Research of Factors Affecting Profitability Ratio: The Case Study of Song Da Corporation

Abstract

The theme of factors affecting profitability ratio in enterprises is much interested. This research is conducted for
evaluating impacts of factors affecting profitability ratio of construction firms in Song Da Corporation. Data were
collected from audited financial statements of listed construction firms in Vietnam Securities Exchange for the
period from 2011 to 2015. Basing on the quantitative methodology, the results show that revenue, growth rate,
receivable turnover have positive relationship with profitability whereas ratio of debt per equity, ratio of debt per
assets, ratio of fixed assets have negative relationship. Basing on these findings, some recommendations have
been given for improving profitability of sample companies