Academia.eduAcademia.edu

Figure 7 – uploaded by Dr. Venkateswararao Podile

See full PDFdownloadDownload figure
The Fixed Assets ratio of the Enterprise varied between 019 during 2007 and 1.88 during 2015. It is found in the significance test that Fixed Assets ratio is uniform during the period of study. Fixed Assets ratio is less than one during first eight years of the study indicating that part long term funds are also available for financing working capital requirements. This is good for the enterprise. But, during last two years long term funds are not sufficient to meet fixed assets. TRANS Asian Research Journals http://www.tarj.in

Table 7 The Fixed Assets ratio of the Enterprise varied between 019 during 2007 and 1.88 during 2015. It is found in the significance test that Fixed Assets ratio is uniform during the period of study. Fixed Assets ratio is less than one during first eight years of the study indicating that part long term funds are also available for financing working capital requirements. This is good for the enterprise. But, during last two years long term funds are not sufficient to meet fixed assets. TRANS Asian Research Journals http://www.tarj.in

Related Figures (8)

The Degree of Operating Leverage has varied between -349.7 and 95.0. Operating leverage is favorable during 2007, 2008, 2012, 2013 and 2016 as DOL is greater than one. Operating leverage is un-favorable during other five years as DOL is less than one. It is found in the significance test that Degree of Operating Leverage is not uniform during the period of study. TRANS Asian Research Journals http://www.tarj.in
The Degree of Operating Leverage has varied between -349.7 and 95.0. Operating leverage is favorable during 2007, 2008, 2012, 2013 and 2016 as DOL is greater than one. Operating leverage is un-favorable during other five years as DOL is less than one. It is found in the significance test that Degree of Operating Leverage is not uniform during the period of study. TRANS Asian Research Journals http://www.tarj.in
The Degree of Combined Leverage has varied between -366.25 and 108.94. Combined leverage is favorable during 2007, 2008, 2012, 2013 and 2016 as DCL is greater than one. Combined leverage is un-favorable during other five years as DCL is less than one. It is found in the significance test that Degree of Combined Leverage is not uniform during the period of study. Degree of Combined Leverage
The Degree of Combined Leverage has varied between -366.25 and 108.94. Combined leverage is favorable during 2007, 2008, 2012, 2013 and 2016 as DCL is greater than one. Combined leverage is un-favorable during other five years as DCL is less than one. It is found in the significance test that Degree of Combined Leverage is not uniform during the period of study. Degree of Combined Leverage
Source: Annual Reports of Radhika Vegetable Oils Private Limited from 2006-07 to 2015-2016. The Debt-Equity ratio of the Enterprise varied between 0.02 during 2007, 2010 and 2011 and 4.56 during 2016. It is found in the significance test that Debt-Equity ratio is not uniform during the period of study. Debt- Equity ratio is less than one during first eight years of the study ensuring high margin of safety for lenders. It is 2.34 during 2015 and even 4.56 during 2016 which reduces margin of safety for lenders.
Source: Annual Reports of Radhika Vegetable Oils Private Limited from 2006-07 to 2015-2016. The Debt-Equity ratio of the Enterprise varied between 0.02 during 2007, 2010 and 2011 and 4.56 during 2016. It is found in the significance test that Debt-Equity ratio is not uniform during the period of study. Debt- Equity ratio is less than one during first eight years of the study ensuring high margin of safety for lenders. It is 2.34 during 2015 and even 4.56 during 2016 which reduces margin of safety for lenders.
The Proprietary ratio of the Enterprise varied between 0.18 during 2016 and 0.98 during 2007, 2010 and 2011. It is found in the significance test that Proprietary ratio is uniform during the period of study. High proprietary ratio during first eight years of the study ensured good long term solvency of the enterprise. Low proprietary ratio during last year decreased long term solvency position.
The Proprietary ratio of the Enterprise varied between 0.18 during 2016 and 0.98 during 2007, 2010 and 2011. It is found in the significance test that Proprietary ratio is uniform during the period of study. High proprietary ratio during first eight years of the study ensured good long term solvency of the enterprise. Low proprietary ratio during last year decreased long term solvency position.
Fixed Assets to Net worth Ratio
Fixed Assets to Net worth Ratio
Calculated value of ¥2 for Current Assets to proprietary funds ratio = 1.4. The Critical value of (2 at 9 degrees of freedom at 5% level of Significance is 16.919 Calculated value is less than Critical Value ie., 1.4<16.919, Hence, Hoo is accepted.
Calculated value of ¥2 for Current Assets to proprietary funds ratio = 1.4. The Critical value of (2 at 9 degrees of freedom at 5% level of Significance is 16.919 Calculated value is less than Critical Value ie., 1.4<16.919, Hence, Hoo is accepted.
The Interest Coverage ratio of the Enterprise varied between -492.5 during 2015 and 499.0 during 2007. It is found in the significance test that Interest Coverage ratio is not uniform during the period of study. Interest coverage ratio is negative during 2013, 2015 and 2016. This is not good long term creditors. It is high during all other years, which is a good phenomenon for long term creditors.
The Interest Coverage ratio of the Enterprise varied between -492.5 during 2015 and 499.0 during 2007. It is found in the significance test that Interest Coverage ratio is not uniform during the period of study. Interest coverage ratio is negative during 2013, 2015 and 2016. This is not good long term creditors. It is high during all other years, which is a good phenomenon for long term creditors.
Related topics:
Debt to Equity RatioInterest Coverage Ratio
580 California St., Suite 400
San Francisco, CA, 94104
© 2025 Academia. All rights reserved