ABSTRACT
Financial analysis or appraisal is the process of analysing the information in financial statements, at specific level, and interpreting the meaning of those numbers with the help of financial tools. Financial ratios are a relationship between two financial expressions. It measures business performance and financial situation on a given parameter, such as the ratio between the company's current assets and its current liabilities or between its debtors and its turnover. Profit margin measures the margin of profitability on sales throughout the year and is the main indicator for measuring the efficiency of the operation as well as gauging the business's ability to face various pressures. Operating efficiency ratios are computed to find the efficiency of the management in utilisation of resources, both long-term and short-term. Creditor days ratio measures the length of time it takes a company to pay its creditors. Liquidity ratios are oriented towards evaluating the short-term viability of the company.
