A Comparative Study of Profitability and Liquidity of selected Textile Companies of India

Indian textiles have played a pioneering role in the country's economic growth and elevation. The sector contributes about 14% to the production of industrial goods, 4% to GDP, and approximately 13% of the country's total exports. The industry has provided around 45 million people with employment, acting as one of the largest generating industries. Notwithstanding these impressive records, textiles companies face many challenges, such as raw material shortages, outdated equipment, shortages of electricity, low labor productivity and competition on the international markets. This study is therefore designed to measure and compare the performance over the past five years of the selected textile companies in India. The obtained secondary data is analyzed with different statistical instruments and techniques such as ratio analysis and ANOVA one way. In terms of managerial efficacies, liquidity, competitiveness and the role of firms, the financial performance of selected textile companies was calculated through a ratio study. In addition, ANOVA has been employeed to determine if the mean and output of various textile firms are substantially differentiated. The results have shown that the return on capital employed, the profit margin and the current ratio of the sample textile companies with a debt to equity ratio and the fixed asset turnover ratio are significant at 5 percent.