Ratio Analysis Essay

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RATIO ANALYSIS OF KRBL LTD. AND KOHINOOR FOODS LIMITED Introduction:- This assignment is basically about ratio analysis, which is used to see the financial positioning of the company. Below are the financial ratios of two companies which come under FMCG companies, this ratios are taken of the last 3 years and analyzed among all the years and also with each other. Company Introduction:- 1) KRBL Ltd.:- KRBL was founded by Khushi Ram & Behari Lal , therefore the company is known as KRBL. It’s a rice company with comprehensive product chain. Among the Indian rice industry, KRBL is on the top slot. It is unparalleled and unmatched in every aspect. Their flagship brand is India Gate Basmati Rice, which is recognized in India and abroad. Among the households it is a preferred brand. 2) Kohinoor Foods Ltd: - Kohinoor started in the year 1989. They are …show more content…

As we can see that KRBL has a very low current ratio i.e. in 2011 it was 0.81 that increased to 0.82 in 2013. In Kohinoor the ratio was 0.82 in 2011, which went on decreasing in subsequent years which decreased to 0.69 in 2013.If we compare both the companies we can conclude that KRBL has a better current ratio as compared to Kohinoor Ltd. 2) Quick ratio: - 1:1 is the favorable quick ratio in the industry. In KRBL the ratio is 0.65 in 2011 which increased to 0.74 in 2013 and in Kohinoor ltd the ratio was 1.75 in 2011 which came down to 1.01 in 2013, which is very good compared to KRBL. 3) Debt to Equity Ratio: - As the debt to equity ratio decreases it is better for the company, if it is high, it increases the risk of the company. In KRBL in 2011 it was 1.48 which decreased to 1.05 in 2013, which is better. In Kohinoor the ratio has decreased from 2011 to 2013 from 5.12 to 2.19 which is also better. But if we compare both the companies KRBL is better than Kohinoor in terms of the

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