Published Paper Details:

Financial statement analysis is the process of evaluating businesses, projects, budgets, and other finance-related transactions to determine their performance and suitability. Typically, financial analysis is used to analyze whether a unit is stable, solvent, liquid, or profitable enough to warrant a monetary investment. Preparation of the final accounts is not the end of the accounting process. It is followed by the analysis of these final accounts. The process of reviewing and analyzing a company�s financial statements to make better economic decisions is called analysis of financial statements. In other words, the process of determining financial strengths and weaknesses of the entity by establishing the strategic relationship between the items of the balance sheet, profit and loss account, and other financial statements. The most common form of financial statement analysis is Ratio Analysis. Ratio analysis compares different financial statements of accounts. There are different types of ratios that we can use for the analysis of financial statements such as Liquidity Ratios, Profitability Ratios, Solvency Ratios, Turnover Ratios and Earning Ratios. Financial statement analysis is used by all investors and creditors to help assess the performance of a company and predict future performance for base financial decisions. The primary purpose of financial statement analysis is to understand and diagnose the information contained in the financial statement, in order to assess the profitability and financial soundness of the firm, and to make predictions about the future prospects of the firm. The purpose of the analysis depends on the person interested in such analysis and its object. The main objective of financial statement analysis is to provide information about a business enterprise to the decision makers so that they can use this information in decision-making. Users of financial statement information are the decision-makers who can either be internal or external concerned with evaluating the economic situation of the firm and predicting its future actions. This paper analyzes information and guidelines regarding various accounting ratios of SAIL-Steel Authority of India Limited.