Research Methods:

Ratio analysis is a research method used to evaluate a company's financial performance and
health by analyzing various financial ratios. To conduct ratio analysis effectively, you typically
follow a structured research method that includes the following steps:

1. Data Collection: Gather the necessary financial data from the company's financial statements.
You will need data from the income statement, balance sheet, and cash flow statement. Ensure
that the data is accurate and up-to-date.

2. Calculation of Ratios: Calculate a range of financial ratios using the data collected. The choice
of ratios will depend on the specific goals of your analysis and the aspects of the company's
financial health you want to assess. Common ratios include liquidity ratios, profitability ratios,
solvency ratios, and efficiency ratios. The formula for each ratio will vary, so ensure accuracy in
your calculations.

3. Normalization and Standardization: Normalize or standardize ratios, if necessary, to make

comparisons across time periods or with other companies more meaningful. For example, you
might calculate ratios on a per-share basis or as a percentage of revenue.

4. Interpretation and Analysis: Analyze the calculated ratios to gain insights into the company's
financial health and performance. Look for trends, patterns, and anomalies. Consider comparing
the ratios to industry benchmarks or the company's historical performance. Interpretation
involves understanding what the ratios reveal about the company's strengths, weaknesses, and
areas for improvement.

5. Comparative Analysis: Compare the company's ratios with those of competitors in the same
industry or with industry averages. This comparative analysis provides context for
understanding whether the company is performing better or worse than its peers.

6. Identification of Key Findings: Identify the key findings from your analysis. This could
include strengths such as strong liquidity, solid profitability, or efficient asset utilization.
Conversely, it may reveal weaknesses like high debt levels or declining profitability.
 7. Qualitative Assessment: Consider qualitative factors that may impact the ratios. These could
include changes in management, market conditions, industry trends, and other non-financial
factors that may not be captured by the ratios themselves.

8. Reporting and Communication: Present your findings and analysis in a clear and concise
manner. Prepare a report or presentation that communicates the key insights to stakeholders,
whether they are investors, creditors, management, or other decision-makers.

9. Recommendations: Based on your analysis, provide recommendations or suggestions for

actions that the company should consider. These recommendations could be related to
financial management strategies, operational improvements, or other areas where the
company can enhance its financial health.

10. Follow-Up Analysis: Continue to monitor and analyze the company's financial ratios over
time to track its performance and assess the impact of any recommended changes or
strategies

RESEARCH DESIGN:
In view of the objects of the study listed above an exploratory research design has beenadopted.
Exploratory research is one which is largely interprets and already available information and it
lays particular emphasis on analysis and interpretation of the existing and available information.
•To know the financial status of the company.

•To know the credit worthiness of the company.

•To offer suggestions based on research finding.

TYPES OF RESEARCH DESIGN:

 Descriptive Research Design: This design is used to describe and document the characteristics
of a phenomenon or subject without manipulating variables. It provides a detailed account of the
current situation or condition.
 Exploratory Research Design: Exploratory research aims to explore a topic when there is
limited prior knowledge or understanding. It helps researchers gain insights, generate
hypotheses, and identify research questions for more in-depth investigation

 Correlational Research Design: Correlational research examines the relationship between two
or more variables to determine whether they are positively, negatively, or not related. It does not
establish causation but identifies associations.

 Causal Research Design: Causal research investigates cause-and-effect relationships between

variables. Researchers manipulate one or more independent variables to observe their impact on
dependent variables, establishing causation.

 Cross-Sectional Research Design: Cross-sectional research collects data from

participants at a single point in time. It provides a snapshot of a population or
phenomenon at that specific moment.

 Longitudinal Research Design: Longitudinal research collects data from the same group
of participants over an extended period, often to observe changes or trends over time. It
may involve cohort studies, panel studies, or time-series analysis.

 Case Study Design: Case studies focus on in-depth analysis of a single individual, group,
organization, or event. They are useful for exploring complex or unique phenomena in
detail.

 Experimental Research Design: Experimental research involves manipulating one or

more variables to examine their effect on a dependent variable. It is characterized by
random assignment, control groups, and efforts to establish causation..

SAMPLE SIZE AND TECHNIQUES

Sample Size:
The size of the sample was around 100 people considering the time constraint.
ANALYSIS PATTERN
To summarize findings of any project study the data collected needs analysis of the raw data can
be made meaningful simple and appropriate. Presentations of such interpretations help to draw
conclusion from the analyzed data. This analysis is based on the data collected from the
companies belonging to the sectors namely, Analysis will be based on journal, internet. And
there three types of scheme provided by Bajaj Allianz.

 Two wheeler insurance

 Health Insurance
 Travel Insurance
 Car Insurance

DATA COLLECTION (PRIMARY AND SECONDARY)

Data collection is the selection of sources of information and selection of methods and
procedures for gathering the data needed for any research.

“ The search for answers to research questions is called collection of data.”

“Data are facts and other relevant materials serving a base for study& analysis.”

For economy analysis, various types of survey’s data are collected from ministry of finance.
Industry analysis was carried from the various research report prepared by the government of
India. The company analysis is done through financial statement, which are required for
analyzing the ratios, balance sheet and profit & loss a/c, which is collected from the company
MAHINDRA ANDMAHINDRA LTD.
The task of data collection begins after a research problem has been defined and research
design/plan chalked out.
While deciding about the method of data collection to be used for the study, the researcher
should keep in mind two types of data…

1. Primary data method.

2. Secondary data method

For my study purpose I have used SECONDARY DATA METHOD. And the data is collected
from the internet (website) and some data from the company and then calculation & analysis is
done.

The basic significance or merits of secondary data are:-

 Readymade availability.
 Available quickly and cheaply.
 Less time is consumed.
Less effort is required to collect the data.