In this paper, the profitability determinants of food processing industry in the Republic of Serbia was analyzed at the level of meat, fruit and vegetable, and milk processing industry. The profitability determinants was estimated by panel data technique for the period 2007-2015 based on the sample of 657 observations of companies. Profitability was measured by return on assets, while as the independent determinants were defined size, debt ratio, quick ratio, inventory, sale growth and capital turnover ratio. The results show that among all three types of food processing industry sale growth has positive significant influence on profitability. Beside these, profitability of meat processing industry is positive related to the quick ratio and negative related to size, debt ratio and capital turnover ratio. Profitability of fruit and vegetable processing industry is negative related to size and capital turnover ratio. Profitability of milk processing companies is positive related to quick ratio and negative related to debt ratio. The results show the profile of specific companies from food processing industry which can be useful information for the various stakeholders such as managers of companies and owners, potential investor, creditors, suppliers and other users of financial statements for the purpose of business decision making.
