'Liquidity Measurement Ratios\r'

'TESTS , the basic findings to be reduceed are the proportion analysis to generate companys profitability, liquidity and plus management. First of all let us focus on the liquidity measurement ratios that proves companys solvency In re paid debts and otherwise liabilities. In comparison of 2013 & 2014, the Interpretation from current ratio foundation be drawn as high the current ratio high the capability of paying obligations. here(predicate) in our study the current ratio In 2013 Is less than 1 that Indicates the company has problems of paying.Comparatively In 2014 the ratio Is greater than 1 . The indication Is preferably good. The warm ratio meets companys short term liabilities. The high the ratio, high the companys ability for repaying short term liableness. Here for both the year 2013 the quick ratio In associate with the current ratio Is almost zero. It has detrimental effect on company but for 2014 the quick ratio Is soften. It Indicates company Is In good liquidly baffle and It has 2. 5 lulls assets to cover its current liability. Now In the phase of profitability analysis depict on asset is better in 201 3 than 2014. E higher(prenominal) return on asset Shows federation earning more with less investment. If we look at the return on capital employed the 2014 data shows higher value than the 2013. It signifies company is employing its capital appropriately and generating shareholders value. From the to a higher place discussion we keister conclude companys position from 2013 to 2014 is better irrespective of its solvency and capital generation as good as profitability growth. For forecasting companies income statement we force out use few assumptions like revenue assumption,operating expenses, court of revenue, operating margin assumption.By following the record for the yesteryear data the future income statement can be predicted. If we discuss them one by one we can have a clear idea. For revenue if we analyses the last(pr enominal) year records it can be noticed its fluctuation year by year. In 2012 the company having higher position in revenue than its position from 2013 & 14. By observing the operating expenses we can have the higher data in 2014 than 201 3 and in 2012 the utmost data. The operating expenses shows in which area the company can curtail its expenses before damaging the company situation.\r\n'