A Comparative Analysis of the Financial Performance of textile industry: (With Specific Reference to Vardhman Group and Arvind Limited, India)

Abstract

Abstract

Financial performance evaluation is a quantitative method of gaining perception into a company's liquidity, operational efficiency, and profitability by analysing its monetary statements such as the balance sheet and earnings declaration. The research illustrates the comparative analysis of the financial performance between the two yarn industries - Vardhman Group and Arvind Limited. The study applied ratio analysis techniques which is a quantitative method of gaining insight into a company's liquidity, operational efficiency, and profitability through the examination of financial statements such as the balance sheet and income statement. The study incorporated financial data for five years starting from  2017-2018 to 2021-2022 for comparing the performance of both the companies . Vardhman Group Ltd is more self-reliant as compared to Arvind Ltd in terms of the net worth to total assets ratio. On analysing the receivables turnover ratio, it is clear that Arvind Ltd. is far more efficient than Vardhman Group Ltd in utilizing and managing its fixed assets and current assets. The research also indicated that the investment turnover ratio of Arvind Ltd (average 1.998 times) was far better than Vardhman Group Ltd (average 0.866 times).