Abstract

The main purpose of this paper is to research the factors that have an impact on the company profitability in the logistics industry during a five-year period (2013-2017). The sample includes 748 active companies operating in the logistics industry in the Balkan countries. Bearing in mind that logistics is an essential instrument of competitiveness and profitability of the company operations and that logistics is one of the most profitable industries, this paper used the panel data model with fixed effect in order to analyse profitability. The obtained results showed that four out of the six studied variables (company size, tangibility of assets, liquidity, and asset turnover ratio) have a statistically significant impact on profitability. The results provide guidelines for increasing profitability and improving the performance of logistics companies, given that an efficient planning system, managing and controlling the logistics system are key determinants of profitable business operations.

Highlights

  • Each company is most concerned with its profitability as the main indicator of the bottom line of the company

  • The results presented that the variables the company size measured by sales (0.0275387), current ratio (0.0045272) and asset turnover ratio (0.0124982) had a statistically significant positive impact on the profitability of logistics company measured by return on assets (p

  • The authors analysed the impact of six independent indicators on the profitability of 748 companies in the field of logistic services from ten Balkan countries

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Summary

Introduction

Each company is most concerned with its profitability as the main indicator of the bottom line of the company. In defining the motive for this research, the starting point was to set profit as a long-term goal of every company that measures the success of the manufactured product and the services provided on the one hand, and the development of its market, on the other. Companies that operate with low-profit values or whose profits record fluctuations in value are questioning sustainability over a long period of time. In this respect, profitability cannot be considered individually but in relation to other factors. The paper should be identified the indicators of profitability proxied by ROA and ROE and quantified by their relative importance

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