A STUDY OF LEVERAGE ANALYSIS OF PROFITABILITY FOR BAJAJ FINANCE, NAGPUR

Abstract

Leverage analysis is a critical financial tool used to evaluate a company's ability to utilize debt and equity to maximize profitability. This study examines the impact of leverage on the profitability of Bajaj Finance, Nagpur, by analysing financial ratios such as operating leverage, financial leverage, and combined leverage. The research focuses on understanding how leverage influences return on equity (ROE) and return on assets (ROA), affecting overall financial performance. By assessing historical financial data, the study highlights the relationship between leverage and profitability, identifying key trends and risk factors. The findings provide insights into the optimal leverage level for sustainable growth and financial stability. This research is valuable for investors, financial analysts, and policymakers in making informed decisions regarding leverage management and profitability enhancement in financial institutions.