"PROFITABILITY ANALYSIS" OF SELECT INDIAN AVIATION FIRMS AN EMPIRICAL ANALYSIS

Airline service decisions are increasingly influenced by the new drivers of profitability. The fluctuating profitability must be better understood by the firm to make a better strategy. The Primary objective of a business undertaking is to earn profits. Profit earning is considered essential for the survival of the business. Profitability analysis measures how will a firm is performing in terms of its ability to generate profits. Profitability of the firm is highly influenced by internal and external variables, i.e., size of organizations, liquidity management, growth of organizations, component of costs and inflation rate. In this paper an attempt has made to measure the profitability performance and to analyze the impact of selected profitability ratios on ROCE of the company, for fulfilment of the objectives the data collected from the annual report from 2010 to 2014. The collected data is analyzed and computed to fit for drawing inferences. In this investigation correlation and two ways ANOVA were used to find out the impact of selected profitability ratios (Gross Profit, Operating Profit, Net Profit,) on ROCE and to determine its significance over the years.