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To start any business, we need to have finance and success of that business is entirely dependent upon proper management and application of finance. It is necessary to maintain a proper balance between these two which can be done with the help of calculating different type of ratios like current ratios, quick ratios and debt coverage ratio etc. For every manufacturing sector the state of liquidity management/cash management should be very much consistent and stable, which we can measure by calculating the quick asset ratio. In this study, I have explained that the study of ratio analysis will help in forecasting the future performance of the company. The purpose of writing this research paper is to spread the pragmatic usage of ratio analysis in analyzing the financial performance of the company. Although there are various methods and techniques available for studying the company’s performance but in my research paper, I have focused on how accurately ratio analysis may help in getting the desired result.
Keywords
Current Ratio, Quick ratio, Liquidity, pragmatic, accurately
References
1) Michigan State University Journal - Ratio analysis https://msu.edu/course/aec/853/chapter5.pdf
2) Why Use Financial Ratio Analysis? https://www.zionsbank.com/pdfs/biz_resources_book-6.pdf
3) Ratio analysis - Meaning of Financial Statement Analysis www.scranton.edu/faculty/hussain/teaching/fin361_/Fin361 C03.pdf
4) A guide to useful ratios for understanding your Social enterprise's financial http://shodhganga.inflibnet.ac.in/bitstream/10603/37639/12 /12_chapter 5.pdf
5) By P Barnes - 1987 - Journal of Business Finance & Accounting.www.iiste.org/Journals/index.php/RJFA/article /download/16837/17175
9) M. Bremner and D. R. Keene The paper examined the importance ofratio analysis to corporate entities by showing its.www.irapub.com/images/short_pdf/1443621448_AYOD ELE_THOMAS
Cites this article as
S. S.
"Ratio Analysis in Manufacturing Sector-A Study", International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-4, Issue-4, Page No-690-693, 2017. Available from: https://doi.org/10.21276/ijirem.2017.4.4.5
Corresponding Author
Sweta Singh
Administrative Management College 18TH KM Bannerghatta Road, Bangalore, India singh.sweta29@gmail.com