| |
Calculation of Profitability ratios -
|
|
|
|
| |
|
|
|
|
| |
|
2008
|
2009
|
2010
|
|
G
|
Net Sales
|
8506616
|
11993699
|
16064038
|
|
H
|
Gross Profit
|
2145345
|
2940480
|
3782294
|
|
I
|
Net Profit
|
327743
|
450086
|
627643
|
|
J
|
EBIT or Operating Profit (Net)
|
660135
|
935835
|
1182927
|
|
K
|
Equity
|
1277659
|
1690493
|
2257267
|
|
L
|
Total Assets
|
3103645
|
4049092
|
5131809
|
| |
|
|
|
|
| |
|
|
|
|
| |
Net Profit Margin ( I / G)
|
3.85%
|
3.75%
|
3.91%
|
| |
|
|
|
|
| |
Gross Profit Margin (H / G)
|
25.22%
|
24.52%
|
23.55%
|
| |
|
|
|
|
| |
Return on Equity (I / K)
|
25.65%
|
26.62%
|
27.81%
|
| |
|
|
|
|
| |
Return on Total Assets (J / L)
|
21.27%
|
23.11%
|
23.05%
|
As shown by above, out of the four ratios except Gross Profit Margin all other ratios have improved in 2010 as compared to 2008. However, both the Net margin and the Gross margin have declined in 2009 as compared to 2010. The company has shown better performance in terms of return on equity as well as return on total assets in both the years i.e. 2009 and 2010 as compared to 2008.
Overall, it can be said that 2010 has been a good year for the company in terms of profitability and overall the company has been moderately profitable with marginal increase in profit percentages.