A Study on Financial Health Evaluation through Ratio Analysis At Kusalava International Limited
Keywords:
Financial Health Evaluation, Ratio Analysis, Financial Performance, Liquidity Ratios, Profitability Ratios, Solvency Ratios, Financial Statement Analysis, Conceptual Framework.Abstract
Financial health evaluation helps organizations assess their financial performance, stability, and long-term growth. Ratio analysis is an important tool used to measure liquidity, profitability, solvency, activity, and market performance. This paper reviews the concepts and a theory related to ratio analysis and proposes a Financial Health Evaluation Framework (FHEF) that combines different financial ratios for a comprehensive assessment of an organization's financial health. The study concludes that ratio analysis is a reliable method for improving decision-making, strategic planning, resource allocation, and sustainable business growth, while providing a foundation for future research.
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