Comparative Performance Analysis of Selected Cement Companies: With Special Reference to ACC Ltd. and Ambuja Cements Ltd.
Abstract
In this report, we have chosen the comparative financial analysis of Ambuja Cements Ltd and ACC Ltd. We have analyzed and compared the financial statements and annual reports of Ambuja Cements Ltd and ACC Ltd. We have extracted all the relevant data of both the companies that helps to analyze and compare the liquidity position, profitability, and soundness of both the companies with a view to know which company is better from an investment perspective. Relevant data were taken from various sources, mainly official websites and annual reports of Ambuja Cements Ltd and ACC Ltd. This topic will give an insight into the financial conditions of ACC and Ambuja Cements Ltd. This analysis was carried out through ratio analysis. It is described as the methodical application of ratios to the interpretation of financial statements in order to identify a firm's strengths and weaknesses, as well as its past financial performance and present financial situation. Specific ratios are included in this group (leverage ratios, profitability ratios, operating ratios, etc.). The study was carried out with the help of published annual reports of both companies Ambuja Cements Ltd and ACC Ltd during 2017–2021. So we took 5 years’ financial data and information and used it to analyze and compare the company’s position by making use of tables and graphs, after which some interpretations were made. The findings from the tables and graphs and some suggestions for the companies to work on are also provided. The ratios used in this research report are as follows: current ratio, quick ratio, total asset turnover ratio, working capital turnover ratio, net profit ratio, operating profit ratio, return on assets, return on capital employed, return on equity, profit after tax margin, interest overage ratio, debt to equity ratio, and earnings before interest, tax, depreciation, and amortization margin.
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