Abstract:
Return on Assets (ROA) signifies a method by which a firm earns income by investing its assets. As a best practice, ROA of a particular company should be compared with the ROA of industry average to which the particular company belongs. Thus, ROA provides vital information to the prospective investors about efficiency of a particular company in terms of converting the invested funds into net revenue. The CPSEs in India were established to achieve the socio-economic objectives of monetary intensification, self-sufficiency in manufacturing, intemperance balance of payments, etc. They offer indispensable goods and services and occupy a momentous market place in different important segments. The current research cram is an attempt to assess the performance through ROA of selected manufacturing industries in Indian CPSEs during 2010-11 to 2019-20. The selected manufacturing industries generate both affirmative and pessimistic returns on their assets. On the average, all the industries (except chemicals & pharmaceuticals industry) have shown positive ROA. This implies that these industries have efficiently utilized their assets in generating profit. Furthermore, on the average, other minerals & metals industry has shown highest ROA, while chemicals & pharmaceuticals industry has registered lowest (i.e., negative) ROA. In most of the cases, the selected manufacturing industries have played a significant role in the progress of the country.
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