Vol. 12, Issue 1 (2023)

Author(s):
Mayur Sandeep Pisal, Dr. AV Gavali, Dr. RB Hile and Dr. RR Nirgude

Abstract:
The present study was undertaken to analyse the financial performance of co-operative sugar factories in Western Maharashtra. The various financial test ratios were worked viz., test of liquidity, test of solvency, test of turnover, tests of financial strength and fixed assets ratios. The study as whole revealed that, the current ratio was found to be higher in both the groups of co-operative sugar factories. At the overall level, the Acid test ratio was less than 0.5 which was unsatisfactory; it means that the sugar factories were dependant on inventory for liquidity. The comparison of the liquidity ratio reveals that co-operative sugar factories maintained adequate liquid assets, with higher proportion of inventories. The overall average of the inventory turnover ratio in co-operative sugar factory was found to be 2.20. This indicated that the factories had better management of their inventory over the study period. The fixed assets ratios indicated that the co-operative sugar factories maintained non-satisfactory levels of fixed assets, this can be conclude that, co-operative sugar factories maintained relatively higher fixed assets which were confirmed by relatively higher ratios.