Profitability Performance Research Articles

Advancing business performance through data-driven process automation: A case study of digital transformation in the banking sector

This review paper examines the impact of data-driven process automation on business performance within the banking sector, emphasizing its role in enhancing operational efficiency, customer experience, and profitability. The paper explores how automation technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Robotic Process Automation (RPA) are transforming traditional banking processes by streamlining operations and enabling more personalized services. A comparative analysis highlights the advantages of automated systems over conventional methods. It acknowledges potential challenges, such as job displacement and cybersecurity risks. The paper concludes with strategic recommendations for banks seeking to adopt or enhance automation technologies. It suggests areas for future research, including the long-term effects of automation on the workforce and the integration of emerging technologies like blockchain.

COLLABORATIVE SUPPLY CHAIN MANAGEMENT IN THE SHARING ECONOMY: AN EMPIRICAL RESEARCH

This study examines the impact of the sharing economy on collaborative supply chain management among Turkish international trade firms. The sharing economy, which involves temporary access to underutilized resources via digital platforms, has challenged traditional supply chain models, necessitating resilient and flexible collaborations. The research utilizes the Inter-organizational Relationships (IOR), Unified Theory of Acceptance and Use of Technology (UTAUT), and Resource-Based View (RBV) frameworks, highlighting dynamic capabilities. Through structural equation modeling and expert interviews, the findings reveal that trust and information sharing are essential, but their effects on e-collaboration are complex. Trust negatively correlates with e-collaboration, indicating that electronic platforms may mediate trust in low-trust environments. On the other hand, performance expectancy and facilitating conditions significantly boost e-collaboration adoption. The study identifies e-collaboration as a dynamic capability, improving operational performance, customer/supplier satisfaction, growth, and profitability. This research contributes theoretically by integrating organizational and individual perspectives on e-collaboration and elucidates the intricate relationships between trust, information sharing, and technology in supply chains. Practical recommendations are provided for leveraging technological innovations to enhance trust and information sharing in collaborative supply chains.

Use of Renewable Energy to Enhance Firm Performance: A Systematic Review

This study employs a Systematic Literature Review (SLR) combined with bibliometric and Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodologies to investigate the factors influencing the use of renewable energy in enhancing firm performance. An analysis of 27 selected articles reveals three key factors: firm innovation, governance, and regulation. The study further emphasizes the benefits of renewable energy adoption across various business performance metrics, including firm profit, financial, logistics, and sustainable performance. The novelty of this paper lies in its comprehensive integration of bibliometrics analysis with PRISMA to bridge gaps in existing literature. It contributes to the field by offering insights into the complex relationship between renewable energy use and firm performance, underscoring the significance of continued investigation to resolve inconsistencies and deepen understanding.

The Interaction of Global Economy Mobility on the Financial Performance of Flagged Airlines

This study examines the impact of global economic mobility and domestic production on revenue and EBITDA, which are income statement performance indicators of flagged carrier’s airline companies. The research question is whether the global economic trade mobility and domestic production will lead to an effect in the number of individuals traveling, and thus eventually affect the revenue and profitability performance of airline companies. There are studies in the literature that have selected macroeconomic indicators as affecting travel volume and financials. In this study, trade openness and direct investments represent the global economy's mobility. Short-term interest rates, oil prices and exchange rates are included in the model as a control variable. The results of the panel model indicate that trade openness have a positive effect on firms' revenues. Airline companies should develop their financial forecasts by monitoring the macroeconomic indicators that have shown significant results from empirical analysis.

In or out of reach? Long-term trends in the reach of health assessments in the Swedish occupational setting.

This study aimed to investigate the reach of a large-scale health assessment delivered by the occupational health service in Sweden for almost 30 years. A total of 418 286 individuals who participated in a health assessment (Health Profile Assessment, HPA) between 1995-2021 were included. A comparative sample was obtained from Statistics Sweden, comprising the entire working population for each year (4 962 127-6 011 829 unique individuals per time period). Sociodemographic and work organization characteristics were compared between the HPA and comparative population for six different periods. Under- and overrepresented groups in the private and public sectors were identified using the most recent data (2015-2021). With negative per cent indicating underrepresentation, the most notable changes over time in representation in the HPA population compared to the comparative were observed for women (-1.2% to -12.8%), private sector employees (-9.4% to 14.9%), individuals with ≥3 years of employment (14.5% to 0.9%), in personal care (0.8% to -8.8%) and manufacturing (0.7% to 6.4%) occupations. Consistently overrepresented groups (median representation across periods) included individuals who had a single income source (6.3%) and were middle-aged (10.8%), born in Sweden (5.9%), associate professionals (8.7%), and employed in companies with high operating profit (17.9%) and low staff turnover (14.3%). Conversely, individuals with low income (-34.0%) and employed in small companies/organizations (-10.9%) were consistently underrepresented. Middle-aged women in education occupations were most underrepresented in the public sector, while in the private sector, it was young women in service and shop sales occupations. This health assessment has reached many professionals, including hard-to-reach groups, but did not fully represents the Swedish workforce throughout the years.

Strategy Selection Using Multi-Armed Bandit Algorithms in Financial Markets

This paper aims to evaluate the effectiveness of Multi-Armed Bandit (MAB) algorithms in choosing the optimal trading strategy among the sub optimal ones within financial markets. The research aims to addresses the challenge of adapting to dynamic market conditions. By introducing a Composite Trading Strategy that integrates trend-following, mean reversion, and momentum strategies, the study investigates whether increased trading frequency enhances the performance of profitability of various MAB algorithms, including UCB, Thompson Sampling, and epsilon-greedy. The experimental results indicate that while the introduction of complex strategies greatly improves returns in favorable market conditions, MAB algorithms still face limitations in adverse market environments. The findings highlight the potential of MAB algorithms in financial strategy selection and suggest directions for future research to enhance their adaptability in adverse markets.

FINANCIAL FEASIBILITY OF FOOD PROCESSING INDUSTRY: LESSONS FROM TOFU INDUSTRY IN TRUNAN VILLAGE, MAGELANG

This study aims to examine the financial analysis of the Food Processing Industry in Tofu Center of Trunan Village in an effort to maintain the calculation of operational costs, profit and loss, and investment in minimizing investment losses. In particular, this study aims to calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Profitability Index (PI) in the Processed Food Industry in the Tofu Center of Trunan Village. The urgency of this research is to maintain the sustainability of the tofu industry in Trunan Village, which is one of the leading MSME centers in Magelang City and in an effort to maintain food security. Based on the results of the analysis it was found that financially the MSME management in the Tofu Center Food Processing Industry in Trunan Village did not fulfill the feasibility aspect. Net Present Value (Rp 2,147,030,794), Internal Rate of Return shows 2%, Payback Period 2 Years 8 months, and Profitability Index 4.10. Keywords: Feasibility Study, NPV, IRR, PP, PI

International Air Cargo Volume Forecasting based on the Stacking Fusion Model

Accurate forecasting of international air cargo volumes is crucial for air cargo carriers, which optimizes operational efficiency and profitability and strengthens market competitiveness and risk response capabilities. This study focuses on the open-source cargo data of over 100 international airlines in India from January 2015 to March 2017. Firstly, the missing data must be dealt with. Then, histograms and probability density plots are used to depict the distribution of the cargo volume and analyze the dynamics of the cargo volume of each company at annual and quarterly levels. Subsequently, key factors affecting cargo volumes are analyzed, with a special focus on the cargo performance of the Top 5 airlines, which is visualized in box plots. Given the time-series nature of cargo data, this study adopts the data sequential partitioning method. It innovatively utilizes the Stacking ensemble learning framework, integrating regression models such as Random Forest, Decision Tree, Extreme Gradient Boosting, and K-Nearest Neighbor as the base learners. The meta-learner is constructed to integrate the outputs of each base model, and the hyperparameters of the model are optimized by grid search and cross-validation. Comparison results show that the Stacking model has a higher R² value and lower MSE than any single base learners, indicating that it is more effective in international air cargo volume prediction. The prediction model based on stacking ensemble learning provides an effective strategy for improving air cargo prediction accuracy.

Supply chain management and the performance of small and medium scale enterprises in Nigeria

This paper examined the relationship between supply chain management practices (SCM) and performance of small and medium enterprises (SMEs) in Nigeria. It aimed to explain how SCM practices like strategic suppliers’ alliances, information sharing, and collaborative governance impacts the performance of SMEs in Nigeria. SME success was measured using a continuum of operational efficiency, customer satisfaction, and profitability. To reach the study's goal, a survey research approach was used, with a sample of 352 respondents representing the owners and senior management members of registered SMEs in Nigeria. Because the study depended on quantitative analysis, respondents' opinions were collected using a standardised closed-ended questionnaire. The gathered data was analysed using IBM SPSS 28 and IBM AMOS. The study found a positive and substantial correlation between chosen SCM practices and the performance of SMEs in Nigeria, as shown by the coefficients and p-values (SSA = 0.544; P <.001; IFS = 0.621; P <.001; CGV = 0.673; P <.001). It is therefore argued that SCM techniques such as strategic partnerships with suppliers, information sharing, and collaborative governance have a favourable and significant influence on the performance of SMEs in Nigeria. Consistent with the findings and current literature, this study recommends that Nigerian SMEs form strategic supplier relationships by sharing continuous improvement programs with important suppliers and include key suppliers in their planning and goal-setting processes. Keywords: Supply Chain Management, Strategic Supplier Alliance, Information Sharing, Collaborative Governance, Performance.

The Influence of Loan at Risk and Bank Spesific Variables on The Profitability of Commercial Banking in Indonesia Based on Core Capital: Period 2015 to 2022

This research aims to examine the influence of loan at risk (LAR) and other specific bank variables, namely size, leverage, and capital, on the profitability of commercial banks in Indonesia based on the classification of core capital set by banking authorities. The study utilizes panel data regression with a balanced fixed-effect model from a sample of 67 examined commercial banks, both in aggregate and based on the core capital classification of each bank, covering the research period from 2015 to 2022. The results indicate that the credit asset portfolio with LAR quality significantly affects the profitability of commercial banks negatively, both in terms of ROA and ROE, applying to the entire group of commercial banks studied. Meanwhile, other specific variables have varying degrees of influence and significance. Collectively, the independent variables in all research models have a significant impact on the profitability of all commercial banks in Indonesia. The findings of this study can contribute to the reference for bank management and other stakeholders in assessing the profitability performance of commercial banks, as well as expanding the literature in the field of banking.

Resilience in Cyclicality: Impact of Inventory Management Efficiency on Operational Profitability

ABSTRACTThe cyclical and non‐cyclical nature of the consumer goods industry presents unique dynamics that require discernment in analyzing working capital (WC). These firms often deal with considerable inventory levels that create costs and liquidity challenges, particularly during economic downturns. This paper investigates the impact of inventory days (InvD) on operating margin (OM) in both demand‐stable and demand‐sensitive businesses. The empirical analysis employs system GMM regression with a sample of publicly traded US consumer goods firms from 2010 to 2022. The findings reveal an inverted U‐shaped relationship between InvD and OM among cyclical companies, indicating that these firms require a comparatively lower optimal inventory level (108 days) to maximize profitability at 3%. The results highlight the importance of strategic inventory management (IM) under varying economic and demand conditions and balancing the risks of stock‐outs against the costs of overstocking to optimize profitability. This paper contributes to the literature on the impact of inventory dynamics on operating profit in stable and volatile markets. It estimates the optimal inventory level that enhances profitability and predicts the optimal inventory dynamics for maximum profit.

Location and Size Planning of Charging Parking Lots Based on EV Charging Demand Prediction and Fuzzy Bi-Objective Optimization

The market share of electric vehicles (EVs) is growing rapidly. However, given the huge demand for parking and charging of electric vehicles, supporting facilities generally have problems such as insufficient quantity, low utilization efficiency, and mismatch between supply and demand. In this study, based on the actual EV operation data, we propose a driver travel-charging demand prediction method and a fuzzy bi-objective optimization method for location and size planning of charging parking lots (CPLs) based on existing parking facilities, aiming to reduce the charging waiting time of EV users while ensuring the maximal profit of CPL operators. First, the Monte Carlo method is used to construct a driver travel-charging behavior chain and a user spatiotemporal activity transfer model. Then, a user charging decision-making method based on fuzzy logic inference is proposed, which uses the fuzzy membership degree of influencing factors to calculate the charging probability of users at each road node. The travel and charging behavior of large-scale users are then simulated to predict the spatiotemporal distribution of charging demand. Finally, taking the predicted charging demand distribution as an input and the number of CPLs and charging parking spaces as constraints, a bi-objective optimization model for simultaneous location and size planning of CPLs is constructed, and solved using the fuzzy genetic algorithm. The results from a case study indicate that the planning scheme generated from the proposed methods not only reduces the travelling and waiting time of EV users for charging in most of the time, but also controls the upper limit of the number of charging piles to save construction costs and increase the total profit. The research results can provide theoretical support and decision-making reference for the planning of electric vehicle charging facilities and the intelligent management of charging parking lots.

Optimizing customized bus services for multi‐trip urban passengers: A bi‐objective approach

AbstractCustomized bus services typically focus on single‐trip requests, which often struggle to accommodate the growing needs for varied multiple trips in urban daily travel. This paper addresses the customized bus routing problem for passengers with multiple trips. A bi‐objective mathematical model is established for maximizing the operational profit and minimizing the travel costs by considering the characteristics of the multi‐trip requests and time‐dependent travel time. Besides, a novel profit objective function is proposed considering the service's completion status and the starting price. Since the proposed mixed integer linear programming model is an NP‐hard problem, a non‐dominated sorting genetic algorithm II‐based method is proposed to handle different sizes of instances. Finally, the instances with multi‐trip requests are carried out to test the accuracy of the model and the effectiveness of our method compared with Gurobi and the local search‐based multi‐objective algorithm approach.

Pharmaceutical procurement profits and universal health coverage: Reform to a sustainable healthcare and financing system

BackgroundIn this study, using Taiwan's National Health Insurance (NHI) as an example of a single-payer system, we examined the extent of pharmaceutical procurement profits (PPP) and evaluated their impact on the financial performance of healthcare institutions. MethodsWe extracted data from financial statements and healthcare service declarations of NHI-contracted hospitals from 2015 to 2021. Financial data concerning PPP, health service profits (HSP), and total operating profits (TOP) from each hospital were analyzed. The impact of PPP on hospitals with positive and negative HSP was further investigated. ResultsThe total PPP across all hospitals studied gradually increased from NT$30.6 billion in 2015 to NT$47.0 billion in 2021. In 2021, 28.1% of all hospitals reported a deficit in HSP. PPP appeared to have a significantly positive impact on the financial performance of these hospitals. It not only enhanced positive profits, but also helped mitigate or completely offset the negative profits from HSP. The effect of PPP seems to be more pronounced for hospitals with larger HSP values, suggesting that larger hospitals benefit more from PPP in absolute terms. DiscussionAverage PPP increased during the study period, increasingly affecting hospitals’ financial stability across all strata. The gap between TOP and HSP in medical centers has gradually widened, suggesting an increase in non-health service profits. In this study, we propose a payment policy reform that fosters sustainability of the healthcare and financing system under universal health coverage and corrects the potential distortions caused by PPP.

The Influence of Operating Profit and Loss and the Size of The Public Accounting Firm on Audit Delay

This research aims to determine and analyze the influence of Operating Profit and Loss and the Size of the Public Accounting Firm (KAP) partially on Audit Delay. The influence of Operating Profit and Loss and Size of the Public Accounting Firm (KAP) simultaneously on Audit Delay in companies listed on IDX-MES BUMN 17 Period 2018-2022. This research uses a descriptive method with a quantitative approach. The statistical test tool uses the help of the IBM SPSS Statistics 27 version program. Operating Profit and Loss partially influence Audit Delay with a value of count 3,832 > table 2,018. The size of the Public Accounting Firm partially has no effect with a value of count -1.605 < table 2.018. Operating Profit and Loss and the Size of the Public Accounting Firm simultaneously influence Audit Delay with a value of Fcount 7.391 > Ftable 3.214. The R Square value obtained was 26.0%; the remaining 74.0% was influenced by other factors not examined in this research. Thus, the relationship between the variables in this study has a trim level of relationship. Companies should pay more attention to the timeliness of submitting financial reports, considering the importance of economic reports in decision-making. The manager evaluates the performance of each division to minimize delays in submitting financial reports. Future researchers can add independent variables and observation periods and expand the research object. Researchers want to know the extent to which these two variables play a role in influencing Audit Delay, especially in companies listed on IDX-MES BUMN 17, and can provide further information.

Analysis of Financial Performances for Coca-Cola: Comparison with PepsiCo, Keurig Dr Pepper and Monster Beverage

In the global beverage market, Coca Cola, PepsiCo, Keurig Dr Pepper Inc., and Monster Beverage Corporation are the four giants whose financial performance has a profound impact on the entire industry. This study aims to analyze in depth the market performance and financial health of these companies by comparing their financial indicators. Research has found that Coca Cola Company has outstanding performance in profitability, asset utilization efficiency, and cost control, while PepsiCo, despite performing well in certain indicators, has a negative expected earnings per share growth rate, which has attracted attention. Monster Beverage Corporation shows high market expectations, but attention should be paid to the risks that its high P/E ratio may bring. Keurig Dr Pepper Inc. has relatively weak profitability, but its gross profit margin trend shows signs of improvement. This study not only provides investors and analysts with a comprehensive perspective on the financial health of major beverage companies, but also provides important references for understanding their strategic decisions and market performance, which can help make more informed investment decisions.

Impact of heat stress on female reproduction in farm animals: challenges and possible remedies

Global warming poses significant challenges to agriculture, particularly within the livestock industry. Heat stress in animals refers to the physiological and metabolic distress experienced when environmental heat causes an animal’s body temperature to exceed its thermoneutral zone. Heat stress has a significant detrimental impact on reproductive outcomes, posing a direct threat to the profitability of livestock operations. Heat stress disrupts the normal hormonal balance essential for reproduction in female livestock, adversely affecting events of folliculogenesis and embryogenesis. As a result, the developmental competence of oocytes is compromised, which is crucial for successful fertilization and reproduction. Consequently, heat stress can lead to issues such as immature oocytes, atypical or sluggish embryonic development, silent estrus, and increased pregnancy loss causing a decline in reproductive rates and livestock owners face substantial financial losses. Despite using various cooling strategies, such as water sprinkler systems, cooling shades, and cooling devices, these measures are often insufficient to restore normal reproductive rates. Therefore, it is crucial to implement and explore novel strategies to enhance reproductive efficiency during periods of heat stress. Potential mitigation techniques include estrus synchronization, artificial insemination, hormonal alterations, embryo transfer, genetic engineering, sophisticated breeding strategies, the use of nutraceuticals, and changes in management practices. This review aims to consolidate recent findings on the adverse effects of heat stress on female reproduction, especially in tropical environments, and to evaluate potential strategies for improving summer fertility of livestock. Bangladesh Journal of Animal Science 53(3): 77-100, 2024

Effect of Capital Adequacy, Bank Size and Lending Interest Rate on Profitability of Commercial Banks in Nepal

Purpose : This study aims to examine the effect of capital adequacy, bank size and lending interest rate on the profitability of commercial banks in Nepal.Methods: This research used a combination of descriptive and causal comparative research design using secondary source of data obtained from the annual report of corresponding commercial banks. A panel data from the fiscal year 2013/14 to 2022/23 were obtained from six randomly selected commercial banks. Results: The capital adequacy ratio exhibits a significant positive impact on ROA signifying that a robust capital base strengthens financial stability, lowers funding costs, and promotes profitable lending operations. The analysis reveals that bank size has negative effect on ROA but the effect is insignificant suggesting that variations in size do not substantially influence profitability, implying that other determinants are more critical in shaping financial performance. Furthermore, the results indicate a significant negative effect of lending interest rates on return on assets (ROA), which are attributed to factors such as increased borrower repayment capacity, reduced loan demand, higher non-performing loan risks, and elevated funding costs negatively impact overall bank profitability Conclusion: Capital adequacy ratio plays a critical role in increasing bank profitability. Other factors such as bank size and lending interest rates need to be managed to optimize financial performance. Future research is necessary to explore these relationships in more diverse banking environments and consider additional variables to further understand the drivers of bank profitability.

Logistics optimization and inventory control in Peruvian grocery companies

The company being analyzed, which specializes in selling groceries, faces significant challenges in its logistics management. Lack of supply chain visibility prevents informed inventory decisions, resulting in product overages or shortages. Supply chain delays affect profitability, and inaccurate demand planning generates additional costs and financial losses. This study, which is relevant to the Sustainable Development Goals, mainly in combating poverty through the economic success of SMEs, evaluates the effectiveness of logistics management in inventory control. The results show an increase in ending inventory by 105.12% and a decrease in inventory turnover by 29.29%, suggesting a strategic accumulation of stock. In addition, an improvement in the company's liquidity was observed, with an increase in total current assets by 107.66% and a financial restructuring oriented towards expansion projects. These findings underscore efficient logistics management's importance in optimizing resources and improving customer satisfaction. Future research should focus on the integration of advanced technologies and the implementation of sustainable financing strategies to further improve operational efficiency and profitability.

The profitability implications of supplier concentration during economic recession and restoration: the moderating role of supply localization

Economic recessions and restoration change the dynamics of demand and supply in the supply chain. How to match supplier relationships with the dynamic changes to sharp profitability performance is pivotal for firms’ supply chain management during economic waves. Based on the Resource Dependence Theory, changes in demand-side and supply-side resources alter the power-balanced relationship between a firm and its concentrated supplier, affecting the implications of supplier concentration on a firm’s profitability performance in the economic recessions and restoration stages. Furthermore, we consider the moderating role of suppliers’ spatial location, exploring whether a higher proportion of intra-provincial suppliers (i.e., supply localization) helps improve the profitability implications of supplier concentration. Based on the sample of 3319 listed companies in China from 2020 to 2021, we find that: (1) in the economic recession stage, supplier concentration is positively correlated with firm profitability, and this positive relationship is amplified by a higher proportion of intra-provincial supplier transactions; (2) in the economic restoration stage, supplier concentration is negatively correlated with firm profitability, and the higher proportion of intra-provincial supplier transactions aggravates this negative relationship. The 2SLS method is applied to verify the main effects, and we used alternative variable measurements and different model settings to verify the robustness of the findings. The results provide a deeper reference for firms to consider appropriate supplier relationships in response to economic waves.