A Comparative Study on Financial Performance Using Ratio Analysis

Anticipation: Financial management estimates the financial needs of the company. That is, it finds out

how much finance is required by the company.

Acquisition: It collects finance for the company from different sources.

Allocation: It uses this collected finance to purchase fixed and current assets for the company.

Assessment: It also controls all the financial activities of the company. Financial management is the

most important functional area of management. All other functional areas such as production

management, marketing management, personnel management, etc. depends on Financial management.

Efficient financial management is required for survival, growth and success of the company or firm.

Theterm‗financialanalysisalsoknownasanalysisandinterpretationoffinancialstatements'referstotheprocessofd

eterminingfinancialstrengthandweaknessesofthefirmbyestablishing strategic relationship between the

items of the balance sheet , profit and loss account and other operative data.