A Comparative Financial Analysis of Two Companies in Nagercoil Based on Audited Financial Statement

Abstract

This study compares the financial performance of Athen Automobiles and Laxmi Motors using their audited financial statements for a period of five years from 2020–2021 to 2024–2025. The main aim of the study is to understand and compare the financial position, profitability, liquidity, and overall performance of both companies. The study is based on secondary data collected from the auditor’s office. Various financial tools such as ratio analysis, trend analysis, comparative balance sheet analysis, paired t-test, and regression analysis were used to evaluate the financial performance of the companies. The analysis shows that both companies are financially stable and capable of meeting their short-term obligations. However, Laxmi Motors performs better in profitability and return on assets, while Athen Automobiles shows gradual improvement and consistent growth over the study period. The study also explains the strengths and weaknesses of both companies in managing their financial resources, liabilities, and business operations. Comparative analysis helps in identifying the financial efficiency and stability of companies and supports better understanding of their business performance. The findings of the study are useful for management, investors, creditors, and other stakeholders in making financial and business decisions.