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4.1 DESCRIPTIVE STATISTICS

Mean leverage measured by debt to capital ratio was 0.45, while the median was 0.39. The highest leverage was 7.37. Mean leverage was highest in 2012. The mean leverage for cement industry was 0.46 while median was 0.47. Highest leverage was 3.5. The mean leverage for personal products was 0.39, while median leverage was 0.09. Highest leverage was 7.37. Leverage measured by debt to capital declined throughout the period of study.

Table 1: descriptive statistics of leverage (debt to capital)

Measure Total Cement Personal products

Mean 0.45 0.46 0.39

Median 0.39 0.47 0.09

Minimum -2.59 -2.59 0

Maximum 7.37 3.50 7.37

Count 368 272 96

Figure 2: Yearly mean of debt to capital ratio

Mean leverage as measured by non equity liabilities to total debt was 0.64 while median was 0.57. Highest leverage was 5.8. Mean leverage was highest at 0.748 in 2005 and lowest in 2008 at 0.508. Mean leverage for cement industry and personal products was 0.64 and 0.63 respectively. The median leverage was 0.59 and 0.44 for cement and personal products industry respectively.

Table 2: Descriptive statistics of leverage (non equity liabilities to total assets)

Total Cement Personal products

Mean 0.64 0.64 0.63

Median 0.57 0.59 0.44

Minimum 0 0 0.16

Maximum 5.78 3.35 5.8

Count 368 272 96

Figure 3: Yearly mean of total non equity liabilities to total assets ratio

Mean leverage as measured by debt to total asset was 0.34 while median was 0.28. Mean leverage for cement and personal product industry was 0.38 and 0.28 respectively. The median for cement industry was 0.37 and for personal products was 0.06.

Table 3: Descriptive statistics of leverage (debt to total assets)

Total Cement Personal products

Mean 0.357 0.357 0.278

Median 0.356 0.356 0.06

Minimum 0 0 0

Maximum 1.757 1.757 5.548

Count 272 272 96

Figure 4: Yearly means of debt to total asset ratio

Mean leverage for cement industry as measured by debt to net assets was 0.44 while median was 0.38. Mean leverage for cement industry and personal product industry was 0.45and 0.39 respectively. The maximum leverage for cement industry was 3.5 while for personal product was 7.33.

Table 4: Descriptive statistics of leverage (debt to net assets)

Column1 Total Cement Personal products

Mean 0.44 0.46 0.39

Median 0.38 0.47 0.09

Minimum -2.59 -2.59 0

Maximum 7.33 3.50 7.33

Count 368 272 96

Figure 5: Yearly mean of debt to net assets ratio

It can be clearly observed from above discussion that cement industry was more levered than personal product industry. This is mainly because of higher tangibility and lower profitability of cement industry. The tangibility of cement industry was 0.43 while of personal product industry was 0.29.

The pre crisis leverage was higher than post crisis leverage. Pre crisis leverage measured by debt to net asset ratio was 0.596. This declined to 0.462 post crisis. Similarly leveraged measured by other indicators also declined. Leverage measured by total...

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