A Study on Financial Ratio Analysis of Indian Farmers Fertiliser Cooperative Limited (IFFCO)

C. H. Deepa, S. Rajeswari, N. Vani, B. Ramana Murthy

2024

Abstract

Financial ratio analysis is a potent analytical tool that assesses the performance of the firm's liquidity, solvency, asset utilization efficiency and profitability. The information gleaned from a company's financial statements via ratio analysis can be useful to decision-makers such as managers, competitors, and investors. This study is an assessment of performance of Indian Farmers Fertiliser Cooperative Limited (IFFCO), a globally diversified and successful cooperative by adopting financial ratio analysis. Established in 1967 with a mere 57 cooperatives, IFFCO has expanded to encompass nearly 36,000 Indian cooperatives with a diverse range of operations, including general insurance, organic food production, fertilizer production, food processing, microfinance, and rural communications with 5 manufacturing units, 21 state offices and 501 field offices and with its backward and forward integration, IFFCO represents the hopes and aspirations of millions of farmers as its members. The financial statements of last six financial years i.e., FY2017-18 to 2022-23 from the annual reports of the cooperatives are considered for the analysis. The study revealed that the overall financial performance of the IFFCO is good. The Turnover of the IFFCO Group during the year 2022-23 was Rs. 60224 Crore, as against Rs. 40171.67 Crore during the year 2021-22. Current ratio shows an increasing trend from 3.6 to 4.01. Return on Capital Employed grew from 0.10 to 0.14. Proprietary Ratio is 0.71 in 2022-23 as against 0.69 in 2021-22. Operating ratio declined from 0.17 to 0.14 during 2022-23, which shows reduced operating expenses per unit sale. This indicates that IFFCO has ability to meet current obligations and is able to utilize its assets efficiently.

Paper Citation

in Harvard Style

Deepa C., Rajeswari S., Vani N. and Murthy B. (2024). A Study on Financial Ratio Analysis of Indian Farmers Fertiliser Cooperative Limited (IFFCO). In Proceedings of the 1st International Conference on Emerging Innovations for Sustainable Agriculture - Volume 1: ICEISA; ISBN 978-989-758-714-6, SciTePress, pages 93-102. DOI: 10.5220/0012882500004519

in Bibtex Style

@conference{iceisa24,
author={C. H. Deepa and S. Rajeswari and N. Vani and B. Ramana Murthy},
title={A Study on Financial Ratio Analysis of Indian Farmers Fertiliser Cooperative Limited (IFFCO)},
booktitle={Proceedings of the 1st International Conference on Emerging Innovations for Sustainable Agriculture - Volume 1: ICEISA},
year={2024},
pages={93-102},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012882500004519},
isbn={978-989-758-714-6},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Emerging Innovations for Sustainable Agriculture - Volume 1: ICEISA
TI - A Study on Financial Ratio Analysis of Indian Farmers Fertiliser Cooperative Limited (IFFCO)
SN - 978-989-758-714-6
AU - Deepa C.
AU - Rajeswari S.
AU - Vani N.
AU - Murthy B.
PY - 2024
SP - 93
EP - 102
DO - 10.5220/0012882500004519
PB - SciTePress