ASSESING THE IMPACT OF CASH TURNOVER, RECEIVABLES TURNOVER, INVENTORY TURNOVER, CURRENT RATIO AND DEBT TO EQUITY RATIO ON PROFITABILITY OF STEEL COMPANIES WITH SPECIAL REFERENCE TO JSW STEEL LTD

Abstract

This research aimed to find out the impact of cash turnover, receivables turnover, inventory turnover, current ratio and debt-equity ratio on profitability of steel companies with special reference to JSW Steel Ltd. Of last 5 years i.e. 2017 to 2021. Cash turnover ratio is used to determine the proportion of cash required to generate sales; inventory turnover ratio is an efficiency ratio that measures how efficiently inventory is managed. Methods of data analysis used in this study was multiple linear regression using SPSS. The result showed that cash turnover does not have significant effect on the profitability. Receivables turnover, inventory turnover, Current Ratio and Debt-Equity Ratio has positively significant effect on the profitability. The research also finds that between the ‘Return on Assets’ and all independent variables i.e. Cash turnover Ratio, Accounts Receivables turnover ratio, inventory turnover ratio, debt equity ratio & Current Ratio because the value of durbin Watson test lies between the value 2 to 4.