The main purpose of this study is to evaluate the profitability, financial performance and operating position of selected chemical companies in addition to make suggestions for improvement in profitability or operating position of the selected companies. The present study is made for the period of five years from 2015-16 to 2019-20.Five companies were selection. Four ratios were used in this study: net profit ratio, gross profit ratio, material cost ratio and factory overhead ratio. To test hypothesis ANOVA was used. The major findings of this study indicate that there are no significant difference in various profitability ratios and operating ratios of selected chemical companies during the study period. Based on the data interpretation, the comparison of all the selected five chemical companies' the ratios that have been concluded in this study indicate that the Thirumalai Chemical Ltd. is in better position than other selected chemical company because its average of the selected ratio is 14.829 which is higher than the other selected chemical companies. So Thirumalai Chemical Ltd. is performing best among the selected chemical companies.