AVNET INDIA PVT LTD

EXECUTIVE SUMMARY
The project studies were conducted at Avnet Inc. headquartered at Phoenix, USA and its India subsidiary company AVNET India Pvt Ltd Situated at Richmond circle in, Bangalore. Project title is Analysis of financial performance with reference to Avnet India. The is done with a objective to analyze the financial performance of the Avnet India using Ratio analysis and trend analysis as a tool for the period of four years. To detect certain financial ratios which are likely to reflect the inconsistency in profit to measure the liquidity or short term solvency and to indicate whether the company will be able to meet the short term obligations out of its resources. The type of research used here is descriptive research, also known as statistical research, the research is basically made with the secondary data provided by the organization and since it involves the analysis of the data the research methodology used is analytical descriptive research The key findings which were observed during the analysis were that the cost of goods is increasing every year with increase in sales. Hence the expenses are more .The Current ratio status records the lowest for financial year 2008-2009 and as considerably increased in financial year 2009-2010.The fixed asset turnover ratio is increasing from 2008 2010 hence the company is using the assets efficiently. The current asset turnover ratio is increasing from 2007 to 2010 hence there is a better usage of current assets which is mandatory for any organization to survive in the market. Net profit of the company has to be improved as it is decreasing every year by concentrating more on the reduction of expenses and earning more profits. Company should reduce the cost of goods with increase in sales so that efficiency will Increase.The Company must increase its current ratio by holding extra current assets to have a favorable liquidity position. As the working capital turnover ratio of company is in better position , the company must have enough funds to invest in sales.

MVJ COLLEGE OF ENGINEERING

Page 1

AVNET INDIA PVT LTD

The purpose of the project is to analyze the financial performance of the Avnet India and to suggest the measures the organization has to make in order to strive well in the competitive environment. There were various ratios which were used to analyze the organizations performance which suggest that the organization is performing in a satisfactory level but it still needs improvement in certain areas where the performance is getting decreased each and every year due to lack of expertise in managing the funds properly and lack of experience. And the company is working very hard to strive for success in the competitive environment. There are certain areas where the organization has a commendable performance with maintaining the liquidity position of the company which is highly commendable. If the company identifies their strengths and weaknesses judiciously in the various areas and also by understanding and utilizing the opportunities carefully it can definitely have a competitive edge over their competitors and in future can become a market leader which is one of the motive of any organization. As finance is the backbone of any organization it has to understand the importance of it and start working towards that direction.

MVJ COLLEGE OF ENGINEERING

Page 2