• Dr. S. Umasarulatha

The study has envisages that the ratio is decreased to 4.04 per cent during 2016-17. A change in the net profit ratio of a business concern over a period of time might throw light on the cause of such a change. Further it has indicates that the ratio is decreased to 3.31per cent during 2016-17. Return on total assets ratio measures the profitability and efficiency of a business concern. This ratio show how the total assets at the disposal of management of company have been used to generate income. Lower the ratio is not efficiency to management. The study reveals that the ratio is increased to 1.21times during 2016-17. Higher the ratio, the better it is, since it indicates that more sales are being made by a rupee of investment in stocks. The researcher has points out that the ratio is slightly decreased to 2.86 times during 2016-17. This ratio shows the decreases in profitability and efficiency of the management. Lower the ratio indicates the under trading capacity of capital in business. The study has found that the ratio is increased to12.13times is increased when compared during 2015-16. This ratio is highly useful in measuring the efficiency and profit earning capacity of the company. This ratio is especially useful for manufacturing concerns where sales are produced largely by the capital invested in fixed assets. The study has quotes that the ratio is fluctuated over the years. This ratio ensures whether the capital employed has been effectively used or not. It also shows the profitability and efficiency of management.

ratio, profitability efficiency

"A Study on Capacity Utilization with Special Reference to Car Company", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.7, Issue 5, page no.221-229, May-2020, Available :http://www.jetir.org/papers/JETIR2005171.pdf

"A Study on Capacity Utilization with Special Reference to Car Company", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.7, Issue 5, page no. pp221-229, May-2020, Available at : http://www.jetir.org/papers/JETIR2005171.pdf