AN ANALYSIS OF PROFITABILITY POSITION OF HAVELLS INDIA LIMITED FROM 2013-2017

Abstract

The study is on an analysis of profitability position of Havells India Limited, from 2013 – 2015, which is one of the electronic manufacturing giants of India. The objective of this study is to ascertain the company’s profitability for the past five years i.e. 2013 to 2017. The tool used is ratio analysis to ascertain Havells India ltd.’s profitability position. Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. Profitability ratios show a company's overall efficiency and performance. Profitability ratios are divided into two types: margins and returns. Ratios that show margins represent the firm's ability to translate sales into profits at various stages of measurement. Ratios that show returns represent the firm's ability to measure the overall efficiency of the firm in generating returns for its shareholders. Profitability ratios used are net profit ratio, operating profit ratio, return on asset, return on capital employed and return on equity.