The concept of financial performance analysis is the process of identifying financial strength of the company with the help of its Profit and loss account, and Balance sheet. Reliance Industries Limited (RIL), is India's largest private sector company with business across the energy and materials value chain and a strong presence in the rapidly expanding retail and telecommunication sectors.
The financial performance analysis of the company is done for the period of five years, starting from the financial year 2009–2010 to 2013–2014. The objective of this study to evaluate the financial position of the company, analyze financial changes and identify future result by using ratio and trend analysis. To know whether the business is making profit or not, is maintaining liquidity position, and know the dividend growth of the company.
The ratios used in this project are in terms of solvency, turnover, and profitability ratios. The trend analysis has done for the indicators such as Sales and Expenses. The company performance was good during the period 2010 and 2011, but in 2012 and 2013 the company performance was not good, due to recession in European countries and affected the exports of the company. Then slowly the global economic condition was improved a little bit in 2014, and the customer demand for the retail products and oil exports increased in the year 2014.
Balance Sheet, Profit and Loss Account, Ratios, Trend analysis
