ANALYSIS MODELS OF PROFITABILITY IN AGRICULTURE

S Bumbescu

doi:10.17721/1728-2667.2015/174-9/6

Abstract

In this article there is developed a synthetic theoretical framework regarding the profitability analysis through economic and financial rates of return using different models, and also it is made a case study on the similarities and differences between various models of rates of return analysis in agriculture. The motivation of choosing this theme is to determine the relationship between financial and economic profitability using Pearson correlation coefficient. The research conducted leads to two main categories of results; on the one hand there is made a qualitative theoretical synthesis on the rates of return in models, on the other hand it is determined the correlation between financial and economic profitability in the agriculture organizations.

Highlights

It is known that agriculture is an important branch of the national economy, holding a significant share in Gross Domestic Product
Analyzing the data from table no. 3 results the following: – The correlation between the variables considered is very high, values very close to 1; – The strongest correlation is registered between economic and financial profitability, 0.988 for the following reasons: there are common factors that influence both ratesuch as commercial rate, both rates of return have as numerous the profit – Between economic profitability and commercial profitability there is a correlation of 0.936 because the economic profitability is influenced by the commercial profitability- according to equation no. 2 and 5; – a strong correlation is between financial profitability and commercial profitability because financial profitability it is influenced by the commercial profitability – according to equations no. 13, 14, 16, 1
Given that Romania is on the last places in the EU in terms of economic development and taking into account Romania's agricultural potential, it is necessary to analyze the profitability of farms using different models

Summary

Introduction

The budget deficit would be optimal, because it is very important in stabilizing the economy and promoting its development. To make Lithuania's budget deficit and its problems analysis, evaluating internal (public income and expenditures) and external (macro economical parameters) factors. The more detailed budget deficit conception is prepared by Sineviciene ir Vasiliauskaite (2010): fiscal policy can be contra-cycled in developing countries; this fact is explained by non-discrete fiscal policy (self-contained economic stabiliser). This theory explains that having an increase of public income, collected taxes amounts grow together and public expenditures decrease – the public budget is surplus. The possible calculation methods presented below: Conventional fiscal balance ( known as the absolute position). It is calculated as follows: from the conventional balance subtracted by foreign borrowing and

Analysis of the economic rate of return by specific models

Analysis of the return on equity by specific models

Net profit 2 Equity 3 Return on equity 1:2

Conclusion & Discussion

Findings