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EXECUTIVE SUMMARY
Ratio Analysis is one of the techniques of financial analysis where ratios are
used as a yardstick for evaluating the financial condition and performance of
a firm. Analysis and interpretation of various accounting ratios gives a better
understanding of financial condition and performance of firm. Trend ratios
indicate the direction of change in the performance improvement,
deterioration or constancy- over the year.
Objectives of the study:
. To help the management in its planning and forecasting activities.
!. To evaluate operational efficiency, liquidity, and solvency of "#$.
%. To help the management in having effective control over the activities
of different departments.
&. To compare the previous five years and present year performance of
the company.
'. To give suggestion and recommendation based on the study.
(or the study "irani sugars $td, is considered. The ratio analysis is done
using the )ncome statements and *alance #heets of the company between
!++' to !++,.
-ata )nterpretation on trend ratio analysis is carried out at "#$ at
.ulali cross Tq/ 0udhol -ist/ *agalkot .arnataka #tate. (or study, of five
years is considered and compared it1s performance over the period of five
years. (or result analysis and 0# 23cel #oftware package are used. (rom the
analysis, ) am able to indicate following finding of the firm
. (rom the current ratio it is found that the ratio is not satisfactory
because the 4 increase in current assets is less than the 4 increase in
current liabilities during the year !++'-!++,.The highest ratio
recorded is %.+& in !++' and the lowest ratio recorded is +.&! in the
year !++5.And less than the standard ratio.