Preview

A Study on Financial Performance Using Ratio Analysis at Emami Ltd

Powerful Essays
Open Document
Open Document
15604 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
A Study on Financial Performance Using Ratio Analysis at Emami Ltd
A STUDY ON FINANCIAL PERFORMANCE USING
RATIO ANALYSIS AT EMAMI LTD

SUMMER PROJECT REPORT

Submitted by
A.GAYATHRIDEVI
REGISTER NO: 27348311
Under the guidance of
Mrs. R. HEMALATHA, M.B.A.,
Faculty of management studies

In partial fulfilment for the award of the degree of MASTER OF BUSINESS ADMINISTRATION DEPARTMENT OF MANAGEMENT STUDIES
SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY
PUDUCHERRY, INDIA
SEPTEMBER 2007

SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE
PONDICHERRY UNIVERSITY

DEPARTMENT OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This to certify that the project work entitled “ A STUDY ON FINANCIAL PERFORMANCE USING RATIO ANALYSIS AT EMAMI LTD” is a bonafide work done by A.GAYATHRIDEVI [REGISTER NO: 27348311] in partial fulfilment of the requirement for the award of Master of Business Administration by Pondicherry University during the academic year 2007-2008.

GUIDE HEAD OF THE DEPARTMENT

Viva-Voce Examination held On _______________

EXTERNAL EXAMINER

TABLE OF CONTENTS

ACKNOWLEDGEMENT……………………………….i
ABSTRACT……………………………………………...ii
LIST OF TABLES………………………………………..iii
LIST OF CHARTS………………………………………..iv

CHAPTER
TITLE
PAGE NO
I
INTRODUCTION
1.1 COMPANY PROFILE
1.2 INTRODUCTION TO THE STUDY 1
9
II REVIEW OF LITERATURE 10

III OBJECTIVES OF STUDY 24
IV RESEARCH METHODOLOGY 25
V DATA ANALYSIS AND INTERPRETATION 26
VI FINDINGS OF THE STUDY 69
VII 7.1 SUGGESTION AND RECOMMENDATIONS
7.2 CONCLUSION 70
71
VIII 8.1 LIMITATIONS OF THE STUDY
8.2 SCOPE FOR FURTHER STUDY 72
73

ANNEXURE

BIBLIOGRAPHY……………………………………

ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude to our chairman Mr.N.KESAVAN, Sri Manakula

You May Also Find These Documents Helpful

  • Good Essays

    Cango Financial

    • 1115 Words
    • 5 Pages

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Unit 2 P7

    • 2479 Words
    • 6 Pages

    Ratio analysis is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an eye on the correlation between the assets and the liabilities. If, in any case, the liabilities exceed the assets, the company is able to know its financial position. This is helpful in case they wish to set up a plan for loan repayment. Ratio analysis is also helpful in analysing the performance of a company. Through financial analysis, companies can review their performance in the past years. This is also helpful in identifying their weaknesses and improving on them. Polish Fine Foods needs to use ratio analysis because it is a valuable tool for the business’s management to determine the performance of a business and to control the cost measures when necessary. Also, ratio analysis helps them monitor and identify issues that can be highlighted and resolved. However, ratio analysis doesn’t take into account external factors such as a worldwide recession.…

    • 2479 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Capstone Project

    • 1471 Words
    • 6 Pages

    In order to understand a company’s successes of failures, one must first understand each of the characteristics used when looking at its financial documents. Liquidity, profitability, and solvency are all added up by using ratio analysis. Ratio Analyses involve dividing two numbers to get a number or percentage, which can then be compared to other companies in the same industry.…

    • 1471 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Ratios P5 M2 D2

    • 2433 Words
    • 7 Pages

    In this report I am going to be analysing the profitability, efficiency and liquidity of SIGNature Ltd. As shown by their accounts for the year ended 31 January 2010. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. Ratio analysis is good because it helps to compare current performance with previous records and it also helps monitor and identify issues that can be highlighted and resolved. However, there are some limitations with ratio analysis. For example it only includes numerical data, and no other sources of information which will explain more things which can be more understandable.…

    • 2433 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Verizon vs Att

    • 1488 Words
    • 6 Pages

    Ratio analysis are useful tools when judging the performance of a company by weighing and evaluating the operating performance (Block-Hirt). There are 13 significant ratios that can separate by four main categories, profitability, asset utilization, liquidity and debt utilization ratios. The ratio analysis covered here consists of eight various ratios with at least one from each of these main categories. These ratios were used to compare and contrast the performance of Verizon versus AT& T over the years 2005 and 2006.…

    • 1488 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    To be able to compare company’s performance we will be evaluating three years period from year to year, for which Horizontal technique will be used; and comparing it with results of company’s biggest competitor. Vertical Analysis technique will be used as a standard way for comparison. Then to see how company does in comparison to the competition, we will use Ratio Analysis in which biggest competitor’s numbers will be reviewed. It is important to have several different analyses to see the entire picture and later to be able to understand where company is and what actions shall be chosen for the improvement of financial situation.…

    • 8425 Words
    • 34 Pages
    Powerful Essays
  • Satisfactory Essays

    Business: Ratio Analysis

    • 539 Words
    • 3 Pages

    The unit is divided into two parts. In the first part, Assignment 1, you developed an understanding of the accounting processes necessary to provide accurate and relevant financial information. The second part of the unit (Assignments 2, 3 and 4) cover the practical aspect of carrying out those accounting activities.…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Unit 5 Business Accounting

    • 1584 Words
    • 5 Pages

    Ratio analysis will be used to measure the profitability, liquidity and efficiency of the named business and to analyse the performance of the business using ratio analysis.…

    • 1584 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Ratio Analysis

    • 3271 Words
    • 14 Pages

    Ratio analysis is the most widely used tool since it compares risk and return relationships of firms from various aspects. Ratio analysis is the method or process by which the relationship of items or group of items in the financial statements are computed, determined and presented. It is an attempt to derive quantitative measures or guides concerning the financial health and profitability of a business enterprise. It can be used both in trend and static analysis. There are several ratios at the disposal of an analyst but the group of ratios he would prefer depends on the purpose and objectives of analysis.…

    • 3271 Words
    • 14 Pages
    Better Essays
  • Satisfactory Essays

    Ratios Tell a Story

    • 403 Words
    • 2 Pages

    The case “Ratios tell a story-2011” represents the variation to the characteristics of the industries in which companies operate. The differences in financial results and conditions among companies are the result of management philosophy and policy. Some industries reduce their manufacturing capacity to match more closely their sales prospects right away, while others carry excess capacity to be prepared for future sales growth. Some industries are more sensitive to the macroeconomic conditions than others reflect to the financial statements. From financial ratios, we can find out the efficiency or inefficiency of a firm in order to make the decisions for management and the health of the firm or analyze for investments.…

    • 403 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Being able to highlight and define the most relevant financial ratios and how to interpret the meaning is important for analyzing financial statements and the financial health of an organization. There are five financial ratio categories, and this essay will explore 4. First is liquidity, which will establish if the organization has the ability to pay its bill if operating cash is able to pay short-term obligations. Next is efficiency. Efficiency helps analyze how quickly an organization is converting its inventory and accounts receivables into cash. How an organization uses debt to fund long-term investments is found by computing leverage ratios. Lastly, to determine how a company uses its assets to generate sales and manage its operations, investors rely on profitability ratios.…

    • 774 Words
    • 6 Pages
    Better Essays
  • Better Essays

    The fiscal year 2004 was a relatively soft year for Barnes & Noble, Incorporated (B&N). Blockbuster nonfiction books that came out during the year may not have come from the company, but business remained strong. This is due to the million of books already in the market, including phenomenal fiction hits "The Da Vinci Code," "The Five People You Meet in Heaven," and "The Rule of Four," and thousands of new releases during the year. This claim was supported by the stable and strong figures embodied in the financial statements.…

    • 1676 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Walmart Company analysis

    • 1280 Words
    • 5 Pages

    Companies strive every day to make their business publicly concentrated, financially, and profitable for shareholders. Shareholders as well as the company 's management use several tools to determine a company 's health and financial future. These tools are better known as financial statements, and specifically, ratio analysis. Ratios are among the more widely used tools of financial analysis because they provide clues to symptoms of underlying issues (Miolla, 2013d). Ratios help measure a company 's liquidity, activity, profitability, leverage and coverage. These five measured segments help financial analysis in decision-making such as: the company’s current financial situation, financial performance, as well as the strengths and weaknesses of the company. I have chosen four ratios I believe to be some of the most important parts of financial analyzing; debt to equity, net profit margin, return on equity, and the gross profit margin. In order to understand how the ratios help a business it is important to know how they are set up, and what the information they provide revieles about a company.…

    • 1280 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    SUBMITTED TO LOVELY PROFESSIONAL UNIVERSITY IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION…

    • 20466 Words
    • 82 Pages
    Powerful Essays
  • Good Essays

    MGT Assignment 2 1

    • 4476 Words
    • 21 Pages

    The performance of listed companies in Malaysia is determined by the financial ratios significantly. Major users of financial ratios are customers, suppliers, investors, managers, directors and other financiers. Financial ratios are reliable to be one of the standard of predicting company’s performance by determined the success or failure of the company.…

    • 4476 Words
    • 21 Pages
    Good Essays