Seybold Report ISSN: 1533-9211
M.Suresh
Ph.D Research Scholar, Department of Commerce, Annamalai University, Assistant Professor, PG and Research Department of Commerce, Thiru Kolanjiappar Government Arts College, Vriddhachalam
Dr. J. Paramasivam
Assistant Professor, PG and Research Department of Commerce, Thiru Kolanjiappar Government Arts College, Vriddhachalam
Vol 17, No 09 ( 2022 ) | DOI: 10.5281/zenodo.7101865 | Licensing: CC 4.0 | Pg no:1252-1260 | Published on: 21-09-2022
Abstract
The financial performance of a company is measured using various financial performance indicators. It is measured by using the data available in some basic financial statements like the Income statement, Balance sheet and Cash Flow Statement. Liquidity analysis also known as short term solvency analysis is an integral part of financial performance analysis. Ratio analysis is an effective tool to do the liqudity analysis of a company. Various ratios are measured to assess the short term solvency position of the company. Liqudity simply represents the ability of the company to meet out its short term debts or obligations. The liqudity ratios commonly used are current ratio and liquid ratio. Domestic Appliances industry in India recorded a tremendous growth in recent years. This trigger an interest in studying the performance of the sector. Financial Performance analysis of Companies operating in a sector is an important aspect to be done while studying the performance of the sector. The liqudity and profitability happens to be the most prominent aspects of this financial performance analysis and are measured by almost all the Companies analysing their financial performance. This research study tends to measure and analyse the liqudity aspect of financial performance between the chosen companies in domestic appliances industry in India.
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