ANALYSIS OF LIQUIDITY, SOLVENCY AND PROFITABILITY OF SELECT CEMENT COMPANIES IN ANDHRA PRADESH

N. Venkata Ramana; V. Bhagyamma; Professor. K. Ramakrishnaih

Volume : V, Issue : VI, June - 2015

ANALYSIS OF LIQUIDITY, SOLVENCY AND PROFITABILITY OF SELECT CEMENT COMPANIES IN ANDHRA PRADESH

N. Venkata Ramana, V. Bhagyamma, Professor. K. Ramakrishnaih

Abstract :

The drive of this study is to analysis of liquidity, solvency and profitability of select cement companies in Andhra Pradesh. The data was collected from financial statements of select cement companies for a period of 10 year from 2003–04 to 2012–13, have selected financial ratios such as Current Ratio (CR), Quick Ratio (QR), Absolute Liquid Ratio (ALR) for liquidity analysis, Debt–Equity Ratio (DER), Proprietary Ratio (PR)and Fixed Assets to Proprietary Ratio (FATPR) for solvency analysis and Gross Profit Ratio (GPR), Net profit Ratio (NPR), Return on Capital Employed (ROCE), Return on Investment (ROI) and Earnings per Share (EPS) for profitability analysis to meet objective of the study. The result of the study is liquidity, solvency and profitability position of select cement companies not good, no significant impact of liquidity and solvency on ROCE, no correlation between ROCE and liquidity ratios and positive correlation between ROCE and DER and PR and negative correlation with FATPR.