FINANCIAL STRENGTH OF SELECT SUGAR INDUSTRIES OF TAMIL NADU (PATH ANALYSIS APPROACH ON RETURN ON TOTAL ASSETS)

G. SANKARANARAYANAN; Ms. M. ELAKKIYA

Volume : V, Issue : III, March - 2015

FINANCIAL STRENGTH OF SELECT SUGAR INDUSTRIES OF TAMIL NADU (PATH ANALYSIS APPROACH ON RETURN ON TOTAL ASSETS)

G. Sankaranarayanan, Ms. M. Elakkiya

Abstract :

Financial strength may be described as ones ability to overcome or meet a financial obligation. The term financial strength has a reference to the ability of a business to meet the claims of creditors not only under current economic and business conditions but also under the unfavourable situations that may occur in future; to take advantage of business dealings or expansion which require presently owned resources, additional funds obtained through the sale of long term debt obligations and capital stock, or a favourable credit rating, and to continue interest and dividend payments without interruption. There are two aspects of the financial strength of a business – the short term and the long term. The short–term financial strength may be described as the liquidity (or) technical solvency of the business. The long–term financial strength depends on the structure that has been imposed on the business in financing more permanent asset requirements