IDEAS home Printed from https://ideas.repec.org/a/pkp/qjoecr/v1y2015i1p1-12id2553.html
   My bibliography  Save this article

The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia

Author

Listed:
  • Muhammad Nauman Khan
  • Imran Khokhar

Abstract

The plinth emergence of infrastructures sector in the Kingdom of Saudi Arabia cardinally hinges upon the growth and development of the Cement industry. The Saudi cement industry is most cost competitive in the world due to availability of raw material and Fuel at very low prices by the government. This has encouraged the researchers to analyze the relationship between profitability and selected financial ratios of cement industry in Saudi Arabia. The research paper makes an endeavor to determine the profitability of listed cement companies in Saudi Arabia with five years accounting period from 2008 to 2012. The paper encompasses six variables, namely, Debt to Equity Ratio (DER), Inventory Turnover Ratio (ITR), Debtors’ Turnover Ratio (DTR), Creditors’ Velocity (CRSV), Total Assets Turnover Ratio (TATR) and Net profit Margin (NPM). Profitability as a dependent variable is exhibited by Net profit Margin (NPM) while the selected ratios DER, ITR, DTR, CRSV, TATR and CRSV are expressed as independent variables. Based on the findings of the study, it is cogently revealed that there is a significant relationship between the three selected ratios and Net Profit Margin (NPM) of cement companies in Saudi Arabia.

Suggested Citation

  • Muhammad Nauman Khan & Imran Khokhar, 2015. "The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia," Quarterly Journal of Econometrics Research, Conscientia Beam, vol. 1(1), pages 1-12.
    • Handle: RePEc:pkp:qjoecr:v:1:y:2015:i:1:p:1-12:id:2553
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/88/article/view/2553/3951
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Xu & Li, Runze & Liu, Jingyuan & Zeng, Mudong, 2023. "Statistical inference for linear mediation models with high-dimensional mediators and application to studying stock reaction to COVID-19 pandemic," Journal of Econometrics, Elsevier, vol. 235(1), pages 166-179.
    2. Cancio Díaz, Yudiesky & Sánchez Berriel, Sofia & Heierli, Urs & Favier, Aurélie R. & Sánchez Machado, Inocencio R. & Scrivener, Karen L. & Martirena Hernández, José Fernando & Habert, Guillaume, 2017. "Limestone calcined clay cement as a low-carbon solution to meet expanding cement demand in emerging economies," Development Engineering, Elsevier, vol. 2(C), pages 82-91.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:qjoecr:v:1:y:2015:i:1:p:1-12:id:2553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/88/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.