Evaluation of Operational Performance - A Case Study on Summit Power Limited (SPL) (original) (raw)

Operational Performance Evaluation of Meghna Petroleum Limited (MPL) -A Case Study

Evaluating performance through ratio analysis is a sin-qua-non for sustainable growth and measuring future risk of liquidation of a manufacturing company. The current study is an attempt to evaluate the status of the financial performance of Meghna Petroleum Limited (MPL) through liquidity, profitability and productivity position of MPL. The study found that the financial performance in terms of liquidity and profitability is considered to be below satisfactory level. In case of activity ratio total asset turnover ratio indicates satisfactory which means efficient utilization of investment in generating more revenue. Current assets turnover ratio were also found positive and prove efficient management policy in collecting receivables and clearing stock very quickly. The study also depicted that MPL's long term solvency position in terms of debt to total asset ratio was found highly satisfactory which means less risk of sustainability in the long run. The value of Z also indicates the financial soundness and less risk of bankruptcy of MPL. The study suggest some policy implications for future growth and development of MPL like; introduction of modern technologies and research and development, modern marketing techniques to boost up revenue, suitable pricing policy and the like.

An Experiential Examination of Financial Performance of Foremost Power Segment Organisation -APSPDCL

Financial analysis is the way toward recognizing the money related qualities and shortcoming of the firm from the accessible accounting data and financial statements. The analysis of financial statements is a significant aid to financial analysis. They give information on how the firm has acted before and what is its current financial position. The analysis is done by establishing relationship between the different items of financial statements. Financial performance assessment is the way of discovering economic facts about an enterprise on the basis of interpretation of the available financial data. The essential goal of financial evaluation is to give a precise image of the financial condition of a concern in condensed form. The current investigation has been attempted to examine the financial performance of APSPDCL for a time of five years. Information has been gathered from different published annual reports and financial statements liquidity, Profitability. This paper is aimed at examining what ratios can determine financial performance of APSPDCL.

An Evaluative Study on Measuring Financial Performance of Ashok Leyland Limited

International Journal of Science and Research (IJSR) ISSN: 2319-7064, 2020

This paper attempts to evaluate the financial performance of Ashok Leyland Limited. For this purpose data were collected through secondary sources that consist of annual reports, articles, journals and consolidated financial statements for the period of 2014-15 to 2018-19. The data were analyzed through different accounting ratios. Statistical tools Mean, Standard Deviation and Coefficient of variance were also used to analyze the data. For a better understanding different charts were used in this study. This study concludes that profitability shows company generated a good amount of profit but, liquidity ratios show week liquidity position of company further management efficiency ratios shows good strategies and dynamic policies for inventory management and also assets are efficiently used by the company and at the last solvency ratios shows the company is strong enough to afford the debt and taking the benefits of trading on equity. So, it shows the overall good financial performance of the company during the study period.

Analysis of Financial Performance Based on Financial Ratio and Economic Value Added

IJIEEB : International Journal of Integrated Education, Engineering and Business

The purpose of the study to analyze financial ratio and economic value added (EVA) used to knowing the company's financial performance in PT Unilever Indonesia Tbk. The analytical method used are financial ratios (Liquidity ratio, Solvability ratio, Profitability ratio, and Activity ratio) and economic value added (EVA) methods. The results showed that the results of the company's financial performance were measured by financial ratio analysis for highly liquid profitability ratio values, liquid solvency ratio values, liquid activity ratio values, but for illiquid liquidity ratio values because it was below the standard ratio value. Overall the results of financial ratio analysis can be said that the financial performance of liquid companies. While the results of EVA, obtained a positive result (EVA > 0) from 2014 to 2018. It meant that company management had increasing its performance in 2014-2018 such that it successfully created economic value added for company and shareholders.

Financial Ratio Analysis as a Determinant of Profitability in

2013

Financial ratio analysis is a vital one since the profitability of an enterprise is directly affected by such decision. The successful selection and use of appropriate financial ratio is one of the key elements of the firm's financial strategy. Hence, proper care and attention need to be given while such decision is taken. The purpose of this study is to examine the relationship between the financial ratio analysis and profitability of the Nigerian Pharmaceutical industry over the past eleven (11) years period from 2001-2011. These financial ratio analyse have immense potentials to help organizations in improving their revenue generation ability as well as minimization of costs. The researcher used five (5) variables for the analyses such as: Inventory turnover ratio (ITR); Debtors' turnover ratio (DTR); Creditors' velocity (CRSV); Total assets turnover ratio (TATR) and Gross profit margin (GPM). Profitability as a dependent variable is represented by Gross profit margin (GPM) while financial ratio analysis stands as ITR, DTR, CRSV and TATR for independent variables. Secondary data were obtained from the financial statements (Balance sheet and Profit and Loss account) of the selected quoted pharmaceutical companies' financial statement. The data have been analyzed using descriptive research method and multiple regressions to find out the relationship between the variables. The results of the analysis showed that there is a negative relationship between all independent variables with profitability in the Nigerian pharmaceutical industry. It also revealed that debtors' turnover ratio, creditors' velocity and total assets turnover ratio have no significant relationship on the profitability of the company while only inventory turnover ratio shows a significant relationship with profitability. The results further suggested that only 17.8% of the independent variables are determinant factors of profitability in the enterprises sampled while 82.2% of the major factors are determine from other factors outside the independent variables. Based on the above premises, the researcher recommended that the inventories of the company should be checked and monitored more frequently by management to prevent out of stock syndrome or over stocking of their products. It is also recommended that creditors' velocity should be at a point where the creditors and purchases are equal in order to take the advantage of credit facility and any discount associated with prompt payment for goods to increase the profitability of the company. The management should utilize its assets efficient in generating more income for the company.

IMPACT OF LIQUIDITY AND MANAGEMENT EFFICIENCY ON PROFITABILITY AN EMPIRICAL STUDY OF SELECTED POWER

Journal of Entrepreneurship, Business and Economics , 2015

This study investigated the impact of liquidity and management efficiency on profitability of select power distribution utilities in India. The study consist a sample of 23 power distribution utilities operating in India for the period of 2004-05 until 2013-14. Therefore the total panel (balanced) observations are 230. The return on capital employed is used as a measure for profitability explaining dependent variable, whereas a current ratio, quick ratio, absolute cash ratio, debtor turnover ratio, creditor turnover ratio, collection efficiency, interest coverage ratio are representing independent variable. Statistical tools such as Generalized Least Squares (GLS) regression are applied. The study found that debtor’s turnover ratio, collection efficiency and interest coverage ratio are showing a significant impact while quick ratio, absolute liquid ratio and creditor’s turnover ratio show an insignificant impact on the profitability of select sample utilities.

Impact of Liquidity, Solvency and Efficiency on Profitability of Steel Authority of India Limited

Business firms exist in a world of rapid changes. In 21st century, business and economic environment is characterized by various changes like High-growth markets, financial crisis, technological advances, stiff competition, innovation etc. In such a complex and rapidly changing corporate environment, a firm will not be able to survive in the long-run if its financial performance is not sound in all respects. The present study is an attempt to analyze financial performance of Steel Authority of India Limited, a Public Sector Undertaking in India enjoying the status of Maharatna, for a period of ten years from 2005 to 2014 using various financial ratios. The analysis of the present study revealed that there was a decline in the financial performance of SAIL during the study period i.e. between 2005 and 2014.

Financial Performance Evaluation of National Thermal Power Corporation Limited (NTPC)

Arabian Journal of Business and Management Review, 2017

Financial performance evaluation is the process of discovering economic facts about an enterprise on the basis of interpretation of the available financial data. The primary objective of financial performance evaluation is to give an accurate picture of the financial condition of a concern in condensed form. The present study has been undertaken to examine the financial performance of NTPC for a period of ten years from 2006-07 to 2015-16. Data have been collected from various published annual reports and financial statements. Liquidity, profitability, management efficiency, solvency and market valuation ratios have been calculated and analyzed. Multiple regression technique has been used to evaluate the impact of liquidity, solvency and management efficiency on profitability of NTPC. ROCE, ROA, and ROE have been taken as proxy measures of profitability. The findings highlighted that there is no significant impact of current ratio and inventory turnover ratio on profitability. Howev...

Analysis of financial performance at heavy equipment companies in Indonesia using financial ratios

2016

To determine the health of a company can be determined by looking at the financial statements published by the company within a certain period. This study aims to determine the financial performance of the two companies engaged in the heavy equipment industry which have a sizeable market share in Indonesia, namely PT HexindoAdi Perkasa. United Tractors and PT Hexindo using financial ratio analysis of the financial statements of each company over the period 2011-2015. The research method is using quantitative and descriptive method using the financial statements issued by the respective companies. The ratio used three kind of ratio, first ratio is the ratio of liquidity consisting of current ratio, second ration is solvency ratio consisting of debt to asset ratio and debt to equity ratio, and the last is a profitability ratio that consists of the gross profit margin, net profit margin, return on investment, and return on equity. From the results of the study, researchers found that t...

Impact of Financial Health on Continuity of a Firm: The Case of Mumias Sugar Company

2015

The financial health of any company is critical for the achievement of the going concern objective. This can be easily evaluated through its profitability, liquidity, solvency and activity ratios. Ratio analysis is one of the most easiest and competent tool to evaluate the financial soundness of a company. Secondary data collected from Nairobi Securities Exchange was used. The data collected was evaluated using ratio analysis. Altman‘s Z score model was used to predict the chances of bankruptcy. The results of the study showed that Mumias Sugar Company has a strong short term liquidity position. The company also has an impressive profit earning position. However, the company is suffering from underutilization of its fixed assets as shown by the ratio of EBIT to total assets. Further, the company has over relied on debt to finance its fixed assets as shown by the high values of book value of equity to book value of debt. We therefore recommend that the working capital ratio be improv...