Financial Analysis is to classify the data in simple form given in financial statements and to compare with each other to find out the strong points and weakness of the business and to take decisions for future. For instance, if all items relating to current assets are placed in one group while all items relating to current liabilities are placed in another group, the comparison between the two groups will provide useful information. Actually the figures given in financial statements do not speak anything themselves. The analysis of these figures helps the interested reader by giving tongue to these mute heaps of figures.
In the words of Finney and Miller:
“Financial analysis consists in separating facts according to some definite plan, arranging them in groups according to certain circumstances and then presenting them in a convenient and easily read and understandable form.”
In the words of John N. Myres:
“Financial statement analysis is largely a study of relationships among the various financial factors in a business, as disclosed by a single set of statements and a study of the trends of these factors as shown in a series of statements.”
Objects or Purpose of Financial Analysis
The purpose of financial analysis depends on the needs of the person who is analyzing these statements. These varying needs may be :—
(i) To know the Earning Capacity or Profitability.
(ii) To know the Solvency.
(iii) To know the Financial Strength.
(iv) To make comparative study with other firms.
(v) To know the capability of payment of interest and dividend.
(vi) To know the trend of the business.
(vii) To know the efficiency of management.
(viii) To provide useful information's to the Management.
Title Page No.
1. Preface & Acknowledgement 01 - 02
2. Financial Analysis - Theory 03 - 07
3. Industry Profile - 08 - 24
Grasim Industries Ltd.
3. Objectives, Scope & Design 25 - 27
of the Study
4. Ratio Analysis 28 - 59
5. Working Capital Analysis 60 - 120
6. Findings along with Suggestions 121 - 124
Project Description :
Category : Project Report for MBA
Title : Project Report on Financial Ratio Analysis of Grasim Industries
Pages : 85
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