1.1 Background of the Study:
Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm 's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt.
The main objective of financial analysis is to know company or industry’s financial status, its debt, revenue, expenditure, equity, share price, segmental revenue expenditures etc. With Financial analysis we can know the present company or industry sector status and we can expect its future.
Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis. Financial analysis determines a company 's health and stability. The data gives you an intuitive understanding of how the company conducts business. Stockholders can find out how management employs resources and whether they use them properly. Governments and regulatory authorities use financial statements to determine the legality of a company 's fiscal decisions and whether the firm is following correct accounting procedures. Finally, government agencies, such as the Internal
References: Gitman, L. J. (2009), Principles of Managerial Finance, 12th Edition, Pearson, Singapore. Foster,G (2011), Financial performance Analysis, 11th Edition, Pearson , Singapore Report: Annual Report of Beximco Pharmaceuticals limited (2009-13) Website: