In this Ratios Analysis MBA Project calculating the past financial statements of the same firm does ratio analysis

On the overall evaluation at each and every aspect, the following findings are found.

•    Liquidity ratios have continuously gone under various fluctuations in the last five years. How ever the ratios are more than the industry standard. This indicates excess cash is maintained in the organization.

•    Leverage ratios are as per the industry norm of 3:1 and it is more or less is maintained steadily in 5years.

•    Turnover ratios are also in line with the standards.

•    Although a net profit ratio has been maintained constantly in the last three years ie 2003, 2004, 2005 it has shown steady improvement in the next 2 years.

•    Return on investments (ROI) and Return on equity (ROE) have declined drastically during the last two years.

Suggestions
•    The company has a good record of quality of goods in the market with best of my enquiry and investigations.

•    They should see that the debtors should be collected with in a specified time by the company. So, that they can discharge some of its creditors or current liabilities and avoid payment of interest.

•    Ratio analysis are immensely helpful in making a comparative of the financial statement for several years.
•    The company financial position is very secure. It is observed that most of the ratios are as per the industry standard.

•    Company adopts proper inventory control techniques to properly management inventory.

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