The Impact of Financial Ratios and Pandemic on Firm Performance: An Indian Economic Study

This study aims to assess the impact of COVID-19 on company performance in various industries as defined by the Global Industry Classification Standard (GICS). A range of liquidity and financial variables, including net working capital, quick ratio, debt-equity ratio, and financial autonomy rate, are used in the study to assess the company's performance across various industries. The study uses trend analysis and panel regression techniques to investigate the relationship between liquidity, financial ratios, and firm performance. The findings from the study suggest that COVID-19 has a negative impact on the performance of companies in sectors such as communication services, consumer discretionary, financial, industrial, material, real estate, and information technology (IT). In contradiction, the healthcare and energy industries both reported a positive relationship. Furthermore, regression analysis demonstrates a positive correlation between debt financing, working capital management (WCM), and firm performance. In contrast, the relationship between financial autonomy and firm performance is negative. Our findings can assist policy-makers, such as shareholders, investors, and stockholders, in determining the optimal decisions for management and investment activities.