Online published on 17 April, 2012.
The word ‘Profitability’ is composed of two words ‘Profit’ and ‘Ability’. On this basis, the concept of profitability may be defined as the ability of a ‘given investment’ to earn a return from its use. The profitability is not a condition that exists and can be measured for a limited of time only; it is a variable thing like the temperature and humidity of a day. To fulfill the main research objective i.e. to analyze the profitability of RTDC, for the financial year 2003 to 2008. Profitability ratios are calculated to measure the operating efficiency of any organization. Generally two types of Profitability ratios are calculated viz (i) Profitability in relation to sales, (ii) Profitability in relation to investment. The overall profitability of RTDC(Rajasthan Tourism Development Corporation) can be said tobe satisfactory but it can be increased if efforts are made to curtail the unnecessary expenses because there is wide gap between gross profit and net profit ratio.
