FINANCIAL HEALTH ANALYSIS OF SKS MICROFINANCE LIMITED

Mukti Nanda

Abstract


Financial statements such as balance sheet, income statement and cash flow statement of an organization are the end products of an accounting process. We can find out the financial position and profitability of an organization by analyzing these financial statements. The present study aims to analyse the short term and long term financial position and profitability of SKS Microfinance Limited. The relevant data have been collected from the published annual reports of the company. Current ratio and quick ratio have been calculated in order to ascertain short term financial position. Similarly, debt-equity ratio and capital adequacy ratio have been calculated to find out long term financial position of SKS Microfinance Limited. Net profit margin, return on equity and return on assets have been ascertained to know the profitability of the company under study. The study revealed that the short term financial position of the company is satisfactory. However, the long term financial position is not satisfactory as depicted by the debt-equity ratio though the capital adequacy ratio is satisfactory as per Reserve Bank of India guideline. Net profit margin of the company excluding the year 2011-12 and 2012-13 is satisfactory. However, return on assets and return on equity though positive in all other periods except 2011-12 and 2012-13, the figures are not encouraging.


پاراگلایدر Full Text: PDF

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1555