Profitability Analysis

Abstract

Profit test is more than a conventional test of economic efficiency. It has a direct bearing on the company’s ability to function as a successful business firm. Further, the company’s ability to tap capital markets and/or other sources of finance (for its growth and additional requirements) would depend on its commercial profitability.

Given the significance of financial viability of business operations, the objective of this chapter is to assess the financial performance of the sample companies primarily in terms of profitability with a special focus on the pre- and postrecession period. In other words, financial management of resources in terms of profitability constitutes, by far, the most important element of operational efficiency and hence the significance to study this aspect. Further, to the best of the authors’ knowledge, an analysis of the impact (if any) of the recent recession on such a large sample has not been undertaken. Analysis that follows seeks to answer such basic questions with respect to the sample companies as the following: (a) Are their profits adequate? (b) What rates of return do they earn? (c) Are their returns to equity owners satisfactory?

To begin with, the basic components of profits, namely, gross profit and net profit are determined for the sample companies for the entire 11-year period (2001–2011) of the study (subdivided into four phases). Then three sets of rates of return (RoR) have been computed. These are (a) return on total assets (ROTA), (b) return on capital employed (ROCE) and (c) return on ordinary shareholders’ equity (ROSE). The first two rates of return highlight how efficiently financial resources are deployed by the sample companies; the RoR on the common shareholders’ equity indicates the return provided to their equity owners. Given the positive nexus between the effective utilisation of assets and profitability, the analysis has been extended to compute major efficiency ratios, namely, total assets turnover, fixed assets turnover and current assets turnover of the sample companies.

Profitability of the sample companies (measured through gross profit and net profit), prima facie, appears to be stable and attractive (as an investment choice). Though the recession in phase 4 (2009–2011) did witness some fluctuations in the profitability of certain constituent sectors like the metals sector, in contrast, select sectors like housing and power increased profits in a statistically significant manner; overall, the sample seems to have emerged unscathed from the impact of the recession, perhaps due to its strong management fundamentals. The other aspects of profitability, namely, return on total assets (ROTA), return on capital employed (ROCE) and earnings for equity owners (reflected in ROSE) appear to be equally satisfactory. All in all, not only are the sample companies deploying funds efficiently and providing adequate returns to the capital providers, they are working towards generating better returns for their shareholders. These findings are notable as well as they support the RBI’s views on the resilience of the Indian economy.

In terms of efficiency, the sample companies appear to be doing a commendable job as well. However, there appears to be some scope for improvement in the TATR figures. The sample companies, being amongst the largest in the country, can afford to manage assets better with improved processes and technology.

Appendices

Appendices

Appendix 9.1: Mean, median and quartile values of gross profit percentage of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Power	38.23	30.97	18.79	61.59	41.36	32.38	22.13	57.34
Internet and communications technology (ICT)	33.14	35.00	28.51	39.18	33.30	29.09	22.03	36.52
Metals	26.65	22.46	12.60	37.47	32.26	26.28	15.70	42.03
Oil and gas	25.06	20.24	8.23	38.95	28.01	18.95	6.37	45.22
Transport	21.58	19.53	12.26	27.55	24.89	20.67	14.66	31.14
Healthcare	20.40	18.54	15.52	25.13	28.46	26.07	20.35	36.09
Diversified	17.78	13.69	6.00	20.93	15.10	13.16	8.29	17.40
Miscellaneousa	17.13	13.91	9.70	20.00	23.00	15.91	11.35	30.00
Housing	16.91	12.80	8.52	17.59	31.49	26.98	14.17	42.85
Fast-moving consumer goods (FMCG)	15.65	15.98	6.99	18.94	18.69	18.23	13.45	22.71
Capital goods	11.43	10.27	6.81	13.86	14.93	13.66	11.33	18.29

1. ^aMiscellaneous sectors comprises of the media and publishing sector, agriculture, chemicals and petro-chemicals, tourism, textiles and miscellaneous sectors

Paired samples t-test of constituent sectors of the sample companies based on gross profit percentage over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Healthcare	−4.535	13	0.001
Power	−5.306	8	0.001
Capital goods	−3.195	12	0.008
Housing	−2.913	16	0.010
Miscellaneous	−2.307	15	0.036
FMCG	−2.359	11	0.038
Metals	−1.812	17	0.088
Transport	−1.562	16	0.138
Oil and gas	−0.778	13	0.451
ICT	−0.712	16	0.487
Diversified	−0.678	8	0.517

Appendix 9.2: Mean, median and quartile values of gross profit percentage of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Power	41.06	27.90	19.04	61.10	41.56	35.37	24.19	54.83
Metals	36.07	30.75	18.76	48.31	29.72	23.30	13.65	37.83
Housing	33.23	29.58	17.67	44.46	30.33	25.25	11.84	41.79
ICT	31.25	28.64	22.12	34.69	34.66	29.40	21.97	37.74
Healthcare	28.70	24.69	20.19	35.00	28.30	26.99	20.46	36.82
Oil and gas	26.44	18.21	7.86	44.39	29.06	19.45	5.39	45.78
Transport	26.39	22.12	14.34	34.36	23.88	19.71	14.87	28.99
Miscellaneous	24.05	16.29	11.97	34.92	22.29	15.66	10.94	26.58
Diversified	20.14	18.83	11.67	25.26	11.74	9.38	6.05	12.17
FMCG	19.28	18.96	15.25	21.19	18.29	17.74	12.24	23.72
Capital goods	16.11	13.95	12.63	19.50	14.13	13.47	10.46	17.48

Paired samples t-test of constituent sectors of the sample companies based on gross profit percentage over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Power	−4.995	10	0.001
Metals	3.665	17	0.002
Housing	2.900	15	0.011
Diversified	1.761	7	0.122
Capital goods	1.626	11	0.132
Miscellaneous	1.386	15	0.186
Transport	1.366	17	0.190
Oil and gas	−1.131	14	0.277
FMCG	0.576	11	0.576
ICT	−0.315	17	0.757
Healthcare	0.285	13	0.780

Appendix 9.3: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on gross profit percentage over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	21.310	0.000	18.466	0.000
Power	19.894	0.000	26.525	0.000
Healthcare	5.116	0.032	0.024	0.877
Housing	4.987	0.032	0.122	0.729
Capital goods	4.317	0.049	0.717	0.406
Metals	1.145	0.292	0.756	0.391
FMCG	1.060	0.314	0.116	0.737
Miscellaneous	0.842	0.366	0.105	0.748
ICT	0.431	0.516	0.007	0.936
Oil and gas	0.312	0.581	0.177	0.677
Transport	0.190	0.665	0.204	0.655
Diversified	0.053	0.822	2.993	0.104

Appendix 9.4: Mean, median and quartile values of net profit percentage of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
ICT	21.55	23.38	18.13	28.45	22.40	21.21	13.66	26.88
Power	21.13	18.87	8.33	32.74	24.68	20.38	12.05	36.35
Metals	14.52	11.87	6.36	23.24	20.87	15.93	10.16	24.50
Healthcare	14.32	13.29	9.46	18.82	20.31	17.33	13.77	27.62
Transport	11.53	9.66	5.96	15.34	13.63	10.32	7.07	18.24
Oil and gas	11.22	10.13	3.42	17.80	16.00	11.87	3.70	24.84
FMCG	10.07	10.03	4.89	12.34	12.13	12.32	7.97	17.02
Miscellaneous	9.70	7.34	4.31	12.22	13.60	8.67	5.84	19.06
Capital goods	7.05	6.07	4.07	8.50	9.84	8.62	7.09	12.34
Housing	6.71	5.74	4.07	7.67	21.41	15.14	8.62	27.46
Diversified	5.49	3.24	1.41	7.70	7.29	6.85	4.71	9.69

Paired samples t-test of constituent sectors of the sample companies based on net profit percentage over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Healthcare	−3.610	13	0.003
Capital goods	−3.158	12	0.008
Housing	−3.053	16	0.008
Metals	−2.576	17	0.020
Miscellaneous	−2.572	15	0.021
FMCG	−1.769	11	0.105
Oil and gas	−1.039	13	0.318
Diversified	−0.945	8	0.372
Transport	−0.692	16	0.499
ICT	−0.511	15	0.617
Power	−0.356	10	0.730

Appendix 9.5: Mean, median and quartile values of net profit percentage of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Housing	27.09	18.90	12.02	35.83	17.63	12.63	6.35	21.87
Power	23.89	18.78	10.79	36.92	25.20	21.45	12.89	35.96
ICT	22.73	19.98	13.88	25.72	22.18	22.04	13.52	27.66
Metals	21.52	16.81	10.72	25.96	20.44	15.35	9.79	23.52
Healthcare	19.72	17.30	12.99	26.47	20.70	17.36	14.30	28.39
Miscellaneous	14.68	8.32	6.62	22.34	12.89	8.91	5.33	16.87
Transport	14.65	11.22	7.92	21.71	12.95	9.72	6.49	15.94
Oil and gas	14.28	11.98	3.79	22.79	17.13	11.79	3.65	26.21
FMCG	11.89	12.30	8.88	15.62	12.29	12.33	7.37	17.96
Capital goods	10.74	8.51	7.44	14.30	9.24	8.70	6.86	11.04
Diversified	8.78	7.42	5.26	13.09	6.29	6.47	4.35	7.42

Paired samples t-test of constituent sectors of the sample companies based on net profit percentage over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Housing	2.138	16	0.048
Diversified	1.718	8	0.124
Miscellaneous	1.429	15	0.173
Capital goods	1.326	12	0.210
Metals	0.980	16	0.342
Transport	0.961	17	0.350
Oil and gas	−0.932	13	0.368
Healthcare	−0.812	13	0.432
ICT	0.755	16	0.461
Power	−0.067	10	0.948
FMCG	−0.054	11	0.958

Appendix 9.6: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on net profit percentage over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	3.510	0.000	5.260	0.000
Housing	5.091	0.031	1.567	0.219
Healthcare	3.520	0.072	0.077	0.783
Capital goods	3.037	0.094	0.773	0.388
Metals	2.352	0.134	0.001	0.975
Oil and gas	1.564	0.221	0.277	0.603
FMCG	0.881	0.358	0.001	0.974
Miscellaneous	0.830	0.370	0.168	0.685
Diversified	0.273	0.609	0.936	0.348
Transport	0.198	0.659	0.274	0.604
ICT	0.036	0.850	0.251	0.620
Power	0.003	0.960	0.103	0.752

Appendix 9.7: Mean, median and quartile values of return on total assets (rota) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
FMCG	17.86	10.98	8.00	25.63	16.80	15.42	8.02	24.15
Healthcare	16.76	16.52	10.47	21.02	17.00	15.98	11.83	21.72
Capital goods	16.68	17.16	12.07	21.43	22.00	22.62	16.02	30.53
ICT	15.42	15.47	5.73	26.46	15.02	14.15	7.43	22.45
Oil and gas	14.65	13.74	6.30	20.88	11.70	9.63	5.85	17.28
Transport	13.95	13.46	9.94	17.47	14.93	14.10	8.33	19.89
Metals	12.45	10.99	7.01	19.82	15.43	11.87	7.89	20.64
Miscellaneous	11.45	9.52	5.89	14.82	12.61	9.56	6.45	14.98
Housing	9.41	8.60	6.45	11.87	11.14	9.53	7.23	14.73
Diversified	9.14	9.68	7.11	12.65	8.71	10.29	4.21	13.30
Power	7.31	7.34	4.44	10.42	6.45	6.41	4.04	8.48

Paired samples t-test of constituent sectors of the sample companies based on Return on Total Assets (ROTA) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Capital goods	−2.372	12	0.035
FMCG	−2.036	7	0.081
Metals	−1.375	17	0.187
Housing	−1.062	16	0.304
Miscellaneous	−0.714	15	0.486
Diversified	−0.578	8	0.579
Healthcare	−0.399	13	0.697
Power	−0.148	12	0.885
Transport	−0.110	16	0.914
Oil and gas	0.066	14	0.948
ICT	−0.038	17	0.970

Appendix 9.8: Mean, median and quartile values of return on total assets (ROTA) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	25.22	25.90	18.30	33.63	19.85	20.43	14.50	28.47
Metals	18.31	13.59	9.67	26.53	13.50	10.71	6.71	16.72
Healthcare	18.14	16.57	11.63	22.81	16.24	15.59	11.95	21.00
Transport	16.76	16.47	12.06	20.30	13.71	12.53	5.85	19.61
ICT	16.43	13.15	8.66	24.35	14.08	14.82	6.62	21.18
Housing	13.88	11.01	7.76	21.32	9.31	8.54	6.87	10.33
FMCG	13.45	9.37	7.78	18.69	19.03	19.45	8.17	27.79
Oil and gas	13.17	10.52	5.63	18.95	10.72	9.04	6.00	16.16
Miscellaneous	11.62	10.00	5.98	14.11	13.26	9.28	6.77	15.56
Diversified	9.91	11.75	5.09	16.49	7.90	9.32	3.63	11.17
Power	6.63	6.44	4.00	9.32	6.32	6.39	4.06	7.93

Paired samples t-test of constituent sectors of the sample companies based on Return on Total Assets (ROTA) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Housing	4.098	17	0.001
Capital goods	3.095	11	0.010
Diversified	3.172	8	0.013
Metals	2.493	17	0.023
Transport	2.076	17	0.053
Healthcare	1.867	12	0.087
Miscellaneous	−1.305	15	0.212
ICT	1.220	16	0.240
FMCG	−0.749	6	0.482
Oil and gas	0.506	14	0.621
Power	−0.163	12	0.873

Appendix 9.9: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on return on total assets (ROTA) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	5.181	0.000	5.843	0.000
Capital goods	3.592	0.070	3.109	0.091
Metals	1.158	0.289	1.740	0.196
Housing	0.624	0.435	4.107	0.051
Miscellaneous	0.202	0.656	0.354	0.556
Healthcare	0.140	0.712	0.459	0.504
Transport	0.115	0.737	0.749	0.393
Diversified	0.095	0.761	0.386	0.543
Oil and gas	0.054	0.818	0.566	0.458
FMCG	0.015	0.903	1.233	0.285
Power	0.008	0.929	0.018	0.893
ICT	0.001	0.979	0.282	0.599

Appendix 9.10: Mean, median and quartile values of return on capital employed (ROCE) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Healthcare	18.49	18.04	11.77	23.48	18.69	17.69	12.60	24.98
Capital goods	18.35	17.04	12.49	23.67	21.74	21.36	16.22	28.82
FMCG	16.64	10.65	7.73	22.99	17.94	17.24	8.92	25.41
ICT	14.86	14.05	5.61	25.44	14.95	14.82	7.62	22.61
Transport	14.32	13.57	10.16	18.03	15.08	14.79	8.97	20.19
Oil and gas	13.60	14.39	6.28	19.04	11.59	10.74	6.32	17.18
Metals	12.70	11.38	7.32	19.66	15.53	13.03	8.38	21.10
Miscellaneous	12.58	10.38	6.77	17.46	14.43	11.93	6.85	19.51
Diversified	9.90	9.79	7.20	13.57	10.55	8.73	3.03	14.33
Housing	9.89	8.99	6.57	12.23	12.89	11.02	7.48	17.44
Power	8.24	7.25	4.06	10.18	6.61	6.52	4.20	9.27

Paired samples t-test of constituent sectors of the sample companies based on Return on Capital Employed (ROCE) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
FMCG	−2.352	8	0.047
Housing	−1.951	16	0.069
Metals	−1.324	17	0.203
Capital goods	−1.034	12	0.322
Miscellaneous	−0.868	15	0.399
Power	0.686	12	0.506
Oil and gas	−0.581	14	0.571
Diversified	−0.579	8	0.578
ICT	−0.158	17	0.877
Healthcare	−0.144	13	0.887
Transport	−0.047	16	0.963

Appendix 9.11: Mean, median and quartile values of return on capital employed (ROCE) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	26.60	26.38	20.67	33.99	18.50	18.02	13.25	25.36
Healthcare	20.10	18.31	13.36	26.26	17.75	17.28	12.10	24.12
Metals	17.70	13.88	9.34	24.36	14.09	12.46	7.74	18.94
Transport	16.79	17.48	12.04	21.16	13.95	13.00	6.93	19.54
ICT	15.74	13.11	7.37	23.39	14.43	15.96	7.79	22.09
Housing	14.58	12.84	8.10	22.58	11.77	9.80	7.07	14.02
FMCG	14.49	9.86	8.47	20.26	20.23	22.15	9.22	28.84
Miscellaneous	13.11	12.82	6.45	15.76	15.31	11.35	7.11	22.01
Diversified	12.05	10.05	4.74	17.37	9.54	7.85	1.89	12.30
Oil and gas	11.13	9.66	5.20	17.02	11.89	11.46	7.06	17.29
Power	6.00	5.91	3.37	9.21	7.02	6.92	4.76	9.30

Paired samples t-test of constituent sectors of the sample companies based on Return on Capital Employed (ROCE) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Capital goods	3.872	12	0.002
Metals	2.889	17	0.010
Diversified	2.518	8	0.036
Transport	1.798	17	0.090
Healthcare	1.737	13	0.106
Housing	1.593	17	0.130
Power	−1.554	13	0.144
Miscellaneous	−1.378	15	0.188
Oil and gas	−1.235	14	0.237
ICT	0.692	16	0.499
FMCG	−0.718	6	0.500

Appendix 9.12: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on return on capital employed (ROCE) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	5.152	0.000	5.979	0.000
Housing	2.256	0.143	1.405	0.244
Capital goods	1.155	0.293	6.406	0.018
Metals	0.973	0.331	2.184	0.149
Power	0.726	0.402	0.747	0.395
FMCG	0.412	0.529	0.472	0.503
Miscellaneous	0.378	0.544	0.360	0.553
Transport	0.106	0.746	0.648	0.427
Diversified	0.088	0.771	0.293	0.596
ICT	0.009	0.924	0.094	0.761
Healthcare	0.009	0.926	0.582	0.453
Oil and gas	0.001	0.976	0.002	0.969

Appendix 9.13: Mean, median and quartile values of return on shareholders’ equity (ROSE) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
ICT	26.87	16.72	7.70	27.51	19.31	19.97	9.95	27.77
FMCG	21.85	15.25	9.57	28.74	20.31	18.59	8.60	28.80
Healthcare	21.21	21.26	14.70	26.97	21.14	21.39	16.04	27.53
Oil and gas	20.42	20.73	15.21	24.72	16.03	16.07	12.00	21.31
Capital goods	18.12	17.01	11.98	24.26	22.02	23.13	17.23	28.67
Transport	16.28	16.66	12.23	21.34	17.67	18.93	10.89	23.15
Metals	14.78	15.42	11.27	18.70	18.94	19.44	12.83	24.30
Miscellaneous	14.09	14.89	8.49	21.04	15.69	16.99	10.58	21.04
Housing	12.10	12.37	7.65	17.50	15.30	12.89	8.63	22.12
Diversified	10.70	10.23	6.89	15.57	13.43	12.40	3.10	20.83
Power	10.12	10.45	8.07	12.58	9.18	9.81	6.28	12.26

Paired samples t-test of constituent sectors of the sample companies based on Return on Shareholders’ Equity (ROSE) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Housing	−1.425	16	0.173
Capital goods	−1.008	12	0.334
Miscellaneous	−0.768	15	0.454
ICT	0.743	17	0.468
Metals	−0.671	17	0.512
Power	0.660	10	0.524
Oil and gas	−0.622	14	0.544
Diversified	−0.622	8	0.551
Healthcare	0.470	13	0.646
FMCG	−0.364	9	0.724
Transport	0.114	16	0.911

Appendix 9.14: Mean, median and quartile values of return on shareholders’ equity (ROSE) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	27.31	26.81	24.27	33.99	18.50	20.69	12.54	25.12
Healthcare	24.33	23.98	19.48	29.05	19.01	19.66	13.75	26.51
Metals	23.13	23.82	17.55	28.98	16.15	16.53	9.68	21.18
Transport	21.36	22.73	16.82	24.95	15.21	16.40	6.93	21.95
ICT	21.10	20.29	10.82	29.39	18.12	19.76	9.37	26.70
Housing	20.49	16.15	9.83	31.90	11.84	10.73	7.82	15.60
Oil and gas	18.38	19.32	14.94	23.26	13.84	14.53	10.04	20.02
FMCG	16.91	14.57	8.96	22.20	22.58	21.27	8.36	33.21
Diversified	16.07	14.61	4.81	24.13	11.67	10.93	1.96	18.63
Miscellaneous	15.66	16.57	11.75	21.00	15.71	17.27	9.81	21.07
Power	9.66	10.31	6.39	12.81	8.86	9.48	6.20	11.90

Paired samples t-test of constituent sectors of the sample companies based on return on rhareholders’ equity (ROSE) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Housing	3.852	17	0.001
Metals	4.229	17	0.001
Capital goods	3.760	12	0.003
Transport	2.919	17	0.010
Healthcare	2.514	13	0.026
ICT	1.912	15	0.075
Diversified	1.842	8	0.103
Oil and gas	1.103	14	0.289
FMCG	0.540	6	0.609
Miscellaneous	−0.286	15	0.779
Power	0.276	10	0.788

Appendix 9.15: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on return on shareholders’ equity (ROSE) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	2.194	0.018	3.333	0.000
Housing	1.377	0.249	7.073	0.012
Capital goods	1.255	0.274	6.465	0.018
Power	0.541	0.470	0.158	0.695
ICT	0.445	0.509	0.242	0.626
Miscellaneous	0.306	0.584	0.021	0.885
Metals	0.277	0.602	4.796	0.035
Diversified	0.242	0.630	0.626	0.441
Transport	0.151	0.700	2.122	0.154
Healthcare	0.096	0.759	3.037	0.093
Oil and gas	0.027	0.870	0.641	0.430
FMCG	0.000	0.998	0.944	0.347

Appendix 9.16: Mean, median and quartile values of total assets turnover ratio (TATR) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	2.51	2.47	1.94	2.88	2.24	2.23	1.39	3.16
FMCG	2.03	1.57	0.97	3.01	1.62	1.14	0.77	2.01
Oil and gas	1.96	1.19	0.60	3.31	1.89	1.38	0.29	3.43
Transport	1.56	1.52	0.83	1.94	1.48	1.44	0.39	2.15
Diversified	1.40	0.94	0.51	1.38	1.39	0.90	0.45	1.64
Healthcare	1.10	1.04	0.87	1.28	0.83	0.82	0.68	0.99
Housing	1.08	0.93	0.67	1.35	0.70	0.71	0.23	1.10
Metals	0.97	0.88	0.62	1.22	0.83	0.70	0.56	1.06
Miscellaneous	0.92	0.93	0.59	1.23	0.67	0.62	0.50	0.82
ICT	0.87	0.74	0.46	1.26	0.87	0.73	0.50	1.12
Power	0.53	0.41	0.23	0.56	0.51	0.32	0.11	0.49

Paired samples t-test of constituent sectors of the sample companies based on Total Assets Turnover Ratio (TATR) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Healthcare	3.967	13	0.002
Housing	2.956	16	0.009
Diversified	1.685	8	0.130
FMCG	−1.518	9	0.163
Power	1.494	10	0.166
Metals	1.423	17	0.173
Miscellaneous	1.338	15	0.201
Transport	0.977	16	0.343
Capital goods	0.929	12	0.371
Oil and gas	−0.783	13	0.448
ICT	0.258	16	0.799

Appendix 9.17: Mean, median and quartile values of total assets turnover ratio (TATR) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	2.82	2.80	1.73	3.96	1.85	1.85	1.16	2.62
FMCG	2.01	1.26	0.76	2.89	1.36	1.06	0.78	1.43
Oil and gas	1.84	1.14	0.20	3.65	1.92	1.53	0.34	3.28
Transport	1.53	1.64	0.43	2.23	1.44	1.31	0.36	2.10
Diversified	1.51	0.93	0.46	1.83	1.30	0.88	0.44	1.51
ICT	0.98	0.79	0.53	1.24	0.79	0.69	0.48	1.04
Metals	0.93	0.80	0.66	1.15	0.76	0.63	0.49	1.00
Healthcare	0.89	0.85	0.74	1.06	0.79	0.79	0.63	0.95
Housing	0.78	0.81	0.34	1.23	0.65	0.65	0.15	1.01
Miscellaneous	0.61	0.58	0.43	0.66	0.71	0.65	0.54	0.92
Power	0.40	0.31	0.12	0.49	0.59	0.32	0.10	0.49

Paired samples t-test of constituent sectors of the sample companies based on Total Assets Turnover Ratio (TATR) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Capital goods	5.809	12	0.000
ICT	2.506	17	0.023
Healthcare	2.461	12	0.030
Housing	2.323	17	0.033
Miscellaneous	−2.189	15	0.045
Metals	1.843	17	0.083
Diversified	1.647	8	0.138
Transport	1.557	17	0.138
FMCG	1.563	7	0.162
Power	−1.080	11	0.303
Oil and gas	−0.248	15	0.807

Appendix 9.18: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on total assets turnover ratio (TATR) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	6.771	0.000	7.428	0.000
Healthcare	7.276	0.012	1.681	0.207
Housing	3.745	0.062	0.600	0.444
Metals	1.711	0.200	1.947	0.172
Power	0.704	0.410	0.015	0.902
Diversified	0.461	0.507	0.064	0.804
Capital goods	0.309	0.583	4.596	0.042
ICT	0.133	0.718	1.050	0.313
FMCG	0.080	0.781	2.359	0.143
Miscellaneous	0.050	0.824	0.249	0.621
Transport	0.003	0.957	0.138	0.713
Oil and gas	0.001	0.976	0.005	0.946

Appendix 9.19: Mean, median and quartile values of fixed assets turnover ratio (FATR) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	6.52	6.81	5.42	8.27	6.89	7.12	5.44	8.23
FMCG	4.48	4.70	2.75	5.64	5.17	5.52	3.41	7.14
Oil and gas	3.67	2.42	1.30	6.34	3.78	2.70	1.37	6.57
Transport	3.05	2.33	1.20	4.29	3.50	2.95	0.70	5.65
ICT	3.03	2.50	1.05	4.84	3.53	2.54	0.87	5.97
Healthcare	2.94	2.64	2.00	3.39	3.01	2.78	2.08	3.17
Housing	2.76	1.60	1.01	3.74	2.93	1.71	1.07	3.72
Miscellaneous	2.47	1.91	1.36	3.23	2.76	1.91	1.25	2.89
Diversified	2.30	1.75	1.60	2.32	2.95	2.72	1.95	3.38
Metals	2.09	1.85	1.08	2.73	2.78	2.02	1.25	3.10
Power	0.82	0.76	0.30	1.14	1.19	0.73	0.24	1.34

Paired samples t-test of constituent sectors of the sample companies based on Fixed Assets Turnover Ratio (FATR) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
FMCG	−3.471	11	0.005
Oil and gas	−2.611	12	0.023
Metals	−2.230	17	0.040
Diversified	−2.652	5	0.045
Transport	−2.007	16	0.062
ICT	−1.543	15	0.144
Capital goods	−1.438	11	0.178
Healthcare	−1.063	12	0.309
Power	0.938	9	0.373
Housing	−0.881	14	0.393
Miscellaneous	−0.845	13	0.413

Appendix 9.20: Mean, median and quartile values of fixed assets turnover ratio (FATR) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
Capital goods	6.89	7.63	6.01	8.19	6.89	6.77	5.06	8.27
FMCG	5.14	5.47	3.33	7.12	5.19	5.55	3.46	7.15
Transport	3.79	4.21	0.79	6.00	3.31	2.10	0.63	5.42
Oil and gas	3.68	2.16	1.08	7.14	3.85	3.05	1.56	6.19
ICT	3.44	2.03	0.98	5.94	3.59	2.87	0.80	6.00
Metals	3.30	2.24	1.33	3.63	2.43	1.87	1.20	2.74
Miscellaneous	2.92	2.04	1.23	2.96	2.66	1.82	1.27	2.84
Healthcare	2.86	2.60	2.02	2.98	3.11	2.91	2.12	3.30
Housing	2.80	2.02	1.16	3.50	3.02	1.51	1.01	3.87
Diversified	2.31	2.54	1.94	2.77	3.38	2.85	1.95	3.78
Power	1.58	0.75	0.25	1.63	0.93	0.71	0.24	1.16

Paired samples t-test of constituent sectors of the sample companies based on Fixed Assets Turnover Ratio (FATR) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Transport	2.047	16	0.057
Metals	1.741	16	0.101
Diversified	−2.005	4	0.115
FMCG	−1.108	9	0.297
Healthcare	−1.058	12	0.311
Capital goods	1.109	5	0.318
Power	0.986	10	0.347
Miscellaneous	0.907	13	0.381
Oil and gas	−0.662	14	0.519
ICT	0.289	15	0.777
Housing	0.134	12	0.896

Appendix 9.21: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on fixed assets turnover ratio (FATR) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	7.064	0.000	7.302	0.000
Metals	2.676	0.111	0.832	0.368
Capital goods	1.121	0.301	0.063	0.805
FMCG	0.985	0.332	0.002	0.969
Power	0.892	0.356	0.883	0.358
Transport	0.574	0.454	0.030	0.863
ICT	0.426	0.518	0.017	0.897
Oil and gas	0.323	0.574	0.070	0.793
Miscellaneous	0.256	0.617	0.029	0.866
Diversified	0.097	0.762	1.547	0.245
Housing	0.001	0.978	0.158	0.694
Healthcare	0.000	0.988	0.126	0.725

Appendix 9.22: Mean, median and quartile values of current assets turnover ratio (CATR) of constituent sectors of the sample companies over phase 1 (2001–2006) and phase 2 (2007–2011)

Sector	Phase 1 (2001–2006)				Phase 2 (2007–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
FMCG	2.96	2.61	1.94	3.53	2.80	2.72	1.98	3.45
Oil and gas	2.69	2.36	1.05	3.84	2.88	2.09	0.82	4.90
Transport	2.32	2.12	1.75	2.61	2.37	2.13	1.31	2.99
Miscellaneous	2.04	1.73	1.02	2.91	1.81	1.46	0.85	2.41
Metals	1.88	1.86	1.41	2.26	1.69	1.50	0.97	2.22
Diversified	1.87	1.79	1.24	2.53	1.69	1.93	0.60	2.34
Housing	1.59	1.40	0.86	2.00	1.24	0.83	0.26	1.33
Healthcare	1.53	1.42	1.14	1.92	1.29	1.26	0.97	1.59
ICT	1.44	1.35	0.89	1.95	1.64	1.42	0.74	2.32
Capital goods	1.39	1.44	1.08	1.63	1.54	1.31	0.85	1.71
Power	1.38	1.16	0.77	1.56	1.13	0.81	0.44	1.33

Paired samples t-test of constituent sectors of the sample companies based on Current Assets Turnover Ratio (CATR) over phase 1 (2001–2006) and phase 2 (2007–2011).

Sector	Phase 1 and Phase 2
	t	df	Significance (2-tailed)
Healthcare	2.199	13	0.047
Housing	1.818	16	0.088
Oil and gas	−1.845	13	0.088
Miscellaneous	0.964	15	0.350
Metals	0.850	17	0.407
Power	0.840	10	0.421
Capital goods	−0.830	12	0.423
Diversified	0.605	8	0.562
FMCG	0.552	11	0.592
ICT	−0.497	16	0.626
Transport	0.362	16	0.722

Appendix 9.23: Mean, median and quartile values of current assets turnover ratio (CATR) of constituent sectors of the sample companies over phase 3 (2007–2008) and phase 4 (2009–2011)

Sector	Phase 3 (2007–2008)				Phase 4 (2009–2011)
	Mean	Median	Quartile 1	Quartile 3	Mean	Median	Quartile 1	Quartile 3
FMCG	2.89	2.81	1.89	3.76	2.75	2.67	2.04	3.23
Oil and gas	2.65	1.60	0.60	4.84	3.04	2.41	0.96	4.95
Transport	2.25	2.18	1.33	2.70	2.45	2.10	1.30	3.17
Metals	2.01	1.77	1.08	2.72	1.48	1.32	0.89	1.90
Miscellaneous	1.75	1.48	0.73	2.43	1.85	1.45	0.93	2.40
ICT	1.71	1.60	0.70	2.41	1.59	1.30	0.76	2.26
Diversified	1.66	1.91	0.80	2.36	1.71	1.95	0.47	2.33
Capital goods	1.60	1.49	1.00	1.93	1.50	1.20	0.75	1.56
Healthcare	1.37	1.30	0.97	1.75	1.24	1.23	0.97	1.48
Housing	1.34	0.85	0.41	1.38	1.17	0.81	0.17	1.30
Power	0.95	0.83	0.50	1.33	1.25	0.79	0.40	1.32

Paired samples t-test of constituent sectors of the sample companies based on Current Assets Turnover Ratio (CATR) over phase 3 (2007–2008) and phase 4 (2009–2011).

Sector	Phase 3 and Phase 4
	t	df	Significance (2-tailed)
Metals	2.506	17	0.023
Housing	1.878	17	0.078
ICT	1.782	17	0.093
Healthcare	1.393	13	0.187
FMCG	1.264	11	0.232
Oil and gas	−1.011	14	0.329
Capital goods	0.886	12	0.393
Miscellaneous	−0.850	15	0.409
Transport	−0.423	16	0.678
Diversified	−0.371	8	0.720
Power	0.313	10	0.760

Appendix 9.24: ANOVA of the consolidated sample and the constituent sectors of the sample companies based on current assets turnover ratio (CATR) over phase 1 (2001–2006) and phase 2 (2007–2011) and phase 3 (2007–2008)and phase 4 (2009–2011)

Sector	Phase 1 and Phase 2		Phase 3 and Phase 4
	F	Significance	F	Significance
Consolidated	6.319	0.000	6.179	0.000
Healthcare	1.295	0.265	0.680	0.417
Power	0.803	0.379	0.205	0.655
Housing	0.745	0.394	0.150	0.701
Metals	0.389	0.537	2.566	0.118
Capital goods	0.261	0.614	0.076	0.784
Miscellaneous	0.203	0.656	0.368	0.549
Oil and gas	0.107	0.746	0.149	0.702
Diversified	0.107	0.748	0.009	0.925
FMCG	0.081	0.779	0.152	0.701
ICT	0.010	0.921	0.128	0.723
Transport	0.002	0.964	0.226	0.638