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INTERNATIONAL JOURNAL OF ENGINEERING, SCIENCE AND - volume 13,issue 3,, March 2024

Pages: 24-34
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Evaluating Financial Performance Using Financial Ratios: A Case Studyof ADF Foods Ltd, India

Author: Rachna Aggarwal

Category: Engineering, Science and Mathematics

Abstract:


This article provides an in-depth examination of the financial performance of ADF Foods Ltd., India; a prominent player in the food manufacturing industry, operating in over 55 countries worldwide using financial ratios. The financial ratio analysis encompasses Liquidity Ratios, Financial Leverage Ratios, Profitability Ratios, Efficiency Ratios, and Market Value Ratios, spanning the years 2015 to 2022. The study reveals that ADF Foods Ltd. exhibits commendable performance across a spectrum of ratios, making it an appealing prospect for potential investors. The company's robust financials signal its capacity to thrive in diverse markets. However, there are notable areas of improvement. ADF Foods Ltd. could optimize the utilization of its assets to enhance efficiency further. Currently, there is a trend of reinvesting profits into expanding business operations rather than distributing dividends to shareholders. While this strategy may contribute to long-term growth, it may necessitate a balance to ensure shareholder value is maximized.