A COMPARATIVE ANALYSIS OF FINANCIAL RATIOS WITH SPECIAL REFERENCE TO TATA STEEL (2014 AND 2015).

In 2014, the world crude steel production reached 1665 million tonnes (mt) and showed a growth of 1% over 2013. China remained the world?s largest crude steel producer in 2014 (823 mt) followed by Japan (110.7 mt), the USA (88.2 mt) and India (86.5 mt) at the 4th position. WSA has projected Indian steel demand to grow by 6.2% in 2015 and by 7.3% in 2016 as compared to global steel use growth of 0.5% and 1.4% respectively (Ministry of Steel, Government of India 2016). Established in 1907 as Asia's first integrated private sector steel company, Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of over 29 million tonnes per annum. It is now the world's second-most geographically-diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. The Tata Steel Group, with a turnover of Rs. 1, 48,614 crores in FY 14, has over 80,000 employees across five continents and is a Fortune 500 company (Tata Steel 2016). All research used for this paper will be secondary information. Secondary information was taken from Tatasteel.com. The method of analysis is through ratios. The study concentrates on profitability ratios and concentrates on company?s two-year growth. Liquidity ratios affect profitability as they have a positive direct relationship. If liquidity is low, profitability will be affected negatively. If Liquidity is high, profitability will be affected positively.Tata Steel, one of the largest players in the Indian despite this, their economic activity had decreased in 2015 compared to 2014.