Ratio AnalysisShoppers Stop

Presented by:Deepak Gupta 25Deepak Madaan 027 1

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ABOUT SHOPPER’S STOP

Shopper’s Stop, a pioneer in Indian Retailing was promoted by the K Raheja Corp Group (Chandru L Raheja Group), started in the year 1991 with its first store in Andheri,Mumbai

International and Domestic brands across various categories such as apparel, accessories, cosmetics,

home and kitchenware and also its private labels.

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KEY PEOPLE

Mr. Chandru L Raheja Mr. Govind ShirkandeChairman & Non Executive Director MD and CEO

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VISION & MISSION

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COMPETITORS

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ROE It indicates how profitable a company is by

comparing its net income to its average shareholder equity.

It measures how much the share holder earn for their investment in the company.

Higher the ratio percentage the more efficient is in utilising its equity base and better return to investors.

NET PROFIT/EQUITY

20133,917 /4148.98=0.944051309

20146207 /4,160.79 =1.49

20156958/4168.39 =1.66

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ROA This ratio indicates how profitable a

company is relative to its total assets. A higher ROA is considered “better”. Higher ROA indicates the company is more

efficient in using assets to generate profit. Lower ROA indicates the company is less

efficient in using assets to generate profit.

2014

2015

Net Profit 6338 0.038Total Assets 165884.55

Net Profit 6,956 0.038853815

Total Assets 179,030.04

2013Net profit 3917Total asset 1,43,504.19 0.027294325

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It measures the ability of a company to use its assets to efficiently generate sales.

Lower the turnover the more sluggish the firm sales.

ASSETS TURNOVER RATIO

Sales 3406131.90

Total Assets179,030.

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2015

2014Sales 305215

1.84Total Assets

165884.55

2013Sales 340613Total asset 1752.095 4.747081

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ASSETS TO EQUITY

It is a measurement of a companies financial leverage

Company finance the purchase of assets either through debt or equity, so a high equity multiplier indicates that a large portion of assets financing is been done through debt

Total Assets/Equity

2014=165884.55/4160.79=39.86

2015=179030.04/4168.39=42.94

2013= 179,030.04/4148.5 = 43.15

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CURRENT RATIOThe current ratio measures the company's ability to repay the principal amounts of its liabilities.The current ratio is closely related to the concept of working capital. Working capital is the difference between current assets and current liabilities.The company has weak current ratio which indicates they are having low capacity to meet its current obligation.If shoppers stop has good long term prospects it may be able to borrow against those prospects to meet current obligation.

Current Assets 38915.3 0.5402069Current

Liabilities72037.7

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2014

2015Current Assets

43,095.66 0.54544

71Current Liabilities

79,009.78

2013Current asset 33,742.20Current liabilities 62,246.56 0.542073329

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QUICK RATIO

It is a fairly stringent measure of liquidity.This indicates the relationship between amount of assets that can quickly be turned into cash versus the amount of current liabilities.The company is having low quick ratio so it shows there short term financial position is not sound.

2014

2015Current Assets-

Inventory10134.3

3 0.12826

67Current Liabilities

79009.78

current assets -inventory 9361.73 0.12995

58Current Liabilities 72037.76

2013Current asset –inventory 9359.71Current liabilities 62246.56 0.150365096

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DEBT-TO WORTH This ratio is measurement of how much

suppliers ,lenders, creditors have committed to the company versus what the shareholders have committed.

This ratio assess long term financial position and soundness of long term financial policies.

As the ratio is higher it means the company has been heavily taking on debt and thus has high risk.

Total Liabilities165884.5

5 2.2765306

Net Worth 72867.26

2014

2015Total Liabilities

179030.04 2.33938

1Net Worth 76528.8

2013Total liabilities 1,43,504.19 Net worth 69,382.20 2.068314207

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GROSS PROFIT RATIO This ratio is used to analyse how efficiently a

company is using its raw material, labour and related fixed assets to generate profit.

It asses overall performance of enterprise. The companies gross profit ratio has increased

over the year and indicates the good health of the company.

Gross Profit 116711 0.34Sales 340613

2015

2014Gross Profit 102537 0.33Sales 305215

2013Gross profit 116711 Sales 340613 0.342649869

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NET PROFIT RATIO

Its indicates higher level of profitability of the business.

Companies net profit ratio is stable over two years. Indicating stability in companies revenue generating capability

2014Net Profit 6,338 =

0.020765Sales 305215

2015Net Profit 6,956 =

0.020422Sales 340613

2013Net profit 3917Sales 2,56,050 =0.015

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SALES TO ASSETS

How well a company is utilising its assets to produce revenue.

Shopper stop ratio has shown increase over the year so its indicates the better performance of the company

Sales 305,215.00 = 1.84

Total Assets 165,884.55

2014

2015Sales 340613 = 1.90

Total Assets 179,030.04

2013Sales 2,56,050 Total assets 1,43,504.19 =1.78

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INVENORY TURNOVER

This ratio measures how fast the stock is moving through the firm and generating sales.

It indicates whether investment in stock is within proper limit or not.

2014

2015

Cost of Goods Sold 207806 7.03

Inventory29553.5

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Cost of Goods Sold 207806 6.30

Inventory32,961.

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2013Cogs 207806 Inventory 32,961.33 = 6.304539289

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ACCOUNTS RECEIVABLE TURNOVER

This ratio indicates economy and efficiency in collection of amount due from investors.

Higher the ratio better it is.

2014

2015

Sales 305215117.37Accounts

Receivable 2600.3

Sales 340613152.50Accounts

Receivable2,233.5

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2013Sales 340613 Acc receivable 2,233.52 =152.5005373

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ACCOUNTS RECEIVABLE TURN-

DAYS

It refers to each time a company collects its average receivables

2014

2015360

360 2.36Accts. Rec.

Turnover 152.500

360 3603.067Accts. Rec.

Turnover 117.376

2013 360 360Accts rec turnover 152.5005373

=2.360647421

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ACCOUNTS PAYABLE TURNOVER

It indicates the number of times the creditors are turnover in relation to purchase.2014

2015

Cost of Goods Sold 207806 6.71Accounts

Payable 30969.5

Cost of Goods Sold 207806 6.27Accounts

Payable33,135.

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2013Cogs 207806 Acc payable 33135.50 =6.27141969

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AVERAGE PAYMENT PERIOD

Measures number of days that company takes to pay its supplier.

2014

2015

360 36053.65Accts. Pay.

Turnover 6.71

360 360 57.40Accts. Pay.

Turnover 6.27

2013360 360Accts pay turnover 6.27141969 =57.40327036

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Receivable To Sales Ratio

Receivables To Sales Ratio: Receivables/Net Sales It gives a indication of company’s credit policy.

2014

2015

Receivables 2600.3 0.00852Net Sales 305125

Receivables2233.52 0.0065

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Net Sales340613

2013Receivables

2233.52 0.00872

Net Sales 256050

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Asset Turn Over=Net Sales/ Average Asset It’s a indicator of the size and strength of its

moat, if a company is able

ASSETS TURNOVER RATIO

2015

2014Net Sales 305215 1.97Average Assets 154694.3

2013Net Sales 340613 4.74Average Asset 71752.095

Sales 3406131.90

Total Assets179,030.

04

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Fixed Asset Turnover

Fixed Asset Turnover=Total Assets/Equity It measures the efficiency with which a company

uses its fixed asset to generate its sales revenue.

2013

2014

=39.86

2015=179030.04/4168.39=42.94

Total Assets 340613 4.411

Equity 77210.37

Total Assets 305215 3.63

Equity 154694.3

Total Assets

340613 5.71

Equity 59572.85

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Investment Turnover Ratio

Investment Turnover Ratio=Net Sales/Total Average CapitalIt tells the investor how efficiently a company uses its resources to generate revenue.

Net Sales 3052153.78Average Net

Fixed Asset80595.34

2014

2015Net Sales 340613

4.55Average Net Fixed Asset 74698

2013Net Sales 340613 5.12

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Total Average Capital

66449.3

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Profit Margin Ratio

Profit Margin=Net Income/Net Sales a higher Profit Margin is usually considered

“better”. If your Profit Margin is higher now than last

years’, then it might indicate better cost and expense management than before and/or a more profitable company.

If your Profit Margin is lower now than last years’, then this might indicate lousier cost and expense management than them and/or a less profitable company.

2014

2015Net Income 6956 0.0204Net Sales 340613

Net Income3700.47 0.012124

Net Sales 305215

2013Net Income 3917 0.0115Net Sales

340613

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Return On Investment

ROI=PBIT/Average Total Asset

PBIT10527.04

Average Total Asset 154694.3 0.068051

2014

2015PBIT 12078.48

ATA 172457.3 0.070038

2013PBIT

9287.83 0.129443Average Total Asset

71752.1

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Return On Total Asset

ROA=Net Income/Total Average Asset

Net Income 6956 0.040335Average Total Asset 172457.3

2015

2014Net Income 3700.47Average Total Asset 154694.3 0.023921

2013Net Income

3917 0.054591Average Total Asset 71752.1

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Return On Total Capital

Return On Total Capital=Net Income/Average Total Capital

It’s a indicator of the size and strength of its moat, it tells us how effective a company is , at turning its capital in to profit.

2014Net Income 3700.47 0.045914

Average Total capital 80595.34

2015Net Income 6956 0.093122

Average Total capital 74698.03

2013Net Income 3917 0.058947

Average Total capital

66449.38

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Return On Stock Holder’s Equity

Return On Stock Holder’s Equity: Net Income/Average Stock Holder’s Equity

It shows how many rupees of net income have been earned for each rupees invested by the common stockholder. the ratio is useful to measure the profitability from the owner’s view point

Net Income 3700.47 0.889367Average Stock Holder’s Equity 4160.79

2014

2015Net Income 6956 1.670272Average Stock Holder’s Equity 4164.59

2013Net Income

3917 0.944Average Stock Holder’s Equity 4148.5

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Earning Per Share E.P.S=Net Income-Preffered Stock

Dividend/Avg No. of Shares This is a amount of money , each share of

stock would receive if all of the profits were distributed to outstanding shareholders.

2014

2015Net Income-Preffered Stock Dividend

3917 3.851877

Average No of common Shares 1016.907

Net Income-Preffered Stock Dividend 3700.47

Average No of common Shares 1027 3.603184

2013Net Income-Preffered Stock Dividend 6956 6.81748

Average No of common Shares 1020.318

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PE Ratio P/E Ratio=Market Price/E.P.S It is a measurement for investor , compare how

cheap or expensive a firm’s share are, as stock price for lack of better term.

Higher the PE Ratio , better for the company, it reflects future profit levels.

2014

2015

Market Price 405 112E.P.S 3.60

Market Price 397 58.2E.P.S 6.81

2013Market Price 408 105.9224

E.P.S 3.851877

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Dividend Yield Ratio

It refers to each time a company collects its average receivables

Its shows us dividend income on regular basis.

2014

2015Cash Dividend Per

Share 0.75 0.001889Price Per Share

397

Cash Dividend Per Share

0.75 0.001852Price Per Share

405

2013Cash Dividend Per Share 0.75 0.00183824Price Per Share

408

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