Assessment of Efficiency of Public Factoring Companies in India

International Journal of Business and Globalisation, 2020

Indian banking sector and IT sector have undergone metamorphic changes amidst reforms. The efficiency, effectiveness and productivity in the banking and IT sector depict the transformation visa -vis the reforms. The present study examines the effect of operating efficiency on valuation of firm in context of Indian banking sector and IT sector. The authors have done a pilot study comprising of 15 banks and 15 IT companies over a time span of 2005 to 2015. Panel data analysis has been employed to examine the main objective of research. The independent variable, operating efficiency, is proxied by six financial ratios (FATO, ROCE, EV, NPM, QOI and EV/sales) and enterprise value acts as dependent variable. The study concludes that the fixed asset turnover (FATO) ratio and return on capital employed (ROCE) gives negative relation with enterprise value (EV) in banking sector whereas in IT sector similar trend is indicated by fixed asset turnover ratio.

2017

The present paper investigates the impact of operating efficiency on firm valuation for two economic sectors fast moving consumer goods (FMCG) and pharmaceutical sectors in India. The study considers 30 Indian firms from the period of 2005 to 2015. To examine the effect, six financial ratios are considered as proxy for operating efficiency and enterprise value (EV) as proxy for firm value. We employ panel data analysis to explore the relationship of dependent and independent variable. The results report that fixed asset turnover ratio (FATO) and net profit margin indicates negative relation with EV in pharmaceutical sector and EV/Sales and FATO confirms negative relation with EV for FMCG sector. The empirical results will act as guidelines for the valuation analysts for implication of new valuation variables by replacing conventional variables. Moreover, the study implies that value creation is more significant to current performance as compared to past performance.

The Indian FMCG sector is the fourth largest in the Indian economy and has a market size of $13.1 billion. In today's challenging and competetive environment, optimum utilization of financial resources is an integral part of the overall corporate startegy to maximize the value of the firm. Adoption of differnt forms of corporate restructuting process both at the national and international levels have become a common phenomenon in this industry. So, the task of crafting effective strategies for managing the assets in accomplishing the objectives of maximizing shareholders' wealth of companies in the Indian FMCG industry is of perennial importance. In this backdrop, the present study seeks to analyze the impact of efficiency of asset managment on corporate profitablity of 15 selected companies in Indian FMCG industry during the period 1995-96 to 2011-12. While satisfying the objective of the study relevent statistical tools and techniques were applied at appropriate places. The findings of the study revealed that the different measures indicating efficiency of shortterm and longterm assets managment had significant positive impact on corporate profitablity.

2019

ABSTRACT<br> Purpose – This paper aims to analyse the efficiency level of selected private sector banks in India.<br> Design/methodology/approach – Data envelopment analysis has been used to measure the efficiency of banks, in which<br> technical, allocative and cost/economic efficiency measures are analysed to know the efficiency of banks.<br> Findings - The empirical evidence suggests that ICICI and Kotak Mahindra banks are the most efficient banks in terms of all<br> three efficiency measures with the mean score of 100 percent. It implies that remaining banks are managerially inefficient<br> due to failure to use the available resources at optimum level.<br> Originality/values – The paper compares the efficiency of selected private sector banks by utilizing the available data set for<br> the period 2013-18.

International Journal of Business Excellence, 2020

The aim of this study is to empirically investigate the factors that affect the profitability of 1,308 listed firms operating in Bombay Stock Exchange (BSE) in India for the time period from 2011 to 2018. The research uses (pooled, fixed and random effect) models. Profitability is the dependent variable measured by three indicators which are return on equity (ROE) and earning per share (EPS). Liquidity (CR), leverage (LEV), company efficiency (CEFF), firm size (FSIZE), and working capital (WC) are considered as independent variables. The results of the study show that leverage, company efficiency, and firm size have a strong relationship with profitability measured by ROE. The results also reveal that company efficiency and firm size have a positive association with firms' profitability measured by ROE and EPS. The current research has three practical implications. First, it seeks to fill an existing gap in the literature of listed firms' profitability in Indian firms. Second, it provides new empirical evidence using different statistical analysis tools as a methodological contribution and used new variables. Finally, the present study brings useful insights and empirical evidence on the factors affecting profitability of Indian listed companies which are very beneficial for both internal users and external.

Review of Professional Management, 2022

Financial system plays an important role in an economy. The banking sector in India has been undergoing reforms for a long time with the aim to develop competitiveness, increase inclusiveness, create big-sized banks and improve operational efficiency. The present investigation looks at the efficiency of the public sector banks for the period 2012–2018, using data envelopment analysis under the assumption of constant returns to scale. The two-input, two-output model is used to determine the efficiency levels on the basis of Minimum Distance to Strong Efficient Frontier as proposed by Aparicio et al. (2007). In order to capture the effect of non-performing assets (NPAs), efficiency is computed under the restricted (with NPAs not included) and unrestricted model (with NPAs considered as an undesirable output). The study finds that majority of the banks have been consistently performing quite well compared to their peers and overall industry. The correlation in the ranking of banks unde...

Jurnal Ekonomi

This study aims to analyze the effect of financial ratios on company efficiency. This study was conducted using a data sample of 29 manufacturing companies in the various industrial sub-sectors listed on the Indonesia Stock Exchange (IDX) within a reporting period of 5 years (2016 – 2020). The sampling technique uses purposive sampling and uses panel data regression analysis methods. The independent variables in this study consist of leverage, tangibility, working capital, liquidity, productivity, and profitability, while the dependent variable is firm efficiency. The results show that leverage, tangibility, liquidity, and productivity have a significant negative effect on firm efficiency, while working capital, gross profit, and return on equity have no effect on firm efficiency. This finding is expected to be a reference for manufacturing companies in the various industrial sub-sectors in improving company efficiency.

2021

Earning quality of the bank reflects the quality of its profitability and its ability to maintain quality and earning consistently. Efficiency shows the bank’s adherence with set norms, ability to plan and respond to changing environment and administrative capability. The purpose of this study is to analyze the financial data of five Indian public sector banks for the financial period 2009-10 to 2013-14 with a view to examining profitability and efficiency and overall performance of the banks based on these two categories only i.e. profitability and efficiency. The study found that that there was statistically significant difference in profitability and efficiency of the selected Indian public sector banks. Due to significantly higher NP margin as well as higher RONW, BOB was at the first position followed by SBI, SYN, UCO and IOB. Due to significantly higher NII and NNII as well as efficiently controlled IE; SBI occupied first position closely followed by BOB, IOB, SYN and UCO.

Indian Journal of Applied Research, 2011

SSRN Electronic Journal, 2011

The paper examines the working capital management practices and cash flow statement of wellknown firms in Fast-Moving Consumer Goods (FMCG) industry in India. The present study is focused on Hindustan Unilever Limited (HUL) and Godrej Consumer Products Limited (GCPL) as these companies are reputed in FMCG sector.The study is an attempt to analyze and evaluate working capital management practices through various parameters like; current ratio, quick ratio, inventory turnover ratio debtor's turnover ratio and fixed asset turnover ratio etc. The Cash flow analysis is conducted with the help of indirect cash flow method. The necessary data has been collected for the period of six years from financial year 2012-13 to financial year 2017-18 for working capital management whereas data has been collected for the period of five years from financial year 2013-14 to financial year 2017-18 for cash flow statement.