Abstract: Every business is established to earn maximum return; therefore there is a need to evaluate profitability analysis of sample sugar factories in Karnataka. To know whether the profits earned by the sample factories is sufficient or not. Also to know whether sample sugar factories fulfil the requirements of shareholders and other stakeholders or not. Profitability analysis with reference to return on investment in sample sugar factories in Karnataka is undertaken. The study for this purpose evaluate the assets turnover ratio and also takes into account takes into account the profit margin of sugar factories.