Friday 13 October 2017

Financial Ratios

 

Financial Ratios







PAT Margin

While the EBITDA margin is calculated at the operating level, the Profit After Tax (PAT) margin is calculated at the final profitability level. At the operating level, we consider only the operating expenses, however, there are other expenses such as depreciation and finance costs which are not considered. Along with these expenses, there are tax expenses as well. When we calculate the PAT margin, all expenses are deducted from the Total Revenues of the company to identify the overall profitability of the company.

=10.5 %

PAT Margin = [PAT/Total Revenues]
PAT is explicitly stated in the Annual Report. ARBL’s PAT for the FY14 is Rs.367 Crs on the overall revenue of Rs.3482 Crs (including other income). 

This translates to a PAT margin of: = 367 / 3482 =10.5 %



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