Presented by:
Hirani Vijay
(05)
Bhalala Mahesh (27)
Guided By
Mr. Nilesh Movaliya
K.K.Parekh Institutes of management studies
( AMRELI )
1 Overview of the company
2 Company profile
3 Products
4 Why financial analysis important for company
5 Financial statement analysis
6 Ratio analysis
7 Conclusion
MRF (Madras Rubber Factory) is Indias No.1 tyre manufacturing
company. It was started in the year 1946 by K M Mammen Mappillai
as a small toy ballon unit. Much later in November 1960 it ventured
in manufacturing of tyres. The company entered a technical
collaboration woth Tire & Rubber company, USA.
Currently MRF exports tyres to over 65 countries including America,
Europe, Middle East, Japan, and Pacific region. It presently has
overseas offices in Dubai, Vietnam and Australia.
Corporate Address
Management Details
Business Operation
Financials
124 Greams Road,
,Chennai-600006, Tamil
Nadu
www.mrftyres.com
Chairperson - K M Mammen
MD - Arun Mammen
Directors - Arun Mammen,
Ashok Jacob.
Tyres & Allied
Total Income - Rs. 97684.8
Million ( year ending
Sep 2011)
Net Profit - Rs. 6194.2
Million ( year ending
Sep 2011)
Tyres - It manufactures various tyres for passenger cars, twowheelers, trucks, buses, tractors, light commercial vehicles and off
the road tyres.
Conveyor belts- It manufactures conveyor belts with wide range of
grades. It has a range of applications in industries like mining, ports,
thermal power plants, cement plants, fertiliser, steel, etc. It exports
the products to 15 countries.
It also operates retreading systems for tyres that enhances road
grip, provides greater mileage and many others features.
MRF Tyres & Services is one stop shop providing range tyres.
Currently it operates 90 franchisees across the country.
(i) success of Promotion Depends on Financial Administration
(ii) Smooth Running of an Enterprise.
(iii) Financial Administration Co-ordinates Various Functional
Activities.
(iv) Focal Point of Decision Making.
(v) Determinant of Business Success.
(vi) Measure of Performance.
Financial statement analysis
(1) Earning Per share
Formula: PAT / NO.OF SHARE
(crore)
year
2011
2010
2009
2008
2007
Pat
212.29
338.92
250.23
137.43
163.99
No of share
4241143
4241143
4241143
4241143
4241143
EPS
500.55
799.12
590.01
324.04
386.66
(2) Dividend per share
Formula: profit distributed / no. of share
(crore)
year
2011
2010
2009
2008
2007
Profit
distributed
10.60
21.20
10.60
8.48
8.48
No.of share
4241143
4241143
4241143
4241143
4241143
DPS
25.00
50.00
25.00
20.00
20.00
(3) Book value per share:
2011
5,417.81
2010
2009
3,986.38
2008
3,210.03
2007
2,642.66
2,325.20
Net operating income per share:
Formula : operating income / no.of share
year
Operating
income
No.of share
NOIPS
2011
9,716.54
2010
7,462.74
2009
5,679.57
2008
5,060.81
2007
4,410.22
4241143
4241143
4241143
4241143
4241143
22,910.19
17,596.06
13,391.60
11,932.66
10,398.66
(4) Operating margin ratio:
Formula : COGS + operating expenses
sales
year
2011
COGS
279.83
sales
3337.89
Operating
margin (%)
8.37
2010
2009
2008
2007
868.63
690.63
424.56
431.68
7755.61
11.20
5560.66
12.42
4908.21
8.65
4215.68
10.24
(5) Net profit margin:
Formula: PAT / sales
year
2011
2010
2009
2008
2007
Pat
212.29
338.92
250.23
137.43
163.99
sales
3337.89
7755.61
5560.66
4908.21
4215.68
NPM %
6.36
4.73
4.50
2.80
3.89
(6)Return on investment ratio:
Formula: EBIT / net assets
year
2011
2010
2009
2008
2007
EBIT
580.21
581.87
461.31
273.10
302.41
NA
6286.13
2903.54
2509.84
2227.56
1819.55
ROI
9.23
20.04
18.38
12.26
16.62
Return on long term fund:
2011
17.04
2010
24.72
2009
28.34
2008
16.86
2007
23.29
(7) Debt-equity ratio:
Formula: total debt / net worth
2011
2010
0.65
2009
0.56
2008
0.21
2007
0.85
0.61
Fixed assets turnover ratio:
Formula: sales / fixed assets
year
FATR
2011
2.55
2010
2.22
2009
2.09
2008
2.10
2007
2.16
(8) Current ratio:
Formula : CA / CL
Year
2011
2010
2009
2008
2007
CA
3,160.49
2,117.25
1,695.98
2,003.71
1,562.93
CL
2,525.78
1,378.38
1,410.14
1,299.52
940.72
CR
1.25
1.54
1.20
1.54
1.66
(9) Quick ratio:
Formula: CA Inventory / CL
year
2011
2010
2009
2008
2007
CA-Inventoyr
1616.50
978.65
1029.40
1000.63
856.05
2,525.78
1,378.38
1,410.14
1,299.52
940.72
0.64
0.71
0.73
0.77
0.91
CL
Quick ratio
(10) Inventory ratio:
Formula : COGS / Avg Inventory
Year
2011
COGS
279.83
Avg Invetory
38.07
Inventory
turnover ratio
7.35
2010
2009
2008
2007
868.63
690.63
424.56
431.68
67.91
69.71
56.58
113.10
7.68
10.17
6.09
7.63
(11) Dividend payout ratio:
Formula : equ. Div / PAT
year
2011
2010
2009
2008
2007
Equ div
423
2365
1208
960
946
Pat
212.29
338.92
250.23
137.43
163.99
1.99
6.98
4.83
6.98
5.77
(12) Operetig leverage:
Formula: contribution / EBIT
year
2011
2010
2009
2008
2007
1718.55
6285.92
4313.96
3841.67
3304.75
EBIT
580.21
581.87
461.31
273.10
302.41
OL
2.96
10.80
9.35
14.07
10.92
(13) Financial leverage:
Formula : EBIT / EBT
year
2011
2010
2009
2008
2007
EBIT
580.21
581.87
461.31
273.10
302.41
EBT
487.19
518.77
392.39
206.85
253.17
FL
1.19
1.12
1.17
1.32
1.19
(14) Combine leverage
formula : OL * FL
year
2011
2010
2009
2008
2007
OL
2.96
10.80
9.35
14.07
10.92
FL
1.19
1.12
1.17
1.32
1.19
CL
3.52
12.09
10.94
18.57
12.99
Company overall performance is good and
fluctuation occur in sales, expenses, profits,
and price a year by year.
The small changes are big impact on financial
performance.
Thank you
