Analysis Of Tata Ratio Analysis

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Project Titleprepared a Project Report On RATIO ANALYSIS at TATA REFRACTORIES LTD.ObjectivesThe project is started with the aim to ascertain the financial position of the TATA REFRACTORIES LIMITED since from last five years. The financial position of the company includes short-term analysis, Long-term analysis, and Profitability analysis. In profitability ratio analysis I have calculate Gross profit ratio, net profit ratio, operating ratio & operating profit ratio. OBJECTIVES 1. To know the overall condition of the company. 2... To know the financial condition of the company. 3. To compare its position with other competitors. 4. To know the market share and market capitalization. 5. To know how a company will increase its capital and in which…show more content…
5. The net worth per share is also increased. 6. The debtor turnover ratio, fixed asset ratio, net profit ratio, return on investment and return on equity decreased in comparison to the previous year. 7. The Strengths and opportunities of Tata Refractories Limited is more in comparison to the weaknesses and threats. This is a good sign for the industrial growth in near future. SUGGESTIONS I. The prospected target of the company in the year 2006-07 is 625 crores and company should concentrate to achieve more then the projected target. So the company will find itself easy to achieve the target. The company should try to improve the cash position of the company. By which he will give the facility of credit policy to its debtor. It is going to be made stronger to its working capital. II. The liquidity position of the company is very good and the company have the capacity to meet his current obligation .Company should try to improve his sales more though sales position is good . When the sales are going to increase then automatically net profit will also increase. III. Return on investment is also less; company should make a better plan for his…show more content…
Every wants to maximize its profit. The current year return on investment is 9%. It is gradually decreases as compare to other year. If the return is more, then the investor would like to invest. It’s not so satisfactory return from the investment. You know the preference shareholders have fixed payment of dividend policy as compare to the equity share capital. There is no any fixed dividend for equity share capital. This year return on equity capital is 20%. It is very less. The earning per share is 6.123. It is also very less as compare to previous year. So company should try to increase its sales. Capital turnover ratio is calculated to measure the efficiency or effectiveness with which firm utilizes it s resources. The company uses the resources or capital employed in a better manner. It has been increased year by year. The condition of price earning ratio is better as compare to the other year. It gives satisfactory result. The main reason is that the company has very good management structure and is managing the worker very efficiently, which result the company to be a profitable

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