EXAMINING THE RELATIONSHIP BETWEEN DEBT FINANCING AND PROFITABILITY AT CEMENT INDUSTRIES

Abstract

This research is correlational. The population of this study are Cement Industries that have active in Tehran Stock exchange. Dates have extracted from financial statements of companies by using comprehensive software of Exchange and related Internet sites.In order to analyze the data resulted from collected questionnaires deductive and descriptive statistical methods are used. The results Kolmogorov-Smirnov Test shows the test distribution is not Normal. So we can use Spearman Correlation coefficients to test the hypothesis of the research. Findings show that ratio of total debt to total assets, ratios of long-term debt to total assets and equity ratios to total assets have relationship with the Equity efficiency ratio. And also, the ratio of total debt to total assets and equity ratios to total assets have not relationship with efficiency ratio of sales and ratios of long-term debt to total assets and efficiency ratio of sales have negative relation. Finally, the ratio of total debt to total assets and equity ratios to total assets have not relationship with efficiency ratio of total assets and ratios of long-term debt to total assets and efficiency ratio of total assets have negative relation