FM Project 1

Standard deviation of all five companies
Panasonic A V C Networks India Co. Ltd.
Sharp India Ltd. Trend Electronics Ltd. Videocon Industries Ltd. Mirc Electronics Ltd.
6.9 19.7 23.3 23.9 19.4
On the basis of following information about the standard deviation of all the five companies we can easily make a positive decision towards the company having the minimum value of standard deviation. Which is the PANASONIC AVC NETWORKS INDIA CO. LTD., because the companies standard deviation is lowest as comparing to the other four companies in the same sector. All the other companies are having the higher rate of risk which we can analyse with the standard deviation data.
PBIT OF ALL THE FIVE COMPANIES YEAR WISE
2008 Panasonic A V C Networks India Co. Ltd.
2009
2010
2011
63.75 6.01 0.42 18.09 1455.3
38.2 1.58 0.78 17.02
37.41 21.3 1.73 16.64
47.76 NA 1.09 70.95
1623.25 1376.75 2046.07
If we see the data year wise we can see the PBIT of the Mirc electronics ltd. Is the highest as comparing it with the other four companies in the year 2008. In the year 2009, condition is same in further years where the PBIT is highest in MIRC ELECTRONICS LTD. Now the second most valuable company which is in the good situation is Panasonic avc networks India ltd., but we can see one thing in the data of 2008 that the PBIT of Panasonic India ltd. Is 63.75 and in the year 2009 it becomes 38.2, which is nothing but half of the previous year. Here we can make a prediction that the company is having a value of capital of some EXTRAORDINARY PROFIT in the year 2008. After the year 2008 the data is showing the same rate of growth. NOTE: WE DO NOT USE EXTRAORDINARY YEAR IN THE CALCULATION OF GROWTH OF THE COMPANY.
PBIT ON AN AVERAGE BASIS

Sharp India Ltd. Trend Electronics Ltd. Videocon Industries Ltd. Mirc Electronics Ltd. CONSUMET ELECTRONICS INDUSTRIAL PBIT
9.63 1 1625.09 30.67 46.78 1528.82
Here by taking the average values of all the companies for four years we are getting the highest PBIT IN 1625.09 which is of TREND ELECTRONICS LTD. So the trend ltd. is in the better condition by analysing through PBIT. And the second most profitable company is mirc electronics ltd. which is having a 46.78. And also comparing the trend ltd with the whole industry it is giving the better result as compare to other companies.
RONW OF ALL THE COMPANIES YEAR WISE
2008 Panasonic A V C Networks India Co. Ltd.
2009
2010
2011
13.94 10.92 -27.59 5.6 15.84
2.61 2.17 -7.83 2.71
6.11 32.02 5.41 4.29
9.77 NA 0.99 21.39 8.88
17.17 6.81
Return on net worth is basically what return a company is getting on its assets. So the company which have the higher rate of return of net worth will be in a secured position or lesser risky. Here mirc. Electronics ltd. is having the highest return on assets which is 15.84 and if we see trend electronics is showing the negative value which shows the company is not able to get the proper return on assets. Accordingly we can compare the returns for the further years also.
RONW ON AN AVERAGE BASIS

Sharp India Ltd. Trend Electronics Ltd. Videocon Industries Ltd. Mirc Electronics Ltd. RONW OF CONSUMER ELECTRONICS
15.04 -7.25 12.17 8.5 8.11 5.85
On an average the highest return is gain by Panasonic avc India pvt ltd. which is 15.04 and on the second position is videocon industries ltd which is 12.17. and sharp India ltd is showing a negative figure which is -7.25(not able to maintain the RONW ratio) which means there is a chance of insolvency of the company in future so the company is all risky in nature.
ROCE OF ALL FIVE COMPANIES YEAR WISE 2008 9.77 10.92 -27.59 2.03 9.37 2009 1.74 2.17 -7.83 .98 10.14 2010 4.09 32.02 5.41 1.47 3.71 2011 7.52 Na .99 8.56 4.83
From shareholders point of view it is important to know how much return we get on capital employed, the higher the return the higher the gain for the shareholder the lower the return the lower the gain for shareholder. So here in the year 2008 sharp India ltd is having the highest rate of return on capitol employed so from single year point of view in 2008 the sharp India ltd is in the better condition but further the condition is a bit different. In the year 2009 the condition of sharp India ltd goes down and merc still remains its position so we can say that there is a fluctuation is the data of ROCE. It is better to take the average data of ROCE. ROCE ON AN AVERAGE BASIS
Sharp India Ltd. Trend Electronics Ltd. Videocon Industries Ltd. Mirc Electronics Ltd. RONW OF CONSUMER ELECTRONICS
15.04 -7.25 6.88 3.26 5.78 3.34
If we see on an average basis shareholders are in better situation is they opt Panasonic avc networks India co. ltd. which has a return of 15.04, highest amongst the other four companies, it is a gainful condition for the shareholders and sharp India ltd. is the company which is not a beneficial company from shareholders point of view.

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Standard deviation of all five companies

Panasonic A V C Networks India Co. Ltd.

6.9 19.7 23.3 23.9 19.4

PBIT OF ALL THE FIVE COMPANIES YEAR WISE

2008 Panasonic A V C Networks India Co. Ltd.

63.75 6.01 0.42 18.09 1455.3

38.2 1.58 0.78 17.02

37.41 21.3 1.73 16.64

47.76 NA 1.09 70.95

1623.25 1376.75 2046.07

PBIT ON AN AVERAGE BASIS

9.63 1 1625.09 30.67 46.78 1528.82

RONW OF ALL THE COMPANIES YEAR WISE

2008 Panasonic A V C Networks India Co. Ltd.

13.94 10.92 -27.59 5.6 15.84

2.61 2.17 -7.83 2.71

6.11 32.02 5.41 4.29

9.77 NA 0.99 21.39 8.88

RONW ON AN AVERAGE BASIS

15.04 -7.25 12.17 8.5 8.11 5.85

Panasonic A V C Networks India Co. Ltd.

15.04 -7.25 6.88 3.26 5.78 3.34

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