Estimation of Finantial Ratio Analysis between Different Selective Construction Companies in Pune

Abstract

This paper is about financial management of construction companies by using financial ratios. The focus of financial analysis is on key figure in the financial statements and the significant relationship that exist between them. The analysis of financial statements is a process of evaluating the relationship between component parts of financial statement to obtain a better understanding of the firm’s position and performance. The first task of the financial analyst is to select the information relevant to the decision under consideration from the total information contained in the financial statements. The second step is to arrange the information in a way to highlight significant relationship. The final step is interpretation and drawing of inferences and conclusions. In brief, financial analysis is the process of selection, relation and evaluation.