Open Access
Subscription Access
Open Access
Subscription Access
Profitability, Liquidity and Financial Risk Analysis: A Study of Auto Industries in India
Subscribe/Renew Journal
The concept of Financial Leverage is one of the important areas of making financial decision. The leverage protects the interest of the shareholders in terms of the profit maximization at low cost of capital. The profit of a company is distributed in the form of dividend to their existing shareholders. This paper seeks to analyze the liquidity, Profitability and the financial leverage of the selected automobile companies operating in India. The study was conducted for a period of six years from 2008-09 to 2013-14. Relevant statistical tools and techniques have been applied to conduct the study. The study concludes that that there is significant difference in the CR, QR, ROI and ROE of the selected companies during the study period. The study also revealed that there is no significant difference in the financial leverage ratio.
Keywords
Liquidity, Profitability, Financial Leverage.
Subscription
Login to verify subscription
User
Font Size
Information
- Khan, M. Y., and Jain, P. K. (2004). Financial Management. New Delhi: Tata McGraw Hill Publishing Company Limited.
- Khedkar, E. B. (2015). “A Study of Leverage Analysis and Profitability for Dr. Reddy’s Laboratories”, International Journal of Research in Engineering and Social Sciences, 2015, Vol. 5, No. 5, pp. 17–31.
- Kumar, M. R. (May, 2014). “An Empirical Study on Relationship between Leverage and Profitability in Bata India Limited”, International Journal of Advance Research in Computer Science and Management Studies, 2014, Vol. 2, No. 5, pp. 1–9.
- Patel, J. B. (2014). “Impact of Leverage on Profitability: A Study of Sabar Dairy”, International Multidisciplinary Research Journal, p. 1-6.
- Silambarasan, D., and Azhagaiah, R. (October, 2015). “The Impact of Corporate Leverage on Profitability: Evidence from IT Industry in India”, Pacific Business Review International, 2015, Vol. 8, No. 4, pp. 44–48.
- Sinha, G. (2012). Financial Statement Analysis. New Delhi: PHI Learning Private Limited.
- Subramanyam, K. R., and Wild, J. J. (2014). Financial Statement Analysis. New Delhi: McGraw Hill Education (India) Private Limited.
- Takhtaei, N., Ojaghi, A. M., and Esfandabadi, S. H. (2013). “Effect of Financial Leverage and Investment Diversification on Income-Increasing Earnings Management”, Middle-East Journal of Scientific Research, 836-844.
- Tayyaba, K. (July, 2013). “Leverage”- An Analysis and Its Impact on Profitability with reference to selected Oil and Gas Companies”, International Journal of Business Management Inventions. 2013, Vol. 2, No. 7, pp. 50–59.
- Yasemi, S., Farshidkhairollahi, Fatahidehpahni, M., and Jalilian, Z. (2014). “Studying the Financial Leverage Relation to Firms growth and Financial Strength in the Accepted (Listed) Companies in Tehran Stock Exchange in Various Industries”, Indian Journal of Science and Research, p. 355-361.
Abstract Views: 420
PDF Views: 0