Profitability Performance Research Articles

Comparative analysis of business profitability in Ukraine and Poland

This paper investigates the entrepreneurial activity in two countries (Poland and Ukraine) in terms of profitability. The research objectives are achieved through scientific inquiry and comparative data analysis on business profitability. The article aims to determine the relationship between profitable business operations and the variables affecting them. Also, identifying the most significant and influential variables from the set for each country and comparing national results. The authors conducted an intellectual multivariate adaptive regression analysis of business activities. Profitability is the dependent variable. The relationships are investigated for such inputs as the number of enterprises, number of employees, labor costs, country population, immigration, emigration, and capital investment. Analysis results and the matrix of model coefficients are obtained using the STATISTICA software, in particular the Data Mining/MAR Splines Analysis. The resulting equation of multivariate regression and splines regression panels indicates that enterprises can achieve optimal profitability under different conditions in the two countries, i.e., maximum values of different variables. The theoretical developments of this paper can be practically implemented, making it a valuable resource.

A STUDY ON WORKING CAPITAL MANAGEMENT WITH REFERENCE TO THE BHARAT HEAVY ELECTRICALS LIMITED HP&VP – VISAKAPATNAM

Working capital management is important for a company's financial statements and performance. It helps a company maintain a balance between its current assets and liabilities, and ensure future solvency. Working capital management aims to ensure that a company has enough cash to meet its short-term debt obligations and operating expenses. It also aims to invest a company's assets in the most successful direction possible. Working capital management involves tracking cash and cash needs, forecasting needs, monitoring cash balances, and optimizing cash flows. The critical role of Working capital management in ensuring the financial health and operational efficiency of businesses. Effective management of working capital comprising inventory, accounts receivable, and accounts payable directly influences a company's liquidity, profitability, and overall performance. The findings underscore the necessity for companies to adopt a proactive approach to working capital, as it can enhance financial stability and competitive advantage in an ever-evolving business landscape. This paper aims to provide valuable insights for financial managers and decision-makers looking to improve their working capital strategies. BHEL follows rules and regulations to maintain a balance between current assets and liabilities. A study on BHEL found that the company has short term solvency and a satisfactory level of net working capital. The study also recommended that BHEL employees continuously work to improve the company's working capital position. **** KEYWORDS: Working Capital Management, Current Assets & Liabilities, Financial Statements

Investigating an Enhanced Contour Blasting Technique Considering Rock Mass Structural Properties

When excavating tunnels and underground openings with the drill-and-blast method, minimizing excavation overbreak is vital, as it reduces the costs associated with excavation stability, mucking, and rock support. Overbreak in excavations not only causes safety concerns but also increases the cost of construction and completion time. This paper proposes a contour blasting design in which the parameters are optimized based on the rock’s structural properties. Numerical modeling was used to identify the possible damage zones of rock with a change of the seismic load due to blasting. The results were used as input for the design of the proposed contour blasting with a low-brisance explosive. Experimental blasting tests were conducted at the Akbakai mine, located in Kazakhstan, and the performance of the design was examined. The proposed contour blasting was compared with the standard blasting method. The results indicated that the cross-section of excavation with the conventional blasting method varied between 10.5 and 12.1 m2, indicating an overbreak between 17 and 34%. However, with the suggested contour blasting, the overbreak was less than 13%. It was concluded that charging contour boreholes with low-brisance explosives is an effective method of reducing overbreak due to excessive explosive loads on the contour massif, which can improve the safety and profitability of mining operations.

How Responsible Are Energy and Utilities Companies in Terms of Sustainability and Economic Development?

The increasing importance of ESG (environmental, social, governance) scores in investment decisions has led to a growing interest in understanding their impact on corporate performance, particularly in the energy and utilities sector. This study’s focus is to identify the research gap regarding the connection between corporate adherence to Sustainable Development Goals (SDGs) and the financial outcomes of these companies. The research objective is to examine the correlation between ESG scores and key financial metrics, such as return on assets (ROAs) and return on equity (ROE), using a quantitative approach to analyze a dataset of publicly traded companies in this sector. Using a panel data regression analysis, we identified a significant correlation suggesting that higher ESG scores are associated with improved financial performance for the entire sample and separately for the two sectors. These findings indicate that companies with robust ESG practices enhance their sustainability profile and achieve better operational efficiency and profitability. This research contributes to the existing literature by providing empirical evidence of the positive impact of ESG factors on corporate performance in a sector characterized by high environmental impact and regulatory scrutiny. Ultimately, this study underscores the necessity for energy and utilities companies to integrate ESG considerations into their strategic frameworks, thereby aligning financial objectives with sustainable practices to drive long-term success.

Training on Calculation of Production Cost and Determination of Product Selling Price to Increase Competitiveness of MSMEs in Alai Village

Micro, Small and Medium Enterprises (MSMEs) play a crucial role in the Indonesian economy, including in job creation, improving people's welfare, and strengthening the national economic structure. One effective solution to address these challenges is through training on cost of goods produced (COGS) calculation and selling price determination. This study focuses on the training provided to MSMEs in Alai Village, with the aim of improving the understanding of business actors regarding the components of COGS and effective selling price setting strategies. The method used in this research is the field practice method which goes through three stages, namely preparation, implementation and evaluation. The results showed that participants gained better knowledge about COGS calculations and were able to set competitive selling prices, thereby increasing operational efficiency and profit margins. This was proven when researchers conducted periodic research at 2 stages, namely before the presentation of the material (pretest) and after the presentation of the material (posttest). Thus, this training makes a positive contribution to business sustainability and the economic welfare of local communities, increases the competitiveness of MSMEs, and has a positive impact on local economic growth

MANAJEMEN STRATEGI PENGELOLAAN TINGKAT KECUKUPAN MODAL, RESIKO KREDIT DAN LIKUIDITAS TERHADAP PROFITABILITAS LEMBAGA PERKREDITAN DESA (LPD) DI KABUPATEN TABANAN

The Village Credit Institution (LPD) plays a crucial role in building the economy in Bali, particularly in Desa Pakraman. The LPD functions as a non-bank financial institution that manages the financial potential of the village and provides loans to the community. This research aims to analyze the impact of capital adequacy, credit risk, and liquidity on the profitability of LPD in Tabanan Regency. The methodology used includes both quantitative and qualitative approaches, with data collection through financial reports of the LPD and multiple linear regression analysis. The research findings indicate that capital adequacy and liquidity have a positive effect on profitability, while credit risk has a negative impact. These findings are expected to provide insights into the profitability performance of LPD and serve as considerations for improving the financial health of institutions in Desa Pakraman, especially in Tabanan Regency.

Features of building a successful logistics business in the USA

The very intensive development of e-commerce and changing consumer behavior in the United States have provoked an unprecedented increase in freight traffic. This trend is increasing every year. Existing logistics models sometimes demonstrate the inability to effectively cope with the increased workload, which necessitates a rethink of traditional approaches to business organization in the area under consideration.There is no common position in the scientific community regarding optimal scaling strategies for logistics companies in the context of digital transformations. A number of researchers advocate the priority of technological modernization, while others focus on strengthening regional partner networks. The indicated contradiction is aggravated by the lack of knowledge of synergetic effects when integrating various options for action.The purpose of the study is to identify key success factors in building and scaling a logistics business in the United States through the prism of technological transformation of the industry and changes in market conditions.It is noted that companies integrating elements of classical logistics with digital platform solutions demonstrate an increase in the profitability of operations. At the same time, the critical success factor is not the volume of investments in technological modernization, but the ability to create effective synergy between various parts of the entrepreneurial model. The author’s view on the options for the development and scaling of logistics entrepreneurship in the United States is proposed.The article is of value to the heads of logistics companies, investors considering the possibility of entering this sector in the United States, as well as researchers dealing with the digital transformation of the analyzed industry.

A Research on The Economic Consequences of The Implementation of Dual-Class Share (DCS) Structure: A Case Study Based on Kuaishou Technology

Following the abolition of the dual-class share structure in 1989, the Hong Kong Exchanges and Clearing Limited re-launched the "Weighted Voting Right" mechanism. In February 2021, Kuaishou Technology listed in Hong Kong with a dual-class share structure, which has been regarded as the initial public offering of “the first stock of short video” drew the attention of many investors. Particularly, numerous international scholars have examined the performance of the dual-class share structure. This paper examines the economic consequences of the three dimensions based on the IPO of Kuaishou Technology. Taken together, by adopting a dual-class share structure, managers are more likely to face lower unsystematic risk and firms are less likely to face acquisition risks, as well as higher innovation performance and thus greater growth potential with a particular emphasis on operation capacity and profitability, even if the performance is not obvious in the short term. The contribution of this paper is to provide practical experiences for other Internet companies with the aim of promoting dual-class share structure and corporate sustainability.

A Study on The Influence Of 'She-Economy' Upsurge on The Development of Clothing Companies: Taking Anta as An Example

With the awareness of people's self-consciousness, the 'she-power' of female consumers begins to emerge. The upsurge of the 'she-economy' has become a highly-concerned economic phenomenon. Various industries turned their attention to the female market and female groups. On the basis of previous studies on 'she-economy', this paper focuses on clothing enterprises, summarizing the impacts of this economic phenomenon on the cases concerned in this paper through case study, literature study and event study, so as to provide suggestions for the development of the clothing industry. The study found that the coping strategies made by clothing enterprises in response to the 'she-economy' phenomenon have a significant positive impact on the enterprises themselves, which is reflected in the profitability, asset structure and female consumption performance of the enterprise. Whereas, inappropriate marketing methods may bring a negative impact to enterprises. Hence, enterprises need to exercise sound judgement when making decisions. From the market situation, it can be found that the women's clothing market still has a large development space. In the future, clothing enterprises can learn from the excellent cases in the industry, try to open up the female business, transform the new-born 'she-power' into their customers, expanding their consumer group. Other industries can also carry out researches on the impacts of the 'she-economy' phenomenon, learn from the development experience of those clothing enterprises, and enter the huge consumer market of women's business.

Analisis Kinerja Keuangan Bank Syariah Indonesia Sebelum dan Sesudah Merger Menggunakan Metode Maqashid Shariah Index dan Profitabilitas

Bank Syariah Indonesia was established on February 1,2021. The establishment of Bank Syariah Indonesia was a combination of 3 (three) BUMN Banks (State Owned Enterprises), namely Bank Syariah Mandiri, BNI Syariah, and BRI Syariah. For this reason, the merger of the three banks aims to realize efforts to build an advanced Islamic bank. On the other hand, the progress of an Islamic banking industry is certainly inseparable from the evaluation of the Islamic bank's financial performance. This aims to determine the financial conditions that occurred during a certain period, in which this information is intended for the government, investors and customers of the Islamic bank. So because of this, the authors are interested in measuring the performance of Indonesian Sharia Banks, which can still be said to be new because it is the result of the merger of the three state-owned banks based on the Maqashid Sharia Index and Profitability concept. This research aims to analyze the performance achievements of Bank Syariah Indonesia before and after the merger using the Maqashid Shariah Index and Profitabilta methods and to compare the two performance achievements. The results of the study found that after the Merger, Indonesian Sharia Banks achieved the highest average MSI Performance ratio (Maqashid Syariah Index) and Profitability Performance ratios compared to before the Merger.

Application of Decision Tree Method for Sales Prediction at PT. Cipta Naga Semesta (Mayora Group) North Jakarta for 2023

The purpose of this study is to forecast sales of PT. Cipta Naga Semesta, one of the companies owned by Mayora Group headquartered in North Jakarta using the Decision Tree method during 2023. Decision Tree was chosen because this model identifies key attributes that greatly affect sales in the data and has the ability to predict outcomes by recognizing patterns in historical data. The database used in this analysis includes monthly records of sales, promotions, prices, and other economic characteristics. The findings of the study indicate that the Decision Tree method is very effective in providing accurate sales predictions with a low margin of error. The forecast provides valuable perspectives for company management, which can help them design tighter sales strategies and make better inventory decisions, thereby maximizing operational efficiency and profitability. In addition, the exploration of sales prediction models is one of the future works proposed in this study, which recommends practitioners to explore alternative methods to improve forecast accuracy and robustness.

THE LEVEL OF CONVERGENCE TO SHARI’AH PRINCIPLES AND CORPORATE PROFITABILITY

This study constructs a Shari'ah convergence index for 1,362 companies operating in 10 different Islamic countries between 2017 and 2021 and assesses its relation to corporate profitability. Shari’ah screening variables are based on existing Shari’ah screening literature and applications, and variable weights are assigned using the Integrated Determination of Objective Criteria Weights (IDOCRIW) technique, a widely used, multi-criteria decision-making method. The results suggest that 4% of the sample is completely non-compliant as they engage in non-permissible business activities, 82% has a non-compliant activity level below 30% and the remaining 14% has a non-compliant activity level between 41 and 99%. Our panel data regression analysis shows that, while the Shari'ah convergence index does not affect operating profitability, it does have a statistically positive effect on total corporate profitability. These findings are attributable to two factors, interest burden and debt level. It seems that, for Islamic companies, The high cost of debt service may offset the advantage of high leverage on profitability.

Income Analysis to Increasing Business Profits at MSMEs Teh Tarik Annura Salatiga

Teh Tarik is a drink that is spread across Southeast Asian countries from Malaysia, Singapore and Indonesia. Teh Tarik Annura was founded in 2019. The aim of this research is to analyze revenue in increasing business profits received by MSME Teh Tarik Annura. In this research, quantitative descriptive methods were used, namely case studies that used observation, interviews, documentation and literature study methods. From the data that has been calculated, business income and profit during the period in 2023 experienced increases and decreases every month with an average income of IDR. 23,250,000 starting from January to December 2023, and with an average operating profit of Rp. 17,188,750 from January to December 2023. Data shows that in one period in 2023, from the data that has been calculated, revenue and operating profit increased four times, in March-April there was an increase in income of 29%, in May-June experienced an increase of 14%, in August-September there was an increase of 20%, and in November-December there was an increase in revenue of 19%. Operating profits also experienced an increase. March-April experienced an increase in operating profits of 40%, in May-June there was an increase of 46%, in August-September there was an increase of 20%, and in November-December there was an increase in income of 16%. The results of the research show that if income increases, the operating profit received will increase, and if expenses increase but income is greater, then operating profit will not decrease significantly.

Optimal capacity determination of photovoltaic and energy storage systems for electric vehicle charging stations

With the growing interest in integrating photovoltaic (PV) systems and energy storage systems (ESSs) into electric vehicle (EV) charging stations (ECSs), extensive research has focused on methods to increase the profits of ECS operators (ECSOs). Conventional studies have primarily relied on empirical methods, such as assuming a constant value for the power conversion system (PCS) capacity or modeling it as being dependent on the battery capacity, to design ESSs. However, such empirical methods can lead to suboptimal or excessive determinations of the capacity of a facility. This study proposes a battery-independent PCS model that independently models the battery and PCS capacities in ESS design to overcome the limitations of the conventional model and maximize the profit for ECSOs. The proposed model determines the optimal capacity of ESS and PV to maximize ECSO's profit. The nonlinearities that arise from using a battery-independent PCS model are linearized by the BIG-M method to effectively solve the optimization problem. The proposed model achieved an additional profit of up to 1.5 % compared to the conventional model. Additionally, the proposed model was simulated under various conditions (e.g., decreasing capital investment costs of ESS, changing EV charging demand, changing time-of-use rates, and applying real-time price rates). Accordingly, it is confirmed that the proposed model greatly contributes to improving ECSO profit even under various conditions. Moreover, the proposed model offers a means to determine the optimal capacities of PV and ESS in an ECS, ultimately maximizing ECSO profits.

Enhancing operation effectiveness by maximizing daily EBITDA as a turnaround strategy execution system to enhance operation performance and profitability

Many companies struggle with strategy implementation due to the complex nature of execution. Some strategy execution systems depend on numerous indicators, making it challenging for managers to oversee effectively. Additionally, during times of financial difficulty, companies require a straightforward turnaround strategy execution system featuring clearly defined Key Performance Indicators (KPIs). This system should empower employees at all levels, fostering a shared sense of alignment and unity as the organization pursues common goals. The researchers aim to provide a simplified system for implementing turnaround strategies that ensures the company's profitability. To achieve this, they recommend utilizing daily Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) as the primary KPI, as it is entirely under operational control. Moreover, EBITDA can be integrated into business processes and remains solely within the purview of operations leaders and employees, thereby cultivating a sense of ownership and accountability. Once the company reaches a certain level of profitability, it can then incorporate additional KPIs. The researchers developed hypotheses based on deductive reasoning following a comprehensive literature review. They analyzed qualitative data from interviews and quantitative data from surveys. After implementing their program in a ferry company, they observed an approximate 33 % increase in revenue, a staggering 300 % surge in EBITDA, and an expansion of the EBITDA margin by over 250 %. The researchers validated their hypotheses through multiple case studies across ferry, shipbuilding, and aircraft manufacturing companies. This research contributes to the development of a straightforward turnaround strategy execution system by translating strategic programs and EBITDA targets into actionable plans for business processes daily. This approach assists leaders and employees in enhancing company culture and systems to achieve improved performance and profitability. The researchers focus on executing turnaround strategies effectively within company operations.

Techno-economic analysis of green hydrogen production and electric vehicle charging using redundant energy on a solar photovoltaic mini-grid

The trajectory of the world's energy use has moved towards the use of renewable energy to increase energy access. Solar energy's pace of growth as a result of its low cost has resulted in it being used to generate electricity for areas that do not have access to grid electricity. Thus, solar photovoltaic mini-grid systems have been deployed in several areas. Over time, it has been found that these systems generate a significant amount of redundant energy, which translates to low profitability for the mini-grid operators, as only a fraction of the system's capacity is used. This study seeks to investigate the economic feasibility of using this redundant energy for green hydrogen production and electric vehicle charging. The results revealed that both the green hydrogen production and electric vehicle charging are economically viable. Net Present Value, Internal Rate of Return and Simple Payback Period obtained for green hydrogen production are $20,000, 24.6 %, 9 years, while those of the electric vehicle charging are $109,625, 28.41 %, 4 years respectively. Over the projects’ lifetime, levelised cost of hydrogen and levelised cost of energy for charging are $6.88/kg and $0.23/kWh respectively. Furthermore, a sensitivity analysis revealed that the levelised costs for both projects are most sensitive to the plant capacity factor and capital expenditure. The study also shows that the wasted energy of the PV mini-grid could be reduced from as high as 69.95 % to nearly 0 %. This research underscores the potential of other clean energy technologies to reduce the wasted energy on existing PV systems, whiles improving the economic state of mini-grid communities.

Unveiling coopetition dynamics between shared mobility and public transport: A game-theoretic approach

The liberalization of the transport market and advancements in real-time information technologies have prospered various shared mobility services, such as ridesourcing and carsharing. The emergence of these services complicates the relationships between them and public transport, as they often compete and cooperate simultaneously. This study develops a game-theoretic model to unveil these interactions using a multi-leader single-follower framework. In this framework, operators set their service rates as leaders, while travelers are assigned to services based on a logit model, which influences the profitability of both operators. The public transport operator may also subsidize travelers who use shared mobility service to access first- or last-mile trips, referring to as the bundle services. We reformulate the resulting nonlinear, nonconvex problem into a standard convex bilevel model by using outer linear approximations and applying KKT conditions to replace the lower-level problem. An iterative algorithm is developed to solve the game-theoretical model, complemented by an optimization-based bound tightening technique to enhance solution efficiency and accuracy. Our findings show that smaller operators, limited by budget constraints, are more likely to cooperate in bundle services for longer distances but tend to compete for shorter distances. In contrast, larger operators strategically alternate between competition and cooperation based on market conditions. Furthermore, well-designed subsidies in the bundle services can incentivize cooperation between shared mobility and public transport, benefiting both operators and travelers.

Corporate Risk Disclosure Practice and Financial Performance of Listed Industrial Goods Firms in Nigeria

In recent years, corporate risk disclosure has gained increasing attention in corporate governance discourse due to its potential impact on financial performance. The need for transparency in reporting risks has become more critical, particularly in the industrial goods sector, which is often characterized by high operational and financial risks. This study examined the influence of corporate risk disclosure on the financial performance of listed industrial goods firms in Nigeria, a sector known for high levels of operational and financial risk. It specifically assessed how financial and operational risk disclosures affect financial performance. This study employed expo-facto research design. The study population consisted of 13 industrial goods firms listed on the Nigerian Exchange Group (NGX) as of 31st December 2023. Census sampling was applied to include the entire population. Data were collected from annual reports and corporate governance disclosures were analysed with descriptive statistics and feasible generalised least squares regression analysis. The findings found that while financial risk disclosure positively and significantly influences financial performance, operational risk disclosure has a negative but significant effect. These outcomes suggest that financial transparency boosts investor trust and confidence, enhancing financial performance, whereas disclosing operational risks may reduce investor confidence due to concerns about operational stability and profitability. This study concluded that corporate risk disclosure demonstrated a significant role in influencing financial outcomes, yet its effect varies based on the type of risk disclosed. In line with empirical findings of this study, it was recommended that firms should balance transparency with discretion by selectively disclosing operational risks that have been mitigated or managed, reducing the potential for investor concerns over operational vulnerabilities.

Investigation of the effect of missense mutations in AHR and DNAH11 on feed conversion ratio and average daily residual feed intake in Duroc, Landrace and Yorkshire pigs.

Feed efficiency (FE) in pigs is an important factor in the profitability of pig farming operations. It refers to the ability of a pig to convert the feed it consumes into body weight. We used two metrics to measure FE: feed conversion ratio and average daily residual feed intake. A previous genome-wide association study and transcriptome study in crossbred pigs identified two QTL regions on SSC9 associated with residual feed intake and pointed out two candidate genes of interest: (a) the gene encoding the Aryl Hydrocarbon Receptor gene (AHR) transcription factor; and (b) the Dynein, Axonemal, Heavy Polypeptide 11 gene (DNAH11). The previous study identified missense mutations in both genes leading to a conservative substitution of glycine to cysteine in AHR (AHR_rs339939442) and two non-conservative substitutions in DNAH11, where arginine is replaced by threonine (DNAH11_rs325475644) and alanine is replaced by threonine (DNAH11_rs346074031). We have now genotyped the missense mutations in independent cohorts of 107 Duroc, 155 Landrace and 160 Yorkshire pigs to substantiate further if these variants directly impact FE-related phenotypes. We verified that allele T of AHR_rs339939442 in AHR improves FE in Yorkshire pigs. Genotype GG of AHR_rs339939442 was fixed in Duroc pigs. We also confirmed that the variants rs325475644 and rs346074031 in DNAH11 did not affect FE. The findings contribute valuable insights into the genetic mechanisms governing FE in pigs, potentially offering contributions for future enhancements of FE.

Merger and Acquisition of Indian Banks and Their Impact on its Financial Performance & Shareholder Wealth

This study investigates the financial performance and shareholder value outcomes of mergers and acquisitions (M&A) in the Indian banking sector. Through the analysis of three major bank mergers—State Bank of India and its associates, Bank of Baroda with Vijaya and Dena Banks, and Punjab National Bank with Oriental Bank of Commerce and United Bank—the research evaluates operational performance, profitability, and shareholder returns pre- and post-merger. Using financial ratios and t-tests, the study identifies significant changes in financial metrics and shareholder wealth. The findings suggest that while M&A can enhance operational efficiency and shareholder value, the results vary based on individual merger circumstances and integration strategies.