An Analytical study of Financial Ratios and their effect in EPS on Cement Companies in India

Ashok Sengupta; Gajraj Singh

Ashok Sengupta Department of Commerce, Sri Satya Sai University of Technical and Medical Sciences, Sehore, Madhya Pradesh, India
Gajraj Singh Department of Commerce, Sri Satya Sai University of Technical and Medical Sciences, Sehore, Madhya Pradesh, India

Keywords: Financial sustainability, Leverage, Return on asset, Return on equity.

Abstract

The cement industry has a massive contribution to India’s GDP and infrastructure development. Due to the demand of cement, new companies from outside also started functioning in our country, but these industries face several problems. Companies are closed or merged due to a lack of financial sustainability and capital structure problems. The study is based on the effect of capital structure on shareholder’s value. In this study as a researcher, it has been tried to study and find out the relation of ROA, ROE, leverage ratios, and correlation with EPS. The sample size is five companies from the BSE list (Bombay Stock Exchange), and the last five years of data are studied. As the cement industry is capital-centric, this study will help the industry understand the facts that fulfill the financial objectives.