Study of Profitability of a Logistics Company
STUDY OF PROFITABILITY OF A LOGISTICS COMPANY USING ECONOMETRICS TOOLS
Executive summary
This study examines the impact of three factors, namely Sales, Fixed assets and Interest paid on the profitability of a logistics company. Econometric tool of multiple linear regression model was used for analyzing the impact of above factors on profitability of a major logistics company GATI Limited. Based on the financial data of last 10 years 2000-2009 the regression analysis has revealed that profitability of GATI ltd. is significantly affected positively by increase in fixed assets and adversely affected by increase in interest paid. The impact of increase in sales volume on profitability is positive but miniscule. In addition seasonality and trend analysis of quarterly sales for the period Mar-03 to Dec-08 was carried out which revealed seasonality in the sales. Sales in fourth quarter on average were highest followed by third, first and second quarter respectively.
Research Methodology and Data collection
• Objectives:
1. To study about impact of various factors on profitability of a logistics company.
2. To find out the seasonality effect in sales of a logistics company.
3. To forecast the sales using trend analysis with the regression model.
• Research Design:
Research is exploratory one as the initiative has been taken to carry out the analysis of logistics industry and its various parameters. The analysis and comparison is done by using different econometrics tools and models.
• Type of Data:
Secondary Data- Research is done by collecting data by various Secondary resources.
• Data collection methods:
• Internet.-
Annual report GATI,
Various financial data collection websites e.g. www.moneycontrol.com
• Data Analysis:
Data analysis has been done using different econometrics tools like MLRM (multiple linear regression model),hypothesis testing, t-test and trend and seasonality analysis etc.
Indian Logistics Industry-
Executive summary
This study examines the impact of three factors, namely Sales, Fixed assets and Interest paid on the profitability of a logistics company. Econometric tool of multiple linear regression model was used for analyzing the impact of above factors on profitability of a major logistics company GATI Limited. Based on the financial data of last 10 years 2000-2009 the regression analysis has revealed that profitability of GATI ltd. is significantly affected positively by increase in fixed assets and adversely affected by increase in interest paid. The impact of increase in sales volume on profitability is positive but miniscule. In addition seasonality and trend analysis of quarterly sales for the period Mar-03 to Dec-08 was carried out which revealed seasonality in the sales. Sales in fourth quarter on average were highest followed by third, first and second quarter respectively.
Research Methodology and Data collection
• Objectives:
1. To study about impact of various factors on profitability of a logistics company.
2. To find out the seasonality effect in sales of a logistics company.
3. To forecast the sales using trend analysis with the regression model.
• Research Design:
Research is exploratory one as the initiative has been taken to carry out the analysis of logistics industry and its various parameters. The analysis and comparison is done by using different econometrics tools and models.
• Type of Data:
Secondary Data- Research is done by collecting data by various Secondary resources.
• Data collection methods:
• Internet.-
Annual report GATI,
Various financial data collection websites e.g. www.moneycontrol.com
• Data Analysis:
Data analysis has been done using different econometrics tools like MLRM (multiple linear regression model),hypothesis testing, t-test and trend and seasonality analysis etc.
Indian Logistics Industry-
Bibliography: http://www.economictimes.com http://www.GATI.com http://www.moneycontrol.com Data analysis using excel –by Dr. A.N. Sah Basic Econometrics-by Dr. Damodar N. Gujrati & Sangeetha