Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM62827
Volume:
10 |
5 |
May 2026
Pages:
1-18
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Business Administration
Panimalar Engineering College
Master of Business Administration
Panimalar Engineering College
This study explores the development and application of a dynamic model for financial risk assessment within the context of Larsen & Toubro (L&T), Chennai. The research aims to address the growing need for proactive risk identification and mitigation in large engineering and construction firms operating in volatile economic environments. Traditional static risk assessment tools often fail to capture the time-varying and interconnected nature of financial risks such as liquidity shortfalls, credit exposure, market fluctuations, and operational uncertainties. To overcome these limitations, a dynamic model incorporating time series analysis, stochastic processes, and real-time financial indicators was designed. The model integrates internal financial data with external macroeconomic factors to generate adaptive risk scores that evolve with changing market conditions. Empirical testing using L&T’s financial statements and relevant market metrics demonstrates that the dynamic approach provides superior predictive accuracy and earlier warning signals compared to conventional methods. The findings suggest that the proposed model enhances strategic decision-making and risk management effectiveness for large corporations. Recommendations for future implementation and scalability of the model across similar industrial settings are also discussed.
KEYWORDS
The financial analysis of Larsen & Toubro shows that the company has achieved steady growth over the study period, with consistent increases in revenue, profit, and total assets reflecting strong operational performance and effective management. The rise in shareholders’ equity indicates financial strength and the ability to generate internal funds, while the improvement in cash and current assets highlights a strong liquidity position. Although borrowings increased at one stage, the company has taken steps to reduce debt in the recent period, showing better financial control. Overall, the company maintains a stable financial position with a positive growth trend and strong future prospects, supported by sound financial management and strategic planning.
Brigham, E. F., & Ehrhardt, M. C. (2019). Financial Management: Theory & Practice. Cengage Learning. This book provides detailed concepts of financial decision-making, capital structure, and risk-return analysis used in corporate finance. Pandey, I. M. (2021). Financial Management. Vikas Publishing House. A widely used textbook in Indian universities covering investment decisions, financing decisions, and working capital management. Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of Corporate Finance. McGrawHill Education. Focuses on modern financial theories, valuation techniques, and risk assessment models used in global corporations. Van Horne, J. C., & Wachowicz, J. M. (2018). Fundamentals of Financial Management. Pearson Education. Covers financial planning, risk-return trade-off, and corporate financial strategies. Hull, J. C. (2022). Risk Management and Financial Institutions. Wiley. Provides advanced understanding of financial risk models including market risk, credit risk, and operational risk. Ross, S. A., Westerfield, R., & Jordan, B. D. (2021). Essentials of Corporate Finance. McGraw-Hill. Explains financial ratios, capital budgeting, and risk evaluation techniques. Damodaran, A. (2019). Applied Corporate Finance. Wiley. Focuses on valuation and risk analysis in corporate decision-making. Pandey, R. (2020). Financial Risk Management. Himalaya Publishing House. Indian perspective on financial risk measurement and control techniques.
Publication Date
5/8/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
0
Total views since publication
PDF Downloads
3
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...