Abstract

The financial ratio analysis is considered as a powerful tool to illustrate the relative measures of a firm's financial strengths and weaknesses and is an indicator of potential problems of different aspects of a company's operations. The aim of this paper is to evaluate the financial performance with the help of ratio analysis of the leading telecom giants in India viz. Airtel, BSNL, Idea, Reliance Communications and Tata Communications. The key financial ratios used to estimate the financial behaviour of telecom companies are profitability ratios, liquidity ratios, solvency ratios and efficiency ratios. The data used to calculate the ratios were collected from companies' annual reports between 2009 and 2014, using the internet as the primary medium. The analysis done reveals that Airtel and Idea dominate Reliance Communications, BSNL and Tata Communications in data revenue growth and subscriber base.

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