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Research Paper | Finance | Volume 15 Issue 6, June 2026 | Pages: 156 - 161 | India
Effectiveness of Cost Management Practices on Financial Performance - An Analytical Study
Abstract: This paper is an analysis on the effects and efficiency of the cost management practices on the financial performance of TCISL within a period of ten years between the year 2016 and 2025. The main subject of the research is the assessment of how the indicators of cost management can contribute to the profitability and how effective they can be in the long run. The secondary data was obtained using the published annual financial statements of the company. Ratios such as Cost Ratio, Net Profit Margin and Return on Assets (ROA) among others were calculated. The research objectives were met by using the statistical tools like trend analysis, correlation analysis and regression analysis. The results indicate that the influence of the cost ratio on net profit margin is negative, and it is statistically significant, which means that having an effective cost control can lead to a higher level of profitability. The long-term analysis also supports the fact that the long-term cost management practices have a great impact on the financial performance in the long-term. The regression results show that some cost management indicators do not have a statistically significant relationship with profitability ratios. In general, the research shows the need to focus on effective cost management practices to improve financial stability and long-term performance.
Keywords: Cost Management Practices, Financial Performance, Profitability Ratios, Cost Efficiency, Regression Analysis
How to Cite?: Akshaya P, "Effectiveness of Cost Management Practices on Financial Performance - An Analytical Study", Volume 15 Issue 6, June 2026, International Journal of Science and Research (IJSR), Pages: 156-161, https://www.ijsr.net/getabstract.php?paperid=SR26603124726, DOI: https://dx.dx.doi.org/10.21275/SR26603124726