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Questionnaire For Financial Investors

1. How often do you invest in Stocks?

2. On what basis do you evaluate the investment process?

3. Do you consider ratios as an important tool for and before investing?

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4. Which Ratios you look for the most while investing?

5. In what companies do you generally like to invest?

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6. Has Ratios (i.e. with the help of ratios) yielded you maximum amount of returns?

7. Does Ratios help you predict the future course of investment action?

8. Does Market Fluctuations have an impact on your investment plan?

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9. Is Ratio the only criteria you consider while investing?

10. Are all the Ratios equally important prior investment?

11.Do you refer the Financial Statements and Annexure of the company?

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12. Is your investment decision purely based only on Financial Statements?

13. Do you read all the instructions, terms and conditions carefully before investing?

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Questionnaire For Common Public1. Do you invest in Stock Markets?

2. In what sort of companies do you generally like to invest?

3. Have you ever tried to read and understand Financial Statements and Annexure ofthe company?

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4. On what basis do you evaluate the investment process?

5. Has your outlook yielded you maximum amount of returns?

6. Has your broker or financial advisor informed you about ratios as a tool forevaluating the investment process?

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7. Have you heard of Ratios as a tool for investing your hard earned money?

8. Are you interested in knowing what ratio analysis is?

9. Do you want any format of ratios to be published by the companies prior investing?

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10.Does market fluctuation have an impact on your investment plan?

11.Do you read all the instructions, terms and conditions carefully before investing?

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IMPORTANCE OF RATIO ANALYSIS AND COMPARITIVE STUDY

BETWEEN FINANCIAL INVESTORS AND COMMON PUBLIC

Meaning of Ratios: In mathematics, a ratio is a relationship between two numbers of the samekind (i.e., objects, persons, students, spoonfuls, units of whatever identical dimension), usually

expressed as "a to b"or a:b, sometimes expressed arithmetically as a dimensionless quotient of

the two which explicitly indicates how many times the first number contains the second (not

necessarily an integer).

Meaning of Ratio Analysis: According to Myers, " Ratio analysis of financial statements is a

study of relationship among various financial factors in a business as disclosed by a single set of

statements and a study of trend of these factors as shown in a series of statements."

Categories of Financial Ratios

Liquidity Ratios: Liquidity is the ability of a business to pay its current liabilities using its

current assets. Information about liquidity of a company is relevant to its creditors, employees,

banks, etc. Current ratio, quick ratio, cash ratio and cash conversion cycle are key measures of

liquidity.

Solvency Ratios: Solvency is a measure of the long-term financial viability of a business whichmeans its ability to pay off its long-term obligations such as bank loans, bonds payable, etc..

Information about solvency is critical for banks, employees, owners, bond holders, institutional

investors, government, etc.

Profitability Ratios: Profitability is the ability of a business to earn profit for its owners. While

liquidity ratios and solvency ratios are relationships that explain the financial position of a

business profitability ratios are relationships that explain the financial performance of a business.

Key profitability ratios include net profit margin, gross profit margin, operating profit margin,

return on assets, return on capital, return on equity, etc.

Activity ratios: Activity ratios explain the level of efficiency of a business. Key activity ratiosinclude inventory turnover, days sales in inventory, accounts receivable turnover, days sales in

receivables, etc.

Coverage Ratios: Coverage ratios are supplementary to solvency and liquidity ratios and

measure the risk inherent in lending to the business in long-term. They include debt coverage

ratio, interest coverage ratio (also known as times interest earned), reinvestment ratio, etc.

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Objective Of Research Paper

1. To impart knowledge regarding Ratio Analysis and informing theimportance of Ratio Analysis in Investment Decisions.

2. Comparative Study and Analysis of Financial Investors and Common Publicregarding their perception prior investing.

Research Methodology

The data collected for Research was Primary data wherein,

1. A sample size of 100 people were being selected.2. Selection was done on the basis of Stratified Random Sampling basis.3. Two Different Questionnaires were been prepared for Financial Investors

and for Common Public.

4. The Questionnaires were sent online to respective people. (i.e. according tothe classification)

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I, Rohit Kiran Bichkar would sincerely like to thank Sweta Mam for

encouraging and guiding me along with enlightening my knowledge towardsthe Research Paper.

I would also like to thank my Parents for their constant support and faith

without which this would not have been possible.

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PADMASHRE DR.D.Y.PATIL UNIVERSITYS

DEPARTMENT OF BUSINESS MANAGEMENT

RESEARCH PAPER ON RATIO ANALYSIS

SUBMITTED TO

PROF. SHWETA

SUBMITTED BY

ROHIT KIRAN BICHKAR

ROLL NO: 010132

MBA FINANCE

2010-2012

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Analysis: Based on the responses from Questionnaire .

Even though the Financial Investors are well versed with the stock markets and

speculations, it is been observed that they rarely invest taking into market conditions. People are

more likely to invest in Profit making Companies. Only a some portion of the class vouch for

all the factors pre investment i.e. Goodwill, Risk, Solvency and Insolvency. It has also been

observed that in both the segments, people like to play safe and invest in A Listed Companies

rather than investing in any other companies, as they are quite sure that the company will

continues to earn maximum returns.

Stock Markets do not stay uniform. Even a fraction of a second is enough for

fluctuations and making the market go upside down and vice versa. It is so obvious that when

the stocks are available at lesser price, people and investors purchase as much as they can &

when the price shoots up they immediately sell their investments and enjoy their profits. Also

Financial Investors and Common man are no more reluctant in reading all the terms, conditions

and offer related documents thoroughly before investing, because even a slight change in

sentence(grammatical errors) can change the entire meaning. For Financial investors, ratios is not

the only criteria while investing. It is because of Trend Analysis, Ratio Analysis, & Financial

Statements, Financial Investors can decide their future course of investment plan.

Speculations done by majority of the financial Investors and common public

have gained them maximum amount of returns i.e. their perception have helped them to make

more money. Some part of the common public have a rough idea regarding what ratio analysis is

all aboutbut a small portion dont know and are very much keen in learning the investment

tool which will redefine their speculations. Moreover common public also want that the

companies which come with public offerings, should also publish their ratios in leading

Newspapers and Business Magazines. Common Public have tried to read and understand the

Financial Statements of the Company.