Impact of Financial Performance Indicators on Dividend Payout Ratio: Empirical Analysis of textile industry of India

ConclusionOverall analysis: Stability and Predictability: Page Industries and Welspun Living stand out for their consistent performance across all metrics, especially in ROE and ROA, with low standard deviations.These organizations demonstrate the greatest stability in their profitability and efficiency operations.High Volatility: Swan Energy demonstrates strong financial instability through its unpredictability of both DPR rates and profitability numbers based on NPM, ROE and ROA ratios.Moderate Performance with Some Variability: KPR Mill and Trident show decent but somewhat variable performance.These firms demonstrate medium-level profitability plus return on equity/assets but their stability level matches the less consistent Page Industries and Welspun Living.The regression analysis, Statistical tests revealed significant relationships between the three independent variables (NPM and ROA and ROE) with the dependent variable (DPR) because their corresponding p-values remain below 0.05.The regression results demonstrate that NPM combined with ROA and ROE produce significant effects on the Dividend Payout Ratio (DPR).Businesses generating higher NPM profitability together with improved ROA performance typically provide lower dividends along with higher dividend payments.Businesses achieving superior ROE tend to reinvest their resources instead of raising dividend payments.