RATIO ANALYSIS

Nishitha.P.R 1225111129 Sec-A

INTRODUCTION
DEF: Ratio Analysis is The indicated quotient of two mathematical expressions. Is an important tool of financial analysis. It is used to obtain a quick indication of a firm's financial performance in several key areas.

NEED FOR THE STUDY

The project work is done for analyzing the financial position of the Prathyusha Shipping PVT.LTD. The study is also beneficial to employees and officers motivation by sharing how they are contributing for the company growth. The investors, top management of the company are also benefited.

OBJECTIVES OF THE STUDY

To study the growth and development of Prathyusha Shipping Pvt. Ltd. To evaluate the financial position of Prathyusha Shipping Pvt. Ltd. To calculate and estimate the important financial ratios as a part of financial analysis in Prathyusha Shipping Pvt. Ltd. To offer suggestions to improve financial position of the company. To study the financial strengths &weaknesses of the firm

METHODOLOGY
Information of the present study has been collected from secondary sources of data. SECONDARY SOURCES: 1. Data was collected from documents, records and files of the company. 2. Data was gathered from the annual reports of the company. 3. Data was collected from company website

LIMITATIONS
Limited use of a Single Ratio Lack of Adequate Standards Inherent Limitations of Accounting Change of Accounting Procedure Window Dressing

FINDINGS
It is observed that Current Ratio is being nearly maintained in the ratio 2:1, hence it is satisfactory. It is observed that Quick Ratio is maintained in 1:1 ratio which implies that it could meet its short term obligations. It is observed that Net Profit Ratio is maintained satisfactorily which implies that companys capacity to face adverse economic conditions is better in profitability. It is observed that Debtors T.O.Ratio is increasing which indicates the speed with which the amount is collected from debtors.

CONCLUSION
It is concluded that the financial position of the Prathyusha Shipping Pvt. Ltd is neither Satisfied nor Dissatisfied. The given suggestions will be helpful to improve the financial performance of the company. As companies dispatch their long annual report once a year, the financial ratio helps us to profile a company easily.