This document analyzes the financial statements of Reliance Industries Ltd over 10 years using various ratio analysis techniques. It calculates ratios such as the current ratio, quick ratio, debt-to-total assets ratio, trade receivables to revenue ratio, gross profit margin, and net profit margin to evaluate the company's performance and financial position over time. The analysis finds that the current ratio, quick ratio and profit margins have generally increased from year 1 to year 10, while debt levels have decreased, indicating an improvement in liquidity and profitability.

1. FINANCIAL
STATEMENT
ANALYSIS

2. FINANCIAL STATEMENT ANALYSIS OF RELIANCE INDUSTRIES
LTD..
SUBMITED TO;
• Dr. SUNIL VERMA
(faculty of commerce and management)
SGT University
SUBMITED BY:
• KUNDAN YADAV
BBA(G) 3rd semester
160604028

3. INTRODUCTION
It is the key to any in-depth understanding of an organization’s
performance.
The value of the analysis is depends on the value of the financial
statement.
Financial statement analysis is the method of reviewing and analyzing a
company’s accounting reports in order to gauge its past,present and
projected future performance.

4. TECHNIQUES OF ANALYSIS
1. HORIZONTAL ANALYSIS
* This method of analysis is simply grouping together all information ,
sorting them by time period :weeks ,months or years.
* This analysis is also called dynamic analysis or trend analysis.
2. VERTICAL ANALYSIS
* vertical analysis only requires financial statements for a single
reporting period.
* It is useful for inter-firm or inter-departmental .
* No matter the size of the business or department.

5. TOOLS OF FINANCIAL STATEMENTS
ANALYSIS
1. Comparative statements
2. Common size statement
3. Ratio analysis
4. Cash flow statement

6. RATIO ANALYSIS
TRADITIONAL CLASSIFICATION
BALANCE SHEET RATIO
(1)current ratio
(2)quick ratio/liquid ratio
(3)debt equity ratio
(4)long term borrowing=TOTAL ASSETS
(5)fixed assets =NET WORTH

7. PROFITABILITY RATIO
• GROSS PROFIT% =GROSS PROFIT/NET SALE*100
• NET PROFIT% =Net profit after tax/net sales*100
or
NET PROFIT% =Net profit before tax/net sale *100
• RETURN ON EQUITY =Net profit/average total Equity*100

8. FINANCIAL STRUCTURE OR
CAPITALISATION RATIO
DEBT/EQUITY RATIO=Debt/Equity
Debt/Total Assets Ratio=debt/TOTAL ASSET*100
EQUITY RATIO=Equity/ total assets*100

9. FINANCIAL STATEMENT
RELIANCE INDUSTRIES
LTD.

11. CURRENT RAIO=CA/CL
CURRENT RATIO

13. -150,000.00
-100,000.00
-50,000.00
0.00
50,000.00
100,000.00
150,000.00
200,000.00
1 2 3 4 5 6 7 8 9 10
Current Assets
Current Liabilities
CA/CL

15. 0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
1 2 3 4 5 6 7 8 9 10
STI/CL
Current Liabilities
Short-trem Investments

17. 0.00
100,000.00
200,000.00
300,000.00
400,000.00
500,000.00
600,000.00
1 2 3 4 5 6 7 8 9 10
TD/TA
Total Assets
Total Debt

19. 0
10
20
30
40
50
60
70
80
1 2 3 4 5 6 7 8 9 10
TR/REC.
TR/REC.

21. 0
50000
100000
150000
200000
250000
1 2 3 4 5 6 7 8 9 10
QUICK RATIO
QUICK RATIO

23. 0
10000
20000
30000
40000
50000
60000
1 2 3 4 5 6 7 8 9 10
CASH RATIO
CASH RATIO

25. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
1 2 3 4 5 6 7 8 9 10
GROSS PROFIT MARGIN
GROSS PROFIT
MARGIN

26. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
1 2 3 4 5 6 7 8 9 10
NET PROFIT MARGIN
NET PROFIT
MARGIN

28. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
1 2 3 4 5 6 7 8 9 10
NET PROFIT MARGIN
NET PROFIT MARGIN