A STUDY OF RATIO ANALYSIS AT LLOYD STEEL COMPANY LTD, WARDHA AREA

Abstract

This research present paper examines the financial performance of identified units in the Lloyd steel in terms of financial ratios such as current ratio, cash, Activity and Profitability position. A group companies listed in the stock exchanges in India namely, Lloyd steel Ltd., Tata Steel Ltd., Jindal Steel & Power Ltd., J S W Steel Ltd., Bhushan Steel Ltd. and Steel Authority of India Ltd. are selected for this study. To evaluate the impact of selected variables on the financial performance of identified units in the Lloyd steel industry, ratio analysis is used. Ratio analysis has been a primary tool of conducting financial analysis of any company. Different ratios highlight overall financial position of a company. This research paper aims at analyzing the financial performance of Lloyd steel ltd using the framework of ratio analysis. The basic objective of this paper is to evaluate and judge the performance of Lloyd steel during the research period. The study was based on secondary data from records, reports and profile of the organization. The validity of any research is based on the systematic method of data collection analysis. The Ratio analysis is the process of identifying the financial soundness and cost effectiveness of the firm by establishing relationship between the items of balance sheet and profit and loss a/c. The present study has thrown major concentration in ratio analysis, from the 5years balance sheet and profit and loss a/c. An objective of the study includes the profitability, cost of goods sold and other experience company overall financial performance of the company. Short term-long term position of the company. Based on the five years balance sheet and profit and loss a/c suitable suggestion were given by the researcher for a better soundness and cost effectiveness of the company