Determinants Of Profitability-A Firm Level Study Of Steel Authority Of India Limited

Dr.K. Aparna

Abstract


Profit is the indicator of the efficiency of every business unit. The higher the profit, the more will be the efficiency of the business unit. Profits indicate the efficiency with which a business unit utilizes its funds. In addition to appropriate usage of investment, profit is affected by number of variables. An attempt is made in the present study to identify and analyze determinants of profitability of Steel Authority of India. The variables selected for the present study are size, growth, liquidity, leverage and productivity. The data is analyzed by using correlation and regression techniques through SPSS. It is found that the size, leverage and productivity have shown a negative correlation with profitability and the variables growth and liquidity have shown a positive correlation with profitability. The regression analysis shows that productivity and size are the prominent variables in explaining the profitability of SAIL. However the significance of size is negative. Finally, 98.1 per cent (R2 value) of variation is caused in the profits of SAIL by these five independent variables.

Keywords


Profitability, Determinants of Profitability, SAIL, Correlation and Regression.

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