Earning Per Share

It is necessary to study whether the gross profit ratios of selected companies vary among
themselves and also know the vary between the years of study period. To analyse this one-
way anova has been done to test the following hypothesis.

Ho1- There is no significance difference among the selected companies in their gross profit
ratio.

Ho2- There no significance difference between years in the Gross profit ratio.

ANOVA
Company Code

Sum of Squares df Mean Square F Sig.

Between Groups 410355.755 7 58622.251 6.783 .000

Within Groups 622275.344 72 8642.713
Total 1032631.099 79

It is seen from the table that the calculated F for between companies is given has 0.367 which
test for the equality of the ratios between companies and found to be significance level at
greater than the 5%.

This indicates that the Gross Profit ratio doesn’t varies from selected companies.
Hence Ho is accepted.

Year Code

ANOVA
Earnings Per Share (Rs)

Sum of Squares df Mean Square F Sig.

Between Groups 157232.228 9 17470.248 1.397 .206

Within Groups 875398.872 70 12505.698
Total 1032631.099 79
It is seen from the table that the calculated F for between companies is given has 4.479 which
test for the equality of the ratios between companies and found to be significance level at less
than the 5%.

This indicates that the current ratio does varies from selected companies. Hence Ho is
rejected.