CHAPTER-V

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS:

The following are the findings of the study:

 The current ratio is decreasing from 2017-2018 to 2021-2022and it

has increased to 0.52 in the year 2018-2019. The ideal current ratio of
2:1 has not achieved by the firm during study period.
 The liquidity ratio has decreased from 0.32to 0.02 which indicates
that the firm has to increase the cash &bank balance and decrease the
current liabilities.
 The gross profit ratio has recorded an increasing trend except in
2014-2015 which recorded a decrease and reached the ratio of 4.50
per cent.
 The ratio of debtors to sales has fluctuated and varied between 0.03 to
0.88 during the study period.
 The net profit ratio varied between 0.21 per cent and 1.97 per cent.
 The inventory turnover ratio has high fluctuation and varied between
1.9 and 57.88. The firm has to maintain the constant inventory
turnover ratio.
 The owned capital turnover ratio has fluctuated and varied between
8.66 and 17.73 due to the fluctuations of capital amount.
 The capital turnover ratio has fluctuated and varied between 8.66 and
17.53 during the study period.
 The proprietary ratio has increased for the first three years of study
period and last two years of study period recorded a decreasing trend
and the ratio varied between 0.28 and 0.43.

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 The return on shareholder’s funds has recorded a gradual increase
except in 2016-2017 which recorded a slight decrease. The ratio
varied between 18.36 and 27.22.
 The return on total resource has fluctuated and varied between 7.42
and 12.33 which indicate that the firm has to increase the net profit
after tax and increase assets.
 The fixed asset turnover ratio has varied between 5.59 and 18.34 due
to the variable proportions of net sales and fixed assets.
 The debt equity ratio has recorded an increasing trend which reveals
the good financial position of the firm.
 The ratio of tax expenses to net profit has recorded as 0.03 in all years
of study period except 0.02 in 2019-2020.

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SUGGESTIONS:

The following are the suggestions to the kamatchi traders through the study
made by the researcher:

 The kamatchi traders has to concentrate to increase its current assets

to attain the optimum current ratios
 The firm has to increase the cash &bank balance and to decrease the
current liabilities to maintain good liquid ratio,
 The firm has to concentrate to increase its gross profit in forthcoming
years also.
 The firm has to increase its sales more to attain good financial
position
 The firm has to maintain the constant inventory turnover ratio.
 The firm should try to stabilize the owned capital turnover ratio in
forthcoming years.
 The firm should focus to increase the share holders contribution to
maintain proprietary ratio.
 The return on total resource has indicated that the firm has to increase
the net profit after tax and increase assets to ensure the good return.
 Eventhough the debt equity ratio is good, the firm has to focus to
maintain constantly the same.

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CONCLUSION:
The kamatchi traders is a developing firm. The firm has been
buying the waste papers and cards from shopkeepers and selling to traders.
The firm has gradual increase in sales and profit. But the firm has to
concentrate to increase its turnover and profit more to attain a sound
financial position. The debt equity ratio is satisfactory, but the firm has to
focus on increasing the contribution of share holder funds. If the firm has to
invest more in fixed assets, it will be useful in promoting the financial
development.

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