Determinants of Profitability

This study was conducted to investigate the determinants of profitability of firms engaged in the flour manufacturing companies in West Arsi zone of Oromia Regional state Ethiopia. A total of samples of 13 flour companies were taken for this study by using census method and secondary data were collected from audited financial statements of the companies for the period of seven years (2004 to 2010 E.C). Six firm specific independent variables (age size managerial efficiency expense management leverage management and sales growth) on profitability proxied by Return on asset (ROA) and Return on equity (ROE) were used.