Cipla ltd

Cipla ltd

CONTENTS

1) COMPANY PROFILE

2) BALANCE SHEETS

3) FINANCIAL RATIO

a) Liquidity ratio b) solvency ratio c) Efficiency d) profitability

4) EARNING PER SHARE

5) CONCLUSION

COMPANY PROFILE 

Founded

: 1935



Founded by

: Khwaja Abdul Hamied



Headquarters

: Mumbai, India



Key people

: Y.K Hamied Chairman



Industry

: Pharmaceuticals



Product

: Low cost drugs to treats HIV +ve patients, cardiovascular disease, arthritis, diabetes,weight control, depression and many more health conditions



Market

: 180+ Countries



Revenue

: Rs. 37.6 billion (939M USD) (2016)



Net income

: Rs 9.1 billion(2006)



Employee

: 7000+



Website

: www.cipla.com

BALANCE SHEETS

FINANCIAL RATIO

Liquidity ratio

Solvency ratio

Efficiency turnover ratio

Profitability ratio

2017

2016

Working capital

3789.51

3382.7

Current ratio

2.481

2.10

Cash flow ratio

0.86

0.56

Cash ratio

0.272

0.192

Quick ratio

1.03

0.808

Debt to equity ratio

0.32

0.438

Debt to total asset ratio

0.24

0.299

Total total ratio

0.328

0.438

Inventory turnover ratio

4.14

4.18

Debt ratio

turnover

5.72

6.08

Fixed ratio

turnover

2.22

1.87

Total asset turnover ratio

0.85

0.90

Basic EPS

12.12

17.42

0.14

0.170

debt to capital

Operating profit margin

percentage

LIQUIDITY

RATIO

Working capital

In 2017

=

- Dity ratio expresses Liquia company'sability to repay short-term creditors out of its total cash.

= current Asset - current liabilities

6345.34 cr

-

2555.83 cr

= 3789.51 cr In 2016

= 6463.90

cr

-

3081.20 cr

= 3382.7 cr

Current ratio

= current asset / current liabilities

In 2017

= 6343.34 / 2555.83 = 2.481

In 2016

= 6463.90 / 3081.20 = 2.10

Cash flow ratio = operating cash flow / current liabilities

In 2017

= 2205.56 / 2555.83 = 0.86

In 2016

= 1728.42 / 3081.20 = 0.56

Cash

ratio = cash + marketable securities / current liabilities

In 2017

=

58.46 + 638.18 / 2555.83 = 0.272

In 2016

=

53.01 + 539.00 / 3081.20 = 0.192

Quick ratio =

cash + account receivable + marketable securities / current liabilities

In 2017

=

5846 + 1938.79 + 638.18 / 255 = 1.03

In 2016

=

53.01 + 1898.74 + 539.00 / 3081.20 = 0.808

SOLVENCY RATIO

Debt to equity ratio

In 2017

in 2016

=

total debt / total equity

=

4112.59 / 12525.42

=

0.32

=

5191.34 / 1184496

=

0.438

Debt to total asset ratio = total debt / total asset

In 2017

= 4112.59 / 17076.24 = 0.2

In 2016

= 5191.39 / 17305.98 = 0.299

Total debt to Total capital ratio =

In 2017

total debt / total capital

= 4112.59 / 12525.42 = 0.328

In 2016

= 5191.39 / 11844.96 = 0.438

EFFICIENCY TURNOVER RATIO

Inventory turnover ratio = COGS / avg. inventory

In 2017

=

/

= 4.14 In 2016

=

/

= 4.18

Debtor turnover ratio = Sales / debtors

In 2017

= 10974.58 / 1938.79 = 5.72

In 2016

= 1234.06 / 1898.74 = 6.08

Fixed asset turnover ratio = sales / fixed asset

In 2017

= 10974.58 / 4886.72 =

In 2016

2.22

= 12034.06 / 7034.68 = 1.87

Total asset turnover ratio = sales / total asset

In 2017

= 10974.58 / 13124.84 = 0.85

In 2016

= 12034.06 / 13462.13 = 0.90

PROFITABILITY RATIO

Basic EPS

= Income available to common shareholder / Weighted avg. no of common share Outstanding

In 2017

= 12.12

In 2016

= 17.42

Operating profit margin percentage = operating Income / sales

In

In

2017

2016

=

1596.26 / 10974.58

=

0.14

=

2053.72 / 12034.06

= 0.170

CONCLUSION

By looking at this ratio we can surely tell that the company Performance is not good in 2017. - Sales has fallen down - Expel the company has used its fixed asset very well in generating in sales - comapany debt has invised which is not good for the COMPANY