Profit Trends Research Articles

Company clustering based on financial report data using k-means

Stock investment is the act of providing funds or assets to obtain future payments for gifts given. In its application, novice investors often make mistakes, one of which is not knowing the health condition of the company they want to target. By applying the machine learning clustering method based on company financial report data, it was found that 2 clusters were formed. This can show the current condition of the company so that it can be a consideration for investors, such as clusters of companies that have a profit trend that is always stable and increasing, or clusters of companies that are in the process of developing their business and groups of companies that have large amounts of debt from year to year.

Comparative Analysis of Investment Value in the Media and Entertainment Industry

Propelled by technological development, the Media and Entertainment (M&E) industry has experienced a remarkable transformation and expansion over the past few decades, giving rise to numerous potential investment opportunities. In this context, this essay conducts a comparative analysis of value investing in the M&E industry, focusing on Paramount Global, Netflix, Fox Corporation, and The Walt Disney Company. This research utilizes value investing principles proposed by Benjamin Graham to evaluate the financial strength and profitability of four research subjects. The study suggests Netflix as the most desirable investment due to its robust revenue growth, EPS projection, and profitability trends while highlighting the fierce competition, high valuation risks, and cybersecurity threats faced by Netflix. This paper also acknowledges its limitations related to historical data, market dynamics, and quantitative analysis. The aim of this study is to explore implying value investing in the M&E industry and provide investors with a recommendation of the most desirable investment option in this sector.

The effects of the COVID-19 pandemic on urban and rural hospital profitability.

There are long-standing differences in profitability between rural and urban hospitals. Prior to the COVID-19 Public Health Emergency (PHE), rural hospital profitability was decreasing, while urban hospital profitability was increasing. During the PHE, the Federal Government provided billions of dollars of support to hospitals. Given the prepandemic differences in trends in profitability, it is likely that the PHE funding had different effects on rural hospitals and urban hospitals. This study uses 2015-2023 Medicare cost report data from acute-care hospitals to assess the impact of COVID-19 PHE funding on hospital profitability. We employ descriptive Kruskal-Wallis and chi-square tests and an interrupted time series analysis to evaluate the effect of PHE funding on operating margins for a stratified sample of rural prospective payment system (PPS), urban PPS, and critical access hospitals (CAHs). We found that the PHE funding was associated with significant increases in operating margins, with rural PPS hospitals experiencing similar increases compared to urban PPS hospitals, and CAHs surpassing both rural and urban PPS hospitals in their margin values. However, if PHE funding had not been provided, our evidence suggests operating margins for all hospitals in 2022-2023 would have been below prepandemic levels. This preliminary analysis portrays the importance of the PHE government funding in supporting hospitals during the pandemic, and shows declining profitability trends without the funds. Rural PPS hospitals fare the worst suggesting continued need for financial support if the trend continues.

Profitability trend prediction in crypto financial markets using Fibonacci technical indicator and hybrid CNN model

Cryptocurrency has become a popular trading asset due to its security, anonymity, and decentralization. However, predicting the direction of the financial market can be challenging, leading to difficult financial decisions and potential losses. The purpose of this study is to gain insights into the impact of Fibonacci technical indicator (TI) and multi-class classification based on trend direction and price-strength (trend-strength) to improve the performance and profitability of artificial intelligence (AI) models, particularly hybrid convolutional neural network (CNN) incorporating long short-term memory (LSTM), and to modify it to reduce its complexity. The main contribution of this paper lies in its introduction of Fibonacci TI, demonstrating its impact on financial prediction, and incorporation of a multi-classification technique focusing on trend strength, thereby enhancing the depth and accuracy of predictions. Lastly, profitability analysis sheds light on the tangible benefits of utilizing Fibonacci and multi-classification. The research methodology employed to carry out profitability analysis is based on a hybrid investment strategy—direction and strength by employing a six-stage predictive system: data collection, preprocessing, sampling, training and prediction, investment simulation, and evaluation. Empirical findings show that the Fibonacci TI has improved its performance (44% configurations) and profitability (68% configurations) of AI models. Hybrid CNNs showed most performance improvements particularly the C-LSTM model for trend (binary-0.0023) and trend-strength (4 class-0.0020) and 6 class-0.0099). Hybrid CNNs showed improved profitability, particularly in CLSTM, and performance in CLSTM mod. Trend-strength prediction showed max improvements in long strategy ROI (6.89%) and average ROIs for long-short strategy. Regarding the choice between hybrid CNNs, the C-LSTM mod is a viable option for trend-strength prediction at 4-class and 6-class due to better performance and profitability.

Recent trends in hospital market concentration and profitability: the case of New Jersey

Recent trends in hospital market concentration and profitability: the case of New Jersey

Analisis Rasio Profitabilitas Untuk Menilai Kinerja Keuangan Pada PT.Telkom Indonesia

The increase in net profit from 2020 to 2021 shows positive profitability growth. This indicates that PT Telkom Indonesia (PERSERO) Tbk has succeeded in increasing its operational efficiency, increasing revenue, or reducing ineffective costs. However, the decline in net profit in 2022 indicates changes in conditions or factors that influence the company's performance. It is important to pay attention to the company's net profit trends and conduct further analysis to understand the causes of changes in performance. The aim of this research is to analyze the profitability ratio of PT Telkom Indonesia (Perseroan) Tbk for the 2021-2022 period. Profitability indicators are used to evaluate a company's economic results. The data used in this research is secondary data in the form of financial reports published by PT Telkom Indonesia (company) Tbk for the 2021-2022 period which are available on the Indonesia Stock Exchange (BEI) or www.idx.co.id. The results obtained were PT. Telekomunikasi Indonesia Tbk needs to pay attention to factors that can have a significant influence on the assessment of the Company's financial performance, both in terms of GPM, NPM, ROE and ROA in the long term.

Analysis of the Economic Impact of Artificial Intelligence in The United States

This paper aims to thoroughly analyze the economic impact of artificial intelligence (AI) in the United States, considering its rapid development and the country's position as a global leader in scientific and technological advancements. The primary focus of this article revolves around the domains of AI, profitability and investments, and market and industries. Undoubtedly, the economic impact of AI is significant, yet it remains largely unprecedented. The AI market exhibits immense potential, as evidenced by the increasing trends in investments and profitability. The continuous growth in these areas signifies the rising interest and confidence in AI technologies. Moreover, the overall economic landscape is experiencing an upward trajectory, driven by the competitive spirit and collaboration among industries. The innovative applications of AI have revolutionized various sectors, providing substantial assistance to workers across diverse fields. However, it is important to acknowledge that the rapid evolution of AI may also lead to a reduction in job opportunities. As AI continues to advance, certain tasks traditionally performed by humans may become automated, potentially impacting employment prospects. Consequently, the future of AI development remains uncertain, with both promising opportunities and potential challenges lying ahead. Nonetheless, the economic impact of AI cannot be underestimated.

<b>Efficiency of Microfinance Banks and Institutes: In Creation of Self-Employment in Pakistan</b>

The aim of this research is to make comparison between the microfinance banks and microfinance institutes in creation of self-employment in Pakistan. The data extract from the years 2018-2022, the 4 financial banks and institutes has been taken. The different types of profitability ratio are used in this research. The population of the research is twenty-seven but the sample size of this research is eight and the random sampling technique is used. The SPSS was used and the t-test was applied to the data. To analyze for the purpose of investigating for their performances. The various ratios to apply for their productivity, rates of lending loans as well as how much people got loans from them and what are the criteria of lending loans, feasibility of lending the loans and profitability trend in each sector. This research concludes that after applying all the ratios analyzing its return and seeing the efficiency of microfinance banks and institutes, as their major focus is to make the country prosperous by lending the loan to the people as it has consumed less days to grants loans that creates self-employment in Pakistan. The researcher comes to this point that from considering all the facts and figures, terms and conditions, rules and regulations of all aspects of microfinance banks and institutes. The basis of this research, its profitability is more, the customers are more attracted towards it. The less working days it consumes than the other ones. Its liabilities and expenses are less than the others.

Financial Analysis of NMDC Limited: A Three-Year Review (2020-2023)

This study examines NMDC Limited, a significant player in India's mineral business, spanning a three-year period from 2020–2021 to 2022–2023 in great detail. By studying several financial measures, the main goals of this research are to assess and contrast the profitability trends and financial performance of the organisation. Sales, operational profit margin, gross profit margin, net profit margin, return on long-term funds, and net operating profit per share are some of the important financial indicators that are examined in the study.

The effect of bank-specific dynamics on profitability under changing economic conditions: Evidence from Ghana

Analysts continue to demand explanations for the continuous flow of depositors’ and investors’ funds to persistently underperforming banks, while universal banking is premised on the ability to outperform the market. This study examines the effect of bank-level factors on the profitability of banks under changing economic conditions, using a dynamic panel system Generalized Method of Moments (GMM) technique for panel data collected from 18 universal banks in Ghana. The data collection period was from 2007 to 2021. The analysis revealed that lagged return on assets, capital adequacy ratio, and deposit to total asset ratio have a positive influence on bank profitability, whereas lagged return on equity, bank size, expenditure, and asset quality negatively impact profitability. While the effect of these variables on profitability is expected considering the literature, the evidence obtained for asset quality is inconsistent with the explanations in the literature as an increase in asset quality is expected to drive an impressive trend in profitability. Furthermore, a negative relationship was found to exist between economic growth and bank performance when economic expansion exerts a deteriorating effect on the returns on bank assets. This can be linked to the dispersion of investors’ and customers’ funds to other investments, which limits the amount of funds available to the banks to grant credits for interest income. Based on the findings, it can be concluded that bank-specific dynamics adapt to changes in economic conditions which can be explained by the normative guidelines of the Adaptive Market Hypothesis.

Pengaruh Tata Kelola Perusahaan dan Struktur Kepemilikan Terhadap Persistensi Laba Perusahaan Properti di Masa Covid-19

Profit persistence refers to a stable and sustainable profit trend in the future. The purpose of this study is to analyze and test the effect of the composition of the board of commissioners, audit committee, and managerial ownership on the persistence of profits in property companies during the Covid-19 pandemic. The data analysis method used in this study is descriptive statistical analysis, and inferential statistical analysis using multiple regression to test the research hypothesis. The results showed that (1) the composition of the board of commissioners proved to have no significant effect on the persistence of earnings in LQ45 index property companies during the Covid-19 period. (2) The Audit Committee has been proven to have no significant effect on the persistence of earnings in LQ45 index property companies during the Covid-19 period. (3) Managerial Ownership has been shown to have no significant effect on the persistence of earnings in LQ45 index property companies during the Covid-19 period. Profit persistence is influenced by several factors, but one of them is corporate governance.

The Location Profitability of Industrial Plants at the 9th Mile Area of Enugu State, Nigeria

This study examined the profitability of industries located in the 9th Mile area of Enugu State, Nigeria, to determine the extent of costs and revenues involved in the industrial productions in the area and the suitability of the area in industrial activities. It adopted a survey research design and simple random and purposive sampling techniques in selecting the 32 studied industrial plants out of the 52 available industrial plants in the 9th Mile area. This is 64.0% of the 50 functional industrial plants in the area. The population comprised the management of the 32 accessible and functional industrial plants who agreed to fill out our questionnaire and were ready for the interview. The identified managers were production, marketing, and plant/site managers, who were in a better position to give relevant information on costs involved in the production processes and revenues from the sales of products. The data for this study were obtained using a questionnaire (unstructured), interview, field observation, and documentary materials. The field data were analysed using the difference between revenue and cost graphs, especially line graphs. The results of the analyses indicate profits at varying sizes and rates in every 32 studied industrial plants because the revenue values are more than the values of costs. The profit trend for each year in each of the industrial plants ranges from tens of thousands of naira to tens of millions of naira. However, due to accidents and cheating (supplied wastes as raw material) by the supply sources respectively, Aptro Filling Station and Alex Enterprise obtained losses in 2013 and 2018. Therefore, it is recommended that the 9th Mile area is a fertile ground for different industrial activities due to its location and available resources, particularly water (good aquifer), local and regional markets, and transport facilities.

Value chain of the data-poor Chinese bay scallop aquaculture

Despite a tremendous growth and the huge commercial size at present, the Chinese bay scallop aquaculture is quite data-poor, which induces a series of vacuum, inefficiency, and mismatch in management and heavily impedes its transformation and upgrading. Here, we conduct the value chain analysis on it using an innovative approach that performs quantitative evaluations from micro-perspective to present the more detailed picture without relying on official statistics. We find that one parent scallop costs 0.14 USD and is given a value increase of 84.94 USD, equivalent to over 600 times higher than its initial value, by four production nodes of the value chain. There is no obvious regularity reflected in value increase among nodes due to the complexity conspired by variable increment rates and growing cardinal numbers, but a downward trend of profitability along the value chain looms. We recognize that it is not an individual case and closely related to high transaction costs, suggesting that, enhancing the horizontal integration of businesses in a certain node can not make the aquaculture production more efficient, while there remains a need for the vertical integration of different nodes to improve management effectiveness.

Who is better for single and double coupon promotion? Comparison from dual‐channel and two‐period

AbstractThis paper examines the e‐commerce platform decides whether to distribute electronic coupons during the promotional period: Single coupon (SC) and double coupon (DC) are available. We analyze the difference in promotional strengths and profit levels between the two coupon scenarios. With the retailer in the SC scenario promoting more when the platform commission rate is increased. In the DC scenario, the larger the gains of the manufacturer and the platform during the promotional period, and the profit trends of the dual‐channel in the original price period remain the same. The platform can only enjoy significant benefits when the platform fee is higher.

The Impact of Covid-19 on the Alibaba Platform

Purpose – this paper aims to analyse the business efficiency of the Alibaba platform at the beginning and during the COVID-19 crisis. Methodology/Design - The research is based on the official financial reports of the platform as well as on the reports of other specialized agencies that monitor the platform industry. The study focuses on an analysis of the financial indicators of the business. It compares the financial indicators with an analysis of the data on the trend of the user community on the platform. The results - the study's findings did not find a major impact of the COVID-19 pandemic on the overall business results of the Alibaba platform. The survey results confirmed changes in operating profit and net profit trends as a result of changes in the structure of operating revenues. Conclusion - Total revenues are growing at a slower pace as a result of the changes in business policy and changes in revenue structures than as a result of the impact of the COVID-19 pandemic.

Effect of Liquidity and Solvency on Profitability of Banking Companies in Indonesia

This study aims to determine the effect of liquidity and solvency on profitability as one of the company's main objectives. The population in this study was 36 banks listed on the Indonesia Stock Exchange for the period 2014-2018. This research was conducted using secondary data from the Indonesia Stock Exchange (IDX). Sample selection was made using the purposive sampling technique. Of the 36 banks listed on the Indonesia Stock Exchange, ten have had a positive profitability trend in the last four years. The type of data used in this research is quantitative data. The data was obtained from the official website of the Indonesia Stock Exchange, namely www.idx.co.id, in the form of quarterly financial reports (March 2014-September 2018). Go public, commercial banks. The data collection technique used in this research is the method of documentation analysis or literature study. The results obtained are 1) Liquidity variable (LDR) has a positive and significant effect on the profitability (ROE) of banks listed on the Indonesia Stock Exchange. 2) Solvency variable (DER) has no (negative) and no significant effect on the profitability (ROE) of banks listed on the Indonesia Stock Exchange. 3) Liquidity (LDR) and Solvency (DER) variables have a significant positive effect on the profitability (ROE) of banks listed on the Indonesia Stock Exchange.

Waste battery-to-reutilization decisions under government subsidies: An evolutionary game approach

Recycling waste batteries for remanufacturing or echelon utilization is conducive to energy storage and the electric vehicle market. To address the distinct difficulties in the process of waste battery-to-reutilization, we build an evolutionary game to model three parties that include the government, manufacturing, and consumers. We find that the choice of strategies for government support, echelon utilization, and consumer participation is an equilibrium. Moreover, we simulate waste batteries-to-reutilization under the subsidy reduction scenario. Our findings demonstrate that: (1) the profits of manufacturers and consumers increase significantly in the first year of subsidies granted by the government; (2) a reduction in subsidies initiates various profit trends across the strategies of echelon utilization and remanufacturing. Generally, the profits earned through echelon utilization are higher than those through remanufacturing during the period of subsidy reduction; and (3) after the subsidies fall to zero, the earnings of manufacturers and consumers increase in the long run. Our paper proposes generalizing the typical mechanism of recycling subsidies for cities and formulating a reasonable path for reducing subsidies. Manufacturers should pay more attention to echelon utilization for the two decision-making schemes of echelon utilization and remanufacturing.

Reconversion in a declining market: the return to profitability of the print newspaper industry

ABSTRACT The end of the economic crisis initiated in 2008 was not the end of the newspaper crisis. The shifts introduced by digitalisation are increasingly deeper, and advertising spending on newspapers continued to fall during the economic recovery. To study how the firms adapted to this declining market, this article performs an in-depth financial analysis of 98 Spanish print newspaper publishers over the period 2009–2018, focusing on profitability. The results show very low or even negative returns on assets, but a positive trend in profitability is observed from 2014 onwards, despite the stagnation of advertising spending. Companies reduced their costs to a greater extent than the fall in revenues, improving their profit margins. National newspapers increased total asset turnover via decapitalisations, becoming smaller and more efficient.

Identification of key qualitative characteristics used to assess the significance of misstatements identified in the financial statements

Financial statements may be misstated for quantitative reasons, such as mathematically incorrect reporting of assets, liabilities or other. Misstatements in the financial statements may also be qualitative. It is the qualitative characteristics of the misstatement that reflect the significance of the misstatement not for mathematical magnitude, but for other reasons, such as changes in profitability trends or illegal activities. To date, auditors have dedicated more attention to the quantitative characteristics of misstatements and the qualitative characteristics have not been adequately assessed. And although the problem is well known to scientists and practitioners, little action has been taken to date. The objective of the study reflected in this article is to identify the key qualitative characteristics that auditors should consider in deciding the significance of the misstatements identified in the financial statements. A list of fifteen key qualitative characteristics was compiled during the study and the completeness of the list was confirmed by an expert survey. The list of key qualitative characteristics will not only assist the auditors in deciding on the significance of the misstatements identified but may also be used in further research to deepen the scientific knowledge of the qualitative characteristics.

Determinants of Sustainable Profitability of the Serbian Insurance Industry: Panel Data Investigation

This paper aims to investigate the main drivers of sustainable profitability trends in the Serbian insurance industry over the years 2008–2019 (inclusive). Our study is motivated by the fact that insurance companies contribute to economic growth, and thus it is essential to understand the factors that contribute to their financial strength and stability. We use a set of standard panel regression models, including the mixed-effects model, followed by a more robust GMM estimation to uncover the linkage between selected micro-specific, macroeconomic, and institutional factors, and return of assets (ROA) and return on total premiums (ROTP). The present paper constitutes a significant contribution to the existing literature on the account of its comprehensiveness both in terms of the institutional datasets that we use, and in terms of the methodologies we apply (in particular, mixed effects and the generalized method of moments (GMM)). The estimated parameters are model-specific, and we find that firm size, GDP, the population growth rates, political stability, and the degree of specialization (in some empirical models) all lead to higher profitability. On the other hand, we observe that excessive risk-taking and inflation (in some specifications) are inversely related to profitability. Finally, we note that regulatory quality, average wage, and life expectancies are found to be not statistically significant. Accordingly, we argue that a profitability-centric managerial strategy should be based on expanded market share and stringent risk management protocols. At the macro level, we conclude that pro-growth and pro-population policies, combined with a well-oiled institutional setting that ensures political stability, constitute the best possible prescription for strong operational performance and profit sustainability in the Serbian insurance industry.