Abstract
In this paper, profitability analysis of meat processing industry in Serbia was realized in period 2011-2015. Meat processing industry is one of the profitable sectors in the Republic of Serbia, with an average rate of ROA of 5.29. Even though companies in meat processing industry achieve positive net income, profitability is below referent value. In order to investigate which internal factors have a significant influence on the profitability of meat processing industry, a panel data regression was realized. The results show that companies with high liquidity ratio and growth in sales achieve better ROA. On the other side, high debt ratio negatively influences the level of ROA. Furthermore, the results show that the size of the company, fixed assets ratio and rate of investment, do not have an influence on the profitability of meat processing industry.
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