Comprehensive Ratio Analysis of Rane Brake Lining Limited: Assessing Profitability, Liquidity, Solvency, And Efficiency

Comprehensive Ratio Analysis of Rane Brake Lining Limited: Assessing Profitability, Liquidity, Solvency, And Efficiency

Author 1: Mr. S. Dharish, Student, Department of Management Studies, Manakula Vinayagar Institute of Technology, Puducherry. dharishshakthivel2002@gmail.com ,

Author 2: Dr. S. Vaidheeswaran, Professor, Department of management studies, Manakula Vinayagar Institute of Technology, Puducherry, vaidheeswaranmba@mvit.edu.in

ABSTRACT:

The study is an outcome of the Project Work titled “Ratio Analysis and Rane Brake Lining Limited”.  This project aims to analyse the financial performance of Rane Brake Lining Limited company using ratio analysis to evaluate the Company’s profitability, liquidity, solvency & efficiency and to analyse the asset utilization and Liabilities management of the company over a four – year period.  Then, compared the performance of the company with its major competitor. This analysis was made using the financial data extracted from the Balance sheet, Income statement and Cash flow statement of the Rane Brake Lining Limited Company, focusing on Current ratio, debt ratios, Net profit margin and return on assets ratio.  The findings reveal that the company has consistent improvement in profitability and operational efficiency but need to focus on proprietary ratio of the company, since it is a debt–free company the raising financial risk has minimal possibilities even though the need to improve their equities from the shareholders. This study provides valuable insights to the shareholder and investors to evaluate the Rane Brake Lining Limited Company’s financial health and makes informed decisions.

Keywords:

Ratio Analysis, Financial Performance, Profitability, Liquidity, Solvency, Efficiency, Asset Utilization, Liabilities Management.