Operating profit, productivity indexes and net earnings

Abstract

The main purpose of this research is to recognize the relationship between operating profit, productivity indexes and net earnings on the basis of financial statements yearly published by the North Industrial Wood Firm. The type of this research method is applied for the purpose and it is a case study for the procedure, so choosing an economical unit named the North Industrial Wood Firm as a population evaluates and recognizes the relationships between independent variables and dependent variables. In this research, the dependent variables are operating profit and net earnings, also independent variables are capital and labor productivity indexes. In this research, for data analysis, descriptive statistics (the mean and standard deviation) and inferential statistics (correlation test) were used. Also, by using the survey of documents and degrees of the North Industrial Wood Firm in a period of 11 years (1995 to 2006), necessary information was put into special tables and then analyzed statistically. Findings of the research showed that there are meaningful relationship at the level of 5% between labor productivity indexes with operating profit and net earnings, and between capital productivity indexes with operating profit and net earnings. Key words: Operating profit, capital and labor productivity, net earnings, economical unit.