Factors Affecting the Profitability of Industrial Companies Listed in Amman Stock Exchange

Profitability is considered as the main concern of the entities all over the world however, the managements work hardly in order to maximize its profits by revising evaluate the financial situation and and changing prospective plans continuously. This study investigates factors affecting the profitability in Jordanian industrial companies. In order to achieve the goals of the study the researcher used (30) industrial companies, which are listed in Amman Stock Exchange (ASE), during the period 2016 to 2020. Secondary data has been used from the published financial statements and annual reports over five years for the industrial companies that listed in ASE. Indeed, several factors have been considered which are affected the profitability and use in this research as an independent variable that are Earning Per Share (EPS), operating Cash flow, company's age and the company's size on the Return on Assets (ROA). In order to experiment the hypotheses, statistical test has been used such as multicollinearity regression. The result revealed that (EPS, operating cash flow, size of the company) affects profitability measured by (ROA) in industrial Companies Listed in ASE. The size of a company has an effect on its level of competitiveness, it's possible that smaller businesses are more easily pushed about by larger ones, which makes competition more difficult. Keeping a close eye on cash flow and earnings per share is required. Further studies could rely on the integrated reports for the industrial companies in order to measure an extra factors such as environmental, social and economic aspects on the profitability.