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Assessment of the Financial Competitiveness of Publicly Listed Indian Real Estate Companies Using the Entropy Method

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  • Ritij Saini
  • Aditya Deora
  • Kirtesh Gadiya

Abstract

The real estate sector is one of the key drivers of India's national economy, contributing about 7.3\% to the GDP. As the market evolves, more players enter, and government policies become more stringent, Indian real estate companies face increasing competition. Improving financial competitiveness is crucial for the survival and growth of these companies. This paper presents a financial competitiveness evaluation index system for Indian-listed real estate companies, covering profitability, solvency, and operational capacity. Using key financial ratios and a scoring system, the financial competitiveness of various companies was evaluated, revealing that companies with high scores have strong profitability and operational capacity. In contrast, those with lower scores struggle with solvency and working capital.

Suggested Citation

  • Ritij Saini & Aditya Deora & Kirtesh Gadiya, 2024. "Assessment of the Financial Competitiveness of Publicly Listed Indian Real Estate Companies Using the Entropy Method," Papers 2410.06772, arXiv.org.
    • Handle: RePEc:arx:papers:2410.06772
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    References listed on IDEAS

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    1. Wei Lin & Linbo Shao, 2013. "Evaluation on the Financial Competitiveness of Chinese Listed Real Estate Companies Based on Entropy Method," Papers 1302.2493, arXiv.org.
    2. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
    3. Lev, Baruch & Sunder, Shyam, 1979. "Methodological issues in the use of financial ratios," Journal of Accounting and Economics, Elsevier, vol. 1(3), pages 187-210, December.
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