NEED FOR THE STUDY

Financial analysis is the process of identifying the financial strength

and weakness of the firm by properly establishing relationships between the
items of the balance sheet and the profit and loss.

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as

“the indicated quotient of two mathematical expressions” and as relationship
between two or more things in financial analysis.

A ratio helps the analysis to make qualitative, judgement about the firms
financial positions and performance.

So I choosen this concept for the study on HERO HONDA MOTORS LTD
OF INDIA.
 Objectives of the study

 To know the liquidity of the firm

 To know the long term solvency of the firm
 To know the efficiency of the firm
 To know the overall financial position of the firm
 To know the profitability of the firm
 METHODOLOGY

All projects need adequate data or information, so the collection of data is

the first in any project. There are two types of satisfaction data namely.

o Primary data
o Secondary data

Primary data are original observation collected by the researcher or his agent
for the first time for any investigation and used by them in the statistical
analysis where as others collect secondary data and used by others.

To conduct the study on the topic “RATIO ANALYSIS OF HERO

HONDA MOTORS LTD OF INDIA.”, I have opted for secondary data.

I identified and visited HERO HONDA MOTORS LTD OF INDIA.

relevant data were collected.

In my study I used secondary data as the source of data for that purpose I
gave through balance sheet profit and loss account and some other necessary
record book of the company.