A Study on Financial Performance Using Ratio Analysis of Hindalco Aluminium Company Ltd
Pritesh C.Panchal
Assist. Professor
Smt. Jayaben B. Patel College of Commerce Studies and Research, Anand.
Email: Priteshpanchal6017@gmail.com
Mukesh B.Tagariya
Assist. Professor
Smt. Jayaben B. Patel College of Commerce Studies and Research, Anand.
Email: mbtagariya@gmail.com
ABSTRACT
The present study of the research entitled “A STUDY ON FINANCIAL PERFORMANCE USING RATIO ANALYSIS OF HINDALCO ALUMINIUM COMPANY LTD”. The study was based on secondary data from records, reports and profile of the organization. The ratio analysis is the process of identifying the financial soundness and cost effectiveness of the firm establishing relationship between the items of balance sheet and profit and loss a/c. The present study has thrown major concentration in ratio analysis from the 5 years balance sheet and profit and loss a/c. An objective of the study includes the profitability, cost of goods sold and overall financial performance of the company. Based on the five years balance sheet and profit and loss a/c suitable suggestion were given by the researcher for a better soundness and cost effectiveness of company.
Keywords: Current ratio, Profitability Ratio, Aluminium companies.
INTRODUCTION
The Hindalco story dates back to the young Indian democracy of the 1950s. Ready to take a giant leap, India was geared to make it big, especially in terms of innovation and industrialization.
At the start of a new year, everyone makes a resolution to change something or make it better. This year, I have three resolutions I want to focus on; working harder in school, staying active, and to think more positively.
The following report is a brief comparative analysis of two of Australia’s largest deposit-taking financial institutions (FI), Australia and New Zealand Banking Group Ltd. (ANZ) and Westpac Banking Corporation (Westpac). This report seeks to identify which of the FIs has a greater aggregate return per dollar of equity and thus establish the highest performer, or most profitable, of the two. The Return on Equity Model (ROE) (Koch & MacDonald,
Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.
The paper illustrates that financial ratio analysis is an important tool for firm’s to evaluate their financial health in order to identify areas of weakness so as to institute corrective measures.
It is important for healthcare organizations to understand their present performance and weak areas in order to generate more effective operational strategies. Financial ratio analysis is an effective tool to determine hospital’s performance on several indicators such as ability to pay debt, capability to generate revenue, and sales performance etc. The objective of this paper is to describe role of different financial ratios in understanding organizational performance and in developing new strategy. The paper also presents comparative ratio analysis of local healthcare organization and industry
After World War One ended, Germany needed a charismatic leader. Someone who would lead them to victory and help them when they were down. A man, by the name of Adolf Hitler, came along and did exactly that.Hitler believed that the reason they lost the war is that of the propaganda that they used. Hitler was going to change that. He used propaganda to his advantage and that’s how he gained people on his side.
The financial data of company does not tell us the entire position of an organisation and its performance over the year or certain period of time for comparative purposes. Therefore, the use of ratios
The aim of this paper is to analyse the financial position of Melbourne IT limited through the use of financial ratios, based on the annual report for the periods December 2012 and 2013. Financial ratios are useful since they measure a company’s performance and give an overview of the financial situation. Ratios are also used to analyse trends and to compare a firms financial figures to other competitors within the same industry.
Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user’s decisions.
Financial results and conditions vary among companies for a number of reasons. One reason for the variation can be traced to the characteristics of the industries in which companies operate. For example, some industries require large investments in property, plant, and equipment (PP&E), while others require very little. In some industries, the competitive productpricing structure permits companies to earn significant profits per sales dollar, while in other industries the product-pricing structure imposes a much lower profit margin. In most low-margin industries, however, companies often experience a relatively high rate of product throughput. A second reason for some of the
Financial ratio analysis is a valuable tool that allows one to assess the success, potential failure or future prospects of the company (Bazley 2012). The ratios are helpful in spotting useful trends that can indicate the warning signs of
Ratio analysis is the fundamental indicator of company’s performances for so many years; it is also can be seen as the very first step to measure a company’s performance along with its financial position. Moreover, ratio analysis has been researched and developed for many years, Bliss had presented the first coherent system of ratios, and he also stated that ratios are “indicator of the status of fundamental relationship within the business” Horrigan (1968). However there are some arguments on whether the ratio analysis is useful or not since to conduct these analyses will be costly to the company, also there are several limitations on how these ratios work. Therefore, the usefulness and the limitation of ratio analysis will be discussed further in this essay, with the use of easyJet’s annual report as examples.
The majority of people who become veterinarians usually get a bachelor’s degree in Animal science. (Best Veterinary Medicine Programs) Some people who finish school decide that they no longer want to become a veterinarian. There are a numerous amount of jobs you can get from having a degree in animal science such as a federal meat inspector, a medical researcher, and it can also be used to even become a doctor. A medical researcher conducts research aimed at improving overall human and animal health by often using clinical trials and other investigative methods. A federal meat inspector examines products and animals for defects or deviations from specifications that are set by the FDA (Exploring Veterinary Career Options). A doctor is similar
Firms and Companies include ‘Ratios’ in their external report to which it can be referred as ‘highlights’. Only with the help of ratios the financial statements are meaningful. It is therefore, not surprising that ratio analysis feature are prominently in the literature on financial management. According to Mcleary (1992) ratio means “an expression of a relationship between any two figures or groups of figures in the financial statements of an undertaking”.
Ratio analysis is a very useful tool when it comes to understanding the performance of the company. It highlights the strengths and the weaknesses of the company and pinpoints to the mangers and their subordinates as to which area of the company requires their attention be it prompt or gradual. The return on shareholder’s fund gives an estimate of the amount of profit available to be shared amongst the ordinary shareholders; where as the return on capital employed measures an organization 's profitability and the productivity with which its capital is utilized. Return on total assets is a profitability ratio that measures the net income created by total assets amid a period.