
10 5 0

mar,08
-5 -10 -15 -20

mar,09

mar,10

mar,11

mar,12

RAYMOND

ARVIND

ARVIND

1.22

-1.99

2.2

5.02

11.96

RAYMON D

4.71

-18.34

1.87

-6.71

2.9

Net profit ratio

Arvind limited
Net profit Net sales

March 2012
434.23 3494.12

March 2011
134.80 2683.26

Raymond limited
Net profit Net sales

March 2012
56.35 1871.87

March 2011
-100.19 1496.46

This ratio increases for arvind limited because of increase in net profit and increase for raymond limited because of increase in net profit.

RETURN ON ASSETS = NPAT/TOTAL ASSETS

250

200

150 RAYMOND ARVIND 100

50

0
mar,08 mar,09 mar,10 mar,11 mar,12

ARVIND

64.23

52.18

60.89

70.61

79.2

RAYMOND 227.8

183.61

191.09

173.6

179.91

Return on asset
Arvind limited Net profit Total asset Raymond limited Net profit Total asset March 2012 434.23 4624.97 March 2012 56.35 2950.87 March 2011 134.80 4259.20 March 2011 -100.19 2809.65

For both companies this ratio is increses because of increse in net profit.

EPS = PAT/NO. OF EQUITY SHARES

30 20 10 0 1 -10 -20 -30 -40 -50 2 3 4 5 ARVIND RAYMOND

ARVIND

1.14

-2.26

2.21

5.3

17.05

RAYMOND 10.77

-44.05

4.3

-17.09

9.18

Earnings per share

Arvind limited Net profit No of shares Raymond limited Net profit No of shares March 2012 434.23 258043069 March 2012 56.35 61380853 March 2011 134.80 254632541 March 2011 -100.19 61380853

CONCLUSION
Can join Arvind as an executive
Can invest in Arvind

REFERENCES
http://www.raymondindia.com/inv_ar.asp http://www.arvindmills.com/pdf/annaul_finacial_rep

orting/AnnualReportfor2011-12.pdf http://www.arvindmills.com/pdf/annaul_finacial_rep orting/Arvind%20Ltd.%20%20Annual%20Report%20f or%202009-10.pdf http://money.rediff.com/companies/arvindltd/16010001/ratio

THANK YOU