Abstract:
The title of this research is The Impact of Capital Assets Management on the
Financial Performance of Listed Material Companies in the Material Sector in Sri
Lanka. The purpose of the study is to examine the impact of Capital Assets Ratios
analysis and Financial Performance Ratio analysis of listed material sector companies
in Sri Lanka over period five years (2015-2019).This research used four Capital
Assets ratio analysis such as Non-current Assets Turnover Ratio (NCAT), Tangible
Assets Tumolero Ratio (TAT), Financial Assets Tumolero Ratio (FAT) and Intangible
Assets Turnover(IAT) in determining their impact and relationship on Financial
Performance it measures Return On Assets (ROA) of Material Sector Companies in
Sri Lanka. Financial Performance as a dependent variable is represented by Return on
Assets (ROA) while Capital Assets Ratio analysis stand as NCAT, TAT, FAT and
IAT for independent variables. The data were obtained from the financial annual
reports (both statement of comprehensive income and statement of financial position)
of the selected material sector companies on the Colombo Stock Exchange (CSE).
Descriptive statistics, Pearson correlation and regressions were employed to find out
the relationship and impact between the variables and their effect on Financial
Performance. The results of the analysis shows that Non-current Assets Turnover
Ratio (NCAT), Intangible Assets Turnover Ratio (IAT), have negative impact on
Return on Assets (ROA) and Financial Assets Tumolero Ratio (FAT) and Tangible
Assets Turnover (TAT) have positive impact on Return on Assets (ROA). The
analysis also statistically significant with all independent variables on Return on
Assets (ROA) in Material Sector Companies in Sri Lanka. The results furthers
suggested that only 30.26oh of the variations on the dependent variable were caused
by the independent variables in this model. Based on the other finding's, the researcher
recommends that the management increase the Tangible Assets and Financial Assets
on performance of Financial Performance growth. Finally management should utilize
its assets management in order to generate more profit for the company.