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A STUDY ON THE FINANCIAL ANALYSIS OF RELIANCE INDUSTRIES LIMITED

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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… Click to show full abstract

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.

Keywords: reliance industries; study; industries limited; company; analysis

Journal Title: International Journal of Approximate Reasoning
Year Published: 2021

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