DuPont Analysis of IndiGo (Inter Globe Aviation Ltd.) and SpiceJet: A Study of Domestic Airlines in India with the Help of Two-Tailed T-Test

The aviation industry in India is one of the fastest growing industries in our economy. In the present paper, the performance of two domestic airlines, viz. IndiGo and SpiceJet, have been analysed with the help of DuPont analysis. Four ratios related to DuPont analysis have been used for the perform...

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Bibliographic Details
Published in:International Journal of Business Analytics and Intelligence 2020-07, Vol.8 (2), p.29
Main Author: Priya, Ritu
Format: Article
Language:English
Subjects:
Annual reports
Aviation
Student's t-test
Online Access:Get full text
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Summary:The aviation industry in India is one of the fastest growing industries in our economy. In the present paper, the performance of two domestic airlines, viz. IndiGo and SpiceJet, have been analysed with the help of DuPont analysis. Four ratios related to DuPont analysis have been used for the performance evaluation—profit margin, asset turnover ratio, equity multiplier, and return on equity (ROE will show the overall impact). The study is based on secondary data drawn from the annual reports of respective companies. Data of five years, i.e. 2012-13 to 2016-17, is analysed by calculating four ratios related to DuPont analysis. The statistical tool ‘two-tailed t-test’ has been used for evaluating the financial performance of these two companies. Data is analysed manually without using any software. The results show that the financial performance of IndiGo is better than SpiceJet.
ISSN:2321-1857