Article
FINANCIAL RATIO ANALYSIS OF MOTHER DAIRY
Financial ratio analysis is a cornerstone of corporate financial evaluation, widely used by managers, investors, and researchers to measure an organization’s operational efficiency, liquidity, profitability, and solvency. This study focuses on Mother Dairy, a key player in India's cooperative dairy industry, whose unique seasonal demand patterns and dependence on agricultural supply chains create distinct financial challenges.Traditional ratio analysis reveals important trends over time, but remains lagely descriptive and backward-looking. To address this limitation, this study integrates modern AI tools, applying Machine Learning (ML) models such as Random Forest and XGBoost to identify critical financial ratios that most significantly impact profitability. Further, Deep Learning (DL) models, specifically Long Short-Term Memory (LSTM) networks, are used to forecast key ratios like current ratio and profit margins, capturing seasonality and volatility that conventional models often miss.The results show that AI-enhanced analysis not only increases forecasting accuracy but also uncovers subtle patterns and drivers, transforming static financial ratio analysis into a dynamic, data-driven decision-support tool
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