Abstract: In this research article author has selected 15 public limited listed companies out of 55 member companies of Gujarat State Plastics Manufacturing Association, Gujarat, India and collected 10 years i.e. (2001-2010) financial data. And found out 14 various composite ratios. Such composite ratios have been worked out using weighted mean. Since the companies included in the sample have variable size in terms of its paid-up capital, it is very important to use ‘paid-up’ capital of that company as weight and find weighted mean of the ratios to arrive at composite ratio for the industry because in such cases weighted mean provides more efficient estimate than the mean does. To analyse financial performance of plastic industry of Gujarat (India) researcher have used weighted mean as statistical technique and applied one way Analysis of Variance (ANOVA) to test whether there is significant difference in the financial performance of Plastic Industry of Gujarat among the selected years i.e. during study period. Overall picture of the industry in terms of net profit margin ratio during the first half of the decade was steadily improving and was not stable in the second half of the decade as it was moving up and down every alternate year.
Keywords: Plastics Industry, Financial Analysis, Composite Ratios, Weighted Mean, Analysis of Variance, Liquidity, Profitability, Activity, Solvency Ratios.
Title: Analysis of Financial Performance of Plastic Industry of Gujarat (India) During 2001-2010
Author: Dr. Harshad Tandel
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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