Ratio Analysis

Ratio analysis is one of the techniques of financial analysis where ratios are used as a yardstick for evaluating the relationship between component parts of financial statements to obtain a better understanding of the firm’s position and performance.

Ratio is relationships expressed in mathematical terms between figures. Which are connected with each other in some manner. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined.

The objective of this project is to do the ratio analysis of top Indian Automobile companies for investment purpose by monitoring the growth rate and performance on the basis of historical data.

The main objectives of the Project study are:

  • To analyze and evaluate the financial performance of top  companies.
  • To examine the profitability, short term and long term financial solvency, debt coverage, management efficiency and dividend pay out of these companies.
  • To make suggestions & recommendations for improving the financial position of these companies.
               Suggesting as to which company’s shares would be best for an investor to invest.

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