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GOODYEAR (I) 2018-19 Annual Report Analysis
Sun, 31 Mar

GOODYEAR (I) has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

GOODYEAR (I) Income Statement Analysis

  • Operating income during the year rose 17.8% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY19 as against 12.4% in FY18.
  • Depreciation charges increased by 13.5% and finance costs increased by 3.8% YoY, respectively.
  • Other income grew by 2.5% YoY.
  • Net profit for the year declined by 21.5% YoY.
  • Net profit margins during the year declined from 8.0% in FY18 to 5.3% in FY19.

GOODYEAR (I) Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 16,234 19,119 17.8%
Other income Rs m 370 379 2.5%
Total Revenues Rs m 16,604 19,499 17.4%
Gross profit Rs m 2,013 1,642 -18.4%
Depreciation Rs m 362 410 13.5%
Interest Rs m 29 30 3.8%
Profit before tax Rs m 1,993 1,581 -20.6%
Tax Rs m 693 561 -19.1%
Profit after tax Rs m 1,300 1,021 -21.5%
Gross profit margin % 12.4 8.6
Effective tax rate % 34.8 35.5
Net profit margin % 8.0 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

GOODYEAR (I) Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 4 billion as compared to Rs 5 billion in FY18, thereby witnessing an decrease of -6.6%.
  • Current assets rose 1% and stood at Rs 10 billion, while fixed assets rose 12% and stood at Rs 8 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 18 billion as against Rs 17 billion during FY18, thereby witnessing a growth of 5%.

GOODYEAR (I) Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 8,022 8,671 8.1
 
Current Liabilities Rs m 4,654 4,348 -6.6
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 17,289 18,205 5.3
 
Current assets Rs m 9,900 9,951 0.5
Fixed Assets Rs m 7,390 8,254 11.7
Total Assets Rs m 17,289 18,205 5.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



GOODYEAR (I) Cash Flow Statement Analysis

  • GOODYEAR (I)'s cash flow from operating activities (CFO) during FY19 stood at Rs 566 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -356 million, an improvement of 61.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -389 million on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -179 million from the Rs 1 billion net cash flows seen during FY18.

GOODYEAR (I) Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 1,823 566 -69.0%
Cash Flow from Investing Activities Rs m -220 -356 -
Cash Flow from Financing Activities Rs m -373 -389 -
Net Cash Flow Rs m 1,230 -179 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for GOODYEAR (I)

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 44.2, an decline from the EPS of Rs 56.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 944.8, stands at 21.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 703.7 828.7
TTM Earnings per share Rs 56.3 44.2
Diluted earnings per share Rs 56.3 44.3
Price to Cash Flow x 15.4 17.1
TTM P/E ratio x 19.7 21.4
Price / Book Value ratio x 2.9 2.8
Market Cap Rs m 23,095 24,443
Dividends per share (Unadj.) Rs 13.0 13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for GOODYEAR (I)

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.3x during FY19, from 2.1x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 53.7x during FY19, from 70.0x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 11.8% during FY19, from 16.2% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 18.6% during FY19, from 25.2% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 5.8% during FY19, from 7.7% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.1 2.3
Debtors’ Days Days 468 465
Interest coverage x 70.0 53.7
Debt to equity ratio x 0.0 0.0
Return on assets % 7.7 5.8
Return on equity % 16.2 11.8
Return on capital employed % 25.2 18.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how GOODYEAR (I) has performed over the last 5 years, please visit here.

GOODYEAR (I) Share Price Performance

Over the last one year, GOODYEAR (I) share price has moved down from Rs 1,111.9 to Rs 944.8, registering a loss of Rs 167.1 or around 15.0%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for GOODYEAR (I) and quarterly results for GOODYEAR (I))

Annual Report FAQs

What is the current share price of GOODYEAR (I)?

GOODYEAR (I) currently trades at Rs 1,102.1 per share. You can check out the latest share price performance of GOODYEAR (I) here...

What was the revenue of GOODYEAR (I) in FY19? How does it compare to earlier years?

The revenues of GOODYEAR (I) stood at Rs 19,499 m in FY19, which was up 17.4% compared to Rs 16,604 m reported in FY18.

GOODYEAR (I)'s revenue has grown from Rs 14,829 m in FY14 to Rs 19,499 m in FY19.

Over the past 6 years, the revenue of GOODYEAR (I) has grown at a CAGR of 5.6%.

What was the net profit of GOODYEAR (I) in FY19? How does it compare to earlier years?

The net profit of GOODYEAR (I) stood at Rs 1,021 m in FY19, which was down -21.5% compared to Rs 1,300 m reported in FY18.

This compares to a net profit of Rs 1,274 m in FY17 and a net profit of Rs 1,198 m in FY16.

Over the past 6 years, GOODYEAR (I) net profit has grown at a CAGR of 0.2%.

What does the cash flow statement of GOODYEAR (I) reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of GOODYEAR (I) reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 566 m as compared to Rs 1,823 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -356 m as compared to Rs -220 m in FY18.
  • Cash flow from financial activity decreased in FY19 and stood at Rs -389 m as compared to Rs -373 m in FY18.

Here's the cash flow statement of GOODYEAR (I) for the past 6 years.

(Rs m)FY14FY16FY17FY18FY19
From Operations994931,6781,823566
From Investments1,163-1,329-115-220-356
From Financial Activity-274-310-366-373-389
Net Cashflow1,882-1,5461,1971,230-179

What does the Key Ratio analysis of GOODYEAR (I) reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of GOODYEAR (I) reveals:

  • Operating profit margins witnessed a fall and stood at 8.6% in FY19 as against 12.4% in FY18.
  • Net profit margins declined from 8.0% in FY18 to 5.3% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.0 as compared to 0.0 in FY18.

Here's the ratio/financial analysis of GOODYEAR (I) for the past 6 years.

 FY14FY16FY17FY18FY19
Operating Profit Margin (%)10.712.214.312.48.6
Net Profit Margin (%)7.07.59.18.05.3
Debt to Equity Ratio (x)0.00.00.00.00.0

Read: Latest Annual Report Analysis of GOODYEAR (I)

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