Accounting Based Return Analysis of Selected Fuel and Power Sector Companies in Bangladesh

Abstract

The present study is an attempt to explore the contemporary profitability status of 5 (five) selected fuel and power sector companies enlisted in DSE, Bangladesh and the interrelationship between sales based returns (GPM, OPM, and NPM) and investment based returns (ROA and ROE) over the period of 2012 to 2016 for the same companies. Using descriptive statistics the present study has found that the profitability position of the sample companies is satisfactory, multiple correlation analysis revealed that there is a positive association between sales based returns and ROA whereas negative association between sales based returns and ROE, and the multiple regression analysis showed that 97.70 percent variance is explained by the predictors OPM, ROA, and ROE of the dependent variable OABR (overall accounting based return) in the selected fuel and power sector companies of Bangladesh.