*Department of Management Studies, Sambhram Academy of Management Studies, Jyothi Nagar, Vidyaranyapura Post, Bangalore.
A measure of profitability is the overall measure of efficiency. Sufficient profits help the business concern to sustain its operations, interalia assist business to raise funds in the capital market. Failure to earn adequate rate of profit over a period will also drain the company's cash and impair its liquidity. Investors, creditors, employees, management ad others are interested in profitability position of the firm. Profitability ratio measures the degree of operating success of a company in an accounting period. The present paper attempts to analyse the profitability of selected FMCG companies in India using profitability ratios. The study found that ITC Ltd. has recorded highest values of GPM, OPM and NPM against its peer companies. Britannia Industries Ltd. has shown highest EPS. An upward movement in ROTA was found in Colgate Palmolive (India) Ltd. over the sample period, while Godrej Consumer Products Ltd. and Colgate Palmolive (India) Ltd. have generated significantly higher returns on the capital employed by the investors. The results were tested to know whether there is a significant variation across the time period and found to be statistically insignificant.
Profitability ratios, Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Earning Per Share, Return on Total Assets, Return on Net Worth
