Assessing the Financial Health of Agro-Based Companies in Andhra Pradesh: A Five-Year Performance Evaluation (2019–2024)

Abstract

The agro-based sector plays a pivotal role in the economic development of Andhra Pradesh, a state renowned for its rich agricultural resources and diversified crop patterns. This study aims to evaluate the financial performance of select agro-based companies operating within the state, with a focus on assessing their profitability, liquidity, solvency, and operational efficiency over a five-year period. Using key financial ratios such as Return on Assets (ROA), Current Ratio, Debt-Equity Ratio, and Net Profit Margin, the study offers insights into the financial health and sustainability of these enterprises. Secondary data was collected from audited financial statements, annual reports, and company databases. The findings reveal significant variations in performance metrics among the companies, influenced by factors such as market access, cost management, and government support schemes. The study also identifies trends in capital structure and revenue growth, highlighting areas that require strategic intervention. The results aim to assist stakeholders—including investors, policymakers, and company management—in making informed decisions to enhance the competitiveness and long-term viability of the agro-based industry in Andhra Pradesh.