International Journal in Management & Social Science
  • Year: 2015
  • Volume: 3
  • Issue: 5

Profitability Analysis of Kesoram Industries Ltd.

  • Author:
  • Madhusudhan Reddy
  • Total Page Count: 12
  • Page Number: 338 to 349

Associate Professor, DVM College of Business Management, Nalgonda, Telanagna State. India

Online published on 22 June, 2018.

Abstract

The present paper analysis the overall profitability of Kesoram Industries Ltd. based on the performances of profitability ratios like gross profit margin, operating profit margin, net profit margin, return of total assets, return on net worth & return on capital employed. Profitability is a measure of efficiency and control it indicates the efficiency or effectiveness with which the operations of the business are carried on. Profitability is the profit earning capacity which is a crucial factor contributing for the survival of the firms. Every firm aims to dig up maximum profits out of the invested capital pool. The success of the company usually depends on its returns earned. To evaluate the profitability of the company, relevant ratios were used and statistical tools like mean, standard deviation, correlation, t test were applied to test the significant relationship between the relevant variables.

Keywords

Profitability, gross profit margin, operating profit margin, net profit margin, return of total assets, return on net worth & return on capital employed, correlation, t test