26-06-2012, 01:47 PM
INTERPRETATION
From the above table it is clear that current ratio of company is decreased to 1.10 for the year 2010 -2011 from 1.16 when compared to previous year 2009-2010 this decreased in current ratio represent a development in the liquidity position of the firm. This ratio is ruff indication of a firm to serve its current obligation.
The debt equity ratio is decreased to 0.98 for the year 2010-2011 from 1.18 when compared to previous year 2009-2010. The decrease in debt equity ratio result in sufficient safety margin and substantial protection against strinkage in assets.
Fixed turnover ratio has been decrease in from 10.38% to 8% which shows a lower working capital turnover ratio indicates the insufficient of management in the utilization of working capital.
Net profit ratio is a final profit available with owners after meeting all the expenses. The net profit ratio of the company has been drastically decrease over a period of time. Which is not good sign of the company.
The inventory turnover ratio has been decrease from 13.79 to 7.85 respectively