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Calculation of Efficiency ratios -
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2008
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2009
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2010
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M
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Net Sales
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8506616
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11993699
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16064038
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N
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Inventory
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1388168
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2030972
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2651760
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O
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Total Assets
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3103645
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4049092
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5131809
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P
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Accounts Receivables
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57662
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90380
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95928
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Q
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Current Assets
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1784275
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2353271
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2905145
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R
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Current Liabilities
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992683
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1340291
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1743763
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S
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Working Capital
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791592
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1012980
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1161382
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T
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Cost of Goods Sold
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6361271
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9053219
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12281744
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Inventory Turnover (T / N)
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4.58
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4.46
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4.63
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Asset Turnover (M / O)
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2.74
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2.96
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3.13
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Receivables Turnover (M / P)
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147.53
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132.70
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167.46
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Net Working Capital Turnover (M / S)
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10.75
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11.84
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13.83
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The turnover ratios as above are showing a mixed trend. i.e. Working Capital and Asset turnover has shown continuous improvement over the last two years but Receivables and inventory have not been properly managed in 2009.
The firm needs to focus on management of receivables and inventory, though there has been an improvement in the receivables turnover and inventory turnover in 2010, they are not stable and sufficient steps should be taken so as to ensure continuous efficiency in assets utilization.