 Dear students, in last two sessions, we have been discussing about ratio analysis. We have already discussed horizontal and vertical analysis, wherein we prepare a common size statement or a comparative statement and then we go for a more detailed analysis in the form of ratio analysis. Today, we are going to take one more case, because as more and more cases we solve, you will also get insight into how to interpret these ratios. So, let us immediately start with the case today. I hope you now remember the formulas, because ratio is essentially the relationship between the two items. So, I will request you to go through the formulas again and again, so that you know the linkages and you know that which item should be related to which item giving us the required relationship and required interpretation from the same. So, here is a balance sheet. Please observe the balance sheet. You will find that equity capital has more or less doubled from 97 to 195. There is also preference capital of 100, which has remained constant. Then reserves have increased, but they have only increased marginally. If you go down, you will realize that total debt is pretty low. Gross block has slightly gone up. Then there is net block followed by investments, inventories and so on. Observe the balance sheet carefully. In the next sheet, we are also provided with profit and loss account, which also you can take a look. Now, using both these, we will have to first go in for common size, comparative and next we will also try to make the ratios. Now, this is the given balance sheet. Please let me know how to analyze it. What is the first step? Since we have done last two three times, I think you will easily understand what is to be done. So, how to go ahead? For balance sheet, what we do is, we for horizontal analysis, try to compare the balance sheet of two years and make a comparative balance sheet. So, we will start with that. Now, you tell me how to go ahead? What should be done in comparative balance sheet? I hope it is now pretty clear to you. We compare this year's figure with last year's figure to get the absolute difference. As I told last time, I am going pretty slow. I expect you also to solve with me. Along with absolute difference, we will also try to find percentage difference or percentage change. So, we have an increase of 97 on the base of 197 into 100. So, that we get in percentage terms. I will try to reduce the decimal points. So, you can see it is a difference of 97 crores, which turns out to be 49 percent increase in the total share capital. Now, I can drag down these figures. So, overall you will see that all the change is attributable only to equity share capital, which has increased by 100 percent. Whereas, increase in the reserves is comparatively marginal, it is only 11 percent. So, on the whole net worth has increased by 12 percent. In case of loans, there are no increases. In fact, there is a decrease in the loans. Now, let us go to application of funds. So, first item is gross block. You will find that the amount of gross block has not increased much. It has increased only by 11 percent. So, I have tried to drag down those figures. You can see that there is an increase in the depreciation to a significant component. Total work in progress has increased by 37 percent, which is a good sign that shows that company is on a growth path. All other items you do not see much changes. However, the provisions you can see has increased by 170 percent, which is again a major increase. So, this is the overall position. Can you guess which sector this is or which company this is? Let us try to guess it. Now, this was a comparative statement. Now, we can also calculate a common size statement, but I will not repeat it. We have done it many times. Let us go to PNL account. Observe the profit and loss account carefully. These are the figures in the PNL. I will make a copy of this, so that we can go for solving it. Now, PNL account, we can again do both the analysis. We can do common size and we can also do comparative. Since, we have just now done comparative for balance sheet. PNL account, let us do PNL account common size statement. How is common size statement done? Do you remember? What is done in calculating the common size statement? Yeah, you are right. We will try to take the total as 100. So, in this case, we will take the total sales as 100 and all other figures, we will try to calculate as a percentage to the total. So, titles I will just say percentage and try to link item to this total. So, currently it is B 4 upon B dollar 4. So, anyway I will get 1. I will multiply by 100, so that I get in percentage terms. If you drag down, you will realize that now you are able to make. I will just reduce the size. So, what do you observe now? If we try to do in this fashion, you will realize that each item, how important it is as a percentage to total sales we are trying to calculate. So, employee cost is a significant cost. It is 32 percent. It has further increased to 34 percent. Whereas, items like raw material and power hardly matter. They are negligible as a percentage to the total. So, I have dragged it down till the end. So, what do you observe now? You will see that there are two major cost. One is a employee cost. The other is manufacturing expenses. Selling and admin expenses have remained constant at about 5 percent. Manufacturing expenses have gone down and profit after tax has increased by 24 percent. This is attributable to increase in the operating profit, which has also increased by about 3 to 4 percent. So, now observing this, what you have got from a common size statement are figures in the percentage terms, which are comparable across. So, from this company you can compare with other company or you can compare with the industry average. That is the advantage of having relative figures as we get in the common size statement. Now, can you guess which will be the sector in which the company operates? I think you are guessing it right. This cannot be a production oriented or a manufacturing company as raw material cost is almost 0. It has to be a consulting or IT company because significant amount of employee cost. You can see here there are some manufacturing cost, but they are not for manufacturing in true sense. Even the cost of making software are treated as manufacturing cost because they are for establishment offices etcetera. But there is no raw material. So, employee cost from about 32 percent and another 30 percent are manufacturing cost. These are their main costs. The selling costs are only 5 percent. So, this is the overall structure of P and L account. Now, let us go to various ratios. Here again I have tried to show the important ratios, which already we have learned, but for your revision. So, under liquidity category we have got current ratio, quick ratio, cash ratio, inventory to net working capital ratio. Then there are profitability ratios and so on. Now, let us try to actually calculate each of the ratios. Here the balance sheet is copied again just for clarity. Now, we will try to go for calculation of the each of the ratios. It has already been done, but we will do it again. So, you have current ratio as the first important ratio about liquidity. The formula is also known to you. It is current assets upon current liabilities. Now, go up. This is the balance sheet you have. Now, which item you would like to link to which item? As you know, this is the total current assets, loans and advances is the figure, which is important 9 to 5 0, which is divided by the total current liabilities. Hence, our current ratio is 9 to 5 0 upon 5 0 5 4. So, 1.84 and if you drag it to the next year, it becomes 1.49. So, what we can see is there is a decrease in the current ratio. That is the command. It is not a very good sign. That is why it is shown in red. So, we can also see what is the command. So, what will you infer from this? What does this show? It is apparent that the liquidity position has slightly gone down. Now, let us go to the next ratio. That is quick ratio. So, what does the quick ratio calculate? It tries to focus on immediate liquidity. So, whether company can pay its debt immediately. So, the formula is quick assets upon quick liabilities. In this case, all current liabilities are quick. So, you can say it is quick assets upon current liabilities. Now, you have to identify from amongst the current assets, which are the quick assets. So, this is the list of quick current assets. I have tried to identify. We can have a look at it again. So, inventory is a non-quick asset because it cannot be sold that immediately. Debtors could be treated as a quick asset. Cash and bank again could be treated as a quick asset. Loans and advances are non-quick. Fixed deposits are quick because probably they can be converted into cash very easily. Thus, we have got these three assets are quick assets. So, we will try to take the total of these three assets divided by all the current liabilities. So, 1.05 and in the current year, the ratio has gone down to 0.92. Again, we can say that there is a decrease in the ratio. So, immediate liquidity position has deteriorated. Though we are making a comment that immediate liquidity has slightly gone down, we exactly do not know whether it is sufficient or otherwise. For that, we need to know industry trends because it will change from industry to industry. But, definitely there is a slight fall in the liquidity that much we can comment. The next ratio, which we will try to calculate here is cash ratio. This ratio tries to see what is the availability of cash balance for payment of current liabilities. So, the ratio is cash balance, cash and bank balances divided by current liabilities. So, we have got cash and bank balance here. We will divide it by the total of CLs plus provisions. So, you can see that the ratio has again decreased significantly. It was 0.09. Now, it has become 0.03. So, there is a decrease. What decrease shows is that availability of cash has fallen. So, I have tried to make a comment that availability of cash to pay current liabilities has slightly deteriorated. As I said, we cannot immediately say it is too good or too bad, but overall the liquidity position is slightly in, it is not so easy right now for the company to pay its debt. Now, let us go for calculating. This was on liquidity ratios. Let us go for calculating the other ratios. First, we will try to go in for profitability ratios. So, I have copied the PNL account. Even the ratios are calculated, but we will try to calculate them again. So, the first important ratio is net profit margin or net profit ratio, which tries to link the profit after tax to sales. Now, we know that profit after tax is nothing, but this reported net profit divided by the value of sales into 100. So, more clarity again these figures are repeated here. So, you can see actually it is 4692 divided by 22402, which is the figure of sales. So, the answer is 4692 divided by 22402. So, 21 percent. Are you getting? Same thing we will try to drag to next year. So, next year we get 24 percent. So, on the whole there is an increase in the profitability. There is a good amount of change, positive change for the company. Now, if you go to the next ratio, which tries to calculate the percentage of a bit. So, we can see there is a figure of operating profit that is nothing, but EBIT divided by again by sales turnover. So, 27 percent was the figure in the first year. Now, it has gone down to 24 percent. I am just trying to reduce the decimals. So, that it is more clear to you. So, I hope you are getting. So, 6021 is a profit on a sale of 22000. That shows that companies overall profitability position has improved by 2 percent vis-a-vis sales. Now, we try to look at profitability from the angle of return. So, the first formula is return on capital employed, which is also known as return on investment, popularly known as ROCE. The answers are already calculated. So, I will just cut them. So, now you know the formula ROCE is nothing, but EBIT divided by capital employed. So, look at the EBIT figure. EBIT we have just now calculated taken 6021 and for capital employed we need to go to balance sheet. So, if you go to balance sheet you will realize that this total liabilities is nothing, but the capital employed. So, 6021 divided by 13486, which is the total funds employed. Next year I have tried to drag the answer is 45 percent and 46 percent. So, in the current year you can see there is a slight decrease in the return. We will try to recheck the figures. So, that it is more clear to you. You can see that there is a increase in the total liabilities, but there is not proportionate increase in the profits. That is why the profits have slightly gone down. So, there is a decrease. So, the return has marginally gone down. So, who is interested in this return? ROCE, which are the group of stakeholders? Those who are long term investors or those who want to acquire the company, they will be more interested at ROCE and also at ROTA. So, return on total assets, this is the total profit after tax divided by total assets. You know the figure of PAT, total assets again we have to take from balance sheet. So, balance sheet we have got the figure of total assets. We will try to take that figure. So, pat upon total assets 121 percent. Same figures we will try to calculate. This is the current year. You can see there is a decrease, because the profit has not increased much. However, overall profit after tax remains at 4000. I think there is some mistake in linking it. I have tried to link it to sales. Now, it is more appropriate. So, you can see that the profit after tax has increased from 4600 to 5600 and assets have also increased more or less in the same proportion. So, the profit has remained almost constant. So, those who are looking from earning potential of the assets, for them we will realize that the amount has more or less remain the constant. Now, let us go to the next ratio, which is return on equity. As the name suggests, this is from the view point of the owners. So, here we try to calculate the profit after tax as a percentage of owners funds. So, profit after tax is you know it is 4696 and for owners fund we have to go to balance sheet. So, the balance sheet figure of net worth is nothing but the amount of owners fund. So, 176 percent is the amount and now it has significantly increased. It has become 204 percent. So, there is a positive change for the company that the profit has gone up as far as the owners are concerned. So, we service the owners fund, the profit has increased. The next is earning per share. You know the formula. It is profit after tax divided by number of shares. So, again we will link it to profit for number of shares. We have to go to balance sheet. In the balance sheet we are aware that whatever is the equity share capital shown will be represented by number of shares if the face value is 1. If the face value is 10, it will be 1 tenth, but it will be in that proportion. So, 48 is the EPS and current EPS has significantly gone down to 29. So, there is a decline. Now, why is this decline happened? Profit has not gone down. In fact, profit has increased, but if you see the share capital has doubled. Since the share capital has doubled, the earning per share has fallen. Now, let us go to ratios regarding utilization of assets. I will try to cancel the existing figures so that we can redo it. So, you know these are called as turnover ratios. The first important ratio is total asset turnover ratio, which tries to link the total assets versus total sales. So, total sales you know here and the total assets we have to get from the balance sheet. So, balance sheet total assets and this ratios tries to relate assets versus sales. So, it has gone down from 1.66 to 1.52. So, what is this decline attributed? You can see the amount of assets has increased. To that tune their sales have not increased, but it could be a good sign, because in future company may make more sales since they are on a expansion mode. On the whole, you can see there is a slight decrease. If you want to more in detail know the use of fixed assets, we try to calculate fixed asset turnover ratio. Now, what is the formula for the same fixed asset turnover ratio? Try to guess. So, it is a linkage of sales versus fixed assets. So, sales upon fixed assets. So, sales is this figure for fixed assets. Again we may have to go to balance sheet. In the balance sheet, we have two figures. We have gross block and net block. Generally, we take net block, which is the current value of fixed assets. So, sales is this divided by the fixed assets, wherein we take net block. So, the ratio is sales upon fixed assets. So, you can see there is a marginal decline from 8.39 to 8.35. So, it shows that the utilization of fixed assets has slightly gone down, but the difference is not too high to comment negatively. The next ratio, which is again on activity is working capital turnover ratio, which tries to see how effectively company is utilizing its working capital. So, what is the formula now? Here we try to find net sales versus working capital. Net sales is the figure, which anyway we know. Working capital, we will get from the balance sheet. So, we will go to balance sheet. Balance sheet you can see. We have number of items. So, which one we should pick up? They have clearly given net current assets. That is the amount of net working capital. So, we try to link sales versus working capital. I will just reduce the decimals. So, you can see there is a increase from 5.34 to 6.48. If you look at the figures, you will realize that the working capital figure has decreased and that is what has helped the company in increasing the utilization of working capital. In other words, they are able to generate more sales by using less working capital, which is a positive sign. Next is inventory turnover. In inventory turnover, we try to link sales to inventory or the stock. Actually, this ratio is irrelevant, because as you know, ours is a IT company, which does not have any significant amount of inventory. Still we will try to calculate. So, you know the sales figure. Look for the inventory figure in the balance sheet. So, inventories is very, very small amount. That is why this ratio will be absurdly high. Actually, it is very high ratio. It does not have any meaning. That is why I have said ignore this ratio, as this ratio is irrelevant. Now, this is the next ratio. It is an important ratio, debtor's turnover or account receivable turnover, as it is called, wherein we try to relate account receivables to sales. Sales figure we already know. Let us try to find out the debtor's figure from the balance sheet. So, in balance sheet, they have given the figure of sundry debtors. So, sales divided by sundry debtors and I will also calculate it for the current year. So, you can see there is an increase from 6.3 to 6.92. So, company has managed to reduce its debtors, which is a positive sign that despite increase in the sales, they are able to collect the money and reduce its sales position. So, reduce its outstanding with the customer, that is the debtors and that is why there is an increase, which shows that the efficiency in collection of debt has improved. Now, this is better understood if we convert it in terms of number of days. So, here what we try to do is instead of taking sales upon debtors, we will do reverse. We will take debtors upon sales. So, this is the figure of debtors. We will try to divide it by sales, but while calculating sales, instead of taking only debtors upon sales, we will try to calculate debtors on per day basis. So, debtors upon 365. So, we have, I am sorry, what I was trying to say is we will take the figure of debtors. We will divide it by sales, but we will not just take sales. We will take sales upon 365. So, that we get daily sales. So, the figure of debtors upon the figure of daily sales, I get 61. We will drag to the next year. So, next year you can see the average sales per day have increased from 61 to 63. That is why the collection period has gone down. So, collection period, which was 61 days earlier has now gone down to 53 days. This is a positive sign. It shows that company is able to collect its debtors in shorter time. Earlier, it was taking 2 months. Now, it is able to collect little faster. The next is leverage ratio. In leverage ratio, I will just delete whatever has been done. So, in leverage ratio, you all know that company, we try to link the borrowed funds to owners funds or we try to take debt upon equity. Again, it is a balance sheet ratio. So, we will have to go to balance sheet. So, here we have got the figure of total debt, which we will try to link to. I am sorry. I will just do it again. So, we have got the total debt and we will divide it by total net worth. So, here we have got the figures. So, as you know, basically the company does not have any significant amount of debt. It is equity finance. That is why the total debt versus equity is almost negligible. Company has no leverage. That is the comment we can make. Now, very important ratio wherein we try to link the market price versus the debtors. So, price earning ratio. Let us find out what is the market price of the company in the balance sheet. We had been provided with the market price divided by earning per share, which we have just calculated. So, you can see there is a major increase from 12.5 to 24. So, what does it show? What does this increase show? As the earning per share has gone down from 48 to 29, it would have been expected that the market price of the company also would have gone down. But, in fact, market price has increased from 600 to 700. That is why the PE ratio has increased. So, what does it show? Is it a good sign or bad sign? Actually, it is a very positive sign for the company. It shows that investors have more faith in the company and more people are now going for buying the share at a higher price. Perhaps, investors are perceiving that company has a good future and they are expecting further increase in the market prices. So, this is a good sign. So, here we have tried to calculate four types of ratios. First, we have done liquidity ratios. Then, we have done profitability ratios. Then, return ratios, turnover or activity ratios. And right now, we have also looked at leverage ratio and price earning ratio. So, these are the important ratios from the company's viewpoint. So, I hope the concept of ratio analysis is quite clear to you. Now, let us try to do one more problem that is more in the context of a foreign company. So, it is slightly complicated. I will request you to first read its P and L and balance sheet carefully. So, here we have got the P and L and balance sheet of Colgate-Pomolio. This is for the consolidated position for the whole of Colgate-Pomolio globe for the whole world. The figures are as per US gap. Just go through it carefully, because it is a very longish balance sheet here. We have provided data for three years for 31st December 8, 9 and 10. So, you can look at the format, which is also slightly different from the Indian format, which we have seen. First, it is starting with the assets. In assets also, usually we start with fixed assets. They start with current assets. So, you can look at first, there is a total current asset, then net stated inventory, raw material, work in progress and so on. After current assets, the fixed asset starts, which are again given in detail. After fixed assets, there are figures for intangible assets like Goodwill, which are stated explicitly. So, this is the figure of total assets. Then in liabilities, again we have first we start with total current liabilities. Then there is a concept of non-current or long term liabilities. The last heading is total shareholders' equity or shareholders' funds as it is known as, which is again divided into share capital and others. Others basically represent various types of reserves. So, here you can see here, we have a share premium, treasury, shares, retained earnings and so on. So, this is the share balance sheet. Below the balance sheet, income statement is given, income statement or P and L account. So, it starts with total revenues, gross sales, adjustments, then various expenses are given, EBTDA, earning before depreciation and taxes depreciation and amortization. A beta as it is called is given, after that the depreciation is reduced, amortization is reduced. Then we get earnings after depreciation before interest. Then interest is charged, last income taxes are calculated and then we get earning after tax, which in India popularly we call as profit after tax. From that again minority interest is deducted. This represents the profit, which is payable to the small shareholders of non-outside shareholders in case of subsidiary companies. Finally, we get net profit attributable to the owners, followed by ordinary dividend. This is taken from Osiris database, an international database. So, are you able to view the whole thing? It is a longish balance sheet, because a detailed format is given, showing the whole of assets, liabilities and also the data from income statement. Now, let us try to do important ratios. So, I have tried to create a structure, so that it is easy for you. Now, you know most of the important ratios. So, the first ratio in the category of short term solvency is current ratio. What is the formula for current ratio? You are right, it is current assets divided by current liabilities. I would repeat the formula, I hope you know it now. So, in the balance sheet, first let us go to asset side. We have been given already current assets, take the total current assets and divide it by liability. The first item itself is total current liabilities. So, exactly 1 is a ratio, I will drag it down. So, you can see that over the 3 years the ratio has fallen. It has come down from 1.26 in 2008 to 1.0621. We do not know exactly, it is a good sign or bad sign. It is good, because they are able to manage with less current assets. But, as far as the short term liquidity position is concerned, they are slightly in tight position, because it is now ratio is exactly 1. The next is quick ratio. How to calculate quick ratio? Yeah, you are right. It is quick assets divided by quick liabilities. So, go to quick assets now. This is whole list of current assets from which, first of all you have to identify which are the quick assets. So, first item you can see loans, could it be considered as a quick asset? The answer is no, because loans are not quick assets. Current long term loans are also current long term loans. Naturally, they are not quick assets. Trade craters, sorry I am looking at liabilities. Actually, we should look at assets, because first we are looking at current assets. So, in current assets, you can see the first item is inventory, which is divided into raw material, WIFE, finished goods. None of it qualifies as a quick assets. Then, we have got receivables, which are again divided into account receivable and doubtful accounts. So, only account receivables minus the doubtful accounts could be taken as net account receivable, which is a QA. I will try to mark the item as QA first, so that it is easier for you. So, this is one quick asset. Prepared expenses cannot be taken as quick. Total cash and short term, I will just expand it, so that you can see it full. So, total cash and short term investment, which could be treated as a quick asset, because it is a short term in nature and liquid in nature, then fixed asset starts. So, we have got two quick assets. Similarly, let us go down and mark the quick liabilities. Now, here the figures of current liabilities are given, which include loans, which further they say current long term debt. Since, it is current in nature, we will treat it as quick liability. Then, trade craters, which are again treated as quick liability. Then, there are some other current liabilities, which also we will treat as quick liabilities. Other short term debt, again we will treat as quick liability. Income tax payable is also a quick liability. Then, we have got other current liabilities, which are also quick liabilities. In other words, all the current liabilities, except perhaps loans could be treated, but loans are also since current long term, current portion of long term debt, that also is treated as quick. So, we can say that all the current liabilities are also quick liabilities. So, we have to divide simply the total of current liabilities from the quick assets. So, again let us go back. So, quick ratio is nothing but here we have to take total of two items divided by the total current liabilities. I hope you are getting it now. So, what we have done is, out of the total assets, only two were identified as quick. So, those divided by the total current liabilities. So, we get quick ratio as 0.58. You can see that the position has again decreased over a period of three years. This decrease has mainly happened because their current account receivables are going down. So, we do not know whether it can be treated as a good sign on the whole from liquidity angle, it is not a good sign. Next is now from activity side, which is current receivables turnover. So, what will be the formula? You are right, it is turnover divided by account receivables. So, we will have to go down in the income statement, where we get the net sales divided by the receivables which we get from current assets. So, we get 9.67, 9.43 and 9.63. So, on the whole you can see it is more or less stable. There has not been any major increases or decreases in this. On the similar lines, we can calculate inventory turnover. What is the formula for the same? So, you are right, it is sales divided by inventory. So, again we go down to income statement, pick up the net sales and divide it by the total inventory. Again you see that the ratio is more or less stable. So, it has remained almost constant, sales and inventory has increasing more or less in the same proportion. Next is this sales in the receivables. So, instead of calculating the account receivable in terms of turnover, that is sales upon account receivable, we try to calculate in terms of number of days. So, here we try to reciprocate, we take 1 upon this ratio and multiplied by 365. So, we get 37. Remember this represents days. So, earlier their account receivables for about 37 days, then it increased to 38. Now, again it has gone down to 37. So, it is more or less constant at the same level. Same thing we can do for inventory. So, in terms of number of days, again about a month, slightly less than a month. So, it was 28. Now, it has gone down to, it is almost slightly increased one can say to 28.66. So, there is neither major increase in the performance of management of debtors nor there is any decrease. Next is approximate conversion period. So, by conversion period what we try to see is, we try to link the total of current assets versus sales. So, we know that in each of the current assets, how many days the money is blocked? In this case, we have got 28 days in inventory and another 37 days in receivables. So, this is the total of the number of days which we have just calculated. Again, it is bound to remain more or less constant. It takes about 66 days to convert. So, by conversion what we are trying to see is, from the time we put the money in the current assets, how many days it takes to get it back in the form of sales? Next is more strict ratio that is cash to current assets. We are trying to see what is the proportion of cash as a proportion of total current assets. So, cash and cash equivalent, we divide it by the total current assets. So, it is 0.13. It is almost constant, but slightly it has gone down. Now, higher ratio will indicate that the current assets are more liquid. They have a higher proportion of current, the cash. We also try to calculate cash as a proportion to current liabilities. So, here we have got cash and cash equivalent. Let us divide it by current liabilities. So, here we see that the ratio is going down from 0.19 in 2008. It is now 0.13. This is not a very good sign. That means that company has relatively less cash to pay back its current liabilities. So, this was the overall position of short term liquidity. Now, let us go for some relationship between their capital structure. So, there are two popular ratios. One is a solvency ratio and other is a gearing ratio. So, in solvency ratio, as you know, we try to find the proprietors funds versus the total funds. So, let us go to balance sheet. We can see here, total shareholders' equity. We will try to divide it by total liabilities and equity. So, it shows that company has a predominant financing by debt. Only about 20 percent is financed by equity. Earlier, the production was even less than 20. Now, it has slightly increased to 0.23. Gearing also tries to find similar thing. In gearing, we try to link the total debt versus total equity. So, let us calculate it. The total debt, liabilities and debt, we will divide it by the total owner's fund. So, you can see it was about 4, which does not show a very good position, because company has two high outsiders' funds versus their own funds. Now, the proportion then came down to 2 and again it has increased to 3. So, this shows that company is not, long term solvency is not that good. They are heavily dependent on outsiders' funds for financing their business. Let us stop here. We will continue this in the next session. Today, we have tried to do two sessions, two cases. First, we have tried to do analysis of one IT company. Now, we are looking at the global position of Colgate Pamoleu, which is a famous manufacturing company, wherein we can calculate a variety of ratio. We will stop here. In the next session, we will try to complete those cases. Thank you.