Application of Factor Analysis on the Financial Ratios of Indian Cement Industry and Validation of the Results by Cluster Analysis

De, Anupam; Bandyopadhyay, Gautam; Chakraborty, Baidyanath; Paruya, Swapan; Kar, Samarjit; Roy, Suchismita

doi:10.1063/1.3516362

Cited by 7 publications

(8 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although the names of the extracted factors differ among the existing studies, some financial ratios of our analysis were part of the factor analysis of those works. The most used is assets turnover [32,[36][37][38], current ratio [34,35,37,38], quick ratio [34,35,38], debt ratio [34][35][36], ROS [30,32], ROI [30,39], current assets turnover [37], debt to equity ratio [34], and financial leverage [32]. Interestingly, in two cases [37,38], the opposite indicator to financial leverage was used, namely equity ratio calculated as equity to assets.…”

Section: Discussionmentioning

confidence: 99%

“…Researchers have adapted factor analysis on financial ratios of several industries of different countries; e.g., the steel industry of the Slovak Republic [32], the agricultural industry of the Czech Republic [33], the cement industry of India [34], the construction industry [35] and the largest industrial enterprises of Turkey [36], the pharmaceutical industry [37] and the listed companies in China [38], the largest companies of Croatian market [39], or IT companies of the Czech Republic [30]. However, each study used specific financial ratios appropriate for the specified business environment, economic conditions of the country, and available financial data (see Table 1).…”

Section: Factor Analysis Of Financial Ratiosmentioning

confidence: 99%

“…Financial ratios (indicators) of the non-financial companies of the Slovak MEI show common factors. [30,[32][33][34][35][36][37][38][39]. Note: AT-assets turnover, CA-current assets, CB-cash and bank, CF-cash flow, CP-cash profit, CR-current ratio, EBIT-earnings before interest and taxes, EBITDA-earnings before interest, taxes, depreciation, and amortization, EBT-earnings before taxes, ER-equity ratio, QR-quick ratio, ROA-return on assets, ROCE-return on capital employed, ROE-return on equity, ROS-return on sales, TA-total assets, TAT-total assets turnover, WC-working capital.…”

Section: Factor Analysis Of Financial Ratiosmentioning

confidence: 99%

See 2 more Smart Citations

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

et al. 2021

View full text Add to dashboard Cite

Industry 4.0 and related automation and digitization have a significant impact on competition between companies. They have to deal with the lack of financial resources to apply digital solutions in their businesses. In Slovakia, Industry 4.0 plays an important role, especially in the mechanical engineering industry (MEI). This paper aims to identify the groups of financial ratios that can be used to measure the financial performance of the companies operating in the Slovak MEI. From the whole MEI, we selected the 236 largest non-financial corporations whose ranking we obtained according to the amount of generated revenues in 2017. Using factor analysis, from eleven traditional financial ratios, we extracted four independent factors that measure liquidity (equity to liabilities ratio, quick ratio, debt ratio, net working capital to assets ratio, current ratio), profitability (return on sales, return on investments), indebtedness (financial leverage, debt to equity ratio), and activity (assets turnover, current assets turnover) of the company. Our analysis is an essential prerequisite for developing a realistic financial plan for companies operating in the MEI, especially when considering investments in new technologies related to Industry 4.0.

show abstract

Section: Discussionmentioning

confidence: 99%

Section: Factor Analysis Of Financial Ratiosmentioning

confidence: 99%

Section: Factor Analysis Of Financial Ratiosmentioning

confidence: 99%

See 1 more Smart Citation

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

et al. 2021

View full text Add to dashboard Cite

show abstract

“…There are quite a large number of financial ratios and certain studies in the literature resort to factor analysis to determine the factors that explain the financial ratios in a smaller set of new composite dimensions (e.g., Pinches, Mingo & Caruthers, 1973;Chen & Shimerda, 1981;Taffler, 1982;Ali &Charbaji, 1994;Ganesalingam & Kumar, 2001;Ugurlu & Aksoy, 2006;De, Bandyopadhyay & Chakraborty, 2011;Chen, 2011). Factors analysis is a technique that is used to describe variability among observed variables in terms of fewer unobserved underlying dimensions which are called factors.…”

Section: Introductionmentioning

confidence: 99%

Applying Factor Analysis on the Financial Ratios of Turkey’s Top 500 Industrial Enterprises

Erdogan¹

2013

IJBM

View full text Add to dashboard Cite

Factor analysis is a method that is used to reduce several variables into fewer dimensions that are called factors. This study conducts factor analysis on the financial ratios of the top 500 industrial enterprises in Turkey for 2010. The purpose of the study is to group the financial ratios into categories and eliminate redundancy among them. Our results provide partial support for the textbook classification of financial ratios.

show abstract

“…Thus, factor analysis has been used by researchers as a mean of eliminating redundancy and reducing the number of financial ratios needed for empirical research (De, Bandyopadhyay, & Chakraborty, 2011).…”

Section: Factor Analysismentioning

confidence: 99%

Factors Affecting the Financial Performance of the Firms during the Financial Crisis: Evidence from Turkey

Demirhan¹,

Anwar²

2014

Ege Stratejik Araştırmalar Dergisi

View full text Add to dashboard Cite

AbstractsThis study investigates the factors that affect the firm performance during the international financial crisis which also affected Turkish economy. Sample of 140 non-financial firms from Borsa Istanbul has been investigated for the financial crisis period of 2008. Market-to-book ratio has been taken as the measure of performance in the study whereas eleven financial ratios have been taken as independent variables. A factor analysis has been applied on independent variables and categorized them into four categories. Then multiple regression analysis has been applied by taking the factor scores of our four factors. Results of the study suggest that liquidity of the firm affects the firm's market value positively whereas high leverage inversely affects the firm performance during crisis.

show abstract

Application of Factor Analysis on the Financial Ratios of Indian Cement Industry and Validation of the Results by Cluster Analysis

Cited by 7 publications

References 0 publications

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

Applying Factor Analysis on the Financial Ratios of Turkey’s Top 500 Industrial Enterprises

Factors Affecting the Financial Performance of the Firms during the Financial Crisis: Evidence from Turkey

Contact Info

Product

Resources

About