Tools and techniques of financial performance analysis For measurement of financial performance of a business the financial statement are analyzed. An analysis of financial performance can be possible through the use of one or more tools and techniques of financial analysis. These tool and technique are classified in three main categories: a. Accounting technique Accounting technique are also known as financial techniques. Various accounting techniques can be used for the purpose of financial analysis.
Economic growth brings lot of changes in a country by the circulation of wealth, but economic growth relies on financial development. According to Rajan and Zingles (1998), financial development has a positive impact on economic growth while Levine (1997) states that the financial development and economic growth are positively related. When it comes to economic growth and welfare, increased mergers and acquisition (M&A) over the past few years we can notice significant activity. The huge transactions that were happening, especially cross-border transactions that have been made, arise the interests among plenty of scholars. A good amount of studies in the market for corporate control have described that “mergers and acquisitions” (M&A) is an aggressive strategic growth choice to gain ownership and control over the target entity.
As a result, the GDP is rapidly growing since 1995 (World Bank Data 2017), which indicates that the purchasing power of customers is sharply boosting in the domestic market. In 2001, China was formed into BRIC with other three countries as one of most powerful emerging market country in the world, the utility of being one of the most powerful emerging countries simulates foreign investment in manufacturing industries, as it offers greater business opportunities for entrepreneurs to dive into the
Financial performance is measured based on the following indicators: Profitability, Liquidity, Solvency and Financial efficiency. Profitability measures to what amount the business generates revenue depending on resource exploitation, management and capital. Thus, it is the ability to manage the resources in a way to create profits and cash flows. We can calculate the following based on: • ROA: Rate of return on
It encourages members of the public to invest in viable business ventures. 12. The stock exchange makes long term funds available to public companies. Emmanuel Ewumi (2013) 2.2.6 ECONOMIC GROWTH & DEVELOPMENT AND THE CAPITAL MARKET. Economic growth means an increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
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
1. Introduction Globalization of economy and the aggressive competition motivate companies to explore ways of internationalization and contribute significantly to nation 's economic development. During last decades, various scholars had examined Internationalization as a phenomenon from different point of views, such as strategic management, international management and small business management (Korsakienė & Tvaronavičienė, 2012). Firms internationalization is considered an important measure of competitive performance at both national and regional levels. Internationalization participates in revenue growth of the firms as a result of economic scale and scope, management knowledge and manufacturing efficiency (Korsakiene, 2014).
INTRODUCTION Financial Service industry constitutes one of the world’s fastest growing industries and the pivot of the modern economy. It largely depends on the quality and variety of services rendered by financial intermediaries such as banking and non-banking institutions. With the advent of liberalisation, denationalization and globalisation as a part of economic reforms and the evolution of information technology has generated the wind of change in the nature and mode of banking industry all over the world (Barker 1992) which has created major influences on Indian banking industry too. The conventional branch based banking is rapidly giving way to multi-delivery channels which helps to reach out to customers in any part of the world. Now,