Margin Income Research Articles

PROFITABILITY ANALYSIS OF CATFISH PRODUCTION IN KANO METROPOLIS, KANO STATE, NIGERIA

Fish is an important dietary element and a major source of animal protein in human diet for many Nigerians. The demand for fish has been on the increase because of geometrical increase in human population, this has resulted to a significant gap created between fish demand and supply. It is obvious given the importance of fish production that efforts must be made to encourage entrepreneurs to go into the business. However, many have shown doubts on the productivity and profitability of fish production, particularly on a smallholder level. This study therefore, examines the profitability of catfish production in Kano metropolis, Nigeria. Two stage sampling procedure was employed to select respondents for the study. Primary data were collected with the use of well-structured questionnaire administered to 120 catfish producers. The tools of analysis employed were descriptive statistics, gross margin and net farm income. The study revealed that Majority of the producers (69%) are male. Furthermore, 85percent of the fish producers have attained post primary education. The gross margin (GM) was ₦657,420, while the enterprise profit which is the net farm income was estimated at ₦598,128 and 0.33 return to capital for the farmers. Some of the challenges confronting the respondents in their business includes high cost of feed, lack of government support and lack of training. Thus, there is a need for provision of training for higher level of productivity, subsidizing of inputs such as feed by the government and participation in cooperative societies by the fish farmers for financial and inputs assistance by relevant Non-Governmental Organizations.

ECONOMIC ANALYSIS OF MILLET PRODUCTION IN JERE LOCAL GOVERNMENT AREA, BORNO STATE, NIGERIA.

This research was carried out to determine the profitability of millet production in Jere local Government area of Borno state. Random sampling technique was adopted in this research through which data was collected from ninety (90) farms with the aid of a well-structured questionnaire. Data was analysed using descriptive statistics, gross margin analysis and production functions. Result indicated that 58.9% of respondents were in their economically active age group, majority (76.7%) of the farmers were male, 66.7% were married, while 42.2% had farming experience of between 21 – 30 years in millet production and it was revealed that farms were on a small-scale basis. Result further showed that millet production was profitable with gross margin and net farm income of N29,743.18 and N12,868.00 per hectare respectively. Regression model estimated revealed that double-log was the lead equation with R2 of 68.5%. Also, land, labour and agrochemical had significant impact on the level of millet output at P<0.01 level of probability and F-ratio 35.212. Estimated efficiency ratios showed that land; labour and fertilizer were under-utilised, while agrochemical was over utilised. Return to scale gave a value of 1.27 which implies that millet production was in stage 1 of the production region. It can be concluded that millet production in the study area is profitably. The study recommends that farmers should employ more land; labour and fertilizer, while the use of agrochemical should be cut down in order to improved millet production output for profit maximization.

Integrating Biochar with Solar Drip Irrigation Technology for Smallholder Vegetable Farming in South-eastern Ghana Yields Profitable Returns

Ghana's agricultural sector faces significant challenges, characterized by low productivity and a heavy reliance on unpredictable rainfall and outdated farming practices, with limited use of modern agricultural inputs. This research investigates the potential profitability of integrating biochar and solar drip irrigation technologies for smallholder vegetable farming in Ghana, a country with sub-Saharan African agricultural conditions. The study employs gross margin and net farm income approaches to estimate profitability, providing a robust financial analysis of the proposed agricultural innovations. The results reveal a substantial mean gross margin of GHȼ35,021.25 and a net farm income of GHȼ48,786.50 per ha across the study area during the dry season from 2017-2020. These findings underscore the economic viability of biochar and solar drip irrigation, demonstrating significant financial benefits for smallholder farmers. The study concludes that adopting these technologies can markedly enhance agricultural productivity and profitability. It is recommended that smallholder farmers adopt biochar and solar drip irrigation to improve their farming outcomes, thereby contributing to sustainable agricultural development in the region.

PROFITABILITY OF BATTERY CAGE BROILER PRODUCTION SYSTEMS IN UYO METROPOLIS, AKWA IBOM STATE, NIGERIA

The study assessed the profitability of battery cage broiler production systems in Uyo, Metropolis, Akwa Ibom State. Simple random sampling technique was used in selecting 100 poultry (broiler) farmers for this study. The data collected were cross-sectional data. Descriptive statistic was used to analysed the data. The findings depicted that majority (54%}) of the battery cage broiler producers were male. Also, the total cost, total revenue, gross margin and net farm income were N495469.46, N829,293.34, N335,459.88 and N 333,823.88 respectively. Feed cost representing 80.75% of total cost of broilers production. Despite the high feeds cost, battery cage system of broilers production is a worthwhile venture as depicted by profit of N333,823.88. The return on a naira invested was 0.674 meaning that for every N1 invested 67.4k was return as profit. Feeds cost and lack of funds were the primary determinants of profitability of battery cage broiler production systems. It is recommended that there should be subsidy on feed cost by the government and provision of credit facilities to farmers for increased productivity resulting profit maximisation.

Optimizing Resource-Use Efficiency of Yam Producers in Ondo State, Nigeria: A Path to Enhanced Food Production

Resource utilization inefficiency poses a significant barrier to enhancing food production in Nigeria. This research assessed the efficiency of resource use among yam cultivators in the Irele Local Government Area of Ondo State, Nigeria, through a study involving 100 yam farmers chosen at random. Information was gathered using interview schedules and a systematically organized questionnaire. The analysis employed descriptive statistics, gross margin analysis, and multiple regression models. Findings indicate that the mean age of the farmers surveyed was 55.35 years, with 60% boasting over 30 years of agricultural experience. A majority (84%) were male heads of households, and 85% were married. Approximately 63% of the participants reported having households of 6 to 10 members, indicating relatively large family sizes. Around 79% had received primary education or had no formal schooling. The average farm size was found to be 0.70 hectares, with 79% managing no more than 1 hectare, categorizing them as small-scale farmers. The research also uncovered that yam cultivation is financially viable, yielding an average gross margin and net income per hectare of N94,636.13 and N83,491.60, respectively. The primary challenges faced by these farmers include insufficient funding, inadequate storage facilities, and the elevated costs of planting materials. Consequently, the study suggests that the government should formulate and implement agricultural policies aimed at ameliorating these challenges to boost yam production in the region

Determinants Of Murabaha Margin Income Of Islamic Commercial Banks In Indonesia

This research aims to analyze and show the influence of overhead costs, risk costs and Wadiah savings on Murabaha margin income at Islamic commercial banks (ICB) in Indonesia. This research method uses a quantitative approach, and the data used is secondary data. The population of this study was ICB for 2020-2023. The sampling technique used purposive sampling to obtain a sample of 8 ICB with 32 observation data. Data collection techniques in this research used documentation and a literature study. The data analysis technique uses multiple linear regression. The results of this research indicate that overhead costs have a positive effect on Murabaha's margin income. Risk costs do not affect Murabaha's margin income. Wadiah's savings have a positive effect on Murabaha's margin income. The results of this research can complement existing theories and become a reference for future research. Then, it can become a reference for ICB in increasing the amount of Murabaha's margin income through increasing overhead costs and Wadiah savings, as well as reducing risk costs collected from the community.

OPTIMIZING RESOURCE-USE EFFICIENCY OF YAM PRODUCERS IN ONDO STATE, NIGERIA: A PATH TO ENHANCED FOOD PRODUCTION

Resource utilization inefficiency poses a significant barrier to enhancing food production in Nigeria. This research assessed the efficiency of resource use among yam cultivators in the Irele Local Government Area of Ondo State, Nigeria, through a study involving 100 yam farmers chosen at random. Information was gathered using interview schedules and a systematically organized questionnaire. The analysis employed descriptive statistics, gross margin analysis, and multiple regression models. Findings indicate that the mean age of the farmers surveyed was 55.35 years, with 60% boasting over 30 years of agricultural experience. A majority (84%) were male heads of households, and 85% were married. Approximately 63% of the participants reported having households of 6 to 10 members, indicating relatively large family sizes. Around 79% had received primary education or had no formal schooling. The average farm size was found to be 0.70 hectares, with 79% managing no more than 1 hectare, categorizing them as small-scale farmers. The research also uncovered that yam cultivation is financially viable, yielding an average gross margin and net income per hectare of N94,636.13 and N83,491.60, respectively. The primary challenges faced by these farmers include insufficient funding, inadequate storage facilities, and the elevated costs of planting materials. Consequently, the study suggests that the government should formulate and implement agricultural policies aimed at ameliorating these challenges to boost yam production in the region. Keywords: Agricultural Policy, Yam Production, Resource Efficiency, Small-Scale Farmers, Nigeria.

A Study on the Financial Situation Changes of Major A-share Real Estate Companies Since the Adjustment of Purchase Restriction Policies

To prevent over expansion of property bubbles in China, housing purchase restriction policies were put into effect in 2010. Nevertheless, to be adaptable to economic conditions at that time, there was firstly a relaxation of housing purchase restriction policies in 2014 and after that, several more adjustments were made. By analyzing the financial indicators of the main real estate enterprises in A-share market, this paper wants to find the general trends and common features of those corporations under policy adjustments and changeable market environment. The analysis results show that the majority of firms kept high levels of debt and inventory all the time and from 2014 to 2019, most companies net income margins, net income and operation revenue generally kept increasing. However, as the Coronavirus pandemic broke out at the end of 2019, those profitability measures started to decrease widely and sequentially, even with a new round of policy easing. Facing with this situation, it is suggested that to prevent debt risks, property enterprises could take deleveraging and destocking into consideration and to achieve a soft landing of the housing market, new ways of policy adjustment could be implemented by the government.

ANALYSIS OF FACTORS INFLUENCING THE RETURNS ON BROILERS PRODUCTION IN UYO LOCAL GOVERNMENT AREA OF AKWA IBOM STATE, NIGERIA

The study analysed the factors influencing the returns on broilers production in Uyo Local Government Area of Akwa Ibom State. Simple random sampling technique was used to select 100 poultry farmers practicing deep litter system for the study. The data were obtained from a cross-sectional survey of broiler farmers in the study area. The study revealed that male farmers (52%) dominated the broiler production in the study area. The total cost of broilers production was N786,303.60 while the total revenue was N1,430,329.8. The gross margin and net farm income were N 682,052.76 and N 644,026.20 respectively. The study also revealed that the high cost of feed accounted for 80.18% of the total cost of broilers production inversely affected the profitability of broilers production in the study area. The study also reaved that, despite the high cost of feeds deep litter system of broilers production is profitable as depicted by the net farm income of N 644,026.20. Besides, the return on a naira invested was N 0.819 implying that for every N1 invested 81.9k was return as profit. The study concluded that high cost of feeds and lack of funds are the major factors influencing the returns on broilers production in the study area. Based on the findings, it was therefore recommended; Subsidy on feed cost, simple procedures for credit facilities, increase in flock size to enhance profitability, Provision of adequate incentives and financial services to farmers for increase productivity, as well as stoppage of the arbitrary fees levied such as environmental fee, business premises fee and other levies that were introduced by the local government authorities to restore sanity and create a conducive environment for investment in poultry industry.

Testing of the Structure-Conduct-Performance Hypothesis for Industrial Banking Profitability: Evidence from Indonesia

This study aims to test the validity of the Structure Conduct and Performance (SCP) hypothesis on banking profitability in Indonesia. This research data comes from banking financial statements from the Financial Services Authority (OJK) and Bank Indonesia. The analysis method uses the panel data regression method. The banking industry studied includes 110 conventional commercial banks and Islamic banks from 2010-2019. This research has found that the profitability performance of the banking industry is statistically significantly influenced by concentration, market share, cost efficiency to generate revenue, bank size, net interest income margin, Bank Indonesia's benchmark interest rate, and economic growth. Meanwhile, inflation is insignificant. The contribution of the research was to develop of Structure Conduct Performance (SCP) theory. The SCP is applicable to Indonesian banking and it is the Hybrid of the Efficient-Structure Traditional Hypothesis which states that the effects of efficiency and market concentration have improved banking profitability performance. The combination of structure, market share, and efficiency supports the hypotheses on Efficiency and SCP Traditional. High banking profitability due to the combination of efficiency and market concentration formed by increased assets and mergers. Therefore, OJK and Bank Indonesia in encouraging asset improvement through future mergers can improve efficiency, the competitiveness of the banking industry, the and economic stability of Indonesia.

How do financial regulations and economic freedoms affect bank profitability? Empirical Evidence from the OIC Region

<p class="MsoNormal" style="margin-top: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: 'times new roman', times, serif; font-size: 14pt;">Banks operating within a free economic environment and with constructive regulatory frameworks can function with enhanced efficiency, augmenting their profitability. This study aimed to examine the influence of economic freedom and financial restrictions on banks' profitability within the Organization of Islamic Cooperation member nations. The study used a sample of 1453 banks, collecting panel data spanning 13 years. The System-GMM methodology was justified based on the enduring characteristics of the data and the profitability metrics. The dependent variables, namely the Net Income Margin, Return on Average Assets, and Return on Average Equity were individually examined. The research findings indicate that most economic freedom indicators, except for investment freedom, harm bank profitability. The influence of the rule of law on profitability indicators is mostly adverse, although regulatory quality within the financial system has a comparatively favorable effect on profitability. Furthermore, bank-specific performance indicators had a negative impact on profitability, except for bank size. Moreover, country-specific variables substantially impact banks' profitability, including inflation, tax, and interest rates. The presence of Islamic banking has been shown to substantially impact the profitability performance of banks within the Organization of Islamic Cooperation. OIC banks' profitability is adversely impacted by the ongoing health crises, including the Covid-19 pandemic.</span></p>

Buriti oil as an alternative to the use of antimicrobials in broiler diets.

The objective of this study was to evaluate the effects and economic viability of diets containing different levels of antibiotic and buriti oil (BO) on performance, carcass and cut yields, and relative weight of organs of broilers. A total of 432 one- to 42-day-old male chicks were distributed in a completely randomized experimental design with six treatments, each consisting of six replicates of 12 birds. The treatments consisted of one diet with antibiotic without BO, one diet without antibiotic (DWA) without BO, and four DWA containing increasing levels of BO (0.2, 0.4, 0.6, and 0.8%). Average weight and weight gain (WG) of broilers fed with DWA + BO were similar to those of birds fed control diet. Feed intake and feed conversion (FC) were not different among treatments. Relative weight of pancreas linearly increased in the birds fed diets containing BO. The inclusion of 0.45 and 0.40% of BO in the diets promoted the improvement of WG and FC, respectively. Cost of feed management, ratio, gross margin, and gross income did not differ among treatments. It was concluded that the inclusion of 0.45% of BO in diets without antibiotics is economically feasible and allows recovering the performance of broilers.

Impact of eliminating retirement earnings test on labor supply and pension benefit claims.

This study explores the hypothetical elimination of Japan's retirement earnings test (ET) for public pensions, focusing on its implications for older workers' labor supply and pension-claiming behaviors. The ET currently reduces public pension benefits for individuals aged 65 and older if their earnings exceed specified thresholds, potentially discouraging employment in this demographic. Notably, the Japanese ET influences both immediate and future pension benefits, thus diminishing current payouts for working pensioners and foregoing beneficial actuarial adjustments-adjustments based on actuarial calculations that would otherwise increase future benefits to account for delayed pension claims. This dual impact may discourage the labor supply and influence pension-claiming behavior among older workers. Through a survey-based experiment with male workers aged 40-59 years expected to face the ET upon retirement, we assess three reform scenarios as the first study in the literature: (1) eliminating future benefit reductions through actuarial adjustments, thereby enhancing the value of deferred pension claims; (2) removing immediate benefit suspensions to increase current pension payments directly; and (3) a comprehensive reform combining both approaches. Our findings reveal that eliminating reductions through actuarial adjustments increases the intensive margin (labor hours and income) and encourages delayed pension claims. Conversely, removing immediate benefit suspensions influences both the extensive margin (decision to work) and the intensive margin but leads to earlier pension claims. By highlighting the importance of differentiating between immediate and future benefit components in designing ET reforms, this study demonstrates their significant impact on labor supply and pension-claiming decisions.

Effect of Financial Technology on Financial Performance of Deposit Money Banks in Southwest, Nigeria

Financial Technology in the recent times, has significantly intensified competition in Nigerian Banking Industry, hence Deposit Money Banks (DMBs) face persistent pressures from a wide and diverse range of competitors, while the regulatory environment becomes less protective of the financial institutions. This study therefore examined the effect of financial technology on the financial performance of deposit money banks in southwest, Nigeria. The study employed an Ex-Post Facto research design to establish functional relationship among customers and employees of the DMBs branches in the South West geopolitical zone in Nigeria. The descriptive statistics, which involved the current levels of financial performance on deposit money banks showed an improvement in the return on assets due to the deployment of financial technology with the weighted average of 216 or 35.94% while more than 97% of respondents perceive the level of improvement in equities of banks in Nigeria as moderate followed by the rate of improvement in net income margin of banks with weighted mean of 192 or 31.9%. The empirical results showed that the deployment of automated teller machine, mobile banking, internet banking and point of sales on the financial performance of banks have significantly and positively improve banks’ return on asset, equity and the net income. This is an indication that the financial performance of Nigerian banks’ are highly sensitive to changes in the alternative banking channels as 1%, rises in automated teller machine increase the return on asset by 0.18%. In the same vein, increase in mobile banking to the tune of 1% raised the level of return on asset by 0.29%. Thus the study concludes that the deployment of mobile banking and internet bank drive virtually all the indicators of bank financial performance in Nigeria. However, the paper recommends that, the deployment of mobile banking was more pronounced, and particularly in the area of banks’ return on equity although all the alternative banking channels contributes to bank financial performance in Nigeria.

Economic efficiency of smallholder okra (Abelmoschus species) production in Kaduna State, Nigeria: Implication for poverty alleviation

This study evaluated economic efficiency of smallholder okra (Abelmoschus species) production in Kaduna State, Nigeria: Implication for poverty alleviation. A multi-stage sampling technique was used to select 120 smallholder okra farmers. Primary sources of data were used. Data were analyzed using farm budgetary technique, financial analysis, stochastic production frontier model, allocative efficiency model, economic efficiency model, Tobit dichotomous regression model, and principal component model. The results show that the mean age of smallholder okra farmers was 43 years. Averagely, okra farmers had 1.8 hectares of farm land. The gross margin and net farm income of okra production per hectare was estimated at 619,325.77 Naira and 559, 194.76 Naira respectively. This signifies that the smallholder okra production was profitable. The mean technical, economic, and allocative efficiency scores were 0.7918, 0.5338, and 0.8345 respectively. The socio-economic factors influencing economic efficiency of smallholder okra production include: age (P<0.01), educational level (P< 0.10), marital status (P< 0.01), household size (P <0.01), farm size (P<0.01), and member of cooperative organization (P<0.05). The major constraints encountered by okra producers were lack of farm inputs, lack of credit facilities, and high cost of labour. The study recommended that farmers should be provided with improved variety of seeds, chemicals, credit facilities, and fertilizer inputs in order to increase their productivity and efficiency.

Pig farming profitability and constraints in smallholder households in Rwanda: a case study of Musanze district.

The increasing human population risks food insecurity especially food of animal origin. Pig plays an important role in household income in all production. The main aim of this study was to analyze the pig farming profitability and constraints in smallholder households in Rwanda. A multistage sampling technique was employed for the success of the research. The study was carried out in five sectors of Musnze district. A purposive sampling technique was used to select Musanze district and five sectors. However, a random sampling method was used to have a sample size of 120 pig farmers’ respondents. The cost and returns associated with pig farming production were carried out to determine the profitability of pig production while a stochastic frontier production function was used to determine factors influencing pig farming in small householders using STATA. The findings indicated that men are the majority of the respondents in pig farming production in the study area. The findings of the regression analysis indicated that five factors namely education level, market availability, off-farm generation, feed availability, and access to veterinary services were positive, and statistically significant at P ≤ 0.01 level of probability and influenced pig farming in the study area. The findings also indicated that the Total Revenue (TR), Total Cost (TC), Gross Margin (GM), and Net Farm Income (NFI) were statistically significant at (p < 0.01). The research findings indicated that pig farming is a profitable business in the study area. The result of regression analysis also indicated that the three factors namely income generation, employment opportunities, and new job creation had positive and statistically significant impacts on pig farming in the study area at P ≤ 0.01 level of probability. The findings of this study revealed that the most common constraints for pig farming in smallholder households were the high cost of feeds, inadequate initial capital, feeds sacristy and quality, lack of conservation facilities, pests, and diseases outbreaks, high cost of piglets, lack of farming information, and poor housing. Despite the constraints indicated by different respondents in the study area. Pig farming is an economically profitable business in the study area and it is capable of creating new jobs, enhancing employment opportunities, generating income, and clearly improving the standard livelihood of farmers. Based on the findings of the study, it has been recommended to promote interventions that can help provide initial start-up capital for farmers or marketing groups to help kick-start their farming operations; and to train and equip pig farmers and veterinaries in new technologies and innovations. Promote the analysis of profitability, opportunities, and constraints along the pig value chain as well as to support and improve the underlying business progress or stunting well as to make a good decision.

Determinants of capital adequacy ratio bank in Indonesia

Banking as a delegate establishment assumes a significant part in the economy and performs well and is sounds. The Capital Adequacy Ratio (CAR) is a measure of how important capital is to banking. OJK has set a new classification for banks based on their core capital. The objective of this research is to ascertain the factors that influence the Capital Adequacy Ratio (CAR) of Indonesian stock exchange-listed banks. The multiple linear regression approach is utilized in this study. The Capital Adequacy Ratio (CAR) is the dependent variable, and the Return on Assets, Loan-to-Deposit Ratio, Net Interest Margin, Operating Expenses, and Operating Income are the independent variables. In view of the exploration results, there is a huge impact of Return On Resources (ROA), Net Interest Edge (NIM), Working Expenses of Working Pay (BOPO), and Credit to Store Proportion (LDR) on the Capital Sufficiency Proportion.

Traditional commercial banking and systemic risk: Evidence from Hungary

Systemic risk reduction in banking is a key component in maintaining financial stability. Even after extensive explorations, the role of nontraditional activites in systemic risk still offers several questions to study. The paper aims to contribute to the literature on the topic by empirically examining whether traditional and nontraditional banking activities differ in terms of systemic risk. To answer this question, traditional commercial banking is assumed to be represented by the loan-deposit interest margin income component. Hungarian banking sector data between 2003 and 2020 are analyzed with principal component analysis and multidimensional scaling. The primary measure in systemic risk quantification is the return covariance-based absorption ratio. Empirical findings suggest that, when compared to a more diverse range of banking activities, traditional commercial banking may be characterized by lower systemic risk. Although in these two cases the most influential components of systemic risk may be considered as similar, the other components exhibit significant differences.

PERENCANAAN LABA UMKM BUBUR AYAM PASUNDAN

This research focuses on elucidating the intricacies of sales planning with a particular emphasis on achieving the desired profit levels through the utilization of Break Even Point (BEP) and Cost of Goods Sold (HPP) analysis. Employing a descriptive qualitative approach, this study leverages semi-structured interviews as the primary method for data collection, specifically targeting small-scale entrepreneurs as the key informants. The primary objective is to provide a comprehensive understanding of the challenges and opportunities associated with sales planning in the context of achieving optimal profit margins. The findings of this research reveal a monthly loss of -2,831,000, prompting a critical examination of the existing business model. To attain a desired income margin of 50%, it is determined that an increase in sales volume is imperative. Specifically, selling 387 portions per day at a price point of 16,986 per portion is identified as the strategic approach to offsetting losses and achieving the targeted profit margin. This insight underscores the importance of meticulous planning and strategic decision-making in the realm of sales management. Furthermore, the analysis of Break Even Point (BEP) and Cost of Goods Sold (HPP) emerges as a pivotal tool for entrepreneurs in crafting effective profit plans. The simplicity of the calculations employed in this study is highlighted as a practical advantage, enabling entrepreneurs to navigate the complexities of sales planning with relative ease.

Financial Performance Evaluation of Select Listed Companies of NSE-Emerge Using DuPont Analysis

The National Stock Exchange of India (NSE) Emerge is a platform launched by the NSE specifically designed for Small and Medium Enterprises (SMEs) to access the capital market. It was introduced to provide these companies with an avenue to raise funds and offer their shares to the public. From the year 2012 SMEs are granted to raise funds in the capital market through SME stock exchange platform (BSE & NSE). This study aims to analyse the financial performance of select consumer durable goods manufacturing companies listed in NSE-Emerge by using DuPont analysis. In this study, the financial performance of seven consumer durable goods companies listed on NSE-Emerge was analyzed during the period of 2017-18 to 2021-22. The study examined the impact of tax burden, interest burden, operating income margin, assets turnover ratio, and equity multiplier on ROE by using 5 step DuPont approach. Overall, the study provides valuable insights into the financial performance and stability of the studied companies.