A Comprehensive Study of Financial Performance of Larsen & Toubro Limited Using Trend, Ratio, and Growth Approaches (2020–21 To 2024–25)

Abstract

This research paper aims to evaluate the financial performance of Larsen & Toubro Limited (L&T). Being an engineering firm, the company has faced numerous challenges due to the nature of its operations. The purpose of the research paper was to examine the profitability, liquidity, solvency, efficiency and growth of the company's financial performance and stability during the years 2020-21 to 2024-25. Information was obtained from the annual reports of the company using trend analysis, ratio analysis, and growth analysis. The company is experiencing steady growth in terms of revenues at a rate of 17% annually. Although there were slight fluctuations in the short-term cash flows, the company remains in excellent financial standing, given the significant reduction in debt, asset utilization efficiency, financial obligation coverage, and profitability.