8/6/2019 abm pptt1

1/12

Hina Tarey(140)

Esha Patra (179)Neha Rai (144)

Suresh Kumar Shah(173)

R.Anita Kumari(157)

Ravi Kumar(130)

8/6/2019 abm pptt1

2/12

MANAGEMENT- RELIANCE

COMMUNICATION

Name Designation

Anil D Ambani ChairmanS P Talwar Director

A K Purwar Director

J Ramachandran Director

Deepak Shourie Director

8/6/2019 abm pptt1

3/12

PROFITABILITY RATIO

1) Profit Margin ratio :- This ratio also known as (ROS),measures the amount

of net profit earned by each rupee of revenue.

Profit Margin ratio = PAT /SALES.

2) Gross Operating Margin:- The Gross Operating Margin illustrates the profit

a company makes after paying off its Cost of Goods sold (cost of inventory). Gross

Profit Margin .

Gross Operating Margin = (Sales cost of goods sold) / Sales

3) Net Operating Margin :- ratio used to measure a company's pricing strategy

and operating efficiency.

Net Operating margin = Net profit before interest and tax /Sales

8/6/2019 abm pptt1

4/12

ROI RATIO

y Return on equity (ROE) = Net profit after taxEquity

y Return on assets (ROA) = Net profit before interest

Total assets= Net profit after tax + (interest * (1-tax rate))

Total assets

Return on capital employed (ROCE) = Net profit before interest on Ltdebt

Equity + LT-debt

y Earnings per share (EPS) = Net profit after tax

Number of shares outstanding

8/6/2019 abm pptt1

5/12

Asset Turnover :-The asset turnover is used for the firm efficiency. It

indicates how many times assets were turned over in a

period and thereby generated sales. Turnover ratiosmeasure efficiency of use of (categories of) assets.Tend

to be industry-specific.

Main ratios:

Total asset turnover=sales/total assetsFixed asset turnover=sales/fixed assetsInventory turnover=cost of sales/inventoriesReceivable turnover=(netcredit)sales/receivables

Sales

Totalassetturnover =T otalassets

SalesFixedassetturnover =Fixedassets

CostofsalesInventoryturnover =

Inventories

(Netcredit)SalesReceivablesturnover =

Receivables

8/6/2019 abm pptt1

6/12

SWOT ANALYSIS

Strengths: attributes of theorganization those are helpful toachieving the objective.

Weaknesses: attributes of theorganization those are harmful toachieving the objective.

Opportunities: external conditionsthose are helpful to achieving the

objective.

Threats: external conditions that isharmful to achieving the objective

8/6/2019 abm pptt1

7/12

CONTINUED

y Strength-Low EntryCost-Commission Structure-Fast Activation Process

-Network-Connectivity- Data GPRS

y Weakness-Branding Image

- Distribution problem- Limited product portfolio-Only Mobile-Lack ofCompetitive Strength- Limited Budget

8/6/2019 abm pptt1

8/12

CONTINUED

y Opportunity

- Preference of GSM over

-CDMA

-New Specialist Application- Rural Telephony- New Market,

- Competitors` Vulnerabilities

y Threat

- Political destabilization.- New Entrants- IT Development- Market Demand- Seasonality, Weather Effects

8/6/2019 abm pptt1

9/12

FINANCIAL STRENGTH RATIOSUSE OF FINANCIAL RATIO

y Financial ratios are useful indicators of a firm's

performance and financial situation.y Most ratios can be calculated from information provided

by the financial statements.

y Financial ratios can be used to analyze trends and tocompare the firm's financials to those of other firms.

It explain the financial position of a company from thefollowing point of view.

Long Term solvency

Short term liquidity

8/6/2019 abm pptt1

10/12

8/6/2019 abm pptt1

11/12

Short Term

Liquidity-It refer to the ability to general cash to meet short term

obligation/claims(1) Current Ratio(2) Acid Test (Quick Ratio)

It focus on make up working capital & activity level of itscomponent.

Low liquidity implies financial risk as in ability to service shortterm debt payment may led to bankrupt.

Ratio to be Considera) Current Ratio=CA / CL

b) Quick Ratio= CA Inventory / CL

8/6/2019 abm pptt1

12/12

Reference Linksy www.bse-india.com

y http://www.nse-india.com

y http://www.researchandmarkets.com