A Study on Financial Analysis of Kamarajar Port Limited Using Ratio Analysis

This study conducts a comprehensive financial analysis of Kamarajar Port Limited (KPL) using ratioanalysis to evaluate its profitability, liquidity, solvency, and operational efficiency over a five-year period(2019–2024). The analysis employs key financial ratios, including net profit margin, return on equity(ROE), return on capital employed (ROCE), current ratio, quick ratio, debt-equity ratio, and working capitalturnover, derived from secondary data such as balance sheets, income statements, and annual reports.Findings reveal that KPL demonstrates strong profitability, with ROE peaking at 18.55% (2021–2022) andROCE improving steadily to 20.31% (2023–2024), alongside a robust interest coverage ratio (11.82),indicating effective debt servicing capability. However, liquidity remains a concern, with current and quickratios consistently below ideal thresholds (0.59 and 0.57 in 2023–2024), reflecting challenges in meetingshort-term obligations. The study also highlights over-reliance on debt financing (debt-equity ratio of 37.5)and negative working capital, signaling inefficiencies in managing operational liquidity. To address theseissues, recommendations include reducing short-term liabilities, boosting liquid assets, diversifyingrevenue streams, optimizing inventory management, and enhancing equity financing. The findingsunderscore the need for KPL to balance growth initiatives with financial stability, providing actionableinsights for stakeholders to improve long-term sustainability and operational resilience in the capitalintensive port sector.