A Study of Operating Leverage and Profitability for Selected Cement Industry in India
DOI:
https://doi.org/10.71366/ijwos021229253Keywords:
Operating Leverage, Profitability
Abstract
The cement production is one of the most important industries for the economic development of a country. The total utilization of cement in a year is used as a display of economic development. The new course in demand for cement is driven by the explosion in the home sector and infrastructure sector. The researcher collected data through Money Control for Ten years from 2014 to 2023. The researcher used various statistical tools like descriptive statistics, correlation, and regression. The correlation result show that H01: “There is no significant correlation between operating leverage (OL) and return on net worth (RONW)”, which is rejected at the 5% level. Further, regression shows that H02: “There is no significant impact of OL on RONW”, which is rejected at the 5% level for cement firms in India during 2014 – 2023.
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