Open AccessA STUDY ON THE FINANCIAL ANALYSIS OF RELIANCE INDUSTRIES LIMITED
Author(s) -
G. Lakshmi,
Afrin Banu K.,
F. Afrin,
C. V. Divya
Publication year - 2021
Publication title -
international journal of advanced research
Language(s) - English
Resource type - Journals
ISSN - 2320-5407
DOI - 10.21474/ijar01/12818
Subject(s) - lagging , market liquidity , current ratio , current asset , profitability index , business , working capital , financial ratio , position (finance) , finance , accounting , medicine , pathology
Thefinancialanalysishelpsinknowingthefinancialperformance ofthecompany. It also helps the company to predict the future profits and totake corrective measures to achieve them. The study is to analyze thefinancial performance of Reliance Industries Limited (RIL) for a periodof five years. The objective of the study is to determine the liquidity,profitability andturnover rate of RIL. The tool used to analyze thefinancial position of the company is Ratio analysis. The tool helps incomparing the financial status of the current year with past years andalso in providing few suggestions with which the company can improveto do better in the future. The data are collected from the secondarysources like annual reports, company websites and other reliable sites.From the analysis, we find that the company is lagging in various areas.Improving which will help the company to achieve its ideal ratios. Theprofitability and turnover ratios are better when compared to liquidityratios. The company was able to achieve the ideal ratios of profitabilityin few years but couldnt achieve the liquidity ratios even for a singleyear.Alsotheworkingcapitalturnoverhasbeennegativeforallthefiveyears. The company must improve to bring the working capital to apositive rate by decreasing its current liabilities. The current liabilitieshave always been more than the current assets which is not good for thecompany.