CURRENT RATIO

Current Ratio = current ratio is a most widely used ratio to judge short term financial
position or solvency of a firm. it can be defined as relationship between current assets
and current liabilities. Current ratio of 2: 1 is considered as satisfactory.
Current Ratio= Current Assets / Current Liabilities

Year Current Assets Current Liabilities Current Ratio

2018 34643.91 25607.34 1.35
2019 17035.58 25593.65 0.66
2020 19959.03 30871.30 0.64
2021 28890.78 30067.60 0.96
2022 31289.57 53664.83 0.58
2023 33949.52 46437.30 0.73

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2018 2019 2020 2021 2022 2023

Current Assets Current Liabilities Current Ratio

INTERPRETATION

As we can see in the above chart that the current ratio is highest in 2018
and lowest in 2022 it is because they have taken back their investments in the year 2019 so it has
dropped, and in Year 2021 they reinvested their money in the market.
 LIQUIDITY RATIO
It is also called as Quick ratio or Acid test ratio, measures the ability of business to pay
its short-term liabilities by having assets that are readily converted into cash. These
assets are namely cash, marketable securities and account receivables.
Liquid Ratio= Current Asset–Inventory–Prepaid Expenses /Current Liabilities

Year Quick Assets Current Liabilities Quick Ratio

2018 39443.65 25607.34 1.54
2019 23192.62 25593.65 0.90
2020 9242.37 30871.30 0.29
2021 14768.89 30067.60 0.49
2022 11346.63 53664.83 0.21
2023 12653.70 46437.30

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Quick Assets 2020 Liabilities
Current 2021Quick Ratio 2022 2023

Interpretations

As we can see the quick ratio keeps dropping it happens because it is

happening because their inventories and cash and cash equivalents keep fluctuating and they are
not constant as they have taken a sudden drop in the year 2019 & 2020 and it is getting changed
and getting upwards in the year 2021.

ABSOLUTE LIQUID RATIO

 Cash & Bank Current Absolute Liquid
Year
Liabilities
Balances Ratio
2018 4696.74 25607.34 0.18
2019 718.11 25593.65 0.03
2020 1226.87 30871.3 0.04
2021 1671.71 29313.32 0.06
2022 2855.29 53664.83 0.05
2023 1077.33 46,437.30 0.02

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Cash & Bank Balances Current Liabilities Absolute Liquid Ratio

Interpretations

Absolute Liquid Ratio keeps track of cash and cash equivalents and it
keeps taking a sudden big drop in the year 2019 and it keeps getting better and increasing in the
upcoming years as we can see in the above chart.

CASH RATIO
 Cash & Bank
Year Current Assets Cash Ratio
Balances
2018 4696.74 34643.91 0.14
2019 718.11 17035.58 0.04
2020 1226.87 19959.03 0.06
2021 1671.71 23372.68 0.07
2022 2855.29 31289.57 0.09
2023 1077.33 33949.52 0.03

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2018 2019 2020 2021 2022 2023

Cash & Bank Balances Current Assets Cash Ratio

Interpretations

Cash Ratio keeps track of the cash and cash equivalents and current assets
as we can see it is taken a sudden drop in the year 2019 and it keeps getting back on track and
maintaining itself from the years after 2019.

DEBT EQUITY RATIO

 Long Term Debt
Shareholder’
Year Equity
s Fund
Borrowings Ratio

2018 35717.16 61514.82 0.58

2019 39175 70454.71 0.56
2020 42683.14 74563.12 0.57
2021 55238.21 94406.34 0.59
2022 42887.63 125433.76 0.34
2023 52556.61 134797.51 0.39

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2018 2019 2020 2021 2022 2023

Long Term Borrowings Shareholder’s Fund Debt Equity Ratio

Interpretations

Debt Equity Ratio have maintained a track of the borrowings or loans that
the company has taken and how they are keeping it in order so they can pay them off and also
took care of the shareholder’s fund how much shareholders have invested in the company.

PROPRIETARY RATIO

Shareholder’s Total Proprietary

Year
Fund Assets Ratio
2018 61514.82 125114.34 0.49
2019 70454.71 137498.36 0.51
2020 74563.12 150392.56 0.50
2021 94406.34 165035.99 0.57
2022 125433.76 221986.22 0.57
2023 134797.51 233791.42 0.58
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Shareholder’s Fund Total Assets Proprietary Ratio

Interpretations

Proprietary Ratio keeps track of the shareholders fund and their fixed
assets that have they invested the shareholder’s fund in the fixed assets and as per the graph
above we can see they have maintained it wisely and have a good track of amounts and they can
payback their shareholders fund by selling fixed assets or not.
TOTAL ASSETS TO DEBT RATIO

Long Total Assets

Total to Debt
Year Term
Assets
Debts Ratio
2018 125114.34 35717.16 3.50
2019 137498.36 39175 3.51
2020 150392.56 42683.14 3.52
2021 165035.99 44455.56 3.71
2022 221986.22 42887.63 5.18
2023 233791.42 52556.61 4.45

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Total Assets Long Term Debts

Total Assets to Debt Ratio

Interpretations
 Total Assets to Debt Ratio shows that if they sold their assets will they be
able to payback their loans which they have taken and it is happening because deferred tax
liabilities is getting more and more each year so it keeps getting changed and it has taken a big
rise in the year 2022.
RETURN ON EQUITY

Net Profit Share

after Tax Capital +
Return on
Year and Reserve
Equity
Preference and
Dividend Surplus
2018 4169.55 61514.82 0.07
2019 10533.19 70454.71 0.15
2020 6743.8 74563.12 0.09
2021 13606.62 94406.34 0.14
2022 33011.18 125433.76 0.26
2023 15495.11 1,34,797.51 0.11

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2018 2019 2020 2021 2022 2023

Net Profit after Tax and Preference Dividend

Share Capital + Reserve and Surplus
Return on Equity

Interpretations

Return on Equity Ratio shows that how much the profit they have left
with after giving tax and paying off dividend they also keep track of capital they have and the
reserves and surplus they have left with. It compares that how return they are getting on the
equity they have shared with the shareholders.

RETURN ON CAPITAL EMPLOYED

Earnings Capital Return on
Year
Before Employe Capital
 Interest &
d Employed
Tax
2018 9407.66 99507 0.09
2019 18834.88 111904.71 0.17
2020 9695.03 119521.26 0.08
2021 20777.78 135722.67 0.15
2022 46958.82 168321.39 0.28
2023 21800 187354.12 0.116357196

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2018 2019 2020 2021 2022 2023

Earnings Before Interest & Tax Capital Employed

Return on Capital Employed

Interpretations

Return on Capital Employed shows how much earnings they have before
paying interests and taxes and the capital they have in the company so it shows how much they
have earned per as per the capital they have within their company and as we can see in the year
2019, they have lesser expenses so the EBIT is more and it keeps changing in the year.
RETURN ON SHAREHOLDER’S FUND