Profitability assessment is a term that has been very popular since the times of industrial revolution in India. It indicates the earning capability of the business entity either in relation to total revenues or the assets being utilized. Profitability indicates the degree or the extent of profit earning capacity of a business venture. It shows the financial ability and tends to enhance the income earning capacity. We can say for business to be profitable, good use of finances of the business is a must. Finance is the life blood of an organization. It is an integral part of establishing, running and operation of a business. Sometimes it is not the shortages of funds but the mismanagement of funds which leads to the failure of the business. Therefore, for surviving in the dynamic economic environment optimum utilization of resources is the key to profitability, which ultimately is the main objective of any business enterprise.