Analysis of Long Term Financial Strength of TATA Steel and SAIL
Proficient – An International Journal of Management, Vol 3, Issue 8, August 2011
9 Pages Posted: 28 Nov 2016
Date Written: August 1, 2011
For a successful business enterprise the prime condition is its survival. This requires strength or capacity to resist strain. Besides survival, the strength or the quality of being strong is also a pre-requisite for the growth of an enterprise. As mentioned by Walter Meigs and others, financial strength is “a company’s ability to meet its obligations, to whether adversity, to shift resources to meet changing conditions.” Thus the term financial strength encompasses solvency and goes further beyond that, as solvency ensures only survival, while financial strength takes care of both survival and growth.
To judge the long term financial strength of the ferrous metal companies TATA Steel and SAIL, the proportion of various components of capital structure and long term solvency ratios has been analyzed in the present study.
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