Title: Application of ratio analysis as a measure of financial appraisal
Abstract: Financial decision plays a crucial role in the survival of a firm. By establishing a close relationship between variables, a firm can analyse its financial performance in terms of liquidity, profitability, viability and sustainability. Ratio analysis being a primary tool of financial appraisal helps in assessing and evaluating financial position of the company. Financial ratio analysis can be broadly classified into different categories viz, liquidity ratio, turnover ratio, profitability ratio, leverage ratio and valuation ratio. Ratio is a simple arithmetical expression of relationship of one number to another. The study reveals that ratios played a major role in financial appraisal of the selected companies. It identified certain areas of problems faced by the companies by establishing the relationship between different parameters. Results also revealed that some companies are better in some aspects and not performing well in certain aspects. Thus it can be concluded that the textile industry has wide scope in the international market. The industry has to focus on their parts and quality products with the advance technology which make it easy possibility to get better international market and for overall development of the sector in the country.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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