A Study of Liquidity Analysis of Ambuja Cement for Last Ten Years

Abstract

This research is carried out to examine the financial structure in terms of liquidity analysis of Ambuja Cement. Objective: To evaluate financial performance analysis of Ambuja cement for liquidity analysis. It assumed that there is no significant difference in liquidity ratio of Ambuja cement for financial year 2013 to 2022. Time Taken for Study: Normally it is not possible for the researcher to study the financial performance of any cement company for longer period because there is constrain of the time, money and efforts. So, the present study is done for ten years of period because of convenience for proper data collection and analysis for the period of ten years for the study. The present study is made for a period of last ten years i.e. accounting years 2013 to 2022. Parameters of the Study: Liquidity Ratios. Tools Used for Study: Descriptive Statistics and Analysis of Variance (ANOVA) Findings of the Study: The firm has failed to balance the current ratio for financial year 2021 only. Similarly, the quick ratio values can be good for firm if it has measured one or more than one. The ideal quick ratio is not found good for the financial year 2017, 2021 and 2022. It shows that the firm is failed to balance liquidity during the said years. It is observed that for each financial year the firm has least value of inventory turnover ratio of 8.89 for financial year 2019 and highest is measured for the year 2022. It is indicating that the firm has balanced inventory for each year.  The ideal dividend pay-out ratio on net and current price is tends to the financial circumstances of the firm. It is observed that the firm has paid least dividend during   financial year 2019 and 2020. It may be due to the Covid-19 pandemic.