Chapter: 1 General Information Introduction L: Learning organization U: Unity P: Performance to achieve the best I: Involvement N: Nature the culture Lupin was founded in 1968 by Dr. Desh Bandhu Gupta then an Associate Professor at BITS-Pilani, Rajasthan. The company was created with a vision to fight life-threatening infectious diseases and to manufacture drugs of the highest social priority. The company was named after the Lupin flower because of the inherent qualities of the flower and what it personifies and stands for. The Lupin flower is known to nourish the land, the very soil it grows in. The Lupin flower is also known to be tolerant of infertile soils and capable of pioneering change in barren and poor climes. The …show more content…
But the year 2015 is to decrease of 1.57%. so it’s a under stocking year. 3.Turnover ratio: Turn over ratios show how well the assets are used and the extent of excess inventory, if any these ratios are also known as activity ratios or asset management ratios. Inventory turnover ratio: Inventory turnover ratio=(Net sales)/(Inventory ) 2015 2014 2013 2012 2011 =125997.1/25035.6 = 5.03 times =11086.4/21294.5 = 5.20times =94616.3/19489.3 = 4.85 times =69597/17326.7 = 4.02 times =57068.2/1999.6 = 4.75 times Working capital turnover ratio: This ratio show a how many times the working capital has been employed in the process of carrying on the business. Higher the ratio, better the efficiency in the utilization of working capital. workingcapital turnover ratio=(sales )/(current assets-current liability) 2015 2014 2013 2012 2011 =125997.1/45082.60 = 2.80 times =110866.4/40614.20 = 2.73 times =94616/31982.30 = 2.95 times =69597/26186.8 = 2.65 times =57068.2/20442 = 2.80 times Interpretation : Higher the ratio of 2013 is effective utilization of working capital, but the 2014 decrease of 0.22 times but in year 2015 to increase of o.o7 times to be
Do you feel it is appropriate for Lupita to receive special education services? If so, under which eligibility would she qualify? If not, why not? Explain the basis for your answer.
Net working capital represents organization’s operating liquidity. In order to compute the net working capital, total current assets are divided from total current liabilities. When there is sufficient excess of current assets over current liabilities, an organization might be considered sufficiently liquid. Another ratio that helps in assessing the operating liquidity of as company is a current ratio. The ratio is calculated by dividing the total current assets over total current liabilities. When the current ratio is high, the organization has enough of current assets to pay for the liabilities. Yet, another mean of calculating the organization’s debt-paying ability is the debt ratio. To calculate the ratio, total liabilities are divided by total assets. The computation gives information on what proportion of organization’s assets is financed by a debt, and what is the entity’s ability to pay for current and long term liabilities. Lower debt ratio is better, because the low liabilities require low debt payments. To be able to lend money, an organization’s current ratio has to fall above a certain level, also the debt ratio cannot rise above a certain threshold. Otherwise, the entity will not be able to lend money or will have to pay high penalties. The following steps can be undertaken by a company to keep the debt ratio within normal
Analysing the ratio of one with the other in the industry provides for better understanding about the performance of the company in market. An investor has to make a comparative analysis before making any investment decision.
Sales growing at a faster rate than cost of goods sold. Projected FY4 and FY5 also had projected sales growing faster than cost of goods sold. See graph for details (Derived from Exhibit 1).
Current Ratio. The current ratio can indicate a company’s liquidity and is considered one of the most valuable ratios in analyzing
This ratio helps in analysing the position of the company to satisfy its short term debts within a period of one year. The higher the current ratio would be the more the company will be in position to satisfy its short term debts.
The opium trade was incorporated to the China culture into the global market. During that period the economies of India, China and Britain were connected to one another in a trade that was one of the most important connection as a role in the global market. The opium trade started in the 17 century the drug was just shipped from Portuguese Goa in Portuguese and British ships, the opium was held by a monopoly who was controlled by the Dutch. Taking the opium in EIC vessels was really criticized by the directors of the London Company, for incurring losses and putting in danger legal forms of the famous Sino-British trade, since this drug was illegal in China. The EAST INDIA COMPANY by regulating and restricting production,
Current Ratio – For the last three years was growing from 3.56 in 2001 to 3.81 in 2002 to 4.22 in 2003. The reason of grow is increased in Assets. Even though Liability was growing, Asset grow was more significant.
... show that the company is growing and expanding, property and inventory, as a percentage of assets, should be increasing instead of decreasing. More property and inventory, if it is not owned by creditors, would also decrease their debt to total assets ratio.
In regards to the corporation’s balance sheet, it is necessary to place an importance on liquidity ratios to demonstrate the company’s ability to pay its short term obligations such as accounts payable and notes that have a duration of less than one year. These commonly used liquidity ratios include the current ratio, quick ratio, and cash ratio. All three ratios are used to measure the liquidity of a company or business. The current ratio is used to indicate a business’s ability to meet maturing obligations. The quick ratio is used to indicate the company’s ability to pay off debt. Finally the cash ratio is used to measure the amount of capital as well short term counterparts a business has over its current liabilities.
...To check how successful it has been, we calculate debtor collection period ratio. (Dyson, 2004) Fixed Asset turnover: In this ratio, we seek the amount of sales that can be generated (or the amount of fixed assets necessary to achieve a level of sales) from a given level of fixed assets. (Klein, 1998) Total asset turnover: This ratio determines that how efficiently a firm is utilizing its assets. If the asset turnover ratio is high, the firm is using its assets effectively in generating sales. If this ratio is low, the firm may not be using its assets efficiently and shall either increase sales or eliminate some of the existing assets. (Argenti, 2002) Solvency Ratio Gearing: Gearing reflects the relationship between a company’s equity capital (ordinary shares and reserves) and its other form of long-term funding (preference share, debenture, etc.) (Black, 2000)
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future.
Asset turnover ratio is used to calculate the efficiency to utilizing total asset for the sales. Use your assets in produce your product productivity and rise the sales to earn more profit. The asset turnover ratio of Nestle and Duty Lady Milk are similar in these 3 years. But, the two asset turnover ratio is considered as a low ratio (unproductive capacity). A low ratio means there will be less efficient of firm in total asset for employed. Nestle does not efficient in using firm’s asset to produce more
If there is sufficient working capital than we can assume that it has sound financial position and if the business is under trading than there will be increment in liquid assets which shows that the funds are not been utilized and kept ideal.