Performance Measurement Through Ratio Analysis: The Case of Indian Hotel Company Ltd.

Abstract

Ratio analysis is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The use of ratios as a financial analysis tool was suggested by Alexander Wall, a German scholar, way back in 1919. Since then, it has become a very useful and powerful tool for analysis and interpretation by both the internal and the external parties of business enterprise. The present research measures the financial performance of Indian Hotel Company Ltd. through ratio analysis of 10 ratios. The chi-square test was used for testing the hypothesis and the research paper provides some important findings and suggestions to the company for better performance.