It is a matrix representing the correlations between different combinations of variables and factors. Let the L ij is the factor loading of the ith factor on the jth variable (i = 1, 2…k and j = 1, 2 …k). Since the factors happen to be linear combinations of variables, the coordinates of each variable is measured to obtain what are called factor loadings. Such factor loadings represent the correlation between the particular variable and the factor. The higher the factor loadings, the more likely it is that the factor is underlying that variable. Factor loadings help in identifying which variables are associated with the particular factor. There are a number of ways by which factor analysis is done.