Profitability analysis of a micro and proprietary enterprise-A case study of nagas elastomer works Dr. Podile Venkateswararao.*, Janardhanarao N.**, Dr. Sree Ch. Hema Venkata Siva*** *Professor, MBA Department & Principal Investigator, Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India. Email id: vraopodile@gmail.com **Associate Professor, MBA Department, Andhra Loyola Institute of Engineering and Technology, Opp. Poly Technic Post office, Vijayawada, Andhra Pradesh, India. Email id: jannyaurora@gmail.com ***Co-Investigator, Vijayawada, Andhra Pradesh, India. Email id: dreamworld7982@gmail.com Online published on 18 December, 2018. Abstract Owners and Managers are naturally interested in financial soundness of their Business Enterprise. Financial soundness can be measured in terms of operating efficiency. Operating efficiency of an enterprise means its ability to earn adequate returns to owners and depends ultimately on the profits earned by the enterprise. The profitability of an enterprise is measured by profitability ratios. In this paper, an attempt is made to do Profitability Analysis of Nagas Elastomer Works. Nagas Elastomer Works is a Micro and Proprietary Enterprise in Andhra Pradesh state of India. Nagas Elastomer Works was started in 2002. This Micro and Proprietary Enterprise is manufacturing Retread Rubber. Profitability analysis was done through analyzing various profit margins, Profitability ratios relating to investments and Profitability ratios relating to various expenses. Profit margins covered include Gross Profit Margin, Operating Profit Margin and Net Profit Margin. Profitability ratios relating to investments include Return on Assets (ROA), Return on Capital Employed (ROCE) and Return on Share holder's equity (ROSE). Profitability ratios relating to various expenses include Cost of Goods sold Ratio, Operating Expenses Ratio, Administrative Expenses Ratio, Selling Expenses Ratio and Financial Expenses Ratio. Chi-square test is used for testing the hypotheses formed. Top Keywords Cost Of Goods Sold Ratio, Financial Expenses Ratio, Gross Profit Margin, Operating Profit Margin, Return On Assets (ROA), Return On Capital Employed (ROCE). Top |