An Empirical Study On Fixed Asset Utilization And Capital Efficiency Of Ponlait

Abstract

This Study Examines The Fixed Asset Utilization And Capital Efficiency Of PONLAIT Over A Five-year Period (2020–21 To 2024–25) Using Analytical Research Design And Financial Ratio Analysis. Key Indicators Such As Fixed Asset Turnover Ratio (FATR), Earnings Before Interest And Tax (EBIT), And Return On Capital Employed (ROCE) Were Evaluated To Understand Operational Efficiency And Profitability Trends. The Results Show That FATR Increased Steadily, Indicating Consistent Improvement In Asset Utilization, Whereas ROCE And EBIT Displayed Significant Fluctuations, Reflecting Unstable Financial Performance. The Coefficient Of Variation Confirmed High Stability In Asset Usage But Substantial Volatility In Returns. The Correlation Analysis Showed A Slight Positive Association (r = 0.22) Between FATR And ROCE, Suggesting That Higher Asset Efficiency Did Not Proportionately Enhance Profitability. Overall, The Findings Highlight That While PONLAIT Demonstrates Strong Operational Efficiency Through Effective Use Of Fixed Assets, It Requires Improved Cost Control And Profitability Strategies To Achieve Long-term Financial Sustainability.

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