Financial Ration Analysis of Suzlon Energy Limited
Financial Ratio analysis – Suzlon Energy limited
Introduction:
It is a fascinating topic to study because it can teach us so much about account and business. When we use ration analysis we can know about how profitable a business is, we can tell if it has enough money to pay its bills and we can even tell whether its shareholders should be happy!! Ration analysis can also help us to check whether a business is doing better this year that it was last year; and it can tell us if our business is doing better or worse that other businesses doing and selling the same thing.
What does ration analysis will tell us??
We can use ration analysis to tell us whether the business 1. Is profitable 2. Has enough money to pay its bill 3. Could be paying its employees higher wages 4. Is paying its share of tax 5. Is using its assets efficiently 6. Has a gearing problem 7. Is a candidate for being bought by another company or investor
Here in the above section we have talked about profits, having enough cash, efficiently using assets etc; we can put these ratios in the categories that are designed exactly to help us to answer many questions. The categories are 1. Profitability: Has the business made a good profit compared to its turnover? 2. Return Ratios: Compared to its assets and capital employed, has the business made a good profit? 3. Liquidity: Does the business has enough money to pay its bills? 4. Asset usage: How has the business used its fixed and current assets? 5. Gearing ratios: Does the company has lot of debt or is it financed mainly by shares? 6. Earnings per share: Measure of profitability. Used for comparing performance over time.
Users of Accounting Information
As we have already specified the ratios in to the groups, we should put reader of accounting information in to convenient groups. The list of the categories of readers and user of accounts includes the following people and group of people
Introduction:
It is a fascinating topic to study because it can teach us so much about account and business. When we use ration analysis we can know about how profitable a business is, we can tell if it has enough money to pay its bills and we can even tell whether its shareholders should be happy!! Ration analysis can also help us to check whether a business is doing better this year that it was last year; and it can tell us if our business is doing better or worse that other businesses doing and selling the same thing.
What does ration analysis will tell us??
We can use ration analysis to tell us whether the business 1. Is profitable 2. Has enough money to pay its bill 3. Could be paying its employees higher wages 4. Is paying its share of tax 5. Is using its assets efficiently 6. Has a gearing problem 7. Is a candidate for being bought by another company or investor
Here in the above section we have talked about profits, having enough cash, efficiently using assets etc; we can put these ratios in the categories that are designed exactly to help us to answer many questions. The categories are 1. Profitability: Has the business made a good profit compared to its turnover? 2. Return Ratios: Compared to its assets and capital employed, has the business made a good profit? 3. Liquidity: Does the business has enough money to pay its bills? 4. Asset usage: How has the business used its fixed and current assets? 5. Gearing ratios: Does the company has lot of debt or is it financed mainly by shares? 6. Earnings per share: Measure of profitability. Used for comparing performance over time.
Users of Accounting Information
As we have already specified the ratios in to the groups, we should put reader of accounting information in to convenient groups. The list of the categories of readers and user of accounts includes the following people and group of people