A STUDY ON PROFITABILITY ANALYSIS

Abstract

The main objective of the study is to analyze the profitability of the company. It is the process of identifying the financial strength and weakness firm properly establishing the relationship between the item of balance sheet & profit and loss account. The details regarding the history and finance details of the company were collected through the discussion with the company officers. And it’s mainly analyzing the company profitability analysis (CPA) .The secondary data based on the annual reports of 2014-2019.The various tools used for the study are ratio analysis and trend analysis. Charts and table are used for better understanding. Analysis and interpretation of the financial statements help in determining the liquidity positions, long-term solvency, and financial profitability of a firm. Through, the ratio analysis the company could understand the profitability, liquidity, leverage, turnover position of the company. The company is following higher debt equity but, the lower debt to equity ratio is usually implies a more financially stable business. On the other hand, turnover also not sufficient to the healthy business. To evaluate the historical trends or pattern of profitability to forecast future profitability.