Analytical Ratios

Current Ratio In current assets, companies have to block funds. A part of this investment is recovered by blocking the payment of your supplier which becomes current liability. Higher the ratio, higher funds are blocked in current assets and therefore higher ratio shows company's ineffciency Quick Ratio Quick ratio is like current ratio. The only difference is that the current assets, which are not readily convertible to cash, are not considered. Debt Equity Ratio It shows how leveraged the business is. A company with higher debt equity ratio has to pay higher interest costs. Therefore, the fixed obligation is higher. In days of boom, when profit growth is higher and interest cost remains fixed, it can work wonders for the company. However, in bad days when profit does not grow, or worse it falls, the company still has to pay interest and therefore it can affect it negatively Interest Cover Ratio It shows to what extent operating profit from business can cover interest payments. The higher the ratio, the better. Inventory Turnover Days It shows for how many days of production, the company has inventory. Lower the better. Debtors Velocity Days It shows debtors amount to how many days of credit sales. Lower the better. Creditors Velocity Days It shows creditors amount to how many days of purchase. Higher the better Fixed Asset Turnover Days It shows fixed assets amount to how many days of sales Operating Margin It shows, in percentage terms, the residual after meeting the expenses indispensable for production and day to day operation of business. The higher, the better. Gross Profit Margin It shows, in percentage terms, the residual after meeting the expenses indispensable for production of goods. The higher, the better. Net Profit Margin It shows, in percentage terms, the residual after meeting the all kind of expenses. The higher, the better Return on Equity It shows the accounting return equity investors of business are earning. The higher the better Return on Capital Employed It shows the accounting return all investors (including equity, preference and debt holders) are earning. The higher the better Payout Ratio It shows how much of the net profit of a year is paid out as dividend to shareholders. Higher the better

IL&FS may take over Maytas Infrastructure

The board of Maytas Infra Limited met here on Friday under the chairmanship of K Ramalingam, and Anil K Agarwal, O P Vaish and Ved Jain all government-nominated directors along with Teja Raju, vice-chairman and whole-time director and B Narasimha Rao, the whole-time director, according to a company release. The board had extensive discussions on the business plan, orders in hand and under execution. More importantly, it also had discussions with bankers as well as the chairman of IL&FS Infrastructure Leasing and Financial Services (IL&FS), Ravi Parthasarathy, amid reports that it appears set to take over Maytas Infra soon. Interestingly, IL&FS owns a 37% stake in Maytas Infra.

हर महीने सात अमेरिकी बैंक धराशाई

Mar 29, 02:01 pm न्यूयार्क। वैश्विक वित्तीय संकट के मद्देनजर हर महीने औसतन सात अमेरिकी बैंक धराशाई हो रहे हैं। वर्ष 2009 में इस साल अब तक 21 बैंक बंद हो चुके हैं। साल के पहले तीन महीनों में 21 बैंकों को बंद किया जा चुका है जबकि 2008 में पूरे साल के दौरान कुल 25 बैंक बंद हुए। यदि सिर्फ 2009 और 2008 के आंकड़े को ही देखा जाए तो 46 ऋणदाता बैंक धराशाई हुए हैं और यह संख्या पिछले नौ साल में बंद हुए बैंकों की तादाद की आधी है। फेडरल डिपाजिट इश्योरेंस कार्पोरेशन के मुताबिक एक अक्तूबर 2000 से अब तक 73 बैंक बंद हो चुके हैं। इस कड़ी में सबसे ताजा नाम जार्जिया स्थिति ओम्नी नैशनल बैंक है जिससे इस साल मार्च में बंद होने वाले बैंकों की तादाद बढ़कर पांच हो जाएगी।

IL&FS Financial Services acquires 14.5 per cent in Maytas Infra

28 March 2009 IL&FS Financial Services has acquired 14.5 per cent stake in Maytas Infra, the infrastructure and realty outfit promoted by the kin of former Satyam chairman B Ramalinga Raju, through invocation of pledge of shares and off-market transactions, Maytas said in separate stock market filings. IL&FS Financial services has acquired 56.53 lakh shares, representing 9.61 per cent stake in the company following invocation of pledge, Maytas Infra informed the Bombay Stock Exchange in a filing. IL&FS also acquired 28,79,999 shares, representing 4.89 per cent stake in the company, through off-market transfer from Investsmart Financial Services Ltd, on 26 March, Maytas Infra said in another filing with the National Stock Exchange. The transactions have taken IL&FS Fin Serv's total holding in Maytas Infra to 14.5 per cent, the statement added. Other stakeholders of Maytas Infra include Sicom Ltd, which held 6.97 per cent stake in the company as of 31 December and Citigroup Global Markets (Mauritius) which held 1.70 per cent stake in Maytas Infra. Promoted by the Central Bank of India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI), IL&FS Financial Service is one of India's leading infrastructure development and finance companies.

NSE switching to a फ्री फ्लोअट मार्केट केपिटलाईज़ेशन

The National Stock Exchange (NSE) on Tuesday said it was switching to a free float market capitalisation methodology for calculating the value of the S&P CNX Nifty against the full market capitalisation weighted methodology previously. What this means is that the weightage of a stock in the Nifty will be proportional to the public shareholding (non-promoter holding) in that company. Till now, the weightage was proportional to the market capitalisation of the company. So, a company with low public shareholding, but high market capitalisation would have a higher weightage. The new formula will come into effect from June 26 this year, and will reduce the weightage of stocks like ONGC and NTPC, where public shareholding is low. BSE uses the free float market capitalisation methodology for computing the value of its flagship benchmark, the 30-share Sensex. Due to the different formulae for calculating the Nifty and Sensex indices, there is a huge disparity in the weightages of some of the stocks. Because of a higher proportion of public shareholding, Infosys has the second-highest weightage in the Sensex at 9.5% while it comes at number five in the Nifty, with a weightage of 4.13. Similarly, ONGC with a high market capitalisation, but low public shareholding, has the second-highest weightage in the Nifty at 9.1%, while it ranks eighth in the Sensex. NSE release said there would be no change to the index values on the date of transition due to the change in the methodology. The index division will be suitably adjusted to ensure continuity in index values. Based on Tuesday’s closing prices, Reliance will retain its top position among index heavyweights, even under the free float methodology. Infosys will have the second-largest weightage, replacing ONGC, while ITC will be the third largest, replacing NTPC. NSE said categories like government holding in capacity of strategic investor, shares held by promotes through ADR/GDRs, strategic stakes by corporate bodies, investment under FDI category and cross-holdings among others would be excluded from the free float factor where identifiable separately.