1. INTRODUCTION:

A financial statement of any year contains individual bits of data of information relating to assets, liabilities, income, expenses and losses. The information contained in these statements is important for a particular year to which it relates. An efficient and effective management should not be satisfied with a particular year of performance, but should try to discover the possible profit earning capacity of the business. In order to achieve the objective, the management should compare its current performance with the performance of the previous year and identify the positive and negatives of the business. The weakness and any short–comings should be identified and removed and plus points should strengthen further.

The primary objective of a business undertaking is to earn profits because profit is important for the survival of the firm. Profits to the management are the test of efficiency and a measurement of control; to owners, a measure of worth of their investment; to the creditors, the margin of safety; to employees a source of fringe benefits; to government, a measure of taxpaying capacity and the basis of legislative action; to customers, a hint to demand for better quality and price cuts; to an enterprise, less cumbersome source of finance for growth and existence and finally to the country profits are an index of economic progress. Profitability ratios are calculated to measure the overall efficiency of the business and also it determines the capital structure of the firm. It indicates how well management of an enterprise generates earnings by using the resources at its disposal. Profitability is simply the capacity to make profit and profit is the left over from income earned after deducting all costs and expenses related to earning the income.

2. REVIEW OF LITERATURE:

T. Venkatesan, S. K. Nagarajan (2012) Profitability is the profit earning capacity which is a crucial factor contributing for the survival of the firms. The researcher ‘s data is purely based on secondary Profitability position and is major determined by the Direct and indirect expenses and two away ANOVAs of ROI of selected steel company. The findings of researcher was there is a significant different on the selected steel company viz, they are maintaining different level of returns on their investment and correlation of sail to tata of Net Profit and bhushan to jsw of OP was positive it tells, they are maintaining similar level in the Net Profit a of sail to tata and jsw to bhushan of OP. Finally tata, sail has got better first better performer in the area of earning power. Bhushan and jsw have got second better performer in the area of overall earning power. Visa’s financial position has a negative result of the study period. It is the drawback to get lost position in their analysis.

D.Gurusamy (2012) The present paper an attempt has been made to analyze the profitability performance of SBI and its associates. The objectives of the paper are to study the profitability of SBI and Its Associates and to analyze the profitability performance of SBI and Its Associates. This paper is primarily based on secondary data. In order to derive the open handed results from the information collected through secondary data, various statistical tools like mean, S.D, variance, CAGR, and ANOVA have been accomplished. The scope of the paper is confined to all the banks of SBI group for a data period from 1996-97 to 2007-08. In the present paper, for the purpose of evaluating the performance of SBI and its associates, five profitability ratios have been considered. On the basis of analysis of profitability ratios it is printout that all the five ratios shows fluctuating trend during the study period in all the banks.

Rakhi Hotwani (2011) The study examines the profitability position of Tata Motors for the past ten years. It involves in-depth analysis of profitability of the company with the help of key ratios, statistical analysis and growth chart in terms of turnover and profit. Profitability ratios help in ascertaining the position of the company with respect to various profitability measures like Operating Profit, Net Profit and Return on Net Worth. Comparative study of annual increase in sales and profitability is made to understand the growth of the company. Conclusions are drawn with the help of results obtained through aforesaid techniques.

Ketan H.popat (2013) The hotel industry is a mature industry marked by intense competition. Market share increases typically comes at a competitor’s expense. Industry-wide, most growth occurs in the international, rather than the domestic area. There are various kinds of hotels engaged in industry but researcher of this research has not consider all the types of hotels and period of the study is limited to 2007-08 to 2011-12 all the data available is from secondary source of information. Accounting tools and Statistical techniques used for this research has their own limitation which also apply for this research work. Here we can say that profitability analysis of this hotel suggests that the royal orchid hotel is in the good position than jindal hotel. Vivek Sharma (2010- 2011) Liquidity risk and return both are very important aspects to be considered while making any decisions regarding company’s finance. It affects the liquidity and profitability in any ways. This paper attempts to study these three elements in company’s existence and their relationship. The data is of secondary nature and is obtained from the published annual reports of Maruti Suzuki India Ltd. The collected data has been analyzed through various liquidity and profitability ratios and drawing out the risk factor. Maruti Suzuki India Ltd being an established company from past few decades is satisfactorily giving out profits and maintaining its liquidity position but at increased risk factor.

Amir Hossein Jamali and AsgharAsadi (2012) This paper investigates the relationship between the management efficiency and the firms profitability for a sample of 13 auto manufacturing companies listed on the Bombay Stock Exchange, located in Pune for the period of 5 yrs from 2006 to 2010. Management efficiency is an important component of corporate financial management because it directly affects the profitability of the firms. The analysis is carried out using Minitab 14 and conducting Pearson Coefficient correlation test on variables of the study including Gross Profit Ratio (GPR) and Assets Turnover Ratio (ATR).

Dr. Dimitriosp et al (2010), The analysis of the banking sector has been the object of study by many researchers. In this study researcher has evaluated the profitability, the efficiency and the liquidity of the co-operative banks in Greece for the time period 2003-2007. Finally, through the above analysis the reasons for these changes through time are pointed out. From the analysis is revealed that profitability and efficiency for the co-operative banks turn out to be very satisfactory .More specifically these indexes for the co-operative banks are better compared to the equivalent ones of the banks as a whole while the liquidity indexes for the co-operative banks are worse compared to the equivalent ones of the banks as a whole.

Priya. S (2014) Profit is a measure of success of business and the means of its survival and growth. Profitability is the ability of a business to earn profit for its owners. The objective of this study was profitability ratios show a company's overall efficiency and performance of different private sectors banks in India .The various profitability ratios like interest spread, net profit margin, return on long term loan, return on net worth , return on asset and adjusted cash margin. Profitability ratios provide different useful insights into the financial health and performance of a company. Brindadevi (2013) The objective of this study was overall profitability analysis of different private sectors banks in India based on the performances of profitability ratios like interest spread, net profit margin, return on long term fund, return on net worth and return on asset. Profitability is a measure of efficiency and control it indicates the efficiency or effectiveness with which the operations of the business are carried on. Recording profitability for the past period or projecting profitability for the coming period, measuring profitability is the most important measure of the success of the business. A business that is not profitable cannot survive. Conversely, a business that is highly profitable has the ability to reward its owners with a large return on their investment. Increasing profitability is one of the most important tasks of the business managers. Managers constantly look for ways to change the business to improve profitability. These potential changes can be analyzed with a support of income statement and balance sheet. The present studies is based on “Chaudhary and Sharma (2011) performed comparative analysis of services of public sector banks and private sector banks and stated that the increased competition and information technologies reduce processing costs, the erosion of product and geographic boundaries, and less restrictive governmental regulations have all played a major role for public sector banks in India to forcefully compete with private and foreign banks”.

3. STATEMENT OF THE PROBLEM:

The primary objective of a business undertaking is to earn profits. Profit earning is considered essential for the survival of the business. A business needs profits not only for its existence, but also for expansion and diversification the investors want an adequate return on the investment as well as workers, creditors. And a business enterprise can discharge its obligation to various segments of the society only through earning of profit.

4. OBJECTIVES OF THE STUDY:

· To analyze the profitability ratios of Whirlpool of India Ltd.

· To find and compare the Return on investment of Whirlpool and selected competitors.

· To compare the profitability ratio of Whirlpool India Ltd with selected competitors.

· To suggest and recommend some measures to improve the financial position of Whirlpool India Ltd.

5. SCOPE OF THE STUDY:

The study shows the role of profitability position of Whirlpool of India limited. It is the process of comparing income to output and determining how much profit was made during a specific time period. A properly conducted profitability analysis provides invaluable evidence concerning the earnings potential of a company and the effectiveness of management. This study attempts to analyze and interpret the relevant data of the Whirlpool of India Ltd and its competitors. This study helps to know the performance level of Whirlpool of India Ltd .

6. NEED FOR THE STUDY:

This study identifies the current position of the organization in the market and it analyze the efficiency of the organization. This study finds out the various factors that affect the profitability of the organization and this helps to attract and motivate the customers, suppliers and employee in the long run of the company.

7. RESEARCH METHODOLOGY:

Research is defined as a careful, critical inquiry or examination in seeking facts or principles; diligent investigation in order to ascertain something. Research is essentially a systematic enquiry seeking facts through objective verifiable method in order to discover the relation among them and to deduce from board principles or laws. It is really a method of critical thinking. The type of research adopted here is analytical research. The data used for this study to analyse the profitability of Whirlpool Of India Ltd and its Competitor is secondary data. Secondary data are the data which are already in existence and for this study they are referred from the Journals, Company’s website and Annual Report. The tools used for analysis of the profitability of Whirlpool of India Ltd and selected competitor are Standard deviation, Mean, ANOVA.

8. Analysis and Interpretation:

8.1 Analysis of Net Profit Ratio

Year	Net Profit (Rs. In Crores)	Net Sales (Rs. In Crores)	NP Ratio %
2010	145.02	2,541.04	5.70
2011	166.03	3,072.18	5.40
2012	123.73	3,042.67	4.07
2013	127.75	2,772.73	4.60
2014	122.91	2,834.64	4.33

From the above, it is inferred that the net profit ratio of Whirlpool has been at 5.7% in the year 2010, 5.4% in 2011, 4.07% in 2012, 4.6% in 2013 and 4.33% in the year 2014. The highest NP ratio was in the year 2010 and the lowest ratio was in the year 2014.The NP ratio shows a decreasing trend for the last five years.

8.2 Analysis of Gross Profit Ratio

Year	Gross Profit (Rs. In Crores)	Net Sales (Rs. In Crores)	GP Ratio %
2010	202.48	2,541.04	7.96
2011	229.53	3,072.18	7.47
2012	178.36	3,042.67	5.86
2013	179.16	2,772.73	6.46
2014	174.21	2,834.64	6.14

From the above, it is inferred that the Operating profit ratio of Whirlpool has been at 7.96% in the year 2010, 7.47% in 2011, 5.86% in 2012, 6.46% in 2013 and 6.14% in the year 2014. The highest GP ratio was in the year 2010 and the lowest ratio was in the year 2012.The GP ratio shows a decreasing and increasing trend for the last five years.

8.3 Analysis of Operating Profit Ratio

Year	Operating Profit (Rs. In Crores)	Net Sales (Rs. In Crores)	OP Ratio %
2010	245.19	2,541.04	9.64
2011	271.38	3,072.18	8.83
2012	229.50	3,042.67	7.54
2013	218.82	2,772.73	7.89
2014	211.51	2,834.64	7.46

From the above, it is inferred that the Gross profit ratio of Whirlpool has been at 9.64% in the year 2010, 8.83% in 2011, 7.54% in 2012, 7.89% in 2013 and 7.46% in the year 2014. The highest OP ratio was in the year 2010 and the lowest ratio was in the year 2012.The OP ratio shows a decreasing trend for the last five years.

8.4 Analysis of Operating Expenses Ratio

Year	Operating Expenses (Rs. In Crores)	Net Sales (Rs. In Crores)	Operating Expenses Ratio %
2010	619.77	2,541.04	24.39
2011	733.38	3,072.18	23.87
2012	742.74	3,042.67	24.41
2013	0	2,772.73	0
2014	0	2,834.64	0

From the above, it is inferred that the Operating Expenses ratio of Whirlpool has been at 24.39% in the year 2010, 23.87% in 2011 and 24.41% in 2012. The highest Operating Expenses ratio was in the year 2010 and the lowest ratio was in the year 2012.The Operating Expenses ratio shows a decreasing trend for the last five years.

8.5 Analysis of Operating Ratio

Year	Operating cost (Rs. In Crores)	Net Sales (Rs. In Crores)	Operating Ratio %
2010	2338.56	2,541.04	116.4
2011	2842.65	3,072.18	116.4
2012	2864.31	3,042.67	118.5
2013	2593.57	2,772.73	93.5
2014	2660.43	2,834.64	93.8

From the above, it is inferred that the Operating ratio of Whirlpool has been at 116.4% in the year 2010, 116.4in 2011, 118.5% in 2012, 93.5% in 2013 and 93.8% in the year 2014. The highest Operating ratio was in the year 2010 and the lowest ratio was in the year 2012.The Operating ratio shows a decreasing trend for the last five years.

8.6 Analysis of Comparing Return on Investment of Whirlpool and Selected Competitors Using Two-Way ANOVA

Year	Whirlpool	IFB	Hitachi	Godrej
2010	60	37	25	3
2011	59	28	18	4
2012	40	16	5	11
2013	29	13	7	4
2014	24	8	7	4

Hypothesis:

H0: There is a significant difference on the ROI of Whirlpool and selected Competitors

H1: There is no a significant difference on the ROI of Whirlpool and selected Competitors.

8.10 Mean, Standard Deviation, Variance of Operating Ratio for Whirlpool and Selected Competitors

Year	Whirlpool	IFB	Hitachi	Godrej
2010	116.4	113.91	104.31	82.23
2011	116.4	115.87	112.41	79.8
2012	118.5	95.52	99.65	80.2
2013	93.5	95.26	97.77	93.36
2014	93.8	97.12	98.97	91.4
MEAN	107.72	103.536	102.622	85.398
S.D	12.87311151	10.4123	6.00762183	6.4770842
VARIANCE	165.717	108.415	36.09152	41.95262

8.11 Mean, Standard Deviation, Variance of Operating Expenses Ratio for Whirlpool and Selected Competitors

YEAR	WHIRLPOOL	IFB	HITACHI	GODREJ
2010	24.39	23.09	13.2	7.94
2011	23.87	23.76	12.41	7.32
2012	24.41	0	0	5.79
2013	0	0	0	0
2014	0	0	0	0
MEAN	14.534	9.37	5.122	4.21
S.D	13.26943217	12.8326	7.019146672	3.9220403
VARIANCE	176.07783	164.675	49.26842	15.3824

From the table it is inferred that the highest mean value is 107.72 for Whirlpool and the lowest mean value of Operating ratio is 85.39 for Godrej remaining company are maintaining moderate level, Hitachi– 102.66, IFB- 103.53 respectively. The highest variability of 12.87 was observed in Operating ratio of Whirlpool, and lowest variability of 6.00 was observed in Operating ratio of Hitachi remaining company had variability at moderate level, 10.41 – IFB, 6.47 – Godrej respectively.

From the table it is inferred that the highest mean value is 14.53 for Whirlpool and the lowest mean value of Operating Expenses ratio is 4.21 for Godrej remaining company are maintaining moderate level, Hitachi– 5.122, IFB- 9.37 respectively. The highest variability of 13.26 was observed in Operating expenses ratio of Whirlpool, and lowest variability of 3.92 was observed in Operating ratio of Godrej remaining company had variability at moderate level, 12.83 – IFB, 7.01 – Hitachi respectively.

9. FINDINGS FROM THE STUDY:

From the study it was inferred that the profitability ratios calculated for Whirlpool of India ltd including Net Profit Ratio, Gross Profit Ratio, Operating Profit Ratio, Operating Ratio, Operating Expenses Ratio for the last five years showed a decreasing trend in the long run of the company. Calculating the profitability of the company using financial ratio, has inferred that the profitability of Whirlpool has been moderate in the last five years. From the study it was inferred that the overall profitability of Whirlpool of India Ltd was satisfactory. The Overall Profitability was calculated using Financial ratios for Whirlpool and its selected competitor. The overall profitability of selected competitor was moderate when compared with Whirlpool of India Ltd.

10. SUGGESTIONS FOR THE STUDY:

Whirlpool may increase their profitability by increasing the utilization of assets optimally. When the assets are utilized optimally then the efficiency of the company may increase which may increase the profitability of the company. Whirlpool of India Ltd may identify the factors such as profit margin, non-operating income, window dressing, inflationary conditions and changes in accounting policies which may help to increase their profitability.

11. CONCLUSION:

After the analysis of various data, related to Whirlpool of India Ltd and its selected competitor founded in theoretical statement, it clear that profitability more or less depends upon the better utilization of resources, cut off expenses and quality of management function in the products, customer services and to manpower and goodwill and market share. It is worthwhile to increase production capacity and use advance technology to cut down cost of production and wage cost in order to increase profitability, not only against the investment, but also for investors return point of view. These programs are helpful to increase profitability of Whirlpool of India Ltd in future prospects.

12. LIMITATIONS FOR THE STUDY:

Information shown in the financial statement is not precise since its based on practical experience and the conventions and rules developed therefore. Financial statement does not disclose the contribution of human towards the efficiency of the business .Financial statement requires further detailed analysis and interpretation.

13. REFERENCES:

1. Amir Hossein Jamali and Asghar Asadi, Management efficiency and profitability in Indian automobile industry: from theory to practice Indian Journal on Science and Technology, May 2012, Vol. 5 Issue 5 Pg. 2779– 2781.

2. Brindadevi .V, A Study on Profitability Analysis of Private Sector Banks In India Journal of Business and Management. Vol. 13, Sep to Oct. 2013, Issue 4, Pg. 45-50.

3. Chaudhary. K, and M. Sharma, Performance of Indian public sector banks and private sector banks a comparative study, International Journal of Innovation, Management and Technology Vol 2, No. 3, June 2011, Pg. 249-255.

4. Dr. Dimitriosp, Petropoulogeorge and Kyriazopoulos, Profitability, efficiency and liquidity of the co-operative banks in Greece (2010) International Conference on Applied Economics Pg. 603 – 607.

5. D. Gurusamy, Analysis of profitability performance of SBI and its associates, International Journal of Business Economics and Management Research, Vol. 2, Issue number 1, January 2012, Pg. 105–125.

6. Ketan H.popat, A comparative study of profitability analysis of selected Hotel Industries International Global Research, Vol. 2, Issue number 7, July 2013, Page number 98 – 100.

7. Priya.S, An Analysis of Profitability Position of Private Sector Banks In An Analysis of Profitability Position of Private Sector Banks In India, International Journal of Business and Management Invention, Vol. 3, February 2014, Issue 2, Pg.45-53.

8. Rakhi Hotwani, Profitability Analysis of Tata Motors Journal of Research in Commerce and Management Vol. 2 Issue number.12, 2011, Pg. 1 – 8.

9. T. Venkatesan, S.K. Nagarajan, An empirical study of profitability analysis of select steel companies in India Journal of Marketing, Finance Service and Management Research. Vol.1 Issue number 10, October 2012, Pg 84-100.

10. Vivek Sharma, Liquidity, Risk and profitability: A case study at Maruthi India International Journal of Management and Research Vol. 2 Issue 2, Year 2010-11, Pg 191– 193.

Received on 04.07.2015 Modified on 18.07.2015

Asian J. Management; 6(3): July-Sept., 2015 page 241-246

DOI: 10.5958/2321-5763.2015.00035.9

Tests of Between-Subjects Effects
Dependent Variable: ROI
Source	Type III Sum of Squares	Df	Mean Square	F	Sig.
Corrected Model	5150.200^a	7	735.743	11.623	.000
Intercept	8080.200	1	8080.200	127.649	.000
COMPANY	3893.400	3	1297.800	20.502	.000
YEAR	1256.800	4	314.200	4.964	.014
Error	759.600	12	63.300
Total	13990.000	20
Corrected Total	5909.800	19

Year	Whirlpool	IFB	Hitachi	Goderj
2010	5.7	8.72	7.16	9.22
2011	5.4	7.21	3.81	11.43
2012	4.07	3.75	0.4	12.04
2013	4.6	3.39	1.64	6.45
2014	4.33	2.09	0.72	8
MEAN	4.82	5.032	2.746	9.428
S.D	0.700321355	2.79911	2.80388659	2.3335317
VARIANCE	0.49045	7.83502	7.86178	5.44537

Year	Whirlpool	IFB	Hitachi	Goderj
2010	7.96	8.24	7.64	-1.84
2011	7.47	6.81	5.28	1.39
2012	5.86	3.27	1.35	11.32
2013	6.46	3.48	2.82	4.67
2014	6.14	2.21	1.59	5.14
MEAN	6.778	4.802	3.736	4.136
S.D	0.898175929	2.58191	2.68153501	4.9029614
VARIANCE	0.80672	6.66627	7.19063	24.03903

Year	Whirlpool	IFB	Hitachi	Goderj
2010	9.64	9.66	9.47	1.64
2011	8.83	8.15	7.38	4.13
2012	7.54	5.12	3.65	13.22
2013	7.86	5.48	4.99	6.25
2014	7.46	4.42	4.32	6.83
MEAN	8.266	6.566	5.962	6.414
S.D	0.941743065	2.23369	2.41366319	4.3165183
VARIANCE	0.88688	4.98938	5.82577	18.63233