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A study on financial performance of leading cycle manufacturing companies in India

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Shivani Verma and Y.P. Sachdeva

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Abstract

Indian Journal of Economics and Development
Year : 2014, Volume : 10, Issue : 4
First page : ( 352) Last page : ( 359)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2014.00557.5

A study on financial performance of leading cycle manufacturing companies in India

Verma Shivani*, Sachdeva Y.P.
School of Business Studies, Punjab Agricultural University, Ludhiana-141004

*Email: shivaniverma1808@gmail.com

JEL Classification: C81, C82, D22, M10, M21, M41

Abstract
The performance of the company is judged by its financial statements which throws light on the operational efficiency and financial position of the company. An attempt has been made in the present study to have an insight into the evaluation of efficiency and financial performance using data collected from annual reports of three selected companies namely Hero Cycles Limited, Avon Cycles Limited and Atlas Cycles Limited. The efficiency of selected companies was evaluated using efficiency ratios and the overall financial performance of the companies was examined using the liquidity, solvency and profitability ratios. While, comparing the financial ratios of the selected companies, the current ratio, quick ratio, debt-equity ratio, proprietary ratio and net profit ratio of Hero Cycles Limited came out to be 2.31, 1.28, 0.12, 0.69 and 7.48, respectively depicting the best overall financial performance during the period under study as compared to other sample companies. On the other hand on the basis of efficiency ratios, Atlas Cycles Limited was found to be the most efficient company.