Financial Evaluation of one of the Leading NBFC

Abstract

This study revolves around the financial analysis of Fusion Microfinance Limited, an NBFC. The Fusion Microfinance Ltd company was selected because it is a non-banking financial company which has its branch in Jabalpur. NBFCs are financial organizations that do not have an RBI banking license but have the authority to provide a few limited banking services such as house loans, personal loans, auto loans, gold loans, retirement planning, and other similar services. The main objective of this study is to employ a variety of ratios to evaluate the company's financial performance. The five years of data that the corporation presents in its annual reports are used to conduct the analysis. Ratio analysis is a financial process that notify the management and investors of a company about the company's financial position. It is generally indicated as a percentage and can be a marker of the growth of a company. It is a quantitative method that gives an understanding of the liquidity, profitability, and operational efficiency of a company by analyzing the financial statements, balance sheets, and income statements. It enables investors to efficiently analyze the financial status of companies by assessing their past and their current financial statements. The report contains 12 types of ratios which are Current Ratio, Cash Ratio, Return on Interest Ratio, Return on Asset Ratio, Return on Capital Employed Ratio, Net Profit Margin, Profit After Tax, Debt-To-Equity, Debt-To-Asset, Interest Coverage Ratio Asset Turnover Ratio and Debtors Turnover Ratio. Apart from these ratios the report consists the findings, suggestions and conclusion.