3 years comparative ratio, trend analysis and common size statement of bajaj auto and hero motocorp

Overview of Bajaj Auto LtdBajaj Auto Ltd

TypePublic company

Traded AsBSE : 532977NSE : BAJAJ-AUTO

IndustryAutomotive

FounderJamnalal Bajaj

HeadquarterPune, India

Key PeopleRahul Bajaj (Chairman)Rajiv Bajaj (MD)

ProductsMotor Cycle, Three-Wheelers Vehicles & Car

RevenueRS. 208 Billion (2013)

Employees8,036

ParentBajaj Group

SubsidiariesBajaj Auto Indonesia

Websitewww.bajajauto.com

Overview of Hero Motocorp LtdHero Motocorp Ltd

Hum Main Hai Hero

TypePublic Company

Traded AsBSC : 500182NSC: HEROMOTOCO

IndustryAutomotive

PredecessorsHero Honda Motors Ltd

Founded19th January 1982

HeadquartersNew Delhi , India

Key PeopleDr Brijmohan lall Munjal (Chairman)Pawan Munjal (MD & CEO)

ProductsMotor Cycle , Scooter

RevenueRS. 241.66 billion (2013)

Employees5,842

ParentHero Group

SubsidiariesErik Buell Racing

Websitewww.heromotocorp.com

Definitions

1). Common Size Income Statement An income statement in which each amount is expressed as a percentage of the values of sales. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company. 2). Common Size Balance Sheet A balance sheet that display both the numeric value of all entries & the percentage each entry is relative to the total value of related entries. On common size balance sheet, an asset is compared to total assets, a liability to total liabilities & stockholder equity to total stockholder equity.

3). Trend Analysis An aspect of technical analysis that tries to predict the future movement of a stock based on past data. Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.

4). Ratio Analysis Ratio Analysis is a form of financial statement analysis that is used to obtain a quick indication of a firms financial performance in several key areas.

Mar '14Mar '13Mar '12

12 mths12 mths12 mths

Income

Sales Turnover20,149.5119,997.2520,475.74

Excise Duty0.000.00959.09

Net Sales20,149.5119,997.2519,516.65

Other Income706.41795.49413.66

Stock Adjustments18.90-24.0094.15

Total Income20,874.8220,768.7420,024.46

Expenditure

Raw Materials14,289.2014,761.8314,580.24

Power & Fuel Cost106.16121.33101.85

Employee Cost726.58639.48541.04

Other Manufacturing Expenses0.000.0073.76

Selling and Admin Expenses0.000.00364.06

Miscellaneous Expenses940.73815.36263.37

Preoperative ExpCapitalised0.000.00-49.43

Total Expenses16,062.6716,338.0015,874.89



Operating Profit4,105.743,635.253,735.91

PBDIT4,812.154,430.744,149.57

Interest0.490.5422.24

PBDT4,811.664,430.204,127.33

Depreciation179.61163.97145.62

Other Written Off0.000.002.14

Profit Before Tax4,632.054,266.233,979.57

Extra-ordinary items0.000.0046.60

PBT (Post Extra-ord Items)4,632.054,266.234,026.17

Tax1,388.731,222.661,022.12

Reported Net Profit3,243.323,043.573,004.05

Total Value Addition1,773.471,576.171,294.65

Preference Dividend0.000.000.00

Equity Dividend1,446.841,302.151,302.15

Corporate Dividend Tax245.89221.30211.24

Profit & Loss account of Bajaj Auto------------------- in Rs. Cr. -------------------

COMMON SIZED PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTDFOR THE YEAR ENDED 31ST MARCH 2014PARTICULARSMAR 2014MAR 2013MAR 2012

(RS IN CRORE)COMMON SIZE %(RS IN CRORE)COMMON SIZE %(RS IN CRORE)COMMON SIZE %

Gross Sales20,149.5110019,997.2510020,475.74104.91

Excise Duty0.000.000.000.00(959.09)(4.91)

Net Sales20,149.5110019,997.2510019,516.65100

Materials Cost (14,289.20)(70.91)(14,761.83)(73.82)(14,580.24)(74.71)

(+)/(-) Stock Adj18.900.09(24)(0.12)94.150.48

Other manufacturing exp0.000.000.000.0073.760.38

Preoperative ExpCapitalised0.000.000.000.00(49.43)(0.25)

COGS(14,270.30)(70.83)(14,785.83)(73.94)(14,510.42)(74.35)

GP ( Net Sales COGS)5,879.2129.185,211.4226.065,006.2325.65

Employee cost(726.58)(3.61)(639.48)(3.20)(541.04)(2.77)

Power & Fuel Cost(106.16)(0.52)(121.33)(0.61)(101.85)(052)

Selling , Admi& Other exp(940.73)(4.67)(815.36)(4.08)(627.43)(3.21)

(+)Other Income (Operating)706.413.51795.493.98413.662.12

PBDIT4,812.1523.884,430.7422.164,149.5721.26

Depreciation(179.61)(0.89)(163.97)(0.82)(147.76)(0.76)

Operating profit OP/PBT4,632.5422.994,266.7721.344,001.8120.50

Interest & Finance Charge(0.49)(0.002)(0.54)(0.003)(22.24)(0.11)

PBTEOT4,632.0522.994,266.2321.333,979.5720.39

(+)/(-) Extra ordinary item0.000.000.000.0046.600.24

PBT -Y4,632.0522.994,266.2321.334,026.1720.63

(+)/(-) Prior Year Adj0.000.000.000.000.000.00

PBT4,632.0522.994,266.2321.334,026.1720.63

Tax(1,388.73)(6.89)(1,222.66)(6.11)(1,022.12)(5.24)

Net Profit/PAT3,243.3216.093,043.5715.223,004.0515.39

Profit & Loss account of Hero Motocorp------------------- in Rs. Cr. -------------------



Income

Sales Turnover25,275.4723,768.1125,252.98

Excise Duty0.000.001,666.18

Net Sales25,275.4723,768.1123,586.80

Other Income446.38398.38347.46

Stock Adjustments-8.360.0094.03

Total Income25,713.4924,166.4924,028.29

Expenditure

Raw Materials18,320.4617,470.7317,485.65

Power & Fuel Cost137.46129.18112.66

Employee Cost930.04820.92735.52

Other Manufacturing Expenses0.000.0051.62

Selling and Admin Expenses0.000.001,257.84

Miscellaneous Expenses2,339.092,025.33389.52

Preoperative ExpCapitalised0.000.000.00

Total Expenses21,727.0520,446.1620,032.81



Operating Profit3,540.063,321.953,648.02

PBDIT3,986.443,720.333,995.48

Interest11.8211.9133.43

PBDT3,974.623,708.423,962.05

Depreciation1,107.371,141.751,097.34

Other Written Off0.000.000.00

Profit Before Tax2,867.252,566.672,864.71

Extra-ordinary items0.000.000.00

PBT (Post Extra-ord Items)2,867.252,566.672,864.71

Tax758.17411.04486.58

Reported Net Profit2,109.082,118.182,378.13

Total Value Addition3,406.592,975.432,547.16

Preference Dividend0.000.000.00

Equity Dividend1,299.131,198.13898.59

Corporate Dividend Tax220.79203.62145.77

Per share data (annualised)

Shares in issue (lakhs)1,996.881,996.881,996.88

Earning Per Share (Rs)105.62106.07119.09

Equity Dividend (%)3,252.703,000.002,250.00

Book Value (Rs)280.43250.70214.83

COMMON SIZED PROFIT & LOSS ACCOUNT OF HERO MOTOCORPFOR THE YEAR ENDED 31ST MARCH 2014PARTICULARSMAR 2014MAR 2013MAR 2012

(RS IN CRORE)COMMON SIZE %(RS IN CRORE)COMMON SIZE %(RS IN CRORE)COMMON SIZE %

Gross Sales25,275.4710023,768.1110025,252.98107.06

Excise Duty0.000.000.000.00(1,666.18)(7.06)

Net Sales25,275.4710023,768.1110023,586.8100

Materials Cost (18,320.46)(72.48)(17,470.73)(73.50)(17,485.65)(74.13)

(+)/(-) Stock Adj(8.36)(0.03)0.000.0094.030.40

Other manufacturing exp0.000.000.000.00(51.62)(0.22)

Preoperative ExpCapitalised0.000.000.000.000.000.00

COGS(18328.82)(72.51)(17,470.73)(73.50)(17,443.24)(73.95)

GP ( Net Sales COGS)6,946.6527.486,297.3826.506,143.5626.05

Employee cost(930.04)(3.68)(820.92)3.45(735.52)(3.12)

Power & Fuel Cost(137.46)(0.54)(128.18)(0.54)(112.66)(0.48)

Selling , Admi& Other exp(2,339.09)(9.25)(2,025.33)(8.52)(1,647.36)(6.98)

(+)Other Income (Operating)446.381.77398.381.66347.461.47

PBDIT3986.4415.773,721.3315.663,995.4816.94

Depreciation1,107.37(4.38)(1,141.75)(4.80)(1,097.34)(4.65)

Operating profit OP/PBT2,879.0711.392,579.5810.852,898.1412.29

Interest & Finance Charge(11.82)(0.05)(11.91)(0.05)(33.43)(0.14)

PBTEOT2,867.2511.342,567.6710.802,864.7112.15

(+)/(-) Extra ordinary item0.000.000.000.000.000.00

PBT -Y2,867.2511.342,567.6710.802,864.7112.15

(+)/(-) Prior Year Adj0.000.000.000.000.000.00

PBT2,867.2511.342,567.6710.802,864.7112.15

Tax(758.17)(3.00)(411.04)(1.73)(486.58)(2.06)

Net Profit/PAT2,109.088.342,156.639.072,378.1310.08

Common-Sized Analysis of Bajaj Auto Ltd. & Hero Motocorp Ltd.

Profit & Loss Account

Net sales: Growth in Hero Motocorp 6.34% while in Bajaj Auto only 0.76%.

Material cost as a Percentage of net sales more or less in the same ratio in both the companies. However it decreased by 2.91% in the case of Bajaj Auto while 1.02% in the case of Hero Motocorp.

Expenses other than materials cost are much higher in Bajaj Auto as against Hero Motocorp. However hero Motorcorp is much more cost efficient than Bajaj Auto as its expenses are around 22.14% less than Bajaj Auto.

Other operating income is 3.51% in 2013-14 & 3.98% in 2012-13 in case of Bajaj auto while remained more or less stagnant (1.77% &1.66%) in case of hero motocorp ltd.

Result: PBDIT down in both the cases but downfall much more in case of Bajaj auto (23.88% against 22.16%) while just 15.77% against 15.66% in case of hero motocorp ltd.

Depreciation cost as a % of net sales more or less in the same ratio in both the companies. Both have been able to reduce it in 2013-14.

Interest & finance charges negligible in Baja auto as against 0.05% for the two years in case of hero motocorp ltd.

Result: Decline in PBT to 22.99% as against 22.33% last year. PBT at 11.34% in the year 20.13-14 & 10.80 % in the year 2012-13 in case of hero motocorp ltd.

Overall, despite the decline in PAT, Bajaj autos net profit margin at 16.09% is way ahead of just 8.34% of hero motocorp .Bajaj auto is thus a far more profitable company than hero motocorp ltd.COMMON SIZED BALANCE SHEET OF BAJAJ AUTO LTDAS AT 31ST MARCH 2014PARTICULARSMar '14COMMON SIZE %Mar '13COMMON SIZE %Mar '12COMMON SIZE %


Sources Of Funds

Total Share Capital289.372.99289.372.99289.372.99

Equity Share Capital289.372.99289.372.99289.372.99

Share Application Money0.000.000.000.000.000.00

Preference Share Capital0.000.000.000.000.000.00

Reserves9,318.6596.407,612.5895.485,751.7093.70

Revaluation Reserves0.000.000.000.000.000.00

Networth9,608.0299.407,901.9599.116,041.0798.41

Secured Loans0.000.000.000.000.000.00

Unsecured Loans57.740.6071.270.8997.481.59

Total Debt57.740.6071.270.8997.481.59

Total Liabilities9,665.761007,973.221006,138.55100

Application Of Funds

Gross Block4,077.0442.183,828.8548.023,425.9455.81

Less: Accum. Depreciation2,071.0021.432,024.4225.391,914.3331.19

Net Block2,006.0420.751,804.4322.631,511.6124.62

Capital Work in Progress144.061.49293.553.68343.155.59

Investments8,549.6388.456,430.4880.654,882.8179.54

Inventories639.726.62636.287.98678.5311.05

Sundry Debtors796.218.24767.589.63423.206.89

Cash and Bank Balance495.485.13558.867.00446.497.27

Total Current Assets1,931.4119.981,962.7224.621,548.2225.22

Loans and Advances2,116.4621.901,987.4424.931,744.8228.42

Fixed Deposits0.000.000.000.001,208.3619.68

Total CA, Loans & Advances4,047.8741.883,950.1649.544,501.4073.33

Deffered Credit0.000.000.000.000.000.00

Current Liabilities3,108.1532.162,762.9334.652,925.5347.66

Provisions1,973.6920.421,742.4721.852,174.8935.43

Total CL & Provisions5,081.8452.584,505.4056.515,100.4283.09

Net Current Assets-1,033.97-10.70-555.24-6.96-599.02-9.76

Miscellaneous Expenses0.000.000.000.000.000.00

Total Assets9,665.761007,973.221006,138.55100

COMMON-SIZED BALANCE SHEET OF HERO MOTOCORPAS AT 31ST MARCH 2014PARTICULARSMar14CommonSize%Mar13CommonSize%Mar12CommonSize%

12 mths12mths12mths

Sources of fund

Total share Capital39.940.7139.940.7539.940.75

Equity Share Capital39.940.7139.940.7539.940.75

Share Application Money000000

Preference Share Capital000000

Reserves5599.93100.04966.3093.554249.8980.41

Revaluation Reserves000000

Net worth5599.871005006.2494.304289.8381.17

Secured loan00302.165.69994.8518.82

Unsecured Loan000000

Total Debt00302.165.69994.8518.82

Total liabilities5599.871005308.401005284.68100

Application of Fund

Gross Block3761.5267.174427.2983.406308.26119.36

Less: Accum Depreciation1518.2727.111356.3125.552522.7547.73

Net Block2243.2540.053070.9857.853785.5171.63

Capital Work in Progress854.1115.2562.091.16193.953.67

Investments4088.7773.013623.8368.263964.2675.01

Inventories669.5511.95636.7611.99675.5712.78

Sundry debtors920.5816.43665.012.52272.315.15

Cash and Bank Balance117.502.09181.043.4156.101.06

Total current Asset1707.6330.491482.8027.931003.9818.99

Loans and advances1203.5421.491401.9526.41926.9917.54

Fixed Deposit000020.720.39

Total CA, Loans & Advances2911.1751.982884.7554.341951.6936.93

Deferred Credit000000

Current Liabilities2903.1251.842893.3954.503520.6666.62

Provision159.312.841439.8627.121090.0720.62

Total CL &Provision4497.4380.314333.2581.634610.7387.24

Net Current Assets-1586.26-28.32-1448.50-27.28-2659.04-50.31

Miscellaneous Expense000000

Total Assets5599.871005308.401005284.68100

Common-Sized Analysis- Balance Sheet

Bajaj auto bigger a company than hero motocorp. Its balance sheet is 9665.76 crores as against a meager 5599.87 crores of hero motocorp.

Hero motocorps equity went down to 100% of its total resources as at 2013-14 as against 94.30% last year due to increase in loan funds from 5.69% to 18.89% in 2012-13. Bajaj auto equitys far higher than hero motocorp.

Out of total resources 40.05% of net fixed assets in case of hero motocorp & 20.75% in case of Bajaj auto are both turning over net sales of rs100 each.

Investment at 88.45% in case of Bajaj auto is way ahead of 73.01% of hero motopcorp. Bajaj auto is sitting on a war chest & will be able to enchash any business opportunity.

Inventories of Bajaj auto at the level of just 6.62% as against 11.95% in case of hero motocorp speak for efficient inventory management of the former.

Bajaj auto has net current liabilities as against net current assets in case of hero motocorp. It is making money out of non-interest bearing outstanding of its supplier.

Ultimately Bajaj auto emerges to be a highly solvent & efficiently managed company.

TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF BAJAJ AUTO LTDFOR THE YEAR ENDED 31ST MARCH 2014PARTICULARS

Year 2012(RS IN CRORE)Year 2013(RS IN CRORE)Year 2014 (RS INCRORE)Year 2012TREND %Year 2013TREND %Year 2014TREND %

Gross Sales20,475.7419,997.2520,149.5110097.6698.41

Excise Duty(959.09)0.000.001000.000.00

Net Sales19,516.6519,997.2520,149.51100102.46103.24

Materials Cost (14,580.24)(14,761.83)(14,289.20)(100)(101.25)(98.00)

(+)/(-) Stock Adj94.15(24)18.9010025.4920.07

Other manufacturing exp73.760.000.001000.000.00

Preoperative ExpCapitalised(49.43)0.000.001000.000.00

COGS(14,510.42)(14,785.83)(14,270.30)(100)(101.90)(98.35)

GP ( Net Sales COGS)5,006.235,211.425,879.31100104.10117.44

Employee cost(541.04)(639.48)(726.58)(100)118.19134.29

Power & Fuel Cost(101.85)(121.33)(106.16)(100)119.13104.23

Selling , Admi& Other exp(627.43)(815.36)(940.73)(100)129.95149.93

(+)Other Income (Operating)413.66795.49706.41100192.31170.77

PBDIT4,149.574,430.744,812.15100106.78115.97

Depreciation(147.76)(163.97)(179.61)(100)(110.97)(121.55)

Operating profit OP/PBT4,001.814,266.774,632.54100106.62115.76

Interest & Finance Charge(22.24)(0.54)(0.49)(100)(2.43)(2.20)

PBTEOT3,979.574,266.234,632.05100107.20116.40

(+)/(-) Extra ordinary item46.600.000.001000.000.00

PBT4,026.174,266.234,632.05100105.96115.05

Tax(1,022.12)(1,222.66)(1,388.73)100119.62135.87

Net Profit/PAT3,004.053,043.573,243.32100101.32107.67

TREND ANALYSIS OF PROFIT & LOSS ACCOUNT OF MOTOCORP LTDFOR THE YEAR ENDED 31ST MARCH 2014PARTICULARS

Year 2012(RS IN CRORE)Year 2013(RS IN CRORE)Year 2014(RS IN CRORE)Year 2012TREND %Year 2013TREND %Year 2014TREND %

Gross Sales25252.9823768.1125275.4710094.12100.09

Excise Duty1666.180010000

Net Sales23586.823768.1125275.47100100.77107.16

Materials Cost (17485.65)(17470.73)(18320.46)(100)99.91104.77

(+)/(-) Stock Adj94.030(8.36)10008.89

Other manufacturing exp(51.62)0010000

Preoperative ExpCapitalised000000

COGS(17443.24)(17470.73)(18328.82)(100)100.16105.08

GP ( Net Sales COGS)6143.566297.386946.65100102.50113.07

Employee cost(735.52)(820.92)(930.04)(100)111.61126.45

Power & Fuel Cost(112.66)(129.18)(137.46)(100)114.66122.01

Selling , Admi& Other exp(1647.36)(2025.33)(2339.09)(100)122.94141.99

(+)Other Income (Operating)347.46398.38446.38100114.65128.47

PBDIT3995.483721.333986.4410093.1499.77

Depreciation(1097.34)(1141.75)(1107.37)(100)104.05100.91

Operating profit OP/PBT2898.142579.582879.0710089.0199.34

Interest & Finance Charge(33.43)(11.91)(11.82)(100)35.6335.36

PBTEOT2864.712567.672867.2510089.63100.09

(+)/(-) Extra ordinary item000000

PBT2864.712567.672867.2510089.63100.09

Tax(486.58)(411.04)(758.17)(100)84.48155.82

Net Profit/PAT2378.132156.632109.0810090.6988.69

TREND ANALYSIS OF BALANCE SHEET OF BAJAJ AUTO LTDAS AT 31ST MARCH 2014PARTICULARS

Year 2012(RS IN CRORE)

Year 2013(RS IN CRORE)Year 2014(RS IN CRORE)Year 2012TREND %Year 2013TREND %Year 2014TREND %

Sources Of Funds

Total Share Capital289.37289.37289.37100100100

Equity Share Capital289.37289.37289.37100100100

Share Application Money0.000.000.000.000.000.00

Preference Share Capital0.000.000.000.000.000.00

Reserves5751.707,612.589,318.65100132.35162.02

Revaluation Reserves0.000.000.000.000.000.00

Net worth6,041.077,901.959,608.02100130.80159.05

Secured Loans0.000.000.000.000.000.00

Unsecured Loans97.4871.2757.7410073.1159.23

Total Debt97.4871.2757.7410073.1159.23

Total Liabilities6,138.557,973.229,665.76100129.89157.46


Gross Block3,425.943,828.854,077.04100111.76119.01

Less: Accum. Depreciation1,914.332,024.422,071.00100105.75108.18

Net Block1,511.611,804.432,006.04100119.37132.71

Capital Work in Progress343.15293.55144.0610085.5541.98

Investments4882.816,430.488,549.63100131.70175.10

Inventories678.53636.28639.7210093.7794.28

Sundry Debtors423.20767.58796.21100181.38188.14

Cash and Bank Balance446.49558.86495.48100125.17110.97

Total Current Assets1,548.221,962.721,931.41100126.77124.75

Loans and Advances1,744.821,987.442,116.46100113.91121.30

Fixed Deposits1,208.360.000.001000.000.00

Total CA, Loans & Advances4,501.403,950.164,047.8710087.7589.92

Deffered Credit0.000.000.000.000.000.00

Current Liabilities2,925.532,762.933,108.1510094.44106.24

Provisions2,174.891,742.471,973.6910080.1290.75

Total CL & Provisions5,100.424,505.405,081.8410088.3399.64

Net Current Assets-599.02-555.24-1,033.97-100-92.69-172.61

Miscellaneous Expenses0.000.000.000.000.000.00

Total Assets6,138.557,973.229,665.76100129.89157.46

TREND ANALYSIS OF BALANCE SHEET OF HERO MOTOCORP LTDAS AT 31ST MARCH 2014PARTICULARS

Year 2012(RS IN CRORE)

Year 2013 (RS IN CRORE)Year 2014 (RS IN CRORE)Year 2012TREND %Year 2013TREND %Year 2014TREND %

Sources Of Funds

Total Share Capital39.9439.9439.94100100100

Equity Share Capital39.9439.9439.94100100100

Share Application Money000000

Preference Share Capital000000

Reserves4249.894966.305599.93100116.86131.77

Revaluation Reserves000000

Net worth4289.835006.245599.87100116.70131.77

Secured Loans994.85302.16010030.370

Unsecured Loans000000

Total Debt994.85302.16010030.370

Total Liabilities5284.685308.405599.87100100.45105.96


Gross Block6308.264427.293761.5210070.1859.63

Less: Accum. Depreciation2522.751356.311518.2710053.7660.18

Net Block3785.513070.982243.2510081.1259.26

Capital Work in Progress193.9562.09854.1110032.01440.38

Investments3964.263623.834088.7710082.33103.14

Inventories675.57636.76669.5510094.2699.11

Sundry Debtors272.31665.0920.58100244.21338.06

Cash and Bank Balance56.10181.04117.50100322.71209.45

Total Current Assets1003.981482.801707.63100147.69170.09

Loans and Advances926.991401.951203.54100151.24129.83

Fixed Deposits20.720010000

Total CA, Loans & Advances1951.692884.752911.17100147.81149.16

Deffered Credit000000

Current Liabilities3520.662893.392903.1210082.2782.46

Provisions1090.071439.861594.31100132.09146.26

Total CL & Provisions4610.734333.254497.4310093.9897.54

Net Current Assets(2659.04)(1448.50)(1586.26)10054.4759.66

Miscellaneous Expenses000000

Total Assets5284.685308.405599.87100100.45105.96

Charts for Trend Analysis

Interpretation of Trend AnalysisComponentsBajaj Hero Which is better

Net SalesUpward Trend Upward trendHero

COGSDownward TrendUpward TrendBajaj

Gross ProfitUpward TrendUpward TrendBajaj

PBDITUpward TrendUpward TrendBajaj

PBTUpward TrendUpward TrendBajaj

Net Profit(PAT)Upward TrendUpward TrendBajaj

Total DebtDownward TrendDownward TrendHero

Total LiabilitiesDownward TrendDownward TrendHero

Net BlockUpward TrendDownward TrendBajaj

InvestmentUpward TrendUpward TrendBajaj

Net Current AssetUpward TrendUpward TrendBajaj

Total AssetUpward TrendUpward trendBajaj

By comparing and analyzing above table, Bajaj having upward trend in more components as compare to Hero. So, performance of is Bajaj is better than Hero.

RATIO ANALYSIS OF BAJAJ AUTO LTD

PARTICULARSCOMPUTATION OF RATIOS

201420132012

1. Gross Profit ratio=Gross Profit/ Net Sales*100

5879.21/20,149.51=29.18%5211.42/19,997.25=26.06%5006.23/19,516.25=25.65%

2. Operating Profit Ratio=Operating profit/ Net Sales*100

4,632.54/20,149.51=22.99%4,266.77/19,997.25=21.34%4,001.81/19,516.25=20.51%

3. Net Profit Ratio=Net Profit/Net Sales*1003,243.32/20,149.51=16.10%3,043.57/19,997.25=15.22%3,004.05/19,516.25=15.39%

4.Equity ratio=Equity / Total Capital Employed(Where, Total capital Employed = Debt + Equity)

289.37/386.85=0.75:1289.37/360.64=0.80:1289.37/347.11=0.83:1

5. Debt Equity Ratio=Debt/Equity

57.74/289.37=0.2:171.27/289.37=0.25:197.48/289.37=0.34:1

6. Current Ratio=Current Assets/Current Liabilities1931.41/3108.15=0.62:11962.72/2762.93=0.71:11548.22/2925.53=0.53:1

7. Absolute Liquidity Ratio=Cash/Current Liabilities495.48/3,108.15=0.16:1558.86/2,762.93=0.20:1446.49/2,925.53=0.15:1

8. Proprietary Ratio=Proprietary Funds/Total Assets(Where, proprietary Fund = Equity & Total Assets)2,150.1/1962.72=1.09:12,097.98/1962.72=1.07:11,854.76/1,548.22=1.20:1

9.Fixed Asset Turnover Ratio=Net Sales/Fixed Assets20,149.51/2150.1=9.37 times19,997.25/2097.98=9.53 times19,516.65/1854.76=10.52 times

10.Working Capital Turnover Ratio=Net Sales/Working Capital(Where , Working Capital = CA- CL)19,516.65/1176.74=16.59 times19,997.25/800.21=24.96 time19,516.65/1377.31=14.17 times

11. Return On Equity (ROE)=PAT/Equity*1003243.32/289.37=1120.82%3043.57/289.37=1051.79%3004.05/289.37=1038.13%

RATIO ANALYSIS OF HERO MOTOCORPPARTICULARSCOMPUTATION OF RATIOS

201420132012

1. Gross Profit ratio=Gross Profit/ Net Sales*100

5879.31/25275.47=23.26%5211.42/23768.11=21.93%5006.23/23586.8=21.22%

2. Operating Profit Ratio=Operating profit/ Net Sales*100

4632.54/25275.47=18.32%4266.77/23768.11=17.95%4001.81/23586.8=16.97%

3. Net Profit Ratio=Net Profit/Net Sales*1003243.32/25275.47=12.83%3043.57/23768.11=12.81%3004.05/23586.8=12.74%

4.Equity ratio=Equity / Total Capital Employed(Where, Total capital Employed = Debt + Equity)

5599.87/5599.87=1:15006.24/5308.40=0.94:14289.83/5284.68=0.81:1

5. Debt Equity Ratio=Debt/Equity

0/5599.87=0302.16/5006.24=0.06:1994.85/4249.89=0.23:1

6. Current Ratio=Current Assets/Current Liabilities1707.63/2903.12=0.90:11482.80/2893.39=0.51:11003.98/3520.66=0.29:1

7. Absolute Liquidity Ratio=Cash/Current Liabilities117.50/2903.12=0.41:1181.04/2893.39=0.63:156.10/3520.66=0.02:1

8. Proprietary Ratio=Proprietary Funds/Total Assets(Where, proprietary Fund = Equity & Total Assets)5599.87/5599.87=1:15006.24/5308.40=0.94:14289.83/5284.68=0.81:1

9.Fixed Asset Turnover Ratio=Net Sales/Fixed Assets25275.47/2243.25=11.26 times23768.11/3070.98=7.74 times23586.8/3785.51=6.23 times

10.Working Capital Turnover Ratio=Net Sales/Working Capital(Where , Working Capital = CA- CL)25275.47/1195.49=21.14 times23768.11/1410.59=16.85 times

23586.8/2516.68=9.37 times

11. Return On Equity (ROE)=PAT/Equity*1003243.32/5599.87=58%3043.57/5006.24=61%3004.05/4289.83=70%

Interpretation of Ratio- Year 2012

Name of RatioIdol RatioBajaj RatioHero RatioWhich Is Better

Gross Profit RatioHigher Better25.65%21.22%Bajaj

Operating Profit RatioHigher Better20.51%16.97%Bajaj

Net Profit RatioHigher Better15.39%12.74%Bajaj

Equity Ratio0.83:10.81:1

Bajaj

Debt-Equity Ratio2:10.34:10.23:1Bajaj

Current Ratio2:10.53:10.29:1Bajaj

Absolute Liquidity Ratio1:10.15:10.02:1Bajaj

Proprietary Ratio1:21.20:10.81:1Bajaj

Fixed Asset Turnover Ratio5 timesHigher Better utilization10.52 Times6.23 timesBajaj

Working Capital Turnover RatioHigher-efficient utilizationvery high ratio is not a good situation14.17 Times9.37 timesBajaj

Return to Equity RatioHigher Better1038.31%70%Bajaj

By comparing and analyzing above table, i.e. Ratio in year 2012, Bajaj was in good position as compare to Hero.






Equity Ratio0.80:10.94:1Hero

Debt-Equity Ratio2:10.25:10.06:1Bajaj

Current Ratio2:10.71:10.51:1Bajaj

Absolute Liquidity Ratio1:10.20:10.63:1Hero

Proprietary Ratio1:21.07:10.94:1Bajaj

Fixed Asset Turnover Ratio5 timesHigher Better utilization9.53 times7.74 timesBajaj

Working Capital Turnover RatioHigher-efficient utilizationvery high ratio is not a good situation24.96 time16.85 times

Bajaj


By comparing and analyzing above table, i.e. Ratio in year 2013, Bajaj was in good position as compare to Hero.






Equity Ratio0.75:11:1Hero

Debt-Equity Ratio2:10.2:10:1Hero

Current Ratio2:10.62:10.90:1Hero

Absolute Liquidity Ratio1:10.16:10.41:1Hero

Proprietary Ratio1:21.09:11:1Bajaj

Fixed Asset Turnover Ratio5 timesHigher Better utilization9.37 times11.26 timesHero

Working Capital Turnover RatioHigher-efficient utilizationvery high ratio is not a good situation16.59 times21.14 timesHero


By comparing and analyzing above table, i.e. Ratio in year 2014, Bajaj is in good some aspects and some time hero is good in some aspects.Page 8

Date post:	12-Jul-2015
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3 years comparative ratio, trend analysis and common size statement of bajaj auto and hero motocorp

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