Company specific factors affecting profitability of nepalese manufacturing companies

Abstract

The main aim of the study is to analyze the company specific factors of profitability of manufacturing companies of Nepal. This study mainly analyze the effect of company size, sales growth, leverage, liquidity and working capital on profitability of Nepalese manufacturing companies. This study is fully based on secondary data and the study covers the data of sample companies from year 2012/13 to 2021/22. Descriptive and casual comparative research has been carried out to analyze the effect of company specific factors of profitability on Nepalese manufacturing companies. The correlation and multiple regression analysis tools are used to examine the collected data and analysis is done using Eviews software. The empirical results of this study found that company size has significant negative effect on return on assets of the companies. Sales growth has significant positive effect on return on assets of the companies. Leverage has insignificant positive effect on return on assets of the companies. Liquidity has significant positive effect on return on assets of the companies. Working capital has significant positive effect on return on assets of the companies. In the same way, company size has significant negative effect on return on equity of the companies. Sales growth has insignificant positive effect on return on equity of the companies. Leverage has insignificant positive effect on return on equity of the companies. Liquidity has significant positive effect on return on equity of the companies. Working capital has significant positive effect on return on equity of the companies