Mba project ratio analysis

This will help not only in tapping a renewable resource of energy, but will provide essentially needed peaking support to thermal power generation with the pattern of demand for electricity.

Introduction of ratio analysis project

The higher the gross profit ratio, the better it is. To understand the liquidity, profitability and efficiency positions of the company during the study period. Faster production, fewer product lines, just in time ordering will reduce average days. It increased in the current year as 1. The below mentioned are the constraints under which the study is carried out. The growing interest in wind power technology can be attributed not only to its cost effectiveness but also to other attractive features like modularity, short project gestation and the non-polluting nature of the technology. Traditional Classification It includes the following. A single figure by itself has no meaning but when expressed in terms of a related figure, it yields significant inferences. Significance ratios Some ratios are important than others and the firm may classify them as primary and secondary ratios. If the ratio is less than , it indicate lack of liquidity and shortage of working capital.

Various accounting ratios can be classified as follows: 1. Powder coatings are also a good growth market in India, growing at about ten percent per annum, which is typical of the mean coatings segment growth in the country. In fact, the power sector has played a dominant role in the socio-economic development of the county.

This ratio is a better test of short-term financial position of the company.

Ratio analysis project class 12

It should be noted that computing the ratio does not add any information not already inherent in the above figures of profits and sales. A comparison of this ratio with that of similar firms will throw light on the relative profitability and strength of the firm. In , Goodlass Wall Pvt. When compared with , there is an increase in the provision for tax, because the debtors are raised and for that the provision is created. The first private sector power project to receive disbursement of finance from Power Finance Corporation limited, India. That is the amount which is available to the shareholders to take. The income from services is raised and the current assets are also raised together resulted in the decrease of the ratio of compared with So, here the sundry debtors which are with the long period does not include in the quick assets. Out of these profits is retained in the business and the remaining is distributed among equity shareholders as dividend. An increase in the ratio over the previous year shows improvement in the overall efficiency and profitability of the business. Employment 4.

Significance ratios Some ratios are important than others and the firm may classify them as primary and secondary ratios. That is decreased in the following years because number of equity shares are increased and the net profit is decreased. Ratio reflects a quantitative relationship helps to form a quantitative judgment.

ratio analysis project ppt

Demand and Growth The demand for decorative paints is highly price-sensitive and also cyclical. Vimal kumar, Accountant Trainee for his support and suggestions during the project.

Questionnaire on ratio analysis project

It is the process of establishing and interpreting various ratios for helping in making certain decisions. Ratio Formulae Result Interpretation On average, you turn over the value of your entire stock every x days. There are a number of ratios which can be calculated from the information given in the financial statements, but the analyst has to select the appropriate data and calculate only a few appropriate ratios. This ratio can be improved by an equal decrease in both current assets and current liabilities. By comparing the debtors turnover ratio of the current year with the previous year, it may be assessed whether the sales policy of the management is efficient or not. Implementing prudent utility practices and providing Healthy and Excellent Working Environment in all Disciplines of Engineering and Business as documented in the Quality System. The absolute liquid ratio has been decreased from 3. Shalimar too, has an 8 per cent share. So, the long term solvency of the firm is increased. Indian companies are now beginning to appreciate the benefits of cleaner technology once initial investment in finishing in this area has been made. Thus, the relatively cheaper and a more desirable change in terms of a higher share of hydel source, which is renewable, have not materialized.

Profitability ratio can be determined on the basis of either sales or investment into business. Lower than debt equity ratio provides sufficient protection to long-term lenders. The ratio use to measure the effectiveness of the employment of resources is termed as Activity Ratio or Turnover Ratio.

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(DOC) MBA Finance Project Report on Ratio Analysis