HuSS: International Journal of Research in Humanities and Social Sciences

Open Access Open Access  Restricted Access Subscription Access

A Comparative Analysis of Liquidity and Profitability Position of Astral Poly Technik Ltd. and Finolex Industries Ltd. in India


Affiliations
1 PG and Research Department of Commerce, Vellalar College for Women, Erode – 638012, Tamil Nadu, India
2 PG and Research Department of Commerce, Vellalar College for Women, Erode, India
 

The policy of ‘Make in India’ being given the major thrust, the manufacturing has emerged as one of the high growth sectors in India. Of various products of industrial, agricultural and household needs, PVC pipes are of multifarious utility and hence needed in all segments for both water supply and in laying concealed wiring in buildings. Hence, there is a stiff competition among the firms producing PVC pipes in India. However, the success of a firm depends on its financial soundness, particularly the liquidity and profitability levels. Liquidity refers to the ability of a concern to meet its current obligations as and when these become due. The profitability acts as a yardstick to measure the operating efficiency of the enterprise. The present study analyses and compares the liquidity and profitability position of the two leading PVC manufacturing companies listed in both NSE and BSE, namely Astral Poly Technik Ltd and Finolex Industries Ltd. The financial data of the past ten years from 2007-08 to 2016-17 was used. Accounting ratios, Motaal’s comprehensive test of liquidity and Spearman’s rank correlation coefficient are the tools used for the analysis. The study indicates that there is a positive correlation between liquidity and profitability in case of Astral Poly Technik Ltd, while a negative correlation in case of Finolex Industries Ltd.


Keywords

Correlation, Inventory, Liquidity, Profitability, Working Capital.
User
Notifications
Font Size

  • Vivek S. A Comparative Study of Financial Performance of SAIL and Tata Steel Ltd. International Journal of Reviews, Surveys and Research. 2013 March; 2(1).

  • Arti M and Bhadauria BMS. A Comparative Profitability Analysis of Coca Cola and PepsiCo. International Journal of Multidisciplinary Approach and Studies. 2014 Apr; 1(2): 39– 53.

  • Idhayajothi R, Latasri OTV, Manjula N, Meharaj BA and Malini R. A Study on Financial Performance of Ashok Leyland Ltd at Chennai. IOSR Journal of Business and Management. 2014 June; 16(6): 83–8.

  • Sumathi N. A Comparative Study on Financial Performance of Cement Companies in India With Reference to Ultratech Cement Ltd and OCL India Ltd. International Journal for Research in Applied Science and Engineering Technology. 2016 March; 4(3): 147–50.

  • Habiba A. A Study and Comparative Analysis of HUL and ITC. International Journal on Recent and Innovation Trends in Computing and Communication. 2017 March; 5(3): 407–17.

  • Ashok KP. Liquidity Management of Indian Cement Companies - A Comparative Study. IOSR Journal of Business and Management. 2013 Nov - Dec; 14(5): 49–61. https://doi.org/10.9790/487X-1454961.

  • Gupta SP. Statistical Methods. Sultan Chand & Sons, 14th Revised Edition. 2011.


Abstract Views: 664

PDF Views: 420




  • A Comparative Analysis of Liquidity and Profitability Position of Astral Poly Technik Ltd. and Finolex Industries Ltd. in India

Abstract Views: 664  |  PDF Views: 420

Authors

S. Maheswari
PG and Research Department of Commerce, Vellalar College for Women, Erode – 638012, Tamil Nadu, India
S. Rahini
PG and Research Department of Commerce, Vellalar College for Women, Erode, India
S. Rohini
PG and Research Department of Commerce, Vellalar College for Women, Erode, India

Abstract


The policy of ‘Make in India’ being given the major thrust, the manufacturing has emerged as one of the high growth sectors in India. Of various products of industrial, agricultural and household needs, PVC pipes are of multifarious utility and hence needed in all segments for both water supply and in laying concealed wiring in buildings. Hence, there is a stiff competition among the firms producing PVC pipes in India. However, the success of a firm depends on its financial soundness, particularly the liquidity and profitability levels. Liquidity refers to the ability of a concern to meet its current obligations as and when these become due. The profitability acts as a yardstick to measure the operating efficiency of the enterprise. The present study analyses and compares the liquidity and profitability position of the two leading PVC manufacturing companies listed in both NSE and BSE, namely Astral Poly Technik Ltd and Finolex Industries Ltd. The financial data of the past ten years from 2007-08 to 2016-17 was used. Accounting ratios, Motaal’s comprehensive test of liquidity and Spearman’s rank correlation coefficient are the tools used for the analysis. The study indicates that there is a positive correlation between liquidity and profitability in case of Astral Poly Technik Ltd, while a negative correlation in case of Finolex Industries Ltd.


Keywords


Correlation, Inventory, Liquidity, Profitability, Working Capital.

References





DOI: https://doi.org/10.15613/hijrh%2F2018%2Fv5i1%2F177847