Khaitan Fundamental Relationships

KHAITANLTD -- India Stock  

INR 34.90  0.000002  0.00%

The Drivers Module shows relationships between Khaitan's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Khaitan Limited over time as well as its relative position and ranking within its peers. Please see also Stocks Correlation.

Khaitan Limited Operating Margin vs. Current Ratio Fundamental Analysis

Khaitan Limited is rated fourth overall in current ratio category among related companies. It is rated below average in operating margin category among related companies reporting about  3.38  of Operating Margin per Current Ratio.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Khaitan 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
=
1.44X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Khaitan 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
4.86%
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Khaitan Limited Operating Margin Comparison

Khaitan is currently under evaluation in operating margin category among related companies.
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