Evaluating Profitability and Employee Perception Using Mixed Methods: A Case Study of Kaveri Garments

Abstract

Financial performance analysis plays an important role in evaluating the operational efficiency and profitability of a business concern. The survival and growth of a business depend on its ability to generate profits and maintain financial stability. The present study analyses the financial performance of Kaveri Garments, a sole proprietorship textile unit located in Tirupur, Tamil Nadu. The study covers a period of selected financial years and uses ratio analysis as a primary tool. Key ratios such as Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio, Working Capital Turnover Ratio, Current Ratio, and Absolute Liquid Ratio are applied to evaluate profitability, liquidity, and efficiency. The study helps in understanding the financial strength and weaknesses of the company and provides suitable suggestions for improvement. Furthermore, this study incorporates primary data through hypothesis testing to gauge employee perception of the company's working capital management.