Abstract

The case study analyzes the role and importance of financial statement analysis and financial performance using Liquidity Ratios, Profitability Ratios, Valuation Ratios, and Per Share Ratios, taking the case of Tata Steel India Ltd. The basic reason for selecting these ratios is that they provide investors of a company with an in-depth understanding of the company in terms of liquidity and profitability. Valuation ratios help investors to analyze and calculate the cost of investment in terms of benefits or the value of investments.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Assess a firm’s short-term financial resilience and working capital efficiency.
• Analyze and interpret profitability and return ratios.
• Evaluate a company’s relative market valuation.
• Analyze how per-share performance indicators can be used to assess stock value and growth potential.

Keywords

Tata Steel; Financial Statement Analysis; Ratio Analysis; Investment Decision; Liquidity Analysis; Profitability Ratios; Valuation Ratios; Per-Share Ratios; Capital-Intensive Industry; Steel Industry; Return on Equity (ROE); Return on Capital Employed (ROCE); Working Capital Management