Ratio Analysis and Risk and Return of Fmcg Industry Essay Sample free essay sample

Companies – ITC. HUL. Nestle India. Dabur. Godrej Consumer Products The Indian FMCG sector is the 4th largest sector in the economic system with an estimated size of Rs. 1. 300 billion. The sector has shown an mean one-year growing of about 11 % per annum over the last decennary. Unlike the developed markets. which are conspicuously dominated by few big participants. India’s FMCG market is extremely disconnected and a considerable portion of the market comprises of unorganised participants selling unbranded and unpackaged merchandises. There are about 12-13 million retail shops in India. out of which 9 million are FMCG kirana shops. Index concentration degree: The index is mostly driven by ITC and HUL. as they contribute about 75 % to the entire index. Both companies have posted good consequences. therefore assisting the index to turn despite weak domestic market. If both these companies are excluded so the index comes out to be overvalued by merely 7. 82 % . Therefore. the index has high dependence on these two companies. We will write a custom essay sample on Ratio Analysis and Risk and Return of Fmcg Industry Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Union Budget 2012-13 proved to a assorted bag for the FMCG industry. On one manus. minor addition in the revenue enhancement freedom bounds and some inducements on equity investings were positives as this would increase the disposable income degrees. But on the other manus. the addition in excise responsibility more or less offset the above consequence. We feel that smaller participants would happen it hard to go through on the responsibility hikes to stop consumers and will take to take the brunt of this hiking in a command to keep and turn market portion. On the other manus. deep-pocket participants like Nestle. ITC and HUL with their leading place and strong trade names will be able to go through on the hiking to consumers. Traveling frontward. the moderation of natural stuff monetary values and grasp of rupee against dollar would assist the FMCG companies to keep their borders in future. With addition in disposable income and favorable authorities policies. net gross revenue s growing is expected to stay robust in coming quarters. Sing ongoing economic uncertainness. we expect that FMCG industry will stay an attractive industry for investing. being a safe oasis for investors. FMCG industry. as an investing: FMCG index has systematically given good return to investors over the old ages. Infact. FMCG index has given a return of 12 % in 2011 despite negative returns from Sensex. Traveling frontward. HUL and ITC are expected to enter good public presentation. which could take to positive impact on the rating of the overall FMCG index. In FY-11. HUL has changed its concern scheme and started concentrating on rural market through addition in ad-spends. new launches and spread outing distribution web. As a consequence. it posted good consequences so far and is expected to present good consequences in coming quarters every bit good. ITC. market leader in coffin nails. has benefitted by favorable proclamation in the Union Budget-13 wherein the Government increased the excise responsibility on bidi and other baccy merchandises which could take to consumers switching to coffin nails. With favorable authorities policies and its focal point on turning nutrient processing class. ITC is expected to post good consequences in approaching old ages. Therefore. FMCG index. being a defensive sector. will stay a safe stake for investors. But. as the [ electronic mail protected ]/*figure indicates. most of the companies are merchandising at a premium to their MRPs. Despite this. there are a few basically sound companies in FMCG industry. which are presently available at a good price reduction from their MRPs ( intrinsic value ) . With the overall economic state of affairs non expected to alter much in the coming quarters. investors would be well-advised to: Current Ratio for all the houses is below the criterion ratio 2:1. All the houses are following the same tendency as they have proportionally same difference between current ratio and speedy ratio. Companies have a immense stock list base that holds a major portion of current assets. GCP performed better than wholly as there is a net addition in hard currency flow. increasing the company’s liquidness to run into its short term liability. ITC and Nestle India has a really low hard currency ratio. As Nestle has negative hard currency flow -44 Crores. although ITC performed good this twelvemonth with a net hard currency flow of Rs 55 Crores but they invested in fixed assets and other investings resulted in really low hard currency. HUL and Dabur besides has a positive hard currency flow of Rs 694 Crores and Rs 98 Crores severally. But HUL made investings and dabur has shown an addition over the old old ages but non good as compared to its rivals. Quick ratio of Dabur and GCP has increased over the old twelvemonth. GCP’s hard currency ratio is increased from. 05 to. 4 besides the current ratio is improved over old twelvemonth. Employee turnover Ratios 2012-12 2010-11 Inventory Turnover RatioFixed Asset Turnover RatioEntire Assets Turnover RatioDebtor Turnover Ratio Nestle has the highest stock list turnover ratio of 11. 4 and inventory keeping period of 31 yearss. A good stock list turnover ratio indicates that stock lists are traveling fast and that is required in FMCG industry. All the houses have an stock list ratio above 7 that is a good indicant. HUL has the highest entire Assets turnover ratio and fixed assets turnover. GCP. ITC. Nestle made immense investing in 2011-12 that increased their entire assets and fixed assets. The gross revenues has besides increased but due to investing and increase in fixed assets. Fixed assets and entire assets turnover ratio are lower this twelvemonth but we may see an betterment in the approaching old ages where the investing made in fixed assets may assist in increasing gross revenues doing the good use of assets. Debtor Turnover ratio is high for Nestle 83 times doing the mean aggregation period near to 4 yearss which shows that companies recognition policy are good and they are able to bring forth net capital in a really short clip for daily operating activities. The high value shows that direction might be rigorous towards the debitors and playing safe by hard currency minutess. Debtor turnover ratio for HUL is 28. Dabur is 17. ITC has 39 and GCP has 35 which shows they are able to roll up the hard currency in maximal 21 yearss for Dabur. which is a good indicant for FMCG industry. As stock lists moves fast they need hard currency for operating activities. All the houses have plus direction ratio’s near to industry norm. Nestle has outperformed both the old ages 2010-11 and 2011-12 as their Debtor turnover ratio is twice of the industry norm. Debt – Management Ratio 2011-12 2010-11 Debt-Equity RatioDebt Ratio Debt- Equity ratio is 0 for HUL and ITC and GCP has 7 times and Nestle has 10 times. As all these houses has really low debt and equity. but higher militias.Nestle financed its activities through loan this twelvemonth and took Rs. 976 Crores as loan and low equity of Rs. 96 Crores made the debt-equity ratio really high. Similarly GCP besides took debt in 2011-12 of Rs. 237 Crores but the low equity of Rs. 34 Crores made the debt-equity ratio higher. So higher value of debt-equity ratio does non intend that the companies are trusting chiefly on debt. Debt-Assets ratio / Gearing ratio is below 0. 5 for all the houses indicates that companies are less hazardous. As they have more assets than debts. In future they can run into their long term liabilities with the value of assets they have. ITC and HUL has 0 debt-assets ratio. which indicates their strong place in industry. As they are the major participants in FMCG industry and are capable plenty to run into their assets with militias and excess. non trusting on debts/equity. Nestle had 0 debt in 2010-11 and in 2011-12 they financed through loan. which increased debt-eqity ratio from 0 to 10. GCP had a higher debt-equity ratio in 2010-11 but it is reduced to 7 in 2011-12. All the other houses maintained low debt ratio and debt-equity ratio in both old ages. Net income Margin Ratio2011-12 2010-11 Gross Profit MarginOperating Net income MarginNet Net income Margin All the houses has Gross net income border above 45 % . but ITC has the highest gross net income border of 59 % which indicates good control of cost-of-goods sold and runing net income border 35 % . But GCP has the highest net net income border of 20 % . For both old ages 2010-11 and 2011-12 ITC has highest gross net income border and operating net income border ratio which indicates their efficient production procedure. The gross net income border indicates the efficiency of production and pricing. a higher gross net income border indicates the houses production procedure are good working. All the houses have a net net income border over 10 % which shows that industry is executing good. Profitability Ratios2011-12 2010-11 Tax return on EquityTax return on Assetss ROE and ROA is higher for all the houses. GCP leads with 1800 % returns. HUL has 1200 % . Dabur 200 % . ITC 700 % . Nestle 1000 % return. which is a good mark for investing. As Rs. 1 investing would give a Rs. 18 return. But the companies are non trusting much on equity. ROA is highest for HUL. as the house is using its assets and has an ROA of 1700 % . Other houses besides have ROA above 500 % . which indicates that they are using the assets really good. As a consequence the houses are intensively puting in fixed assets as to bring forth more volumes. GCP has highest Roe for both old ages and much above industry norm. Hazard and Return NIFTY:Average day-to-day Market Return| 9. 0381E-05|Average Annual Return| 2. 28 % |Geometric Mean Return| 1. 000017478|Discrepancy of Index| | 0. 0001462|| | | |Risk Free Return. Rf| | 8. 09 % | HUL: Average Daily Return of Stock| 0. 001163679|Average Annual Return| 29. 32 % |Standard Deviation of Daily Stock Return| 0. 014864983|Discrepancy of Daily Stock Return| 0. 000220968|Covariance of Stock and NIFTY| 3. 3892E-05|Geometric Mean Return| 1. 001053876|BETA ( utilizing incline fn ) | 0. 232281744|Required Rate of Return| 6. 74 % |Systematic Hazard of Stock| 0. 001987823|Unsystematic Risk| 0. 053696042| ITC: Average Daily Return of Stock| 0. 00017751|Average Annual Return| 4. 47 % |Standard Deviation of Daily Stock Return| 0. 026776465|Discrepancy of Daily Stock Return| 0. 000716979|Covariance of Stock and NIFTY| 6. 83846E-05|Geometric Mean Return| 0. 999678281|BETA ( utilizing incline fn ) | 0. 468678957|Required Rate of Return| 5. 37 % |Systematic Hazard of Stock| 0. 008092792|Unsystematic Risk| 0. 172585932| Dabur: Average Daily Return of Stock| -0. 000291509|Average Annua Return| -7. 35 % |Standard Deviation of Daily Stock Return| 0. 027196376|Discrepancy of Daily Stock Return| 0. 000739643|Covariance of Stock and NIFTY| 4. 95522E-05|Geometric Mean Return| 0. 999201699|BETA ( utilizing incline fn ) | 0. 339609723|Required Rate of Return| 6. 12 % |Systematic Hazard of Stock| 0. 004249205|Unsystematic Risk| 0. 182140793| Nestle India: Average Daily Return of Stock| 0. 001214306|Average Annual Return| 30. 60 % |Standard Deviation of Daily Stock Return| 0. 015235535|Discrepancy of Daily Stock Return| 0. 000232122|Covariance of Stock and NIFTY| 4. 02109E-05|Geometric Mean Return| 1. 001098493|BETA ( utilizing incline fn ) | 0. 275588703|Required Rate of Return| 6. 49 % |Systematic Hazard of Stock| 0. 002798145|Unsystematic Risk| 0. 055696483| Godrej Consumer Merchandises: Average Daily Return of Stock| 0. 001382|Average Annual Return| 34. 83 % |Standard Deviation of Daily Stock Return| 0. 020148|Discrepancy of Daily Stock Return| 0. 000406|Covariance of Stock and NIFTY| 2. 7E-05|Geometric Mean Return| 1. 001183|BETA| 0. 185288|Required Rate of Return| 7. 01 % |Systematic Hazard of Stock| 0. 001265|Unsystematic Risk| 0. 101034|

Summary-The Adventures of Huckleberry Finn essays

Summary-The Adventures of Huckleberry Finn essays In the beginning of the story Huckleberry Finn, a young teenaged boy, gets kidnapped by his drunken father, Pap. Pap beats him and locks him in a cabin. Huck then fakes his own death and runs away. He not only runs away to avoid Pap, but also to avoid being "sivilized." Along the way, he meets up with Jim. Jim is a black runaway who had overheard his owner, Miss Watson, talking about selling him to a plantation. Jim wants to find his wife and children, and by his conversations with Huck, it is apparent that Jim is also a human being with feelings. Though the present-day reader realizes this, it is something Huck has to become conscious of along the journey. The two become companions and find a raft and a house floating during a flood by the island on which they were hiding at. There is a shot man inside the house, but Jim doesnt let Huck see the mans face. They start downriver on the raft in search of the Ohio River, so that from there they can get on a steamboat to the free states. There is so much fog that they miss the opening to the river. There are distractions, also. That didnt help. A few days later, they encounter a pair of conmen. They introduce themselves as a Duke and a long-lost heir to the French throne. Huck sees through their act early on, but Jim doesnt. The men try to rob everyone they meet and after many scams their most awful one comesselling Jim to a farmer saying that there is a huge reward for him. Huck finds out where Jim is being held and it is none other than his best friend Tom Sawyers relatives home. They mistake Huck for Tom so he plays along pretending to be Tom. Then Tom actually arrives but Huck informs him of his situation and his plan to free Jim. Tom surprisingly and suspiciously agrees to help free Jim. He creates an elaborate way of doing so that it would maybe get them all killed. Jim manages to escape finally but in doing so, T...

With reference to the UK and a country of your choice, discuss the Essay

With reference to the UK and a country of your choice, discuss the limitation of GDP per capita'' as for a basis for comparing living standards between countries and over time - Essay Example In this paper, a comparison will be made of the GDP per capita of the India, a developing nation and the United Kingdom (UK) a developed nation. The state of the country as a whole as a result of this GDP per capita will be the main focus. The differences in income earned between people in the developed world and people in the developing world have been the subject of much research in the past (Maddision, 1983). India is a developing country located in the Indian Ocean. It is a former colony of Great Britain. India has an open market economy. In recent years, there has been much economic liberation such as privatization of former governmentally owned ventures, a reduction in foreign trade and development and deregulation industrially. This linearization was set in motion in the early 1990’s and has worked well to increase the growth rate of the country as a whole. The growth rate of the country has stayed at an approximate 7% every year since the year 1997. India has managed t o accomplish significant economic growth in the past decade or so (CIA-The World Factbook, 2011). The economy of India covers a multitude of things like modern agriculture, traditional village agriculture, a number of different services ad handicrafts. A comparison of GDP by sector in the country showed that whole over half the country works in the agricultural field, it contributes to only 16.1% of the country’s GDP. Industrial activities contribute about 28.6% where as the sevice industry makes up a bulk of the economy contributing 55.3%. All of these values are figures from the year 2010. This is particularly evident in that India has a large percentage of the population who speak English and has become a player in the global field in the export of information technology services and software personnel (CIA-The World Factbook, 2011). In light of the recent economic crisis, India was seen to bounce back in 210 as growth actually went above 8% in 210 and due to a demand for services domestically. In fact, India has the second highest labour force in the world with an approximate 478.3 million wanting to work. The unemployment rate was fairly low compared to the rest of the world in 2010 with it staying at 10.8% (118th place in the world) (CIA-The World Factbook, 2011). Despite doing relatively well on the economic front, India has numerous issues to deal with within the country. Parts of India are becoming increasingly overpopulated, there has been much destruction the environment and there is widespread poverty. A staggering 25% of the country’s population lives in poverty (CIA-The World Factbook, 2011). In addition, corruption seems to plague the country of India. There is also seen to be a lack of physical and social infrastructure in certain parts of the country and there is not enough access to higher education. There is a widespread migration from rural to urban areas dues to a lack of jobs in the agricultural sector (CIA-The World Factboo k, 2011). The GDP per capita of India is about $ 3400 as of 2010. In comparison to the rest of the countries of the world, this is 163rd place. The GDP per capita the UK, on the other hand is $35 100 and was 36th place in the world. This is a marked difference from India and a comparison will be made of these two countries (CIA-The World Factbook, 2011).it has been argued that developed countries such as the UK, already had a much higher lead to economic growth than to developing countries who growth started only relatively recently (Maddison, 1983). The UK is a group of islands located in Western Europe. In stark contrast to India, the GDP contributions by sector are extremely different. Only 0.9% of the GDP comes from agriculture, 22.1% of the GDP is as