The development of the profitability of agricultural enterprises and its causes

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F23%3A43907008" target="_blank" >RIV/60076658:12510/23:43907008 - isvavai.cz</a>

Result on the web

<a href="https://omp.ef.jcu.cz/index.php/EF/catalog/book/88" target="_blank" >https://omp.ef.jcu.cz/index.php/EF/catalog/book/88</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.32725/978-80-7694-053-6.36" target="_blank" >10.32725/978-80-7694-053-6.36</a>

Result language

angličtina

Original language name

The development of the profitability of agricultural enterprises and its causes

Original language description

The article presents the results of the development of the profitability of agricultural enterprises in the years 2017-2022. The results are compared with the sectors: Food Production and Food Retail. The Albertina database was used. The profitability of agricultural enterprises is significantly below average (roughly half) compared to other sectors. Intercompany volatility is also lower. On the other hand, year-on-year volatility (volatility over time) is higher. The year 2022 is characterized by high inflation and a significant increase in profitability in all sectors. The causes of change in profitability (ROA) were analyzed. Logarithmic and exponential decomposition methods were used. The reasons for the difference in profitability are different. There was a sharp increase in sales in all sectors. In the Agriculture sector, material costs grew faster than sales. Higher profitability is achieved due to depreciation (which remained fixed as sales increased), especially labor costs (which grew significantly slower than sales). In the food production sector, depreciation significantly impacts profitability (they again remained the same despite growing sales). The influence of wages is weaker than in the Agriculture sector. The average salary here more closely followed inflation. In the Food Retail sector, the main reason for the increase in ROA is higher selling prices. Selling prices rose faster than the purchase costs of goods and materials.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 17th International Scientific Conference:Challenges and Opportunities in the Digital World.

ISBN

978-80-7694-053-6

ISSN

2336-6788

e-ISSN

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Number of pages

6

Pages from-to

243-248

Publisher name

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Place of publication

České Budějovice

Event location

České Budějovice

Event date

Nov 2, 2023

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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