Financial Performance Evaluation of National Thermal Power Corporation Limited (NTPC)
Research Scholar, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
- *Corresponding Author:
- Anas Khan
Research Scholar, Department of Commerce
Aligarh Muslim University, Aligarh
Uttar Pradesh, India
Tel: 0571 2700935
E-mail: [email protected]
Received date: March 31, 2017; Accepted date: April 17, 2017; Published date: April 27, 2017
Citation: Khan A (2017) Financial Performance Evaluation of National Thermal Power Corporation Limited (NTPC). Arabian J Bus Manag Review 7: 295.
Copyright: © 2017 Khan A. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Financial performance evaluation is the process of discovering economic facts about an enterprise on the basis of interpretation of the available financial data. The primary objective of financial performance evaluation is to give an accurate picture of the financial condition of a concern in condensed form. The present study has been undertaken to examine the financial performance of NTPC for a period of ten years from 2006-07 to 2015-16. Data have been collected from various published annual reports and financial statements. Liquidity, profitability, management efficiency, solvency and market valuation ratios have been calculated and analyzed. Multiple regression technique has been used to evaluate the impact of liquidity, solvency and management efficiency on profitability of NTPC. ROCE, ROA, and ROE have been taken as proxy measures of profitability. The findings highlighted that there is no significant impact of current ratio and inventory turnover ratio on profitability. However, debt-equity ratio has a significant impact on profitability of NTPC.