A STUDY ON FINANCIAL STATEMENT ANALYSIS OF BHEL

ABSTRACT

Financial statement is an organized collection of data according to logical and

consisted accounting procedures. Its purpose is to convey an understanding of some

financial aspects of a business form. It may reveal a series of activities over a given

period of time, as in the case of an income statement.

The focus of the financial analysis is on key figures in the financial statements

and the significant relationships the exists between them. The analysis of financial

statements is a process of evaluating relationships between component parts of

financial statements to obtain a better understanding of the firm’s position and

performance.

ANALYSIS AND INTERPRETATION OF DATA

In this an attempt has been made to analysis how efficiently the analysis of

Financial statement is managed in Bharat Heavy Electricals limited. Financial

tools such as schedule of changes in ratio analysis, least squares, comparative

statements have been used for the purpose of analysis.

The financial statement involves recording classifying and summarizing of

various business transactions. It is prepared for the purpose of presenting a

periodical review or report of the progress made by the concern and deals with the

state of the investment, in the business and ‘result achieved’ during the accounting

period. Financial statement, income statement and position statement are the

outcome of accounting process.

 Ratio analysis is a technique of analysis and interpretation of financial

statements. It is used as a device to analysis and interpret the financial health of a

firm. Analysis of a financial statement with the aid of ratio helps to arrangements in

decision making control.

1) Current Ratio

2) Liquid Ratio:-

3) Proprietory Ratio :

4) Fixed Assets to Net Worth Ratio:

5) Net Profit Ratio

6) Stock Turnover Ratio:

7) Debtors turnover ratio

8) Average debt collection period

9) Creditors turnover ratio:

10) Average Payment period :

11) Fixed assets turnover Ratio:

12) Capital Turnover Radio: