International Journal of Accounting Research

Abstract

Determinants of Profitability: A Study on Flour Manufacturing Companies in Hosanna Town

Dereje Lemma Lalisho* and Etsegenet Sintayehu

In Ethiopia the contribution of manufacturing companies to economic growth is so minimal as compared to agriculture and services sectors. They are experiencing low return which is an indicator of poor financial performance. However, to remain competitive in the globalized economy, having good financial performance is highly imperative. Therefore, this study is to identify the determinants of flour manufacturing companies’ profitability in Hosanna town. The explanatory variables used in this study were firm size, leverage, liquidity, fixed asset turnover, operating expense and sales growth rate. The dependent variables were ROA and ROE. The data was collected from 6 companies for period of 7 years from audited financial statements of the companies.

Published Date: 2024-08-12; Received Date: 2020-03-13