Performance Analysis of Financial Ratios - Indian Public Non-Life Insurance Sector

Abstract

Performance evaluation is an art through which one can learn about the efficiency achieved in the working of a particular organization. As regards performance evaluation of an organization, there are various measures to analyze performance of any organization. These measures are broadly classified into two categories namely, financial and non-financial factors. Among financial factors, the most important is Financial Ratios. Analysis through ratios is compared to Doctor’ kit for diagnosing the performance of the firm. It is the evaluation of a firms’ prospect for survival and growth. An analyst should develop the skill of identifying red flags. They should be used only to evaluate the performance of the firm as a whole. They, by themselves do not provide any insight into the performance of the firm.