Corporate Profitability Analysis
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The efficiency of the business is measured by the amount of profit earned. The greater the profit, the more efficient is the business considered to be. The profit of a business may be measured by studying the profitability of investment. Profitability is a relative term and its relation with the other factor by which the profit is affected. It is the test of efficiency, powerful motivational factor and the measure of control in any business. In the financial statement analysis literature, a lot of importance has been attached to financial ratios for assessing a firm's financial performance and condition. Items of the income statement alone or along with the balance sheet items also can generate a number of profitability ratios. But, many ratios reveal the similar things. The analyst is always at a loss to find out which ratios to use to determine profitability of a firm. An attempt to determine inter-relationships between and among the profitability ratios, in order to select a few ratios which can possibly give maximum information about the profitability of a firm is an empirical issue.
The book discusses all the important aspects of profitability in a systematic manner. The book will be immense use particularly to University and college teachers, Chartered Accountants, Company Secretaries, M.Com, B.Com and MBA students and other professional courses. In addition, it would be a useful reference book for researchers and financial managers.
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Bibliographic information
P Tamizhselvan