The Study Examines the Financial Performance of the Indian Cement Firms, Utilizing the Du Pont Model
Author : Dr. D Silambarasan and Dr. S Sankar
Abstract :
To better understand a company's financial performance, the DuPont analysis (DA) is a financial ratio research that dissects the return on equity (ROE) into its contributing elements. By dissecting ROE into several crucial factors, such as profitability, leverage, and performance, it is possible to assess the company's financial standing and prospects more thoroughly. This study based on the secondary data collected through BSE (Bombay Stock Exchange). It covers the period from 2011 to 2021. Total firm of the study is 26. According to the data, many cement company’s generated good profits during the research period, with only a small number of cement companies failing to generate sufficient profits. These cement companies' equity multiplier and return on equity was also high. As for the firms’ general fiscal health, the study recommended that it work to increase its net profit margin and asset turnover ratio.
Keywords :
DA, NPM, AT, EM, ROE, Cement Industry.
