Financial Efficiency and Profitability Analysis of Apollo Hospitals: Via Motaal Test and DuPont Models

Abstract

This paper explores the monetary execution of Apollo Hospital over the past five years. While contribution is evident in high net income, the investigation uncovers a concerning trend of low returns on speculation and a high debt-to-equity ratio. The objective of the study is to analyze the performance of Apollo Hospital by applying different measures with the help of Ratios. This provides a detailed review of the financial position of the company in the health industry. Financial metrics like liquidity ratios play a key role in assessing their resilience. Motaal test is an effective tool for evaluating their efficiency and strategic decisions. The study uses a five-year dataset (2018-2022) drawn from annual reports and financial databases. It applies ratio analysis to assess the company's liquidity position. The Motaal test is applied to assess the position using the current ratio, quick ratio, and liquid ratio, and provides rankings based on performance in the respective years. This study analyzes Apollo Hospital’s financial performance using DuPont analysis. These findings propose potential wastefulness in financial administration and raise questions around long-term sustainability. Advanced monetary assessment is recommended to gain a more comprehensive understanding of the company’s financial health. The study highlights the financial strength and challenges of Apollo Hospital, emphasizing its ability to sustain growth and profitability. The study relies on publicly available data, which may not reflect all financial details, and focuses mainly on quantitative metrics, neglecting qualitative factors.