Abstract:
This study aims to determine the impact corporate leverage has on the profitability of the Indian pharmaceutical industry. The analysis for this study included a decade's worth of time, from 2004–2005 to 2013–2014. The study only uses secondary sources for its data. 37 pharmaceutical firms that trade on the National Stock Exchange (NSE) are considered and examined throughout the study. Regression and correlation analysis were the statistical methods employed in this investigation. Financial Leverage (FL), Operating Leverage (OL), and Combined Leverage were the independent variables (CL). Earnings per share (EPS), Return on Assets (ROA), and Return on Equity (ROE) were the dependent variables (EPS). The study's findings indicate that CL and OL significantly impact profitability (ROA, ROE, and EPS). The pharmaceutical sector in India selected the topic for the research period based on the fact that CL and OL have a significant influence on profitability.
