Impact of Return on Capital Employed On Company Performance – An Introspection in India
Journal Title: Saudi Journal of Business and Management Studies - Year 2017, Vol 2, Issue 9
Abstract
Abstract:Estimating a company’s sustainable profitability is a big challenge to investors. A profitable company yielding a steady revenue stream with modest capital expenditure has the ability to compound shareholder wealth at an attractive rate over time. Even though many studies have been conducted, most companies strive to provide competitive returns. The golden path of being profitable has not yet been revealed. Selected 15 Sensex Companies standing as leading players are expected to provide considerable support to empower the efforts of the Indian Government. On this backdrop, the present study aims at focussing and assessing the efficacy of the performance of the selected Sensex Companies with the help of the most appropriate accounting-based measure of profitability i.e. Return On Capital Employed (ROCE) from 2012 to 2017. The empirical study reveals that companies have not been able to increase revenue and ROCE simultaneously and they are not also compatible in comparison with the global capital market. Keywords:Sustainable Profitability, Return On Capital Employed, Sensex Companies, Steady Revenue Stream, Shareholder Wealth
Authors and Affiliations
Pradip Kumar Das
Keywords
Related Articles
- EP ID EP395878
- DOI -
- Views 152
- Downloads 0
Low Conservation Approach against Modifiable Risk Factors Stands To Be the BiggestChallenge Confronted by Pakistan Healthcare Sector
Abstract:Health status of the Pakistan population is growing aggravated. Incorporation of insalubrious regimen characterize by sedentary lifestyle, unhealthy intakes embracing tobacco products, soft drinks, junk food, ma...
Cash Management Practices on Financial Performance of Small and Medium Enterprises in Nyeri Town, Kenya
Abstract: Small and Medium Enterprises (SMEs) lack adequate skills to manage and monitor their cash management practices leading to limited financial growth hence inability to compete while increasing their assets, openi...
Exploring the Success Factors for Post-Retirement Entreprenurship
AbstractWorried by the seemingly unending plight of retirees after years of active service to their father land, the Federal Government of Nigeria began tinkering on elderly entrepreneurship as a sure way out. Certain cr...
Documenting empirical research in Economics: why is it important and how is it done?
Abstract: One of the main challenges facing economic researchers across the globe, especially empirical researchers in developing economies, is how to document their work. Indeed, numerous scholarly contributions are rej...
Preparatory School Students’ Perception toward TVET and its Contribution to Socio- Economic Status: The Case of Selected Districts in Amhara Regional State, Ethiopia
Abstract: The purpose of this study was to assess the general perception about TVET, and its contribution to socio-economic status in preparatory school students of Amhara Regional State. To attain this objective descri...