Ratios Of Hero Honda

Liquidity Ratios

Leverage Ratios

Activity Ratios

Shareholders Return Ratio

Profitability Ratio

Return on Equity (ROE) =PAT/Equity X

Return on Assets

Net Profit Margin PAT Sales Minus Total Costs •Operating costs •Interest •Depreciation •Taxes

Sales

X

Assets/Equity

Total Asset turnover= Sales/Total Assets Sales

Total Assets

Fixed Assets

+Current Assets

Cash Account receivables Inventories

Return on Equity (ROE) =9710/25188.07=38.54%

Return on Assets =24.45% Net Profit Margin =11%

PAT=9710

X

X

Assets/Equity =1.56 Total Asset turnover =2.2

Sales=87139.81Sales=87139.81

TA=39495.8

Return on Equity (ROE) =8580/28864.61=29.7% Return on Assets =19.9% Net Profit Margin =8.6%

PAT=8580

X

X

Assets/Equity =1.48 Total Asset turnover =2.3

Sales=98999.6 Sales=98999.6

TA=42921.32

Return on Equity (ROE) =9710/34824.02=27.88%

Return on Assets =18.8% Net Profit Margin =9%

PAT=9710

X

X

Sales=103318

Assets/Equity =1.474 Total Asset turnover =2.01

Sales=103318

TA=51344.26

Sales Margin

Sales turnover

9.53

2.17

ROTA 21.05

30%

20%

3 Times

20%

2 Times 10%

10% 1 Time

Margin on Sales 9.53%

Sales/TA Ratio 2.17 times

ROTA= 21.05%

Performance of ROE Return on Equity 38.54% 40.00%

29.70%

35.00%

27.88%

30.00% 25.00% Value of ROE20.00% 15.00% 10.00% 5.00% 0.00% 2005-06

2006-07 2007-08 Assessment Years