Performance Evaluation of Manufacturing Companies
Date
2024
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Shanker Dev Campus
Abstract
This study aimed to analyze the performance evaluation of manufacturing companies of
Nepal. To achieve the specific objective of the study, descriptive and causal comparative
research has been carried out. The study is conducted using panel data of three
manufacturing companies of Nepal for the period 2012/13 to 2021/22. The dependent
variable is profitability Return on Assets (ROA) and Earnings per Share (EPS) while the
independent variables are total assets, total revenue, total cost and debt ratio. For the
purpose of this study, the secondary data have been used. Regression analysis is used as a
major tool of analysis. ROA is negatively impacted by total assets, total revenue and debt
ratio, where total revenue and debt ratio is not significant even at 10% level of
significance, but total assets which is negatively significant even at 5% level of
significance.
The value of R-square is 49.31%, the P-value of regression is 0.0036 which is statistically
significant at 0.05 level of significance. So, there is linear relationship of ROA with total
assets, total revenue, total cost and debt ratio. As per the result of earnings per share, the
value of R2
of ROA and EPS is 49.31% and 74.86%, the P-value of regression is 0.0036
and 0.000 which is statistically significant at 1% and 5% level of significance. There is
significant impact of total assets on Earning per share but insignificant impact of total
revenue, total cost and debt ratio on earning per share of manufacturing companies. The
results of the study could help companies and policymakers to take an effective action in
order to improve performance and profit of manufacturing companies.