Also, the company use accounting ratio analysis to learn more about a company 's current financial health as well as its potential. This research is to study the role of accounting ratios in decision making of a business. Decision making is the important element in management activity of all kinds of enterprise such as profit oriented, non-profit oriented and public institutions. However, this research is carried out in profit oriented enterprise where decisions are made based on different aspects which the use of accounting ratios should have a greater
In any business industry, we seek to analyze the financial performance of the business we are doing. This financial performance is the tool available for auditing the work done; whether we are performing well or not. In other words, it is the tool that allows us to measure the benefits of the job we are dealing with. But, “performance” as a term is related to the outcome of a specific work done. Thus, financial performance is measure depending first on the work done and on specific standards set that allocates this performance on a scale of comparison.
Such as help to analysis financial statement, judging efficiency, locating weakness, formulating plans and comparing performances. Ratio analysis it is important in analysis financial statement. Mostly they use to make in decision by determine the financial situation of a business. However it is also help to identify the financial situation of business. By using the ratio analysis can identify the financial position of a business.
Introduction To develop a data warehouse, business requirement is one of the main factors. Business users like executive managers, business analysts require information for business decision and analysis purpose. To analyse or measure a particular fact, business dimensions are required. Suppose to analyse sales of a company, time, product, location, customer demographics are required. Time, product, location, customer demographics are called business dimensions.
Results and Discussion Project Accounting is a practice of creating financials specially to track the financial progress of projects. Most companies invest a lot of time and energy into the process of Project Accounting because of the importance of estimating the performance of the company in relation with its expenses and
Various accounting techniques can be used for the purpose of financial analysis. The measurement of profitability is as the essential as the earning of profit itself for a business firm. The profitability of a business firm can be evaluated or measured from number of perspectives, and there are various quantitative as well as qualitative methods that that can be employed for this purpose. b. Statistical technique Various statistical technique are used to provide a more accurate and scientific measurement from profitability analysis.
According to Meigs and Meigs (2003), the purpose of financial statement analysis is to provide information about a business unit for decision making purpose and such information need not to be limited to accounting data. White ratios and other relationships based on past performance may be helpful in predicting the future earnings performance and financial health of a company, we must be aware of the inherent limitations of such
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
Under US GAAP, Financial reporting should provide information that is useful to present and potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective net cash inﬂows to the related enterprise. (SFAC No. 1, para. 37) It is interesting to note that this is precisely the information that one would need to calculate the value of an enterprise. Thus, in setting accounting principles, the FASB appears to be emphasizing the valuation role of accounting information over other uses.
2.1 Conceptual Framework This section elaborates on concepts such as accounting, history of accounting, it roles and function in organization, its components and branches and the concept of Small and medium enterprises was discussed and their adoption of accounting practices. These concepts were examined based on the ideas of experts and scholars in this field. This is to ensure that adequate understanding is gained on these issues. 2.1.1 Concept of Accounting Many times, accounting has been described as the language of business. The description implies that accounting is closely associated with an interpretation of the economic structure, position and situation of a business (Kepner, 1968).