A study on ratio analysis with reference to Anantha Pvc Pipes Pvt. Ltd Anantapuramu District

Ratio Analysis The starting point for making plans before using any sophisticated fore casting and budgeting procedures. The Ratio Analysis is the most powerful tool of the financial analysis. The Ratio Analysis is also useful in security analysis. The major focus on security analysis is one of the long term profitability. The Ratio Analysis is a tool which helps to study the changes that take place over a given period of time. It helps to judge the profitability, liquidity, stability and turnover with the comparison of present ratios with the past ratios. The ratio analysis is a widely used technique to evaluate the financial position all performance of a business. A positive net working capital will arise when current assets are more than current liabilities. In the industry which is one of the leading in PVC pipes manufacturing industry. It shows that the company is maintaining sufficient investments in quick assets.