A Study on Profitability of Auto Ancillaries in India

Abstract

Profitability is significant for survival and growth of the company. Several factors play an important role directly or indirectly in determining profitability. The objective of the study is to examine the determinants of profitability of selected Auto Ancillaries in the Indian Automobile Industry. Determinants of profitability are analysed using the technique of multiple regression analysis. It is event from the results that operating ratio is the stronger determinants of profitability followed by the variables Liquid Ratio, Past Profitability, Inventory turnover Ratio, size. The study concluded that Auto Ancillaries should consider all these possible determinants while considering its profitability.