Indian Oil

INDIAN OIL RATIO ANALYSIS: LIQUIDITY RATIOS: These balances whole tone the firms ability to satisfy its short-term obligations. thither are two key ratios in this segment. It is in worry manner called as the Acid Test Ratio. Working dandy = original Assets ? up-to-date Liabilities menstruation Ratio abridgment: Current ratio is a financial ratio that measures whether or non a club has enough resources to fix its debt over the nigh business round of golf (usually 12 months) by equivalence firms legitimate assets to its oc occurrent liabilities. unexceptionable current ratio value vary from industry to industry. Generally, a current ratio of 2:1 is considered to be acceptable. The higher(prenominal) the current ratio is, the more clear the caller-out is to pay its obligations. Current ratio is also touch by seasonality. If current ratio is bel low huckster 1 (current liabilities exceed current assets), because the company may shake off p roblems paying its bills on time. However, low values do non indicate a scathing problem but should business the management. One exception to the witness is considered fast-food industry because the inventory turns over much more quickly than the accounts payable becoming due. Current ratio gives an idea of companys in operation(p) efficiency.

A high ratio indicates safe liquidity, but also it can be a signal that the company has problems getting paid on its due or have dour inventory turnover, both symptoms that the company may not be efficiently using its current assets. As far as Indian Oil is concerned, their current ratio ana lyses for the last 5 years are shown in the ! following figure: 2010: 0.76 2009: 0.61 2008: 0.84 2007: 0.79 2006: 0.83 exposition: Working Capital Analysis: winningsability Ratios: Net Profit Margin- Often referred to as a companys turn a profit margin, bottom notation is the most mentioned term when discussing a companys profitability. dapple undeniably an distinguished number, investors can easily see from...If you fatality to get a full essay, order it on our website: BestEssayCheap.com

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