“Analysis of Relationship Between Profitability and Free Cash Flow to Firms” Ravichandra Thangjam1, Mahendra G2 1Assistant Professor, Department of Professional Studies, Christ University, Bangalore, India 2Assistant Professor, Department of Professional Studies, Christ University, Bangalore, India Online published on 22 June, 2018. Abstract In this paper an attempt has been made to study the relationship between free cash flow and profitability of firms. The study is based on the comparison of profitability and free cash flow of four fast moving consumer goods companies-Britannia Industries Ltd, Jubilant Food Works Ltd, Godrej Consumer Products Ltd and Marico Ltd over a period of 5 years (2009 to 2014). The relationship between data and statistics of free cash flows and profit variables is measured by correlation. The results of this study signify that there is a positive relationship between profits and free cash flows. However, the study confirms that profits do not guarantee availability of free cash flow to firms. Index words: Profitability, Britannia Industries Ltd, Jubilant Food Works Ltd, Godrej Consumer Products Ltd, Marico Ltd, Correlation Top |