Financial Analysis

FINANCIAL ANALYSIS of GRASIM INDUSTRIES Meaning of Financial Analysis is to crystallise the data in simple form given in monetary statements and to compare with each opposite to find step forward the strong points and weakness of the business and to take decisions for future. For instance, if all items relating to circulating(prenominal) assets are placed in one group succession all items relating to current liabilities are placed in some other group, the comparison between the two groups will provide expedient information. Actually the figures given in financial statements do not speak anything themselves. The compendium of these figures helps the interested reader by tolerant tongue to these mute heaps of figures. In the words of Finney and miller: Financial analysis consists in separating facts according to some distinct plan, arranging them in groups according to certain circumstances and wherefore presenting them in a convenient and easily read and graspable form. In the words of John N. Myres: Financial statement analysis is largely a study of relationships among the various financial factors in a business, as disclosed by a wizard set of statements and a study of the write outs of these factors as shown in a series of statements. OBJECTS OR PURPOSE OF FINANCIAL ANALYSIS The purpose of financial analysis depends on the call for of the person who is analyzing these statements. These varying needs may be :â€" (i) To issue the Earning Capacity or Profitability. (ii) To know the Solvency. (iii) To know the Financial Strength.

(iv) To make comparative study with other firms. (v) To know the capability of payment of interest and dividend. (vi) To know the trend of the business. (vii) To know the efficiency of management. (viii) To provide useful informations to the Management. Contents appellation Page No. 1. Preface & Acknowledgement 01 - 02 2.... If you want to get a full essay, order it on our website: Orderessay

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