Question
Based on the below data, which company do you recommend for investment? Profitability Ratios Return on equity Particulars FY'19 FY'18 FY'17 L&T 12.71 10.96 11.85
Based on the below data, which company do you recommend for investment?
Profitability Ratios
Return on equity | |||
Particulars | FY'19 | FY'18 | FY'17 |
L&T | 12.71 | 10.96 | 11.85 |
BHEL | 3.87 | 2.47 | 1.54 |
NBCC | 23.62 | 17.8 | 16.84 |
Siemens | 12.15 | 10.86 | 14.78 |
Return on capital employed | |||
Particulars | FY'19 | FY'18 | FY'17 |
L&T | 16.87 | 13.24 | 12.65 |
BHEL | 5.44 | 4.15 | 1.68 |
NBCC | 31.53 | 22.38 | 22.68 |
Siemens | 11.68 | 10.56 | 15.41 |
Liquidity Ratios
Quick Ratio | |||
Particulars | FY'19 | FY'18 | FY'17 |
L&T | 0.51 | 0.39 | 0.33 |
BHEL | 0.75 | 0.97 | 1.26 |
NBCC | 0.66 | 0.64 | 0.42 |
Siemens | 1.22 | 1.02 | 1.04 |
Current Ratio | |||
Particulars | FY'19 | FY'18 | FY'17 |
L&T | 1.3 | 1.32 | 1.44 |
BHEL | 1.59 | 1.83 | 1.96 |
NBCC | 1.08 | 1.18 | 1.26 |
Siemens | 1.91 | 1.82 | 1.7 |
The weighted averages of Return on Equity (ROE) for the companies are
L&T 11.98
BHEL -3.02
NBCC -20.55
Siemens -12.16
The weighted averages of Return on capital employed for the companies are
L&T 14.96
BHEL -1.88
NBCC -27.01
Siemens -11.93
The weighted averages of Quick Ratio for the companies are
L&T 0.44
BHEL -0.91
NBCC -0.61
Siemens -1.12
The weighted averages of Current Ratio for the companies are
L&T 1.33
BHEL -1.75
NBCC -1.19
Siemens -1.85
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