Abstract

The study examines the association in between key financial ratio indicators and profitability within the Indian cement industry, focusing on five leading companies selected based on their market capitalization. Purpose: The study aims to analyse the financial performance and profitability of leading Indian Cement Industries by examining the key financial indicators such as Return on Asset, liquidity that is Current Ratio, Solvency that is Debt Equity ratio and Interest Coverage Ratio. Originality: Unlike previous literature review that often focuses on isolated financial metrics, this study integrates multiple financial ratios and employs the dynamic statistical test to provide the comprehensive evaluation of profitability within India’s cement sector within a time frame financial year 2021 to 2025. Methodology: Financial data extracted from top five performing Cement Industries based on Market Capitalization are analysed. This study applied Financial Ratio Analysis along with different statistical Techniques Like Single Factor Anova and T-Test, to identify the significant differences and interrelationship among Profitability Liquidity and Solvency analysis indicators. Findings: Results indicate the significant variations across the selected companies in their financial performance, highlighting the critical role of debt management and liquidity efficiency to determine the profitability. These findings emphasize the significant heterogeneous financial strategies adopted by the concerned cement firms in a same industry. Relevance: The study offers the valuables for Investors, Stakeholders, Corporate managers and Policymakers aiming to enhance the financial decision making and strategic planning in the cement industry which may contribute the operational efficiency sustainability and competitiveness.