Abstract for: Financial Performance Appraisal of a Steel Plant: An SD Model
Proper analysis of the financial statements of a company provides valuable insights into financial performance. Financial ratio analysis, a principal tool of financial analysis, determines a company's ability to raise external financing. In the present work, detailed System Dynamics (SD) modeling and analysis of the financial performance of a shore based integrated steel plant is undertaken. The key financial ratios used for simulation and analysis are (i) Liquidity ratios (ii) Turnover ratios and (iii) Profitability ratios over a period of 20 years from 1994. SD model is successfully applied to portray the dynamic behaviour of the financial system of the plant.