A Study On Financial Ratio Analysis Of Planys Technologies Pvt. Ltd.

Abstract

A Study on Financial ratio analysis of Planys Technologies Pvt.Ltd” Ratio analysis is one of the widely used tool of financial analysis. It means expressing one item in relation to another in numerical term. To have a better understanding and details about the financial statement, the analysis has been done using ratio analysis. Every business undertaking needs finance for its smooth working. It has to raise funds from the cheapest and less risky source to utilize this in the most effective manner. So every company will be interested in knowing its financial performance. This study is vital because just earning profit is not enough, a business should earn sufficient profit to cover its cost of capital and create surplus to grow. This study aims to analyze the liquidity, profitability, solvency position of the firm and its efficiency. The data is collected through secondary data. The study covers a period of five years i.e. from FY 2015-2016 TO FY 2019-2020. The study reveals that the financial performance is better. However, the shareholders fund against the outsider’s fund should be increased. The company should take suitable measures to increase its profitability position. Adequate steps have to be taken to improve its cash position and to reduce the operating expenses. However, the company needs to minimize the operating expenses
to get higher net profit. In order to carry on the business successfully the company should improve its liquidity and solvency position in the long run.