Volume : I, Issue : I, October - 2011

Financial Analysis Of Delhi International Airport (p) Limited

Dr. S. K. Khatik, Amit Kr Nag

Abstract :

Financial analysis is the systematic numerical calculation of the relationship of one financial fact with the other to measure the profitability, operational efficiency, solvency and the growth potential of the business. Analysis of financial statements serves the interest of shareholders, debenture–holders, potential investors, creditors, bankers, journalists, legislators, politicians, researchers, stock exchanges, taxation authorities and economists. The use of financial analysis is made to measure the profitability, efficiency and financial soundness of the business, to make comparative studies and effective future plans. Analyses of financial statements can be made with the previous years performance of the same firm and also with the performance of other firms. Intra firm analysis provides an opportunity to self appraisal, whereas inter–firm analysis presents the operational efficiency of the firm as compared to other firms. Comparison helps in detecting weaknesses of the organization and to apply corrective measures. The analysis provides sufficient information regarding the profitability, performance and financial soundness of the business on the basis of these informations, one can make effective forecasting, budgeting and planning. Financial analysis is the process of evaluating businesses, projects, budgets and other financerelated entities to determine their suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the companys past performance into an estimate of the companys future performance.

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

DR. S. K. KHATIK, AMIT KR NAG Financial Analysis Of Delhi International Airport (p) Limited Indian Journal of Applied Research, Vol.I, Issue.I October 2011

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