PROJECT REPORT
Executive Summary
Every countries economic condition depends upon the performance of its Industry. How the investors are interested in it as it will help in the increment in the flow of foreign exchange. A sound and well performing industry will always attract investors as it will give them a return in a less time period. But it is not easy for a layman to understand or to properly analyze the performance of the company.
To understand the performance of any company we have to do financial statement analysis. Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables.
Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position. It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be initiated immediately to bring them in line.
In my study I have tried to make out a clear picture of Bhushan steel ltd. performance in the steel industry with the help of Ratio analysis and Comparative Balance sheet. While doing my interpretation through Ratio analysis I have focused on 5 main areas: 1. Liquidity 2. Investment/shareholder 3. Gearing 4. Profitability 5. Financial
With the help of ratio analysis we measures relationship between resources and financial flows. It show ways in which firm’s situation deviates from ➢ Its own past. ➢ Other firms ➢ The industry ➢ All firms…
There are