Changes In Profitability Research Articles

An Economic Analysis of Maize Production across Major Producing States of India

National Food Security Mission has been taken by Government of India to increase coarse cereal Maize production in the country to meet food, feed for livestock and poultry and industrial raw material, domestic as well as global demand. The traditional and modern industrial uses have made it one of the fastest growing cash crops in the world. Considering its global as well as national importance, In this article, we have analysed the relative change, growth rate and CDVI (cuddy-della valle-index) in cost, returns, profitability and break-even production of maize during the study period 2000-01 to 2018-19 of Maize across major Maize growing states of India. The study found that Cost A1, cost A2, cost B1, cost B2, cost C1 and cost C2 of maize was found to be increased higher in Madhya Pradesh with highly significant annual growth rate during the study period than other states. These cost concepts showed low to medium instability for almost all the leading states. The findings revealed that maize was more profitable in Bihar, followed by Andhra Pradesh and Karnataka, owing to higher net income and B:C ratios than in other states. Bihar states had higher differential yield and a greater discrepancy between the cost of production and the minimum support price. In some states, actual yields were lower than break-even, and production costs were greater than the minimum support price, resulting in losses for maize growers. The study's findings would help policymakers and governments devise appropriate development strategies and effective policies for less lucrative states.

Clinical outcomes and profitability following rural hospital mergersand acquisitions.

As US hospital markets become increasingly consolidated, empirical evidence is needed on the clinical and financial impacts of mergers on care provided by rural hospitals. We identified characteristics of rural hospitals that underwent mergers or acquisitions and examined changes in profitability, clinical outcomes, and patient experience at acquired versus non-acquired rural hospitals. We identified 145 rural US hospitals that underwent merger or acquisition between 2009 and 2014 and 906 rural non-acquired control hospitals. For each acquisition year, we used a difference-in-differences design to compare that year's acquired hospitals to a randomly chosen set of non-acquired controls. Adjusted linear regression models were used to assess the relationship between acquisition and changes in profitability, patient experience, and clinical outcomes. Compared to non-acquired hospitals, acquired hospitals were more likely to be for-profit (18.6%vs. 4.6%, p<0.001) and tended to have lower total margins (-1.1%vs. 1.2%; p<0.05) despite higher average clinical volumes. Changes in acquired hospitals' total margins, patient satisfaction, and risk-adjusted 30-day mortality rates were not different than changes among control hospitals. However, acquisition was associated with lower improvement in30-day risk-adjusted readmission rates (-0.58 percentage point [p.p.] difference-in-differences, 95% confidence interval -0.88 to -0.28 p.p., p<0.001). Overall, mergers or acquisitions of rural hospitals were not associated with significant improvements in profitability, clinical outcomes, or patient experience. Policymakers may need to closely monitor rural hospital mergers in order to balance preserving access for rural patients with the consequences of health care consolidation.

Foreign competition and innovation

Empirical studies have found that enhanced foreign competition can encourage or discourage innovation. To address this relationship, I examine a market structure in which a small number of large multi-product oligopolists compete with a large number of small single-product firms in the same industry. The single-product firms are short-lived while the multi-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I show that an increase in the competitiveness of foreign firms can increase or reduce innovation efforts of a large multi-product firm. Moreover, changes in the incentives to innovate can be different for more-productive and less-productive oligopolists. As a result, aggregate sectoral innovation may rise or decline, depending on the productivity distribution of the oligopolists. I also show that changes in short-term operating profits may not be aligned with changes in the incentives to innovate.

Sherlock Holmes Between Homogeneity Tests: Detection Power Based on Profitability Ratios in the V4 Region

Profitability reveals the key financial ratios that ensure the long-term sustainability of an enterprise’s ability to invest in further growth. Without knowledge of the course of development, particularly changes in profitability, enterprises face financial difficulties that threaten their existence. Although the homogeneity tests serve as a reliable tool for identifying changes, their application in financial management often receives insufficient attention. The aim of this research is to evaluate the detection power of homogeneity tests and identify the one with the highest ability based on testing changes in the development of profitability ratios across sectors in the Visegrad Four. Buishand’s test, Pettitt’s test, the SNHT, and the von Neumann test were run for 8671 enterprises during 2016–2021 and gained from Moody’s Orbis. Comparison tables for ROA, ROC, ROE, ROS, ROR, and ROW using Monte Carlo simulation with a million replications identified the number of Slovak, Czech, Polish, and Hungarian enterprises in which heterogeneity was divided according to the Nomenclature of Economic Activities, NACE. The SNHT disclosed the greatest number of changes in the development of all profitability ratios. The results validate the use of selected tests for ratio assessment. Furthermore, business agencies may replicate this approach to determine the economic situation and sector performance.

Determining the optimal bid direction of a generation company using the gradient vector of the profit function in the network constraints of the electricity market

AbstractOne of the primary challenges faced by generation companies (GenCos), which operate multiple generation units within the electricity market, is the determination of the optimal bid price for these units to maximize profit. This paper proposes a novel approach to ascertain the optimal bid price direction for GenCos by leveraging the gradient vector of the profit function within the constraints of the electricity market. First, the Jacobian matrix of unit profits is computed using the electricity market structural decomposition method. This matrix highlights how the profit of generation units is affected by market input parameters, including the bid prices of the units. Then, the gradient vector of the GenCos' profit function and the optimal bid price direction are derived from the Jacobian matrix. The methodology is applied to a 24‐bus IEEE network, with results validated against those from a simulation method to confirm the efficacy of the proposed approach. The simulation results show that the highest and lowest profit changes with a step increase of 0.1$/MWh are observed for GenCo 4 and GenCo 6 with values of 60.28 and 2.20 $/h, respectively. The proposed approach can be effective in the changes of bid direction of the units of a GenCo to achieve the highest possible profit.

Impact of Economic Crises on Banking Sector Performance- A Comparative Analysis of Conventional and Islamic Banks Across OIC Countries

This study investigates the impact of three significant economic crises—the Eurozone Debt Crisis (2010-2012), the COVID-19 Pandemic (2020-2021), and the Post-Pandemic Economic Recovery (2021-2022)—on the performance of conventional and Islamic banks in Organization of Islamic Cooperation (OIC) countries. Using a dataset of 4,381 observations from 34 OIC countries, panel regression techniques are employed to evaluate the influence of these crises on key financial performance metrics: Return on Shareholders' Funds (ROSF), Profit Margin (PM), Return on Total Assets (ROA), Current Ratio (CR), and Solvency Ratio (SR). The analysis reveals that while the Eurozone Debt Crisis did not significantly affect bank performance, the COVID-19 pandemic led to a notable decline in profitability but an improvement in liquidity. The results highlight that during the COVID-19 pandemic, banks faced substantial challenges in maintaining profitability, as evidenced by the significant decrease in PM. However, the improvement in CR suggests that banks enhanced their liquidity management strategies to cope with the crisis. The Post-Pandemic Economic Recovery phase brought positive changes in both profitability and liquidity, demonstrating the ability of banks to adapt and thrive as economic conditions stabilized. Macroeconomic variables, such as GDP growth and inflation, played crucial roles, with GDP growth positively affecting ROSF and inflation negatively impacting PM. These findings underscore the importance of a diversified banking system, including both conventional and Islamic banks, to enhance financial stability. Policymakers and financial regulators should consider the unique strengths of Islamic banking principles in regulatory frameworks and prioritize sound macroeconomic policies to promote stability and resilience in the banking sector. Future research should further explore the long-term impacts of economic crises on bank performance across different regions and banking models, as well as the interaction between regulatory environments and bank resilience. Keywords: Economic crises, bank performance, conventional banks, Islamic banks, OIC countries, COVID-19 pandemic, Eurozone Debt Crisis, post-pandemic recovery, financial stability, macroeconomic factors.

Physical stores versus physical showrooms: Channel structures of online retailers

To meet consumers’ expectations for experiential shopping, an increasing number of online retailers are expanding offline channels, with physical showrooms and physical showrooms emerging as the two most popular offline channel modes. Both channels can match consumers’ demand for on-site experiences. However, the two modes differ in terms of service cost, demand promotion efficiency, and channel differentiation generation. The article considers three channel structures: a single online channel, an online channel with physical stores, and an online channel with physical showrooms, as well as two scenarios: non-competitive and competitive. This study examines whether online retailers should integrate offline channels and which offline channel mode they should use by comparing the profit changes of themselves and rivals when three channel structures are adopted in two scenarios. It is found that: (i) If there is a significant difference between the online and physical store channels, providing physical stores help online retailer raise profits. If the physical showroom is highly effective at promoting demand, omnichannel retailers will dominate the entire online market, and expanding physical showrooms is always profitable; (ii) Whether in a competitive or non-competitive environment, online retailers should weigh channel differentiation and the efficiency of the offline channel modes in promoting demand to select the best channel mode; (iii) Due to channel differentiation, online retailers’ creation of physical stores, as well as increasing competition among physical stores, will have no impact on rival retailers. However, providing physical showrooms will result in lower sales volume and revenue for rival retailers.

THE INFLUENCE OF CORPORATE SUSTAINABILITY ON TAX DISTRIBUTION AND DIVIDEND DISTRIBUTION

This study investigates the impact of corporate sustainability on effective tax rates and dividend payout ratios among companies listed in the LQ45 index over the period from 2018 to 2022. Corporate sustainability is increasingly recognized as a crucial aspect of business strategy, influencing financial structures and shareholder value distribution. Utilizing a panel data analysis taken from Bloomberg, we explore how sustainability growth rate affect their tax strategies and dividend policies. Our findings reveal a nuanced interaction between corporate sustainability and fiscal obligations. Specifically, the study indicates that higher levels of corporate sustainability correlate with a lower effective tax rate; however, this relationship is statistically insignificant. This suggests that while sustainable practices may influence tax-related decisions, other factors such as changes in tax legislation, profitability, and tax planning strategies might play more pivotal roles in determining the effective tax rate. Conversely, the impact of corporate sustainability on dividend payout ratios is both negative and statistically significant. Companies with robust sustainability practices tend to reinvest a greater portion of their earnings back into the business to support sustainable growth and long-term value creation, leading to lower dividend distributions. This finding highlights the prioritization of capital retention over immediate shareholder returns among sustainably focused firms in the LQ45 index. This research contributes to the understanding of how sustainability initiatives intersect with financial policies within Indonesian listed companies. The insights provided could help investors and policymakers better understand the financial implications of sustainability growth rate, particularly in emerging markets where such practices are gaining momentum. The results also suggest areas for further research, particularly in exploring the indirect pathways through which sustainability might influence corporate financial policies.

ЭНТРОПИЙНЫЙ ПОДХОД К ПРОГНОЗИРОВАНИЮ ПРИБЫЛИ ОТ РЕАЛИЗАЦИИ ИННОВАЦИОННЫХ ПРОДУКТОВ И УСЛУГ В СЕВЕРО-ЗАПАДНОМ ФЕДЕРАЛЬНОМ ОКРУГЕ РОССИЙСКОЙ ФЕДЕРАЦИИ

The influence of entropy processes in the economy on the profit from the sale of an innovative product (service) is researched, regardless of whether the product creates a new market in the economy of the Northwestern Federal District, or occupies a niche in the established market. The state of the product is described by a vector-matrix differential equation, which can be expressed by a system of differential equations, one of which describes the change in profit. The equation con- tains random components, which are proposed to be determined using Kolmogorov entropy. The implementation of the pro- posed approach will make it possible to develop procedures for an information system of analytics, marketing and promotion of innovation.

Does Company Size Mediate the Relationship between Leverage and Firm Value in Indonesia Technology Companies?

This research aims to prove and test the effect of leverage on firm value, with firm size as a moderating variable in technology companies listed on the Indonesia Stock Exchange (BEI) for the 2019-2022 period. This study used a quantitative approach with an independent variable on leverage. Dependent variable on firm value and firm size as moderating variable. This study uses convenience sampling with a sample of 32 companies. The data used in this research is secondary data, which is 94 financial reports. The analysis used moderated regression analysis with eViews version 13. The research results show that leverage influences firm value. Firm size weakens the influence of leverage on firm value. This research was developed from previous research by adding firm size as a moderating variable in technology companies listed on the Indonesia Stock Exchange (BEI) for 2019-2022. It proves that investors pay more attention to a company's future growth potential. Large technology companies are considered to have sufficient resources to deal with changes in profitability and the flexibility to adapt to market changes.

The change in food service costs associated with increasing the healthiness of ready-to-eat food provision: A systematic scoping review.

Increasing the healthiness of food retail environments is an identified mechanism to help halt rising rates of diet-related non-communicable diseases. Previous studies on healthy food environment adoption report that retailers' perceptions of loss of profitability and higher food costs are often barriers to change. Despite this, actual changes to profitability and food costs have not been fully explored. This study aimed to systematically scope the evidence relating to changes to food costs or profitability when changes are made to increase the healthiness of food and drinks sold by food service retailers. Nine databases were searched, with studies included from settings that sold ready-to-consume items, with interventions to increase the healthiness of menus, and reporting food environment/nutrition outcomes, and cost/profit outcomes. Of the 12 studies included, the majority were conducted in the United States and in school settings. Most studies indicated that increasing the healthiness of food service retail environments resulted in neutral or favorable financial outcomes. Food costs and/or profit changes were most often monitored via simple accounting measures. While further research is needed to strengthen the evidence on financial outcomes of healthier food provision, this review indicates that some perceived barriers to change may not be warranted.

From crisis to opportunity: climate change benefits livestock production in Somalia

Abstract While livelihoods of Somalian livestock smallholders rely heavily on seasonal climate conditions, little is known of long-term implications of the changing climate for this nation. Here, we quantify implications of the changing climate on the productivity and profitability of livestock smallholders across a rainfall gradient in northwestern Somalia. Using the Sustainable Grazing Systems (SGS) model, we explore 80 future climate realisations, with global climate model projections including low- and high-impact socio-economic pathways (SSP245 and SSP585), two climate horizons (2040 and 2080) and four case study farm regions. In general, future seasonal and annual rainfall and temperature relative to the baseline period (1981–2020) increased for most regions. Mean annual temperatures increased by 9%–14%, while cumulative annual precipitation increased by 37%–57% from mid to late century, respectively. Grassland production increased with later climate horizons, as higher average annual rainfall together with elevated atmospheric carbon dioxide drove up growth rates in spring and autumn. Under the low emissions scenario (SSP245), changes in farm profit were modest or positive, ranging from negative 4% in Berbera–20% plus in Sheikh. Under the higher emissions scenario (SSP585), farm profits were higher, ranging from 23% to 42% above baseline profits, largely due to greater pasture production and lower requirements for supplementary feed. We conclude that future climates will benefit the productivity and profitability of smallholder farmers in Somalia, although more agile farm management will be required to cope with increased seasonal climate variability.

Study of the Impact of Private Equity Involvement on Corporate IPO Decisions

At present, private equity investment has become a relatively popular option for financing enterprises of unlisted companies. This paper conducts a case study on the changes in profitability, development, and technological innovation ability of NAIXUE before and after its listing. Tiantu invests in this famous listed catering company to explore the issue of how private equity intervention affects the decision-making of enterprises to go public. The single-case study found that personal equity intervention can help enterprises accelerate the speed of financing, improve their soft power, profitability, and competitiveness, and accelerate the listing process. They proposed a profitable way for private equity firms to continue to hold shares after listing. Under its unique operation mode and management ability, private equity supports enterprises in management, technology, resources, and other aspects. Resource integration helps solve the difficulties in developing enterprises before going public so that they can concentrate on technological innovation.

The relationship of tax instruments and performance indicators of companies to ensure the environmental component of sustainable development in Russia

The article lists the categories that can be considered as taxation instruments. It is proposed to regard tax burden as the main instrument of tax policy for realising sustainable development of the country. It is concluded that in practice the consequences of its increase and decrease can be difficult to predict. One of the reasons lies in the fact that financial decisions of companies are influenced not so much by the size of the tax burden as by the change in profitability provoked by it. The comparison of the tax burden and profitability indicators for all sectors of the Russian economy has been conducted. The correlation of the profitability (profitability of goods sold and profitability of assets) and the tax burden indicators by industries of the Russian economy has been calculated. The results are ambiguous: it is concluded that there is no connection between the environmental friendliness of the type of activity and the interdependence between the industry indicators of the tax burden and profitability. It has been found that not only the tax burden, but also the level of profitability are differentiated by industry. The classification of economic activities by the degree of environmental friendliness is proposed: directly affecting the environment, associated with the impact on it, associated with indicators of environmental safety, activities that have no direct connection with the environment.

How does pesticide reduction affect labour time and profitability? A crop production case study

CONTEXTNational and international agendas are focusing on reducing pesticides due to their detrimental effects on flora, fauna, and human health, which has led to the introduction of agri-environmental programmes aimed at reducing the risk of pesticides. Pesticide reduction in agriculture can have an impact on labour time requirements and profitability. OBJECTIVEWe used winter wheat, sugar beet, and potatoes as examples to analyse the changes in profitability and working time requirements, including management tasks. METHODSFor the calculations, we used five different production schemes for each crop: reference; (A) reduction of herbicides; (B) reduction of growth regulators, fungicides, and insecticides; combination of schemes (A) and (B); and organic production. The working time requirements for fieldwork and farm management work were modelled for each scheme and crop. The respective partial costs and benefits of the schemes were calculated for each crop. RESULTS AND CONCLUSIONSBased on the model assumptions, scheme (B) appears favourable in terms of working time requirements, and profitability of winter wheat and sugar beet. Scheme (A) offers synergies between the same parameters for potato production. Economic analysis shows that crop production with reduced pesticide use may even experience an increase in financial viability if the yield is not severely jeopardised, and farmers can be compensated through premiums and direct payments. SIGNIFICANCEOur results can support policy-making, since the labour time requirement and profitability of pesticide-reduced crop production can affect the success of voluntary agri-environmental programmes for the reduction of the risks from pesticide use in agriculture.

Estimating farmers’ net change in profit when using insect frass as an input for Brassica crops

Estimating farmers’ net change in profit when using insect frass as an input for Brassica crops

Low-cost Light-emitting Diode Lights Reduce Production Cost of Bibb Lettuce Grown in Aquaponic Systems

In temperate climates, aquaponic producers must use artificial lighting; however, purchasing light-emitting diode (LED) grow lights can be cost-prohibitive. Two aquaponic trials evaluated low-cost LED lighting for the growth of bibb lettuce (Lactuca sativa var. capitata). In trial 1, seven low-cost LED lights were screened and compared with a high-end LED grow light. The three best-performing lights in terms of total plant biomass produced (grams) and total plant biomass per unit of electricity (grams per square meter per kilowatt-hour) were more intensively evaluated in trial 2. These lights included Spider Farmer SF-2000 [SPI ($300)], Fluence RAZRx [FLU ($364)], Designers Fountain 6-Light 5000 K LED High Bay Light [DES ($100)], and the control NeoSol DS [NEO ($1400)]. After 17 days, lettuce grown under NEO achieved higher (P ≤ 0.05) total biomass (939 g) than DES (812 g). There were no differences (P &gt; 0.05) in the average individual plant weights in any treatment. Plant production efficiency (grams per square meter per kilowatt-hour) was higher in DES than NEO (P ≤ 0.05) but was not different from SPI and FLU (P &gt; 0.05). Results indicate that low-cost LEDs are a viable option for producers looking to reduce investment costs while maintaining adequate plant growth. To further describe potential cost savings for producers, a partial budget analysis evaluated the net change in profits and benefit/cost ratio (BCR) of the experimental lights. All showed improved economic results compared with the control (NEO). These studies indicate that low-cost LED lights can support similar plant growth, at higher energy efficiencies, with better economic viability than more expensive grow lights.

Enriching NPK Mineral Fertilizer with Plant-Stimulating Peptides Increases Soilless Tomato Production, Grower Profit, and Environmental Sustainability.

The need to increase agricultural production to feed a steadily growing population may clash with the more environmentally friendly but less efficient production methods required. Therefore, it is important to try to reduce the use of chemical inputs without compromising production. In this scenario, natural biostimulants have become one of the most sought-after and researched technologies. In the present study, the results of a greenhouse experiment on hydroponic tomatoes (Solanum lycopersicum L.) are presented, which involved comparing the use of ordinary NPK fertilizer (Cerbero®) with the use of NPK fertilizers enriched with 0.5% protein hydrolysate of plant origin (Cerbero Green®) at both standard (100%) and reduced (70%) fertilization rates. The results highlight how the use of Cerbero Green® fertilizers improves the production performance of tomatoes. More specifically, they show that the use of Cerbero Green® leads to higher marketable yields, especially under reducing fertilizer use, ensuring a positive net change in profit for the grower. In addition, carbon footprint analysis has revealed that the use of Cerbero Green® reduces the environmental impact of hydroponic tomato growing practices by up to 8%. The observed higher yield of hydroponically grown tomatoes even with reduced fertilization rates underlines once again the key role of natural biostimulants in increasing both the economic and environmental sustainability of horticultural production.

Profitability in Public Housing Companies: A Longitudinal and Regional Analysis Using Swedish Panel Data

Public Housing Companies (PHCs) play an important role in the Swedish housing market, with approximately 300 companies managing circa 802,000 dwellings. The public housing sector thereby represents almost 20 percent of the total housing stock in Sweden and half of the apartments that are available for rental. The purpose of this paper is to analyze the most important factors behind the profitability in Swedish PHCs between 2010 and 2019. The effects of internal growth, age, and capital structure in the PHCs are analyzed together with the effect of the growth of the local market, as well as local rent levels. Financial information for circa 300 PHCs in Sweden was gathered from annual reports published between 2010 to 2019. The financial information was analyzed using panel data analysis methods with several explanatory variables to explain the financial performance of the PHCs. The results from the analysis indicate a highly significant and positive relationship between the annual change in population, age, and profitability in the PHC. A highly significant and negative relationship was found between the PHC internal growth, capital structure, and profitability. The results showed no significant relationship between changes in income, rent levels, and profitability in Swedish PHC.

Pengaruh Rasio Likuiditas, Rasio Solvabilitas, Rasio Profitabilitas, dan Rasio Aktivitas Terhadap Perubahan Laba Pada Industri Farmasi

This study aims to examine how influential the Liquidity Ratio, Solvency Ratio, Liquidity Ratio and Profitability Ratio have on Profit Changes in the Pharmaceutical Industry Listed on the Indonesian Stock Exchange in 2016-2020. This type of research is quantitative by taking data on company financial reports that have been published on the Indonesia Stock Exchange. The theory used in this research is Signaling Theory. The sampling method used purposive sampling technique. The samples used in this study were 10 pharmaceutical companies listed on the Indonesia Stock Exchange. With a total of 50 data with a period of 5 years. The analytical method used is multiple linear analysis supported by IBM SPSS Statistics version 25. The results of this study indicate that the Activity Ratio variable has an effect on earnings changes. However, the Profitability Ratio has a negative effect on Profit Changes, while the Liquidity Ratio and Solvability Ratio have no effect on Profit Changes at all.