European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

Beyer, Dirk; Hinke, Jana

doi:10.17221/128/2020-agricecon

Cited by 8 publications

(4 citation statements)

References 19 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In comparison, operational KPIs focus on meeting the daily operational objectives (Cristea & Cristea, 2021). Strategic KPIs include, for example, return on invested capital, which shows the strengths and weaknesses of the company and provides valuable starting points for improving the company's functionality (Beyer & Hinke, 2020). Other strategic KPIs include the customer satisfaction indicator, which private and public entities use to identify weaknesses, and implement measures to improve them (Vochin et al 2020).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Untitled

2024

JOBS journal

View full text Add to dashboard Cite

Research background: Companies are under considerable pressure to continuously improve their performance in today's highly competitive business world. KPIs have evolved as indispensable tool for assessing and measuring the performance of businesses against strategic objectives. Purpose of the article: The aim of this study is to present the current use of Balanced Scorecard systems and related KPIs in the implementation of the strategic management system in industrial companies in the SMEs segment and introduce a system of proposals for improving their performance, value, and competitiveness in the long term. Methods:The research methodology in the first phase was based on an examination of the available scientific and professional sources in this area. Used sources were selected taking into account the time range of the data up to a maximum of 7 years and in relation to the chosen research topic and objective. The main techniques used were survey and comparative analysis. The research was conducted using a questionnaire from years 2017 to 2022. Using database of the Entrepreneur's Index portal (www.indexpodnikatela.sk), we obtained contact information of 4230 enterprises. From this sample, 290 enterprises showed an active interest and participated in the survey, representing 6.9% of the total sample of 4230 enterprises. The obtained data were analyzed and transformed into a logical form of tabular outputs. Findings & Value added:Based on the research results, we can conclude that companies with more than 20 employees use strategic management systems and have linked KPIs. We also tested and proved the hypothesis of using supporting complementary management systems significantly more often by these companies. However, our research supports our hypothesis that companies that do not use BSCs do not have statistically significantly lower economic ROE. We also did not confirm that the turnover was lower in firms that did not use BSCs. On the other hand our research has shown that better strategic management systems must be built, as there is a lack of consistency between the objectives and essential performance indicators in all aspects of the balanced scorecard.

show abstract

Section: Theoretical Backgroundmentioning

confidence: 99%

Untitled

2024

JOBS journal

View full text Add to dashboard Cite

show abstract

“…Kasik and Snapka [90] used the DuPont model to signal possible crisis in a company. Beyer and Hinke [91] used the DuPont model to evaluate the strengths and weaknesses of agribusiness in selected European Union countries. Jałowiecki [92] used the DuPont model to assess the efficiency of logistic systems in agri-food enterprises.…”

Section: Theoretical Background Of Dupont Systemmentioning

confidence: 99%

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

et al. 2022

View full text Add to dashboard Cite

Poland has a large potential for biogas production from agricultural sources and food waste. This potential is still poorly used. There are many reasons for this state of affairs. We can indicate both the policy of the state towards renewable energy sources (RES) with a small amount of energy from biogas contracted at auctions, investment risk, and especially low return on investment in the absence of investment support. An important reason is also the limited state budget. The purpose of this work was to determine the endogenous factors that determine ROE, the direction of the impact of these factors, as well as the strategy of biogas plants in shaping the ROE level. The DuPont model was used in the analysis of ROE changes. We used the deviation method to determine the impact of the various factors on ROE. Against the background of the energy sector in Poland, the value of ROE in the examined biogas plants should be considered satisfactory, and in 2020 it was, on average, 13.9%. The decrease from 17.2% in 2019 occurred despite the increase in energy prices and the increase in the net profit margin (NPM). It resulted from the reduction of ROE’s financial leverage through external capital. A high level of debt characterized the examined biogas plants, and the pursuit of risk reduction and debt reduction negatively impacts on ROE. This may indicate the need for state investment support at the plant construction stage or low-interest investment loans to develop biogas plants. In addition, using only price guarantees under the feed-in tariffs, with dynamic changes in costs, may bring the industry a relatively high investment risk compared to other RES, where the operational costs during the lifetime are low, as it is in PV or wind systems.

show abstract

“…The effect of capital structure decisions on a company's profitability and value is that it increases value through the present value of tax savings from the use of debt. Byer and Hinke [15] described the resulting differences in profitability broken down using the additive decomposition method, which addresses the quantified impact of several influencing factors. More profitable companies were less dependent on debt financing, while fast-growing companies had limited access to the financial market, said Fenyves et al [16].…”

Section: Literature Researchmentioning

confidence: 99%

Optimization of the capital structure of an agricultural company in the Czech Republic

2022

View full text Add to dashboard Cite

The topic of optimizing capital structure is very important for a company to work efficiently and reliably. It is important for every company to optimize everything so that they have the highest possible efficiency. Entrepreneurs also try to make this optimization last them as long as possible. Therefore, the aim of this paper is to determine the optimal capital structure of an agricultural company operating in the Czech Republic. The base source of data is the closing data of individual agricultural companies from the Albertina database of Bisnode. More than 9,000 agricultural enterprises operating in the given sector of the national economy in the Czech Republic are recorded in this data set. The calculation of the WACC method and the level of debt of individual agricultural companies are used. Subsequently, the equation for calculating the cost of capital is determined using power regression. Here we also obtain the value of reliability, which in this particular case is not ideal, but still reasonable. A line chart is used to determine the optimal interval for the agricultural company. The optimal debt interval comes out to 20 to 25%, at which the cost of capital is declared to be from 22 to 24%. If agricultural companies had higher or lower debt ratios, it would be inefficient for the enterprise.

show abstract

European benchmarking of determinants of profitability for companies with accrual accounting in the agricultural sector

Cited by 8 publications

References 19 publications

Untitled

Untitled

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

Optimization of the capital structure of an agricultural company in the Czech Republic

Contact Info

Product

Resources

About