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Comparative Financial Performance Analysis Essay

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A STUDY ON COMPARATIVE FINANCIAL PERFORMANCE ANALYSIS OF FORCE MOTOR LIMITED
*Dr.M.Ravichandran** M.Venkata Subramanian

ABSTRACT
Financial analysis referred to financial statement analysis or accounting analysis refers to an assessment of the viability, stability and profitability of a business, sub-business or project. The main idea behind this study is to analyze the financial operating position of the company. This research is done with help of secondary data which is gathered from the annual report of the company. The financial performance can be measured by using various financial tools such as profitability ratio, solvency ratio, comparative statement, etc. Based on the analysis, findings have been arrived that the company has got enough …show more content…

Financial statements are presented as on a particular date for a particular period. The financial statement Balance Sheet indicates the financial position as at the end of an accounting period and the financial statement Income Statement shows the operating and non-operating results for a period. But financial managers and top management are also interested in knowing whether the business is moving in a favorable or an unfavorable direction. For this purpose, figures of current year have to be compared with those of the previous years. In analyzing this way, comparative financial statements are …show more content…

5) It would help to improve the profitability of firm by reducing the cost wasted in various processes.

LIMITATIONS
There were certain limitations in understanding this research work. As it is understood that the limitation are a part of the project, they have been over shadowed by the study.
1) Performance analysis of company is done only for past 5years due to time constraint.
2) The statement that are studied are historical past cannot be the index for future estimation.
3) The study is done with help of secondary data obtained from the annual reports of the organization

Conclusion

The main objective of the present study is to identify the individual ratios which are affecting the profitability of the industry and to categorized the financial ratios into a small number of latent variable to represent a compact view of financial performance for a specified time period. The study reveals that the financial performance is fair. It has been maintaining good financial performance and further it can improve if the company concentrates on its operating, Administrative and selling expenses and by reducing

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