PROFITABILITY ANALYSIS OF STATE LEVEL PUBLIC ENTERPRISES IN KERALA

Abstract

Maximization of profit is one of the important objectives of a firm. Financing sources of has an important role in the financial performance of a firm. Unbalanced equity and debt in the capital structure adversely affect the financial results of the State Level Public Enterprises / Modern Manufacturing Public Enterprises (MMPEs). The changes in the financing policies of the Government due to the advent of the new economic policy also affect the working of the state level public enterprises. So the present study, impact of new economic policy in the financial performance of the Modern Manufacturing Public Enterprises (MMPEs) of Kerala. Profitability of the Modern Manufacturing Public Enterprises (MMPEs) are analyzed with the help of various profitability indicators such as net profit ratio, return on net worth, return on capital employed, return on equity, and interest coverage ratio. It can be concluded from the study that that the implementation of new economic policy has helped the MMPEs in Kerala to improve the overall profitability significantly.