Business financial strength is of vital concern to business owners, corporate managers, investors and lenders. Efficiency and cost control are keys to success in many companies throughout the India. There are many ways to measure the financial strength of a company. The key is identifying the right measurement tools for the company, taking into consideration: the industry, stage of life cycle, time horizon, business objectives, and economic conditions. It is also important to understand your company's financial performance relative to its industry as all companies compete in the marketplace on a local, regional, national or international level. In general, the financial strength of a company can be measured in three key areas: profitability, liquidity and solvency.