Operational Performance and Profitability: An Empirical Study on the Bangladeshi Ceramic Companies

The purpose of the study is to find out a relationship between operational performance and profitability. The data from ceramic companies in Bangladesh have been taken to find the mentioned relationship because the ceramic industry is growing rapidly which will be useful to get a wholesome result. A number of operating ratios have been used as the proxy of the indicators of the operational efficiency of the companies while an earnings per share has been used as the determinant of profitability. To find out the findings of the study quantitative method has been employed. Standard Deviation, Correlation and simple Linear Regression have been utilized with the help of predictive analytics software SPSS in order to arrive at the end result of the study. Based on the result of the study it can be deduced that the change of fixed asset turnover, return on equity and return on asset are positively influencing the profitability. Besides operating cycle has negative association with the profitability though it is not statistically significant. Therefore it can be said that the key performance indicators of operational performance have some relationship with the profitability in the context of the ceramic companies of Bangladesh.