Analysis of Trade off Between Debt and Equity of Firms in Indian Cement Industry.

Abstract

Cement industry has a huge contribution to India’s GDP and infrastructure development. Due to demand of cement new companies from outside also started functioning in our country but there are several problems which are faced by these industries. Companies are closed or merged due to lack of financial sustainability and capital structure problems. The study is based on the trade off relationship between debt and equity in the firm. In this study as a researcher, it has been tried to study and find out the relation of ROA, ROE, advantage ratios and correlation with EPS. For this, the sample size is 5 companies for BSE list (Bombay Stock Exchange) and about last ten years of data is studied. As cement industry is capital-centric in nature, this study will help the industry to understand the facts, which fulfill the financial objectives.