scholarly journals Study on Multidimensionsal Aspects of Profitability: Evidence from Larsen & Toubro Ltd

Webology ◽  
2021 ◽  
Vol 18 (Special Issue 03) ◽  
pp. 339-348
Author(s):  
Dr.S. Ranjithkumar ◽  
M.M. Aneesh
Keyword(s):  
Cash Flow ◽  
Multiple Regression Model ◽  
Profit Margin ◽  
Net Worth ◽  
Coverage Ratio ◽  
Managerial Decisions ◽  
Return On Capital ◽  
Operating Cash Flow ◽  
Earning Power ◽  
Tangible Asset

The term profitability represents to the ability of an organization to obtain sufficient profit. Profitability is connected to the efficiency of an organization to maximize the profit and wealth at reasonable rate. It is relative measure of the success of the organization in terms of the effective utilization of resources. Scientific study of current trade provides a platform to forecast the possible future trends of the profitability strategic managerial decisions like expansion of the business, rising of additional finance, issue related to bonus and dividend directly connected with profit. To analyze the profitability, the researcher used profitability ratios to determine the earning by considering the variables like EBIT, Gross contribution, Net sales, operating cash flow, ROA, Capital employed, Shareholders equity are considered in the study. An appropriate statistical tools like regression analysis has been employed to measure the relationship between profitability and productivity, which predict the growth of an organization in monetary value during the study period. The researcher made an attempt to measure the profitability of L&T a leading private infrastructure company in India. The researcher made an attempt to measure the profitability of L&T a leading private infrastructure company in India. The study has analyzed the profitability of L&T. Profit being a crucial measure to determine the performance in profitability, internal determinants of the firms, earning power has been ascertained in the study by applying a multiple regression model with EBIT as dependent variable and internal data inputs has independent variable s namely operating profit margin ratio, net profit margin ratio, return on capital employed, return on net worth ratio, return on total assets, operating cash flow to total asset, EBIT to total tangible asset, profit after tax to total tangible assets, EBIT to total assets, retained cash flow to capital employed, EBIT to capital employed, PAT to tangible portion of shareholders equity, interest coverage ratio.

scholarly journals Subprime Crisis – A Corporate Acquisition Opportunity?

2021 ◽  
Vol 28 (2) ◽  
pp. 20
Author(s):  
VISHAL SRIVASTAVA ◽  
SUNDER RAM KORIVI ◽  
DIPASHA SHARMA
Keyword(s):  
Cash Flow ◽  
Operating Performance ◽  
Profit Margin ◽  
Subprime Crisis ◽  
Return On Assets ◽  
Corporate Acquisitions ◽  
Return On Equity ◽  
Crisis Period ◽  
Operating Profit ◽  
Operating Cash Flow

Corporate acquisition can be considered as one of the best processes of corporate restructuring. This study is focused to evaluate the post-acquisition operating performance of listed Indian companies (acquirers) which have made acquisitions during subprime crisis period i.e. from FY 2007-08 to FY 2009-10. Paired sample t-test has been used on four operating performance indicators i.e. Return on Equity(ROE), Return on Assets (ROA), Operating Profit margin (OPM) and Operating Cash flow to Net Sales ratio (OCF/Net Sales) to check whether operating performance of acquirers has significantly improved post-acquisition. This study has revealed that there is no significant improvement in firms’ operating performance based on financial parameters i.e. Return on Equity (ROE), Return on Assets (ROA) and Operating Profit Margin (OPM), post corporate acquisitions made during subprime crisis period. The study finds that there was negative impact based on these parameters. Though Operating Cash Flow to Net Sales ratio has improved significantly for the companies which have made acquisition in FY 2007-08 and FY 2008-09 but similar findings could not be achieved for FY 2009-10. This study will find its significance in present scenario wherein corporate acquisitions are seen as the fastest way to achieve growth. Corporate world may derive its growth strategy from this study.   

scholarly journals Does Liquidity Management Affect Profitability in Selected Nigerian-Quoted Manufacturing Firms?

2016 ◽  
Vol 8 (4(J)) ◽  
pp. 41-51
Author(s):  
Matthew Adeolu Abata ◽  
Stephen Oseko Migiro
Keyword(s):  
Cash Flow ◽  
Optimal Level ◽  
Manufacturing Firms ◽  
Liquidity Management ◽  
Return On Equity ◽  
Cash Conversion Cycle ◽  
Descriptive Research ◽  
Business Failures ◽  
Return On Capital ◽  
Operating Cash Flow

This study examined the nexus between liquidity management and profitability in selected Nigerian-quoted manufacturing firms. Many business failures have been recorded over the years due to inability to balance the link between liquidity and profitability. Descriptive research design was employed to analyze the data gathered from 2004 to 2014. The study found a positive relationship between credit policy, return on equity and return on capital employed. It equally found that operating cash flow and cash conversion cycle are negatively related to all the metrics of profitability. The study therefore recommends among others, that managers should strive to achieve a reasonable level of profit to optimize shareholders’ wealth and keep the firms in business. Also, managers should effectively manage account receivables and inventory at optimal level to avoid tie down liquid assets unnecessarily. Investors should pay close attention to firms’ operational cash flow in order to access their true state before committing their funds.

Analysis of Financial and Operational Performance of Banking Sector Consolidations: Indian Case Study with Mergers and Acquisition

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Gurbaksh Singh
Keyword(s):  
Financial Performance ◽  
Banking Sector ◽  
Profit Margin ◽  
Financial Ratios ◽  
P Value ◽  
Net Worth ◽  
Operating Profit ◽  
Before And After ◽  
Return On Capital ◽  
The Impact

The present paper analyses the impact of M&As on productivity and profitability of consolidation in the Indian Banking sector. It examines the performance of the two banks based on the financial ratios in the pre and post-merger period. The collection of data covers financial performance of selected banks from 2004-05 to 2014-15. The statistical tools are arithmetic mean, standard deviation, t-test, and p-value etc. to analyze the various financial ratios before and after the mergers. 14 ratios are used to compare pre and post-merger financial performance evaluation of consolidated banks. The analysis of ICICI Bank concluded that Net Profit Margin, Operating Profit Margin, Return on Capital Employed, Return on Net Worth, Interest Coverage, Deposit per Employee, and Credit Deposit Ratio have shown an improvement after the merger but in case of other parameters there is no significant improvement in the performance. The analysis of State Bank of India reveals there is no significant improvement after the merger. The study indicates that the banks have been positively affected when distinguished between pre-mergers and post-merger period.

scholarly journals PENGARUH NET PROFIT MARGIN, ARUS KAS OPERASI DAN REPUTASI AUDITOR TERHADAP RETURN SAHAM PADA PERUSAHAAN MANUFAKTUR PERIODE 2014-2017

AJAR ◽  
2019 ◽  
Vol 2 (02) ◽  
pp. 1-18
Author(s):  
Stefanie Stefanie ◽  
Loh Wenny Setiawati
Keyword(s):  
Cash Flow ◽  
Stock Return ◽  
Stock Exchange ◽  
Secondary Data ◽  
Profit Margin ◽  
Net Income ◽  
Manufacturing Companies ◽  
Net Profit ◽  
Operating Cash Flow ◽  
Auditor Reputation

Investments are made by investors to get a return. Return is a profit of an investment. Stock Return has a significant effect in determining the value of company’s stock. Investors will be interested to invest in companies with a high return. This research aimed to analysis the effect of net profit margin, operating cash flow and auditor reputation for the period 2014 – 2016 to stock return for the period 2015 – 2017 on manufacturing companies that listed on Indonesia Stock Exchange. Net profit margin is calculated by using net income after tax divided by total net sales for the period from audited financial statements. This research used secondary data which is from financial reports with purposive sampling. Research sample counted 55 manufacturing companies listed in Indonesia Stock Exchange period 2014 – 2017. The results of this research showed that net profit margin and auditor reputation do not have a significant effect on stock return while operating cash flow has a significant effect on stock return.

scholarly journals Pengaruh Kinerja Keuangan Terhadap Rate of Return (Studi Empiris Pada Perusahaan Pertambangan Yang Terdaftar di BEI Tahun 2014-2018 )

2020 ◽  
Vol 25 (2) ◽  
pp. 101-117
Author(s):  
Sefka Anggraini Putri ◽  
Reni Oktavia ◽  
Widya Rizki Eka Putri
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Return On Investment ◽  
Economic Value ◽  
Value Added ◽  
Profit Margin ◽  
Rate Of Return ◽  
Economic Value Added ◽  
Net Profit ◽  
Operating Cash Flow

The purpose of this study was to examine the effect of financial performance on the rate of return. The indicators used to measure financial performance are return on investment, net profit margin, earnings per share, operating cash flow, economic value added. This study uses secondary data with a population of companies listed on the Indonesia Stock Exchange (BEI) 2014-2018. The method used to determine the sample using purposive sampling. Consists of 19 industrial mining companies with 56 samples. The analysis method used is multiple regression analysis. The results of hypothesis testing show that the Return on Investment (ROI) has no significant effect on the Rate of Return (ROR), Net Profit Margin (NPM) has significant effect on the Rate of Return (ROR), Earning Per Share (EPS) has no significant effect on the Rate of Return (ROR), Operating Cash Flow(OCF) has no significant effect on the Rate of Return (ROR), Economic Value Added (EVA) has no significant effect on the Rate of Return (ROR)

scholarly journals ANALISIS LAPORAN ARUS KAS UNTUK MENGUKUR KINERJA KEUANGAN PADA PT. INDOFOOD SUKSES MAKMUR

2018 ◽  
Author(s):  
Afriyeni Afriyeni
Keyword(s):  
Cash Flow ◽  
Secondary Data ◽  
Poor Performance ◽  
Financial Statements ◽  
Free Cash Flow ◽  
Capital Expenditures ◽  
Flow Ratio ◽  
Coverage Ratio ◽  
Total Debt ◽  
Operating Cash Flow

This study aims to determine the financial performance. Indofood Sukses Makmur, Tbk using the cash flow statement. The data used are secondary data that the financial statements. Indofood Sukses Makmur, Tbk for 5 years (2007-2011), the data were analyzed by using the ratio of cash flow 7 is the ratio of operating cash flow, cash flow coverage ratio, the ratio of cash coverage of interest, the ratio of cash to current liability coverage, the ratio of capital expenditures, ratio of total debt and net free cash flow ratio. These results indicate that the performance of the cash flow statements of PT. Indofood Sukses Makmur, Tbk period 2007 to 2011 shows a poor performance.

scholarly journals Analyzing the Relationship between Earnings Quality and Financial Ratios Derived from Cash Flow Statement (An Applied Study on Saudi Telecommunication Companies): تحليل العلاقة بين جودة الأرباح والنسب المالية المشتقة من قائمة التدفقات النقدية (تطبيق على شركات قطاع الاتصالات السعودية)

2020 ◽  
Vol 4 (13) ◽  
Author(s):  
Fatmah Mohammad Baaqeel, Najla Ibrahim Abdulrahman
Keyword(s):  
Cash Flow ◽  
Activity Index ◽  
Earnings Quality ◽  
Cash Flows ◽  
Multiple Regression Model ◽  
Financial Ratios ◽  
Return On Assets ◽  
Operating Cash Flow ◽  
Operational Activity ◽  
The Relationship

The aim of this research is to analyze the relationship between earnings quality and financial ratios derived from cash flows statement of telecom sector companies in the Saudi Stock Market. The analyzing period was from 2009 to 2018, assuming there is a significant relationship between operating cash ratio, operational activity index, adequacy cash flow and return on assets from operating cash flow on earnings quality. Calculating ratios and earnings quality through published financial statements and reports to find the relationship between the variables using multiple regression model. Findings indicate no relationship between earnings quality and both operating cash ratio and the operational activity index, and there is a direct relationship between earnings quality and adequacy cash flow, and an inverse relationship between earnings quality and return on assets from the operating cash flow. The researcher recommends decision-makers to pay more attention to the ratios related to the earnings quality, and do more research related to the subject.

Operational Cash Flow Analysis of PT Waskita Beton Precast Tbk Financial Performance 2014-2018

2021 ◽  
Vol 1 (1) ◽  
pp. 37-42
Author(s):  
Alfian Dwi Pambudi ◽  
Marliza Noor Hayatie ◽  
Muhammad Ghalih
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Capital Expenditure ◽  
Flow Analysis ◽  
Ratio Analysis ◽  
Net Income ◽  
Coverage Ratio ◽  
Total Debt ◽  
Good Improvement ◽  
Operating Cash Flow

This study aims to find the financial performance of PT Waskita Beton Precast Tbk during 2014-2018 in managing its operating cash flow. The analytical tool used in this study is ratio analysis. Types of ratio analysis used are operating cash flow ratios, the ratio of cash to interest coverage, ratio of cash to current debt ratio, ratio of capital expenditure, ratio of total debt, and the ratio of cash flow to net income. After calculating the cash flow ratio analysis, it can be concluded that for now, PT Waskita Beton Precast Tbk is still unable to be independent in capital expenditure. Despite that, PT Waskita Beton Precast Tbk has recorded a good improvement, therefore it can be estimated that in a few more years, the financial performance of PT Waskita Beton Precast Tbk will be very good.

Pengaruh ROE, EPS, OCF, Size, DER, CR dan Growth Terhadap Kebijakan Dividen pada Perusahaan Manufaktur di Bursa Efek Indonesia (BEI)

2019 ◽  
Vol 14 (2) ◽  
pp. 80
Author(s):  
Crystha Armereo ◽  
Pipit Fitri Rahayu
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Regression Result ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Dividend Payout ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Equity Ratio ◽  
Operating Cash Flow

Abstract The objective of this research is to identify the influence of return on equity, earnings per share, operating cash flow, size, debt to equity ratio, current ratio, and growth to dividend payout. Data collected from manufacturing companies that listed on Indonesian Stock Exchange for three years period 2014 to 2016. Sample selected by using purposive sampling method. There are 38 companies meet the criteria and used as sample. The statistical method used in this research is multiple regression. Result of this research showed that return on equity, earnings per share, and growth have influence dividend payout but operating cash flow, size, debt to equity ratio, and current ratio have no influence towards dividend policy. Keywords: Dividend Policy, Return on Equity, Earnings per Share, Current Ratio,   Operating Cash Flow Size

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