Financial ratios ppt


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Financial ratios ppt

  2. 2. <ul><li>Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. </li></ul><ul><li>The process of reviewing and evaluating a company’s financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. </li></ul>
  3. 3. Tata Teleservices operates under five different brands— Tata Indicom (CDMA services), Tata DOCOMO (GSM services), Virgin Mobile, Tata Walky (which is the brand for fixed wireless phones), Tata Photon (the company’s brand that provides a variety of options for wireless mobile broadband access) and T24 . Tata Teleservices Limited ( TTLS ) is a subsidiary of the Tata Group headquartered in Navi Mumbai , an Indian conglomerate. It operates under the brand name Tata Indicom in various telecom circles of India.
  4. 5. <ul><li>To compare the financial ratio from last 5 year of “TATA TELESERVICES LTD” . </li></ul><ul><li>  </li></ul><ul><li>To analyze the profitability ratio of “TATA TELESERVICES LTD” . </li></ul><ul><li>To check the liquidity position of “TATA TELESERVICES LTD” . </li></ul>
  5. 6. <ul><li>To gain insight into long term solvency of “TATA TELESERVICES LTD” . </li></ul><ul><li>  </li></ul><ul><li>To know the financial Position of the Company by calculating the ratio analysis of “TATA TELESERVICES LTD”. </li></ul>
  6. 7. <ul><li>PRIMARY DATA </li></ul><ul><ul><li>Data is collected from telephone enquiries. </li></ul></ul><ul><ul><li>Concert with the expertise. </li></ul></ul><ul><ul><li>Data is collected from survey. </li></ul></ul><ul><li>SECONDARY DATA </li></ul><ul><li>Data is collected from past year records. </li></ul><ul><li>Data is collected from my guide. </li></ul><ul><li>Data is collected from GOOGLE. </li></ul>
  7. 8. <ul><ul><li>SAMPLE SIZE :- 35 </li></ul></ul><ul><ul><li>SAMPLING PROCEDURE :- Random sampling. </li></ul></ul><ul><ul><li>TOOL FOR DATA COLLECTION :- Profit & Loss account, Balance Sheet. </li></ul></ul><ul><ul><li>TOOL FOR DATA ANALYSIS :- Statistics tools and ratio analysis. </li></ul></ul>
  8. 9. <ul><li>There is not accurate information provided by the management. </li></ul><ul><li>Limited period which is not sufficient for the study. </li></ul><ul><li>Sample size is too small not represent whole MATHURA. </li></ul><ul><li>No good response from the clients during telephonic communication. </li></ul>
  9. 10. <ul><li>The total revenue grew by 10.90% to Rs. 2,277.81 Cr. during the year. </li></ul><ul><li>Current ratio position is not good in the period 2006 to is not stable. An ideal current ratio is 2:1. The current ratio in the year 2010 is 0.14:1 </li></ul><ul><li>The operating ratio in year 2010, 2009, 2008, 2007, and 2006 are 22.27%, 28.27, 23.75, 20.54 and 11.23 respectively. Operating ratios increases year to year which is good for the company. </li></ul>
  10. 11. <ul><li>Company market share is too low comparing other Teleservices company. But TATA TELESERVICES is growing year to year. </li></ul><ul><li>Gross profit ratio of 2006 to 2010 are 0.58%,10.61%, -1.98, 6.32% and -1.28% .i.e. fluctuate during year so it indicate the profit earning of the company is not so good negative ratios shows the poor performance of the company. </li></ul><ul><li>In 2010 and 2010 inventory ratio are not more than 2009, 2008 and 2007. The company working capital might be tied up in finance inventory. </li></ul>
  11. 12. <ul><li>The company should maintain the current ratio for the years by proper maintaining current assets and current liabilities . </li></ul><ul><li>The company should reduce cost of production and also operating cost, which may ultimately increase the profits of the company . </li></ul><ul><li>The company should improve our competitiveness through improved material utilization and reduced process cost. </li></ul><ul><li>The company should increase there efficiencies of net working capital and to maintain adequate level of working capital. </li></ul>