An Impact Analysis of Capital Expenditure on Financial Efficiency and Performance Analysis at Selected Companies

Abstract

This paper aims to analyze the impact of capital asset investment on firm efficiency. Using an analytical research approach, the study examines data from secondary sources, specifically company financial statements, employing statistical techniques such as hypothesis testing, regression analysis, and cash flow statements. Findings suggest that the firm should pursue major expansion in the current economic conditions, as capital expenditure investments positively influence overall profitability. However, differences in financial reporting standards across companies may limit consistency and comparability, and focusing on specific financial metrics could overlook other factors affecting long-term performance. Practically, the expanding Indian economy offers ample opportunities for growth, with long-term asset investments generally yielding positive profitability outcomes.