Analysis of Profitability of Paper Industry in Uttarakhand

This study examines profitability of the five selected paper companies of Uttarakhand. Profitability is considered as a measure of success of a business, its survival and growth. Hence, overall profitability analysis of selected paper companies on the basis of their profitability ratio has been done to compare the success and growth of these companies. The study covers the period of 5 years, from 2010–11 to 2014–15. Companies included in the study are selected by following random sampling method. Statistical tools i.e. mean, standard deviation, co-efficient of variation, etc. have been used. One way ANOVA and Post hoc test have been worked out to find the significant difference, if any, between the companies, regarding their Profitability. Results show that, Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio and Return on capital employed of selected paper companies differ significantly. Findings also show that, there is no significant difference between selected companies for Return on their Net Worth.