Objective: The article aims to verify profitability and its determinants in SME service firms. Research Design & Methods: We conducted a critical literature review and analysed empirical data based ...on a linear mixed model. The research sample comprises 1851 SMEs representing the service sector. Findings: An analysis of the determinants of SME profitability in the service sector indicates the significance of such factors as belonging to a given industry, debt levels, asset structure, company size, and financial liquidity. Implications & Recommendations: The financial success of SMEs in the service sector results mainly from belonging to a specific industry. The profitability of a business activity is determined by a given sector’s internal competition, entry and exit barriers, technological advancement, and the structure of the market and business environment. Moreover, the profitability of SME service companies also depends on their size. On the other hand, such variables as indebtedness, asset structure, and financial liquidity negatively impact profitability. Contribution & Value Added: An analysis of SME profitability in the service sector is the first such undertaking in Eastern Europe. It is also true of the verification of profitability determinants in the service sector. The article also empirically verifies the profitability of different activities in the service sector.
Management of Bank Profit Formation Kubakh, Tetiana H.; Dekhtiar, Nadiya А.; Shenkarenko, Vladyslav O.
Bìznes ìnform/Bìznes ìnform,
11/2023, Volume:
11, Issue:
550
Journal Article
Peer reviewed
Open access
In the context of martial law and the State budget deficit, the profitability of systemically important banks plays a key role in supporting the national economy as a whole. Changing economic ...conditions and growing competition in the financial services market impose certain requirements on banks and require them to constantly analyze the external environment and improve their performance. As banks are focused on making a profit, which is the main goal of their activities, management of profit formation is one of the key functions of banks. Thus, given the variability of the external environment, the issue of management of profit formation is relevant and requires research both at the level of individual banks and at the level of the banking system as a whole. The aim of the article is to define the theoretical aspects of bank profit and to conduct a practical study of profit formation of a systemically important market participant - JSC CB «Privatbank». The objectives of the article are to define the concept of «profit» and its components, to conduct an analytical study of the financial results of the banking system and JSC CB "Privatbank", to conduct a correlation and regression analysis of profit and to identify the main directions of its formation. The article applies such research methods and techniques as abstraction, specification, theory development, as well as methods of analysis, evaluation and modeling. The article defines the relevance of this topic, considers theoretical definitions of the concept of "bank profit", its bibliographic component, provides the authors' own definition of the studied concept, analyses financial results and indicators of profitability of the banking system, analyses profit indicators of JSC CB "Privatbank", conducts correlation and regression analysis using the least squares method, and draws conclusions on the analysis of bank profit formation. Further research will help to specify the influence of factors on the formation of profit and identify ways to maximize it in the context of crisis phenomena.
The primary role of financial statements is to provide information to users, both internal and external, to make business decisions. The preparation of financial statements includes a number of ...methods and procedures that have different effects on the values reported in the financial statements. The domain of accounting policies is precisely those methods and procedures, in fact rules related to the recognition and valuation of balance sheet items, as well as the preparation of financial statements. The choice of accounting policies achieves objectives that are mainly oriented towards the financial result and financial position of the reporting entity. The responsibility for the choice of accounting policies belongs to the management of the company. Their adequate choice by the management leads to a realistic view of the financial and profitable position of the company, as well as business success. The impact of applied accounting policies on the performance of companies is shown in a study conducted in companies in the Republic of Serbia, which showed differences in individual balance sheet items in groups of companies depending on the applied accounting policy.
Purpose: The main aim of the study is to present and evaluate the essence, the principles of determining (measuring), and the means of presenting the result of Polish State Forests (LP) in financial ...reporting, as well as the presentation of the initial distribution of profit.Methodology/approach: The considerations in the study are contrasted with selected authors from the source literature. The methods of critical analysis and synthesis, inference, and a case study were used. The data for the analyses were collected from the financial and economic reports of LP for 2011–2021 and from the accounts obtained by filing a motion in LP to reuse public sector information.Findings: LP’s revenue has been decreasing since 2018. Approximately 55–56% of LP’s overall spending is related to the costs of the core activity, which is related to the sale of lumber. Since 2018, the share of this spending has diminished. The costs of general management primarily associated with maintaining the Forest Service amount to around 41–42% LP’s total spendings. These costs are structured at diverse levels within the study period. The increase in the percentage contribution of the abovementioned spendings in LP’s total costs has been noted since 2018. From 2011 to 2021, LP made a profit from business activities and it is used to support LP’s assets, provide extra rewards for employees, contribute to the company’s social benefits fund, and for socially useful purposes.Research limitations: There is a lack of comprehensive data on the general distribution of profits from LP and individual forest districts. Additionally, there was a lack of access to data from the respective forest districts. LP did not provide detailed information.Originality/value: The paper fills the gap on information about acquired revenue and incurred costs of managing a sustainable forest economy, including an attempt to delineate a description of the distribution of LP’s profit. The profit-sharing matrix and index are versatile tools that can be used for profit-sharing planning in LP.
Activities of industrial enterprises are associated with continuous consumption of certain types of resources, so expense accounting plays a crucial role in determining the enterprise efficiency. ...Accounting procedures occupy a key place in information support system of any enterprise, since the original information on the enterprise activities in the form of financial statements and internal documentation (source documents, journals and ledgers) is essential in order to meet the needs of internal and external users. It is particularly important to account for operating expenses, which forms information about the use of materials, labor and other resources involved in the production process. Properly organized accounting and analytical information on operating expense ensures fair and accurate assessment of the enterprise production process and provide effective management decision-making. The purpose of the scientific paper is to analyze operating expenses, organization and methodology of the accounting process at the enterprise and to develop practical recommendations for improving the accounting for operating activity.This goal necessitates the solution of the following tasks: determine the nature and classification of operating expenses; analyze the dynamics and structure of operating expenses; develop the suggestions concerning the improvement of registration-analytical information of operating expenses. The used research methods and general characteristics of paper. The authors applied the method of literature review to justify the relevance of the chosen research topic. On the basis of the comparative method the main economic indicators of activity, in particular dynamics and structure of operating expenses according economic elements and according items of calculation were defined. On the basis of system analysis and synthesis, proposals on the composition of items of production costing and on the introduction of classification of expenses by groups in terms of relevant items of general production expenses, administrative, marketing expenses and other operating expenses were formed.
The study is devoted to assessing the stress of real incomes of the population (regarding wages) and the real financial result of enterprises in the Russian regions during the pandemic and sanctions ...shocks of 2017–2023. We used a number of methods of deflation, elimination of seasonal and random components in the dynamics of indicators. To assess the stress level, a stress index, developed by the author earlier, which is a moving (with a one-month step) difference between the standard deviation and the average value of the annual growth rate of each indicator under study, as well as a way to decompose it by source, was used. Integral real income stress index was calculated as the sum of two particular stress indices normalized by the method of equivalent variances on the scale of the entire spatiotemporal sample. As a result of the study, similarities and differences in the reaction of real incomes of the population in regions and federal districts under the impact of pre-pandemic, pandemic and new sanctions shocks were revealed, as well as different reactions of wages and financial results of the enterprises in them, certain spatial effects, areas of stability and increased risk. It has been established that the reduction of the level of real income stress across the country occurs due to the greater stability of the growth rates of the indicators under consideration in regions with high incomes, while the positive influence of the effect of interregional diversification has not received empirical confirmation
The aim of the article is to justify the indicators of the basic monitoring of financial results of trade enterprises — subjects of foreign economic activity. Essential characteristics of such ...notions as the threshold, limiting, optimum value of an indicator are analyzed. There justified the system of indicators for the basic monitoring of financial results of trade enterprises — subjects of foreign economic activity, which is formed taking into account the goals of the economic activity of a trade enterprise as well as the sequence of formation and use of its financial results. For the basic monitoring of financial results of trade enterprises — subjects of foreign economic activity — the use of such indicators as marginal revenue, financial result from operating activities, net financial result, capitalized profit is recommended, and models for calculating their threshold values are presented. The prospect for further research is the justification of the system of indicators for problem monitoring of financial results of trade enterprises.
The article examines the process of formation inventory of the enterprise and determines the optimal volume of commodity resources for sale. A generalization of author’s approaches to the formation ...and evaluation of inventories of the enterprise is carried out. The marketing-logistic approach was applied for the purpose of distribution groups of commodity resources due to the risk of non-fulfillment the order for the supply of goods of the enterprise. In order to ensure an effective process of commodity provision of the enterprises, the costs associated with the formation of inventories are determined. The formalized scheme of the formation commodity provision and the process of optimization inventory of the enterprise is offered. The analysis the structure of the company’s inventory is carried out, the volume of goods turnover is defined, the stocks are grouped for various clustering characteristics. To conduct the study, statistical information was used on commodity resources of the enterprises, statistical methods (grouping, structure analysis, estimation of dynamic series), tools for assessing the efficiency of inventory use, HML-FMR clustering were used. The necessity of using XYZ and ABC analysis is indicated in order to obtain more reliable results and forecast values of the product support of the enterprise. Economic-mathematical modeling is applied and graphically shown the difference in the formation of commodity resources by various features of HML-FMR clustering. The calculations allow the enterprise to determine the optimal amount of commodity resources in accordance with the needs of consumers and their solvent demand, to plan financial resources for the formation of inventories, to develop assortment policy in accordance with demand for products and their implementation. The results of calculations the volume of merchandising of the enterprise, taking into account the HML-FMR clustering affect the formation of final financial performance of the enterprise — income and profits.
Keywords: commodity stocks, financial result, costs, optimization, clustering, enterprise.
JEL Classіfіcatіon C40, C46, L81, P42
Formulas: 0; fig.: 4; tabl.: 4; bibl.: 30.
Banks and banking business are exposed to the influence of numerous risks, of which the importance of credit risk management stands out, because credit risk is the only risk that banks are obliged to ...measure, record in accounting and report. Banks monitor credit risk through the segmentation of the credit portfolio according to the level of risk. This paper is focused on research related to the management of the riskiest category of the credit portfolio, for which we will use the term special credit risk (SCR) in this paper.
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