A Study on Relationship Between Leverage and Profitability – A Case of Food Industries in India
- 1. Student, pursuing B.B.A. LL.B. (Hons.) at School of Law, Narsee Monjee Institute of Management Studies, Indore (Madhya Pradesh). India.
Description
Abstract: In financial management, Leverage is the key decision area. Leverage constitutes the Degree of Operating Leverage, Degree of Financial Leverage and Degree of Combined Leverage. In this paper, the relationship between Leverage and Profitability has been discussed. For the purpose of this study, data of financial year (FY) 2020 has been considered. About 10 companies in the food industry which are listed in the Bombay Stock Exchange have been chosen for this study. An exploratory form of research design is used which is based on the secondary data. The data was collected from the annual reports of the chosen companies. The data collected has been analyzed by using the regression tool. The main aim of this study is to analyse the performance of the 10 companies, chosen.
Files
C2514051322.pdf
Files
(320.8 kB)
Name | Size | Download all |
---|---|---|
md5:f2390f2544f0ee7b95481274c603bb00
|
320.8 kB | Preview Download |
Additional details
Identifiers
- DOI
- 10.54105/ijef.C2514.053123
- ISSN
- 2582-9378
Dates
- Accepted
-
2023-05-15Manuscript received on 23 March 2022 | Revised Manuscript received on 31 March 2022 | Manuscript Accepted on 15 May 2023 | Manuscript published on 30 November 2023
References
- Agro, Hatsun, About us. Retrieved from Hatsun Agro: https://www.hap.in/
- Ahmed, N., Salmaan, A., & Shamsi, A. F. (2015). Impact of Financial Leverage on Firms' Profitability: An investigation from cement sector of Pakistan. Research Journal of Finance and Accounting, 6(7).
- Akinlo, O., & Asaolu, T. (2012). Profitability and Leverage: Evidence from Nigerian Firms. Global Journal for Business Research, 6(1).
- Andersson, A., & Minnema, J. (2018). The relationship between leverage and profitability - A quantitative study of consulting firms in Sweden. Umea School of Business and Economics.
- Barakat, D. A. (2014). The Impact of Financial Structure, Financial Leverage and Profitability on Industrial Companies Shares Value (Applied Study on a Sample of Saudi Industrial Companies). Research Journal of Finance and Accounting, 5(1).
- Britannia, About us. Retrieved from Britannia: http://britannia.co.in/
- Consumer, Future, About us. Retrieved from Future Consumer: https://futureconsumer.in/
- Dabur, About us. Retrieved from Dabur: https://www.dabur.com/
- Fengju, X., Fard, R. Y., Maher, L. G., & Akhteghan, N. (2013). The relationship between financial leverage and profitability with an emphasis on income smoothing in Iran's capital market. European Online Journal of Natural and Social Sciences, 2(3).
- Foods, Heritage, About us. Retrieved from Heritage Foods: https://www.heritagefoods.in/
- Foods, LT, About us. Retrieved from LT Foods: http://www.ltgroup.in/
- HUL, About us. Retrieved from HUL: https://www.hul.co.in/
- India, Nestle, About us. Retrieved from Nestle India: https://www.nestle.in/
- ITC, About us. Retrieved from ITC: https://www.itcportal.com/
- Kumar, D. M. (2014). An Empirical Study on Relationship between Leverage and Profitability in Bata India Limited. IJAR-CSMS, 2(5).
- Ltd., K. (n.d.). About Us. Retrieved from KRBL Ltd. : https://www.krblrice.com/
- Singapurwoko, A., & El-Wahid, M. (2011). The Impact of Financial Leverage to Profitability Study of Non-Financial Companies Listed in Indonesia Stock Exchange. EJEFAS(32).
- Kosolapova, M. V., Muravitskaya, N. K., Tolmachev, M. N., Melnikova, L. A., & Petrov, A. M. (2019). Technology for Solving the Problems Related To the Implementation of the Concept of Preserving Capital in Accounting and Statistics. In International Journal of Recent Technology and Engineering (IJRTE) (Vol. 8, Issue 3, pp. 789–792). Blue Eyes Intelligence Engineering and Sciences Engineering and Sciences Publication - BEIESP. https://doi.org/10.35940/ijrte.c4020.098319
- Handoko, B. L., Deniswara, K., & Nathania, C. (2019). Effect of Profitability, Leverage, Audit Opinion and Firm Reputation toward Audit Report Lag. In International Journal of Innovative Technology and Exploring Engineering (Vol. 9, Issue 1, pp. 2214–2219). Blue Eyes Intelligence Engineering and Sciences Engineering and Sciences Publication - BEIESP. https://doi.org/10.35940/ijitee.a4787.119119
- Ismail, N., Mohamad, N. M., & Ramli, A. A. (2019). Liquidity and Profitability of Oil and Gas Industry in Malaysia. In International Journal of Engineering and Advanced Technology (Vol. 9, Issue 1, pp. 3603–3606). Blue Eyes Intelligence Engineering and Sciences Engineering and Sciences Publication - BEIESP. https://doi.org/10.35940/ijeat.a2696.109119
- Poetri, I. A. V., Pratama, V. A., & Sari, E. T. (2020). Maximum Profit on the Electrical Appliance Store in Sidoarjo. In International Journal of Management and Humanities (Vol. 4, Issue 9, pp. 162–165). Blue Eyes Intelligence Engineering and Sciences Engineering and Sciences Publication - BEIESP. https://doi.org/10.35940/ijmh.i0925.054920
- Al Zyood, Dr. M. M. A. Z. (2022). Impact of Non-Performing Loans on Saudi Bank Profitability. In Indian Journal of Economics and Finance (Vol. 2, Issue 2, pp. 21–24). Lattice Science Publication (LSP). https://doi.org/10.54105/ijef.d2521.111422