inventory

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For other uses, see Inventory (disambiguation).

Electronics inventory

Inventory (American English) or stock (British English) is the goods and materials that
a business holds for the ultimate goal of resale (or repair).[nb 1]
Inventory management is a discipline primarily about specifying the shape and placement of stocked
goods. It is required at different locations within a facility or within many locations of a supply
network to precede the regular and planned course of production and stock of materials.
The concept of inventory, stock or work-in-process has been extended from manufacturing systems
to service businesses[1][2][3] and projects,[4][5] by generalizing the definition to be "all work within the
process of production- all work that is or has occurred prior to the completion of production." In the
context of a manufacturing production system, inventory refers to all work that has occurred – raw
materials, partially finished products, finished products prior to sale and departure from the
manufacturing system. In the context of services, inventory refers to all work done prior to sale,
including partially process information.

Contents

 1Definition
 2Business inventory
o 2.1Reasons for keeping stock
o 2.2Special terms used in dealing with inventory management
o 2.3Typology
o 2.4Inventory examples
 2.4.1Manufacturing
 2.4.2Capital projects
 2.4.3Virtual inventory
o 2.5Costs associated with inventory
 3Principle of inventory proportionality
o 3.1Purpose
o 3.2Applications
o 3.3Roots
 4High-level inventory management
 5Accounting for inventory
o 5.1Financial accounting
 o 5.2Role of inventory accounting
o 5.3FIFO vs. LIFO accounting
o 5.4Standard cost accounting
o 5.5Theory of constraints cost accounting
 6National accounts
 7Distressed inventory
 8Stock rotation
 9Inventory credit
 10Journal
 11See also
 12Notes
 13References
 14Further reading
inancial Performance Analysis
November 6, 2012

FINANCIAL PERFORMANCE ANALYSIS

Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of
balance sheet and profit and loss account. It also helps in short-term and long term
forecasting and growth can be identified with the help of financial performance
analysis.The dictionary meaning of ‘analysis’ is to resolve or separate a thing in to its
element or components parts for tracing their relation to the things as whole and to
each other.The analysis of financial statement is a process of evaluating the
relationship between the component parts of financial statement to obtain a better
understanding of the firm’s position and performace.This analysis can be undertaken
by management of the firm or by parties outside the namely,
owners,creditors,investors.

The analysis of financial statement represents three

major steps:
 The first step involves the re-organization of the entire
financial data contained the financial statements. Therefore
the financial statements are broke down into individual
components and re-grouped into few principle elements
according to their resemblances and affinities. Thus the
balance sheet and profit and loss accounts are completely
re-casted and presented in the condensed form entirely
different from their original shapeThe second step is the
establishment of significant relationships between the
individual components of balance sheet and profit and loss
 account. This is done through the application tools of
financial analysis like Ratio analysis, Trend analysis,
Common size balance sheet and comparative Balance
sheet.
 Finally, the result obtained by means of application of
financial tools is evaluated.
 In brief financial analysis is the process of selection, relation
and evaluation of financial statements. The tools of analysis
are used for determining the investment value of the
business, credit rating and for testing efficiency of operation.
Thus financial analysis helps to highlight the facts and relationships
concerning managerial performance, corporate efficiency, financial strength
and weakness and credit worthiness of the company.

OBJECTIVES:
 To study the financial performance analysis of “THE
CHENNAI PORT TRUST”.
 To analyze the financial changes over a period of five years.
 To analyze the financial statements of the company by using
financial tools.
 To evaluate the financial position of the company in terms of
solvency, profitability, activity and earning ratios.
 To suggest effective measures in the existing system of the
company.
RESEARCH METHODOLOGY : Research means
“know about new things”. Sometimes, it may refer to scientific
and systematic search pertinent information on specific topic. In
fact research is an art of scientific investigation.
According to Clifford Woody research comprises of. “define and
redefining problem, formulating hypothesis or suggested solution,
collecting, organizing and evaluating data; making deduction and
reaching conclusion; and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis”. Redman
and Moray define research as a “systematic effort to gain new
knowledge”.Research can be defined as the search of knowledge
or any systematic investigation to establish fact. The primary
purpose for applied research (as opposed to basic research)
is discovering, interpreting, and thedevelopment of methods and
 systems for the advancement of humanknowledge on a wide
variety of scientific matters of our world and the universe.
Research can use the scientific method, but need not do
so.Research can also be said as a process that is followed by a
person to answer either his/her own queries or somebody else
queries about a particular object, person, subject etc.Data
collection: The data collections classified into two
types are
o Primary data
o Secondary data
Secondary data
The secondary data are data are collected from information which
is used by other. It is not direct information. This information is
already collected and analysis by other and that information is
used by others. The secondary data are collected from following:-

o Company’s annual report

o Company’s website
o Manual
Data analysis:
The data’s analyzed using the following tools:-

o Comparative Balance sheet

o Common size balance sheet
o Ratio analysis
o Trend Analysis
NEED FOR THE STUDY:Financial statement analysis is an
important tool for measuring the financial performance of
any company. The main aspect of financial management is
working capital management and it should be done on day-
to-day basis. Hence the company permits me to do in the
area of finance. This study helps to review the financial
performance of the company.

Scope of the study