A COMPREHENSIVE ANALYSIS OF PROFITABILITY METRICS OVER MULTIPLE FISCAL YEARS FOR DIFFERENT COMPANIES

Abstract

The financial performance of firms within the Indian cement industry is a key determinant of their long-term sustainability and competitive advantage. This study assesses the profitability and efficiency of selected cement companies by analysing five core financial ratios: Gross Profit Ratio (GPR), Net Profit Ratio (NPR), Operating Profit Ratio (OPR), Return on Capital Employed (ROCE), and Return on Net Worth (RONW). The findings reveal an average GPR of 46.22% (SD: 8.25%), indicating moderate variability in gross profitability. The NPR, averaging 7.06%, reflects disparities in cost structures and operational efficiency across firms. The OPR shows a mean of 11.64% with a coefficient of variation of 2.77%, highlighting significant differences in operational performance. ROCE (mean: 11.29%, SD: 4.16%) and RONW (mean: 11.90%) illustrate varying levels of capital utilization efficiency and shareholder returns. These results offer empirical insights into the financial health of the sector, emphasizing inter-firm variability in key performance indicators. The study contributes to financial decision-making, investment evaluation, and strategic benchmarking, supporting stakeholders in evaluating corporate resilience and competitive positioning in a critical industrial sector. profitability is not merely a corporate metric but a strategic indicator with far-reaching implications for sustainable development, poverty reduction, regional equity, and inclusive industrialization. Thus, profitability analysis serves as a vital tool for policymakers, investors, and stakeholders seeking to align industrial performance with national socio-economic goals.