Appraising Financial Performance of Cement Companies of India: 1991-92 to 2009-10

DR SARBAPRIYA RAY

Abstract


ABSTRACT:

This paper analyses the financial performance of cement companies ofIndiaover the period, 1991-92 to 2009-10.The analysis has been conducted from the key financial dimensions, namely, financial profitability, capital structure, efficiency and liquidity position. The liquidity ratio indicates that firms within the cement industry have deficient current asset to meet liquid or current liability which is a sign of alarming liquidity position of the industry and it has been found that percentage of debt in capital structure is moderate indicating moderate burden of interest which makes the firms within industry less risky. Management of the industry has been able to achieve operational efficiency with minimization of waste and maximization of resource capabilities because three indicators of judging operational efficiency namely, Debtors turn-over ratio, inventory turnover ratio, asset turnover ratio are moderately high and showing gradual upward trend over the years. As a measure of profitability, net profit ratio, operating profit ratio, return on total assets (ROTA) except return on capital employed (ROCE) are gradually increasing over our study period which is a good indication to the investors as well as entrepreneurs. To revitalize the economy from its present slackening mode, it is now crucial for the government to enh­a­nce cement demand by taking some positive and concrete policy measures.


Keywords


Key words: cement, industry, financial performance, ratios, India.

Full Text:

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ISSN: 2332-2160

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