1. Submitted To : Prepared By :
Gaurav Bagra Gaurav Bhattacharya
Sr. Faculty MBA (G) Sec – A
Amity Business School

2. Bajaj Auto Ltd.
Bajaj Auto Ltd a , BSE listed, World’s Third largest
Two wheeler manufacturing Company, and tried to
interpret these ratios on basis of their calculations.
The Ratios which I have calculated are as follows :
1. Earning Price Per Share (EPS)
2. Gross Profit Ratio
3. Net Profit Ratio
4. Current Ratio
5. Quick Ratio
6. Operating Profit Ratio
7. Return on Equity

3. Earning Price per Share
(EPS)
 Earning Price Per Share =
 Earnings after Tax ∕ Number of Equity Shares
Year 2008 2009 2010 2011 2012
EPS 5.039 4.37 11.35 11.13 10.01

4. EPS
Year EPS
10.01
11.13
11.35
4.37
5.039
2012
2011
2010
2009
2008
1 2 3 4 5

5. Trend Line of EPS
12
10
8
EPS
6
EPS
4
2
0
1 2 3 4 5
Years

6. Interpretation of Earnings Per
Share
 In the year 2008 the EPS Ratio was 5.03, while
in the next year i.e.. in 2009 it got reduced to
4.37 but in the year 2010 it saw a big jump in the
EPS rate up to 11.35 after its reducing in a slow
pace i.e. 11.13 in 2011 and 10.01 in 2012 t
indicates that the Company’s earning share is
increased but still it is earning low.

7. Gross Profit Ratio
 Gross Profit Ratio =
 Gross Profit / Net Sales * 100
Year 2008 2009 2010 2011 2012
Gross Profit 14.93 14.71 21.35 22.81 13.62

8. Gross Profit
Year Gross Profit
22.81
21.35
13.62
14.71
14.93
2011 2012
2009 2010
2008
1 2 3 4 5

9. Trend Line of Gross Profit
25
20
15
Gross Profit
Gross Profit
10
5
0
1 2 3 4 5
Years

10. Interpretation of Gross Profit
Ratio
 In 2008 Co. earned a Gross Profit of
14.93%, which got somewhat reduced in 2009
came up to 14.71%, in 2010 it got increased and
got up to 21.35% in 2011 again showed a
increment and got up to 22.81 but in the year
2012 it reduced and came up to 13.62 which
indicated there is a loss compared to previous
years and corrective measures has to be taken
to increase the profit margin

11. Net Profit Ratio
 Net Profit Ratio =
 Net Profit/ Net Sales * 100
Year 2008 2009 2010 2011 2012
Net Profit 8.72 7.34 14.14 21 15.91

12. Net Profit
Year Net Profit
21
15.91
14.14
8.72 7.34
2011 2012
2009 2010
2008

13. Trend Line of Net Profit
25
20
15
Net Proft
Net Profit
10
5
0
1 2 3 4 5
Years

14. Interpretation of Net Profit Ratio
 In the year 2008 Bajaj Auto Ltd earned a Net Profit
of 8.72% which got reduced in 2009 upto 7.34% but
in the year 2010 came with up good news and a
profit margin of 14.14% and in the year 2011 again
showed a +7 increment in the profit margin upto
21% but in the year 2012 profit got reduced and
stood upto 15.91 which shows company suffered
loss this FY and corrective measures must be taken
to overcome it.

15. Current Ratio
 Current Ratio =
 Current Assets / Current Liabilities
Year 2008 2009 2010 2011 2012
Current Ratio 0.87 0.95 0.701 0.786 1.122

16. Current Ratio
Year Current Ratio
1.122
0.786
0.701
0.95
0.87 2012
2011
2010
2009
2008
1 2 3 4 5

17. Trend Line of Current Ratio
1.2
1
0.8
Cureent Ratio
0.6
Current Ratio
0.4
0.2
0
1 2 3 4 5
Years

18. Interpretation of Current Ratio
In the years of 2008, 2009 Current Ratio of Bajaj
Auto Ltd shown a increase but it 2010 it got
decreased and come upto .71 and after tht its
rising at a good pace at which shows that they
are in the position to meet their short term
liquidity it the market and are moving in a good
direction which indicates they can meet their
short term requirement quickly whenever there
is a emergency in the company.

19. Quick Ratio
 Quick Ratio =
 Current Assets – Stock / Current Liabilities
Year 2008 2009 2010 2011 2012
Quick Ratio 0.69 0.81 0.59 0.64 0.97

20. Quick Ratio
Year Quick Ratio
0.97
0.64
0.59
0.81
2012
0.69
2011
2010
2009
2008
1 2 3 4 5

21. Trend Line of Quick Ratio
1.2
1
0.8
Quick Ratio
0.6
Quick Ratio
0.4
0.2
0
1 2 3 4 5
Years

22. Interpretation of Quick Ratio
 Same like Current Ratio, Bajaj Auto Ltd
Quick Ratio shows and indicates the
exact short term solvency for the past 5
years Quick ratio showed a increase in
2008, 2009 and shown a downfall in
2010 and is increasing after that in 2011
it showed a rise upto .64 and in 2012 it
showed rise upto .97

23. Operating Ratio
 Operating Profit =
 Operating Profit / Total Operating income * 100
Year 2008 2009 2010 2011 2012
Operating
Profit 14.29 13.64 21.75 19.35 19.6

24. Operating Profit
Year OP
19.6
21.75 19.35
13.64
14.29
2011 2012
2009 2010
2008
1 2 3 4 5

25. Trend Line of Operating Ratio
25
20
15
Operating Profit
OP
10
5
0
1 2 3 4 5
Years

26. Interpretation of Operating
Ratio
 Bajaj Auto Ltd Operating profit ratio showed a
rise in % in 2008 and in 2009, 2010 but in 2011
it got reduced upto 19.35% again in 2012 the
company made some improvement and the
operating profit ratio gone upto 19.6 % which is
a good sign for the company

27. Return on Equity
 Return on Equity =
 Profit after Tax / Shareholder’s Fund * 100
Year 2008 2009 2010 2011 2012
ROE 47.61 35.11 58.17 61.17 55.28

28. Return on Equity
Year ROE
61.17
58.17 55.28
47.61
35.11
2009 2010 2011 2012
2008
1 2 3 4 5

29. Trend Line of ROE
70
60
50
Return on Equity
40
ROE
30
20
10
0
1 2 3 4 5
Years

30. Interpretation of Return on
Equity
 Return on Equity of Bajaj Auto Ltd showed a
good increase in the year 2008 but got
reduced in 2009 then in 2010, 2011 it
showed again a rise and then in 2012 it got
again somewhat reduced and stood up to
55.28 this indicates that how much a investor
is getting return on his Equity.

31. THANK YOU