Abstract:
Current assets have immense importance for almost all the organizations, as current assets have vital role to play, in day-to-day working of any organization. The importance also stems out from the reason that current assets are for the purpose of conversion to cash at the end of each operating cycle. Current assets have their indispensible contribution in increasing the shareholders' wealth. Inefficient management of current assets lands the business organization into bankruptcy. Profit of the firm is generated from the optimum use of current assets. The amount needed to be invested in current assets must be calculated accurately, as it would help in sound financial management as well. Ratios as financial analytical tool are easy to calculate and simple to understand. This article discusses the ratio of current assets to fixed assets, percentage of current assets in total assets and percentage of net current assets to total assets, for eleven financial years, 2005-06 to 2015-16. This analysis helps the organization to judge its financial health .
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