Abstract: This study examines the financial performance of an oil factory, focusing on key profitability and liquidity indicators such as Net Profit Margin, Gross Profit Margin, Return on Assets (ROA), Return on Equity (ROE), and liquidity ratios including Current Ratio, Quick Ratio, and Cash Ratio. The research utilizes a quantitative methodology based on secondary data comprising 25 financial observations. Descriptive statistics were used to summarize the data, followed by correlation analysis to explore interrelationships between profitability indicators, and multiple linear regression to identify significant predictors of net profitability.
The results reveal a strong positive correlation between Gross Profit Margin and Net Profit Margin, suggesting that operational efficiency plays a central role in overall profitability. Conversely, ROA and ROE displayed weaker or insignificant associations, indicating their limited predictive power in this context. Liquidity ratios, while important for short-term financial health, showed minimal influence on profitability in this analysis.
The regression model accounted for nearly 80% of the variance in Net Profit Margin, with Gross Profit Margin emerging as the most influential factor. These findings highlight the importance of effective cost control, pricing strategy, and production efficiency in sustaining profitability. This study contributes to the growing body of empirical research in India’s edible oil manufacturing sector and offers practical insights for financial managers, investors, and policymakers aiming to improve performance evaluation and strategic decision-making.

Keywords: Financial Analysis, Profitability Ratios, Liquidity Ratios, Regression Analysis, Edible Oil Industry, Return on Assets, Return on Equity

| DOI: 10.17148/IARJSET.2025.12486