ANALYSIS OF THE PROFITABILITY RATIOS OF ROMANIAN COMPANIES LISTED ON BUCHAREST STOCK EXCHANGE: TRENDS AND PERSPECTIVES

Abstract

The actuality of the issue of the evaluation of corporate profitability acquires an increased relevance in the light of the economic context that describes this beginning of the 21st century, strongly marked by the globalization of the economic systems, by the intensification of the level of competition and by the increasing occurrence of the This study analyses the evolution of profitability of Romanian companies listed on Bucharest Stock Exchange in a period that was both characterised by economic growth, but also marked by the global pandemic, i.e. 2016-2020. Thus, the analysis comprises 35 companies listed on BSE, representing eight sectors of the Romanian economy, of the total 10 existing in the national capital market, i.e. Mining and quarrying, Manufacturing, Electricity, gas, steam and air conditioning supply, Constructions, Wholesale and retail trade, Transportation, Storage, Professional, scientific and technical activities. Therefore, half of the sectors to which the analysed companies belong to have not seen a dramatic profitability decrease in the timeframe under analysis. On the other hand, a visible drop took place in 2018 in the sectors of Electricity, gas, steam and air conditioning supply, Professional, scientific and technical activities and Constructions. By contrast to the first two sectors, in the constructions sector, profitability ratios are evolving increasingly negative over the next two years of study. Besides, the transportation represents the sector that has consistently registered relevant levels for all profitability ratios, providing the most favourable evolution.