INTRODUCTION

Ratio analysis is a powerful tool of financial

analysis. A ratio is defined as the indicated
quotient of two mathematical expressions and
relationship between two or more things. In
financial analysis a ratio is used as an index for
evaluating the financial position and
performance of the firm. Analysis rely on
current and past financial statement to obtain
data to evaluate the financial performance of a
company. They use the data to determine if a
company’s financial Health and profit.
Ratio analysis is the process of examining
and comparing financial information by
calculating meaningful financial statement.
 Ratio analysis is the systematic use of Ratio
to financial statement of strength and
weakness of the company.
It analysis the current and financial position
of the company.

According to HORNBY A,S(2002) defines ratio as

a “Relation between two amount determined
by the number of times one contains the
other.”
MEANING OF RATIO:
A ratio is a relationship between two things
when it is expressed in numbers or amount.
A Ratio is one figure express in terms of another
figure.
 A Ratio is express by dividing one figure by
the other related figure.
MEANING OF RATIO ANALYSIS:
Ratio analysis is help to comparing one company to
another company.It help to diction making. It help
to find the financial strength and weakness of the
firm. There is a some steeps
1.Identification of user’s purpose.

2.Identification of data source.

3.Selecting the techniques to be used for such

analysis.
FINANCIAL DECISION AND MANAGEMENT
DECISION :
 How to increase profitability.
 How to deal with effect of inflation
 How much capital do you need?
 How to manage the fixed assets.
OBJECTIVES IF THE STUDY:
Primary:
 To identify the firm strength and weakness.
 For better understanding of the firms
position.
 To understand past performance of the
firm.
 To know the present financial strength of
the firm.
Secondary:
The objectives of the study are to
analyses the financial position of the company
with the help of ratio analysis.
NEED OF THE STUDY:
The main need of the study is to analyze the
financial information of the Tulasi Seeds Pvt
Ltd.
 The major purpose of the study is to
analyses the financial performance of a firm
using ratio analysis as a tool.
 To ability a firm to make use of its
resources in best way represents the
feature of a firm.
 The study is also beneficial and offers
motivations by showing how Activity they
are contributing for the company growth.
 Analysis of a financial performance is a
process of identifying strengths and
weakness of the firm.
SCOPE OF THE STUDY:
 The present study is confined to only
Tulasi seeds Pvl Ltd.
 The scope of the study is limited to
calculating the liquidity ratio, Liquidity
Ratio, Profitability Ratio, and Activity Ratio.
 The scope of study is to find out
financial performance of Tulasi Pvt Ltd, for
the past five years.
 The study has been conducted with the
help of data obtained from audited financial
record.
LIMITATIONS OF THE STUDY:
1. Limited Data
2. Limited Period
3. Limited Area
FINANCIAL RATIO ANALYSIS OF THE
ELECTRIC POWER INDUSTRY
TOSHIYUKI SUEYOSHI
Abstract

Financial Ratio Analysis is newly proposed to examine the financial

performance of the American power/energy industry. The new approach
compares the financial performances of 147 non-default firms with those
of 24 default firms in the US power/energy market. The proposed
approach is a new type of nonparametric discriminant analysis that
provides a set of weights of a linear discriminant function, consequently
yielding an evaluation score for group membership. Such weight
estimates, along with an evaluation score, of the discriminant function
provide a total financial evaluation measure, based upon which we can
determine the financial performance of the power/energy firms. This
empirical study informs that both leverage (debt) and profitability
(returns on equity) are important financial factors in terms of avoiding
corporate distress or bankruptcy. The empirical results obtained from the
American power/energy industry are further extended to the
international comparison of other major industrial nations including
Japan and the European nations. The international comparison concludes
that Japanese electric power firms have enough managerial and financial
capabilities even if the American financial standard is hypothetically
introduced into the evaluation of their financial performances. However,
the empirical results also indicate that the Japanese power industry
performs barely above the American standard. Thus, corporate leaders in
the Japanese power industry need to pay more serious attention to their
corporate finances and financial strategies. Such financial perspective
will be increasingly important along with the current deregulation policy
of the Japanese government.
Ratio analysis comparability between
Chinese and Japanese firms
Chunhui (Maggie) Liu, Grace O'Farrell, Kwok‐Kee Wei, Lee J. Yao 

Journal of Asia Business Studies

ISSN: 1558-7894

Publication date: 26 April 2013 

Abstract

Purpose
Firms in different countries operate in different business environments and
prepare financial statements following, by necessity, their own countries'
accounting standards. Benchmarks for assessing financial ratios of firms in
different countries are likely to be different. In conducting financial ratio
analyses, each country's unique cultural, business, financial, and regulatory
characteristics have to be taken into consideration, for these external
factors may exert significant effects on measurements of financial data.
This study aims to investigate challenges in comparing financial ratios
between Japanese firms and Chinese firms.
Design/methodology/approach
This study compares ten major financial ratios of 75 Chinese firms with
financial ratios of 75 matched sample Japanese firms to determine if a
common benchmark for each of the financial ratios can be applied to firms
in both countries.
Findings
The results show significant differences in liquidity, solvency, and activity
ratios between firms from these two countries. Further examination of
differences in accounting standards, economic, and institutional
environments between these two countries suggests that these external
factors have significant effects on financial ratios and may have contributed
to the observed differences.
 Financial Ratio Analysis: An Application to
US Energy Industry
 M. Goto
 T. Sueyoshi

Discriminant Analysis (DA) is a decisional tool that

can predict group membership of a newly sampled
observation. In DA, a group of observations whose
memberships are already identified is used for the
estimation of weights (or parameters) of a
discriminant function by some criteria such as the
minimization of misclassifications, or the
maximization of correct classifications. A new
sample is classified into one of the several groups by
DA results.
The remaining sections of this article are organized
as follows: Section 3.2 provides a brief literature
review that indicates the position of this research
among the existing literature on DA. A review of
FRA is methodologically discussed in Sect. 3.3.
Section 3.3 also documents the formulation for the
multiple group classification and the characteristics
of the FRA methodology. The FRA is applied to a
data set on the US energy industry in Sect. 3.4.
Concluding comments and future extensions are
summarized in the last Sect. 3.5.
Performance Measurement Through Ratio
Analysis: The Case of Indian Hotel Company
Ltd.
 Source: IUP Journal of Management Research . Jan2016, Vol. 15
Issue 1, p30-36. 7p.
 Author(s): Damjibhai, Sanghani Divyesh

 Abstract: Ratio analysis is defined as the systematic use of ratio to

interpret the financial statements so that the strengths and
weaknesses of a firm as well as its historical performance and
current financial condition can be determined. The use of ratios as
a financial analysis tool was suggested by Alexander Wall, a
German scholar, way back in 1919. Since then, it has become a
very useful and powerful tool for analysis and interpretation by
both the internal and the external parties of business enterprise.
The present research measures the financial performance of Indian
Hotel Company Ltd. through ratio analysis of 10 ratios. The chi-
square test was used for testing the hypothesis and the research
paper provides some important findings and suggestions to the
company for better performance.
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 A financial Ratio Analysis of Commercial
Bank Performance in South Africa
 M Kumbirai
 R Webb
Abstract
This paper investigates the performance of
South Africa’s commercial banking sector
for the period 2005- 2009. Financial ratios
are employed to measure the profitability,
liquidity and credit quality performance of
five large South African based commercial
banks. The study found that overall bank
performance increased considerably in the
first two years of the analysis. A significant
change in trend is noticed at the onset of
the global financial crisis in 2007, reaching
its peak during 2008-2009. This resulted in
falling profitability, low liquidity and
deteriorating credit quality in the South
African Banking sector.