International Journal For Multidisciplinary Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

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An Empirical Evaluation of Arvind Ltd.’s Financial Health: A Ten-Year Study

Author(s) Ms. Veena Muddana
Country India
Abstract This paper evaluates the financial performance of Arvind Ltd., a leading Indian textile and denim manufacturer, over FY2015–FY2024. Using secondary data, the study applies financial ratio analysis, DuPont analysis, and regression modelling to identify key strengths, weaknesses, and performance trends.

The results show improvements in asset utilization, moderate profitability, and consistent solvency, though liquidity remains tight, indicating the need for better inventory and cash flow management. Profitability measures such as ROA and net profit margin have strengthened in recent years, enhancing shareholder value. DuPont analysis reveals that the recovery in ROE is largely driven by asset turnover rather than leverage, reflecting a shift toward sustainable growth. Regression analysis highlights ROA and net profit margin as the strongest positive determinants of share price, though the limited sample size constrains predictive power.

Overall, the findings suggest that Arvind Ltd. must continue enhancing operational efficiency, manage its capital structure prudently, pursue product innovation, and integrate sustainability to ensure long-term value creation and global competitiveness.
Keywords Financial Performance, Arvind Ltd., Textile Industry, Denim Manufacturer, Financial Ratio Analysis, DuPont Analysis, Regression Modelling, Profitability, Return on Assets (ROA), Net Profit Margin, Return on Equity (ROE), Asset Turnover, Leverage, Liquidity Management, Inventory Management, Cash Flow, Solvency, Shareholder Value, Operational Efficiency, Capital Structure, Sustainable Growth, Product Innovation, Sustainability Integration, Indian Manufacturing Sector, Share Price Determinants
Published In Volume 7, Issue 5, September-October 2025
Published On 2025-10-31
DOI https://doi.org/10.36948/ijfmr.2025.v07i05.58740

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