Comparative Financial Performance Analysis

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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…
Comparative Financial Statement analysis provides information to assess the direction of change in the business. 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…
It was originally named Firodia Tempo Ltd. and later after partial acquisition by Bajaj Auto as Bajaj Tempo Ltd.Force Motors manufactures a range of vehicles including Small Commercial Vehicles (SCV), Light Commercial Vehicles (LCV), Multi Utility Vehicles (MUV), Sports Utility Vehicles (SUV), Heavy Commercial Vehicles (HCV) and Agricultural Tractors. OBJECTIVES OF THE STUDY 1) To study and analyze financial performance of Force motor limited. 2) To know the earning capacity or profitability, solvency and the financial strength by evaluating financial statement. 3) To compare the financial performance and to analyze the financial changes over a period of five years. NEED FOR THE STUDY 1) One of the most fundamental facts about business is that the financial performance of the firm shapes its financial structure. Therefore in order to obtain a favourable financial structure it is necessary to study the efficiency of the firm. 2) Efficiency measurements imply prior knowledge of the inputs and outputs of an organization to increase the level output for a company it is necessary to study the operating efficiency of the
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