Determinants of Profitability: Evidence from Large Manufacturing food and beverage Companiesrnof Addis Ababa.rnThis study sets out to examine the determinants of food and beverages profitability specificallyrnfocused on large manufacturing companies of the sector who submitted their annual financialrnstatement reportto ERCA LTO, during the period 2011-2015. Consequently,the researcher usedrnsecondary data obtained from the financial statements (Balance sheet and Profit/Loss account) ofrnfood and beverage companies, and financial publications of CSA, MOFED and MOT.rnQuantitative research approach was adopted.The study performs a panel least square regressionrnanalysis to examine the proposed relationship. The study had a population size of 29 food andrnbeveragecompanies operating in Addis Ababa. Simple random sampling technique was used tornselect the sampled companies from the period of 2011-2015, consisting of 14 companies with 70rnobservations.The results of panel least square regression analysis showed that: Firm size,rnLeverage and capital intensity, have statistically significant and negative impact on profitability.rnOn the other hand, Managerial efficiency has a positive and statistically significant impact onrnmanufacturing food and beverage companiesâ€™ profitability. The study concluded that size mayrnhave no or negative impact on profitability, managerial efficiency has strong effect onrnprofitability. Beside the study suggested for the stakeholders that give more attention on the majorrnvariables of the sectors such as firm size and capital intensity. While the results may not berngeneralizable to all food and beverage manufacturing companies found in the country, thernfindings should provide food and beverage executives and managers with valuable information forrndeveloping their strategies with regard to firm specific determinants.rnKey Words: - ROA, Firm specific factors, Inflation