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    Leverage Analysis at Essar Oil

    Uploaded by

    Mark Linekar
    The study analyzes leverage at Essar Oil Ltd over four years from 2011-2014 using secondary data from CMIE Prowess. It calculates debt to operating leverage (DOL), debt to fixed assets leverage (DFL), and debt to capital leverage (DCL) ratios to assess the company's risk compared to peers. DOL was highest in 2012-2013, indicating high operating risk that year. DFL was lowest in 2012-2013, suggesting low risk from fixed assets. DCL was highest in 2011-2012, showing high overall risk from debt levels that year.

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    Leverage Analysis at Essar Oil

    Uploaded by

    Mark Linekar
    15 views1 page
    The study analyzes leverage at Essar Oil Ltd over four years from 2011-2014 using secondary data from CMIE Prowess. It calculates debt to operating leverage (DOL), debt to fixed assets leverage (DFL), and debt to capital leverage (DCL) ratios to assess the company's risk compared to peers. DOL was highest in 2012-2013, indicating high operating risk that year. DFL was lowest in 2012-2013, suggesting low risk from fixed assets. DCL was highest in 2011-2012, showing high overall risk from debt levels that year.

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    The study analyzes leverage at Essar Oil Ltd over four years from 2011-2014 using secondary data from CMIE Prowess. It calculates debt to operating leverage (DOL), debt to fixed assets leverage (DFL), and debt to capital leverage (DCL) ratios to assess the company's risk compared to peers. DOL was highest in 2012-2013, indicating high operating risk that year. DFL was lowest in 2012-2013, suggesting low risk from fixed assets. DCL was highest in 2011-2012, showing high overall risk from debt levels that year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views1 page

    Leverage Analysis at Essar Oil

    Uploaded by

    Mark Linekar
    The study analyzes leverage at Essar Oil Ltd over four years from 2011-2014 using secondary data from CMIE Prowess. It calculates debt to operating leverage (DOL), debt to fixed assets leverage (DFL), and debt to capital leverage (DCL) ratios to assess the company's risk compared to peers. DOL was highest in 2012-2013, indicating high operating risk that year. DFL was lowest in 2012-2013, suggesting low risk from fixed assets. DCL was highest in 2011-2012, showing high overall risk from debt levels that year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Leverage analysis at Essar Oil Ltd.

    Objective:
    The objective of this study is to conduct leverage analysis for the firm and
    analyse the results to assess the riskiness of the firm compared to other firms in
    the oil refinery and marketing industry.
    Methodology of Data Collection:
    The study is totally based on the secondary data collected from CMIE Prowess
    Data Base. The data collected from this source have been used and complied
    with due care as per requirement of the study.
    Period of Study:
    The present study covers a period of four years from 2011-2014.
    YEAR
    Sales (in
    millions)
    % Change in
    Sales
    EBIT (in
    millions)
    % Change in
    EBIT
    EPS

    2010-11
    Rs.
    5,34,114.40

    Rs. 6,015.50

    Rs. -1.9

    % Change in
    EPS

    2011-12
    Rs.
    6,32,516.60

    2012-13
    Rs.
    9,72,436.80

    2013-14
    Rs.
    10,72,548.60

    18.42%

    53.74%

    10.29%

    Rs. -3,253.20

    Rs. 14,031.10

    Rs. 24,397.40

    -154.08%

    -531.30%

    73.88%

    Rs. -9.4

    Rs. -8.6

    Rs. 0.9

    394.74%

    -8.51%

    -110.47%

    YEAR
    2011-12

    2012-13

    2013-14

    DOL

    8.363

    9.8864

    7.1764

    DFL

    2.562

    0.016

    1.495

    DCL

    21.426

    0.158

    10.730

    Interpretation from DOL:

    Interpretation from DFL:

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