A STUDY ON FINANCIAL PERFORMANCE OF VconnecTech RATIO ANALYSIS (2019–20 to 2023–24)

Abstract

Financial performance analysis is an essential tool for evaluating the operational efficiency, profitability, liquidity, solvency, and overall financial health of an organization. The present study aims to assess the financial performance of the company during the period 2019–20 to 2023–24 by applying various financial ratios. The study is based entirely on secondary data collected from the company's published annual financial statements. The analysis includes liquidity ratios such as the Current Ratio, Quick Ratio, and Absolute Liquid Ratio; profitability ratios such as the Net Profit Ratio, Operating Profit Ratio, and Gross Profit Ratio; solvency ratios including the Debt-Equity Ratio, Proprietary Ratio, and Solvency Ratio; and activity ratios such as the Fixed Assets Turnover Ratio and Debtors Turnover Ratio.

The findings indicate that the company maintained a satisfactory liquidity position throughout the study period, although a gradual decline in liquidity was observed in the later years due to increasing current liabilities. Profitability remained positive and improved consistently with the growth in revenue and operating performance. The company maintained a very low debt-equity ratio, reflecting a strong capital structure and minimal dependence on external borrowings. Asset utilization efficiency improved over the years, while debtor management showed fluctuations, suggesting the need for stronger receivables management. Overall, the study concludes that the company has maintained a stable financial position with sound operational performance, although improvements in liquidity management and working capital control would further strengthen its financial stability and support long-term growth.