Marico Limited - Profitability Analysis
| Case Code: FINC191 Case Length: 8 Pages Period: 2018-21 Pub Date: 2022 Teaching Note: Available |
Price: Rs.300 Organization: Marico Limited Industry: Retailing Countries: India Themes: Financial Analysis |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
After facing an initial setback during the first quarter of the financial year 2020-21 due to the Covid-19 pandemic, Marico Limited (Marico) a leading Fast Moving Consumer Goods (FMCG) company in India, improved its performance in the remaining part of the financial year compared to the previous financial year 2019-20.
Due to the Covid-19 restrictions in the first quarter of the financial year and an increase in input costs in the second half of the financial year, there were a number of challenges that the management of the company faced.
Once the lockdown restrictions were lifted, however, the management of the company tuned itself to the changing requirements of the consumers, and managed to improve sales volumes and control operating expenses to improve the performance of the company during the financial year 2020-21.
Having a strong portfolio of products in the beauty and wellness segment and a strong presence in the domestic and international markets, the management of the company was expecting to do well in the coming years. Also, during the financial year 2021-21, the stock performance of the company witnessed a significant improvement.
The case study can be used to discuss the application of ratio analysis to analyze the financial statements of a company and to understand the criteria to be followed in understanding the profitability level using different profitability ratios and to decide on the investment decision based on the profitability position of the company.
Issues
The case is structured to achieve the following teaching objectives:
- Understand ratio analysis as a tool of financial statement analysis.
- Understand the profitability ratios used in the profitability analysis of a company.
- Analyze and interpret the profitability position of a company.
Contents
Keywords
Profitability Analysis; Net profit ratio; Operating Expenses ratio; Return on Assets; Return on Capital Employed; Return on Equity; Fast Moving Consumer Goods; Marico Limited; Marico Group; Covid-19 Pandemic
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