An Analysis of Indian Cement Industry Based on Profitability Performance

Author: Pankaj Yadav

Abstract:
Profitability is the ability of a business to earn a profit. A profit is what is left of the revenue a business generates after it pays all expenses directly related to the generation of the revenue, such as producing a product, and other expenses related to the conduct of the business activities. This is one of the major issues for the investors as well as management because it finds out the various ratio-such as Net Profit Ratio; Return on Equity; Return on Capital Employed and Return on Net Worth, related with the investors and management, which make the business comparable to the peer companies of the industry. This paper makes an attempt to provide an insight into the profitability performance of 10 leading cement manufacturers in India. It also makes an effort to observe and test the inter firm’s industry position. Profitability ratios are ranked and selected into a uniform boundary to compare their performance. The study is based on secondary data collected from published annual reports cover a five years’ period (2013 to 2017). The available data have been analyzed by using important profitability ratios and some statistical tools such as Mean, SD and Rank are also used with the help of SPSS 23 software.

Keywords:Indian Cement Industry, Profitability Performance and Ratio Analysis.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)