Mathematical data analytic model for investment patterns assessment in stocks of selected sectors

Abstract

The investment patterns adopted by various Companies include either internal or external sources of funds, to invest in diverse options within the capital market and money market instruments. This paper is to propose a mathematical analytic model that explores corporate investment patterns and their subsequent impact on profitability, borrowings, and other parameters of corporate health. Specifically, the paper intends to examine the immediate effect of investments on the company’s Profit After Tax (PAT), excluding investments in Fixed Assets. Furthermore, the study seeks to provide a mathematical comparative analysis using collected data on Retained Earnings, a critical component of profitability, and investments. By suggesting a mathematical data analytic model, this research paper also addresses the reasons why many businesses continue to rely on outdated methods and conventional choices, apart from Fixed Assets.