Using the GMM estimator technique described by
Arellano and Bover (1995), this paper analyzes the profitability of 372 commercial banks in Switzerland over the period from 1999 to 2009. To evaluate ...the impact of the recent financial crisis, we separately consider the pre-crisis period, 1999–2006, and the crisis years of 2007–2009. Our profitability determinants include bank-specific characteristics as well as industry-specific and macroeconomic factors, some of which have not been considered in previous studies. The inclusion of these additional factors as well as the separate consideration of the crisis years allow us to gain new insights into what determines the profitability of commercial banks.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
Companies producing customized products tend to increase the variety of their product portfolio, in order to fulfill the demand of their customers and align their strategies with those of ...competitors. However, the profitability of product families may vary greatly. The purpose of this paper is to develop an operational method to analyze profitability of Configure-To-Order (CTO) products. The operational method consists of a four-step: analysis of product assortment, profitability analysis on configured products, market and competitor analysis and, product assortment scenarios analysis. The proposed operational method is firstly developed based on both available literature and practitioners experience and subsequently tested on a company that produces CTO products. The results from this application are further discussed and opportunities for further research identified.
The current study aims to answer dual, related questions: Does corporate environmental policy affect corporate reputation, and does this link also influence risk‐adjusted profitability and company's ...risk? With a comprehensive framework involving analyses of each question, among a sample of firms traced by the Reputation Institute, this study reveals several notable results, after correcting for endogeneity biases. First, environmental engagement and green product innovation are both antecedents of corporate reputation. Second, corporate reputation has a positive impact on risk‐adjusted profitability and Z score indicator of financial distress risk. Thus, corporate environmental responsibility and green practices represent cospecialized assets that enhances an intangible asset, namely, corporate reputation. The latter influence constitutes a missing link between sustainable development and the firm's financial performance. Overall, environmental engagement and corporate reputation act as insurance‐like protections of firm competitiveness.
Full text
Available for:
BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
Profitability remains elusive for many small-scale cattle farmers, as the high operational costs involved often require a larger herd to achieve a reasonable profit. This study uses key financial ...metrics and the Monte Carlo probabilistic simulation to evaluate the economic feasibility and viability of integrating cattle and mushroom production to enhance year-round profitability for small-scale ranchers. The study results illustrate a promising outlook for investing in the integration of cattle and mushroom production. This integrated system shows potential for generating significant returns with minimal risk over the long term. The Monte Carlo simulation indicates that combining mushroom farming with cattle farming could substantially decrease feed expenses, fertilizer costs for hay production, and overall operational expenditures, while also increasing revenue from mushroom sales.
Deflating profitability Ball, Ray; Gerakos, Joseph; Linnainmaa, Juhani T. ...
Journal of financial economics,
08/2015, Volume:
117, Issue:
2
Journal Article
Peer reviewed
Gross profit scaled by book value of total assets predicts the cross section of average returns. Novy-Marx (2013) concludes that it outperforms other measures of profitability such as bottom line net ...income, cash flows, and dividends. One potential explanation for the measure׳s predictive ability is that its numerator (gross profit) is a cleaner measure of economic profitability. An alternative explanation lies in the measure׳s deflator. We find that net income equals gross profit in predictive power when they have consistent deflators. Deflating profit by the book value of total assets results in a variable that is the product of profitability and the ratio of the market value of equity to the book value of total assets, which is priced. We then construct an alternative measure of profitability, operating profitability, which better matches current expenses with current revenue. This measure exhibits a far stronger link with expected returns than either net income or gross profit. It predicts returns as far as ten years ahead, seemingly inconsistent with irrational pricing explanations.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
Abstract
Introduction
Home sleep apnea tests (HSATs) are convenient alternatives to in-lab polysomnograms (PSGs) but high non-diagnostic rates limit their utility. A clinical decision support tool ...(CDST) to triage patients to HSAT versus PSG was developed at the Greater Los Angeles VA Healthcare System (GLA-VAHS). It uses a random forest ensemble to reduce non-diagnostic HSAT rates by 46%. While prior studies have found PSGs to be more profitable than HSATs on a per unit basis, these analyses do not factor in relative profitability over time. Additionally, no prior studies have quantified the financial impact of a CDST in diagnostic sleep testing.
Methods
We performed an analysis of the overall profitability of HSATs and PSGs in 2018-2019 within GLA-VAHS which has 6 PSG beds. Revenue was calculated using 2019 Medicare reimbursement rates. Contribution margin (CM) analysis was used to factor out the high fixed costs of healthcare infrastructure, instead focusing on variable direct costs (VDCs). CM analysis is especially useful when calculated on a per diem basis instead of per study, adjusting for number of tests performed in a given day. CM was calculated by subtracting VDCs from revenue under two simulated conditions: with and without the CDST.
Results
PSGs were 2.5 times more profitable than HSATs on a per unit basis (CM $200/study vs. $81/study). However, on a per day basis, PSGs were only 1.4 times more profitable than HSATs at average nightly occupancy rates of 75% (CM $902/day vs. $646/day). Using the CDST to guide testing, 2.2 times more diagnostic HSATs could be performed per day. As a result, HSATs were 1.3 times more profitable than PSGs on a per day basis with CDST use (CM $1,211/day vs. $902/day).
Conclusion
This analysis demonstrates that implementing a CDST and maximizing utilization of HSATs allow hospitals to better allocate limited sleep lab resources, increase diagnostic throughput and generate higher profits. Analyzing costs using contribution margin avoids erroneous assumptions about profitability and leads to better-informed administrative decisions regarding sleep lab expansion.
Support
The article considers the role of investments in the growth of profitability of large-scale production due to the high wear of processing equipment because of the long absence of major repairs. It ...evaluates the effectiveness of the organization of maintenance service of the processing equipment operated in the shop of a metallurgical plant. The cost of the services provided by a specialized organization is determined. The paper describes the procedure for the settlement of accounts and the conditions of acceptance of equipment after service in the current production conditions in the Far North. In the final part of the article the financial, organizational and economic results of the activities are presented.
Background. This study aims to document the relationship between mobile bank fund transfers and the profitability of Centenary Bank's main branch in Kampala, Uganda. Mobile banking refers to the act ...of enabling bank customers to access its services using mobile applications like phones and tablets. Mobile fund transfer refers to the transfer of funds using mobile phones. Fund transfer involves the movement of monetary funds, from one account to another. Services include performing balance checks, account transactions, payments, and other banking transactions through a mobile device such as a mobile phone which is most used in developing countries like Uganda. Centenary Bank is one of the leading commercial banks in Uganda. Therefore, this study seeks to assess the relationship between mobile bank fund transfers and the profitability of Centenary Bank's main branch in Kampala, Uganda Methodology. The study adopted a correlational, cross-sectional case study survey design. The study was correlational since it established the relationship between the study variables. It was cross-sectional since it collected data at an appointment in time for a short period and the study had no follow-up on the findings. Results. Based on the findings, there were significant positive correlations between profitability and mobile fund transfers (0.473). This means that as mobile fund transfers increase, the profitability of Centenary Bank tends to increase as well. Further, findings showed that 42.3% of the variation in profitability was explained by mobile bank fund transfers. Conclusion. Mobile banking activities, including fund transfers, have a positive impact on the profitability of Centenary Bank in Uganda. Recommendation. Centenary Bank should focus on promoting and enhancing its mobile banking transfer services to attract more customers and increase profitability. Centenary Bank should invest in robust security measures to protect customer accounts and data, ensuring the trust and confidence of their customers.
PDF
