A study on Financial Performance Using Ratio Analysis of HUL and ITC Companies

Abstract

India is a leading country in the world in tenns of digital transactions due to market growth and government initiatives. In any economy with regard to its gr(1U)th and development banking sector plays an important role. This paper is purely based on the analysis of financial performance of two leading companies of India. This paper aims to compare the financial performance of HUL and ITC on the basis of ratio analysis and also to study the working of the companies. It shows whether the firm is improving or deteriorating in past years. Different ratios of both the companies are compared in this paper. To compare the performance of both the companies, the ratios used areCurrent ratio, Quick ratio, Stock to Working Capital ratio, Proprietary ratio, Current Liabilities to Shareholder's Fund ratio, Gross Profit ratio, Operating ratio and Net Profit ratio This research is based on the data collected from financial statements of the banks. The analysis is done from the year 2018-2021. Where the performance of both the banks is being compared. This study shows the performance of thesetwo banks, where State Bank of India is better in terms of ratio analysis and Kotak Mahindra is best in terms of customer satisfaction. This paper has also helped to identify the problems and offer suggestions to improve its performance.