Published Paper Details:

This study analyses the financial performance and capital structure of Diamond Engineering (Chennai) Private Limited over a five-year period, using key accounting ratios and statistical tools. The objective was to evaluate how the company's financing decisions have affected its profitability and financial stability. Ratios such as current ratio, quick ratio, debt-equity ratio, net profit margin, return on equity (ROE), and return on assets (ROA) were examined to assess liquidity, solvency, and profitability. Additionally, statistical methods like correlation and regression were used to study the relationship between EBIT (earnings before interest and taxes) and EPS (earnings per share). The findings reveal that while the company initially struggled with high debt and negative equity, it has shown significant improvement in recent years, especially in terms of profitability and capital structure. Correlation and regression used to identify the relationship between capital structure and profitability. The study concludes that sound financial planning and effective debt management are essential for the company's sustainable growth and value creation.