Assessment of the Financial Position and Performance of the Chosen Companies Operating in the Steel Industry in India

Dheeraj Na

Master's thesis

Abstract:

This thesis examines the assessment of the financial position and performance of the three chosen companies operating in the Steel Industry in India which are J.S.W, Steel Authority India Limited (S.A.I.L), and Tata Steel Ltd. The characteristics of the balance sheet, income statement, cash flow statement, and selected financial ratios used in the financial analysis of companies are examined. Assets and liabilities are represented in the balance sheets, and the income statement is reporting the profit. Financial years 2018 to 2022 will be used to determine any increases in sales and profits using both vertical and horizontal analysis of income and expenses. Costs and revenues are just two of the variables that affect a company's financial performance. Financial stability may be impacted by the steel industry's operational and financial efficiency. All three companies had a profit in the last monitored years. The calculated financial ratios of liquidity and profitability show, that all three companies had a less-than-favorable liquidity ratio. The profitability ratios show that the best use of assets has the company Tata Steel, Ltd, which has with the company J.S.W also the best return on equity in the latest years.

Keywords

Financial statements, balance sheet, assets, financial analysis, ratio analysis, financial position, liabilities, equity, financial performance, income statement, expenses, revenues, profit

Language used: English

Date on which the thesis was submitted / produced: 6. 12. 2023

Thesis defence

• Date of defence: 6. 2. 2024
• Supervisor: Ing. Enikö Lörinczová, Ph.D.
• Reader: Jan Němec, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management