A Study of Relationship Between Financial Leverage and Profitability in Indian Steel Industry
Journal Title: IMPACT : International Journal of Research in Humanities, Arts and Literature ( IMPACT : IJRHAL ) - Year 2018, Vol 6, Issue 8
Abstract
Financial leverage refers to the use of debt capital in the total capital structure of a business concern. This study examined the relationship between financial leverage and profitability in Indian Steel Industry. Two leading steel manufacturing companies- Steel Authority of India Limited (SAIL) and Tata Steel Limited- were selected for the study purpose. This study used secondary sources of information such as Annual Reports of selected companies. It was found in this study that there was a highly negative correlation between financial leverage and profitability in Indian Steel Industry. Hence, Indian Steel Industry needs to reduce its debt capital in order to increase its profitability.
Authors and Affiliations
PRADEEP KUMAR
Keywords
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