Abstract

India is the second-largest cement manufacturing nation in the world after China, and significant investment is made in the cement industry considering its future growth. This study examines the relationship between financial leverage and financial performance with particular reference to selected Indian cement companies. The degree of financial leverage (DFL) is considered the independent variable, while Return on Capital Employed (ROCE) is used as an indicator of financial performance. The study analyses five selected cement companies based on market capitalization over a five-year period. The results indicate a statistically significant negative association between the degree of financial leverage and financial performance.