Last 5 Years Trend Analysis Report of a Company

Topics: Steel, Financial ratios, Steel production by country Pages: 30 (6753 words) Published: January 14, 2013


Executive Summary
Every countries economic condition depends upon the performance of its Industry. How the investors are interested in it as it will help in the increment in the flow of foreign exchange. A sound and well performing industry will always attract investors as it will give them a return in a less time period. But it is not easy for a layman to understand or to properly analyze the performance of the company. To understand the performance of any company we have to do financial statement analysis. Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables.

Ratio analysis helps in inter-firm comparison by providing necessary data. An interfirm comparison indicates relative position. It provides the relevant data for the comparison of the performance of different departments. If comparison shows a variance, the possible reasons of variations may be identified and if results are negative, the action may be initiated immediately to bring them in line.

In my study I have tried to make out a clear picture of Bhushan steel ltd. performance in the steel industry with the help of Ratio analysis and Comparative Balance sheet. While doing my interpretation through Ratio analysis I have focused on 5 main areas: 1. Liquidity

2. Investment/shareholder
3. Gearing
4. Profitability
5. Financial
With the help of ratio analysis we measures relationship between resources and financial flows. It show ways in which firm’s situation deviates from ➢ Its own past.
➢ Other firms
➢ The industry
➢ All firms…

There are some other tools through which the investors try to bring out the clear picture of the company so that the investor can easily understand that on which company they should invest their money and the tools are: • Cash flow statement

• Comparative income statement
• Fund flow statement

Table of content

1) Introduction
a. Organization information.
2) Literature review
a. Global steel industry.
b. Indian steel industry
3) Research methodology
a. Aims and objective of the study
b. Methodology
4) Data analysis and interpretation
a. Ratio analysis.
b. Comparative Balance Sheet
5) Conclusion
a. Suggestion
b. Limitation
c. Bibliography

List of table
Page No.
1. Production capacity17
2. Consumption capacity18
3. EBIDTA / Turnover28

4. Profit before Tax / Turnover29
5. Return on Average Capital Employed.29

6. Return on Average Net Worth31

7. Asset Turnover Ratio32

8. Average Inventory to Turnover33

9. Average Debtor to Turnover34

10. Gross Block to Net Block36

11. Debt to Equity37

12. Current Ratio38

13. Interest Coverage Ratio39

14. Earnings per Share41

15. Dividend payout Ratio42

16. Comparative Balance Sheet43

List of Figure
Page No.
1. Steel production15
2. Steel capacity16
3. Indian steel capacity19
4. Indian steel production20
5. Indian steel consumption21
6. Return on Average Capital Employed.30

7. Average Inventory to Turnover33

8. Average Debtor to Turnover35

9. Gross Block to Net Block36

10. Debt to Equity37...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Hospitality Company Report Analysis Essay
  • Trend Analysis Essay
  • 3 Year Financial Analysis of a Company Essay
  • Financial Ratio Analysis Report of Ford Motor Company Essay
  • Analysis of Ioi Corporation Berhad Performance Based on 5 Years Financial Report Essay
  • Essay on Company Analysis Report: Molson Coors Brewing Co.
  • 5 years Essay

Become a StudyMode Member

Sign Up - It's Free