A Study on the Analysis of Financial Performance with reference to PTL Enterprises Ltd.

Abstract

Financial analysis is the method of reviewing companies, programs, expenditures, and other activities relevant to finance to assess their performance and appropriateness. Financial analysis is usually used to determine whether an enterprise is sufficiently stable, solvent, liquid, or competitive to warrant a monetary investment. Financial analysis is used to assess economic trends, set monetary policies, build long-term business activity plans, and identify investment projects or companies. This is achieved using the financial numbers and data synthesis. A financial analyst must scrutinize the financial statements of a company - the statement of income, the balance sheet, and the statement of cash flow. The study is carried out for the period of five financial years (2014-2015 to 2018-2019). Secondary data are based on the annual reports of 2014-2015 to 2018-2019 of PTL Enterprises Ltd. (Indian Tyre Company). The various tools used for the study are ratio analysis and t-Test. One of the most common methods of evaluating financial data is to derive ratios from the data in the financial statements to be compared with those of other firms or against the past output of the company itself.