Financial ratios and profitability prediction

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F22%3A43905686" target="_blank" >RIV/60076658:12510/22:43905686 - isvavai.cz</a>

Výsledek na webu

<a href="http://omp.ef.jcu.cz/index.php/EF/catalog/book/83" target="_blank" >http://omp.ef.jcu.cz/index.php/EF/catalog/book/83</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.32725/978-80-7394-976-1.24" target="_blank" >10.32725/978-80-7394-976-1.24</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Financial ratios and profitability prediction

Popis výsledku v původním jazyce

The presented article deals with the possibility of using financial ratio indicatorsto predict the profitability of agricultural enterprises. The Albertina database was used as adata source. A total of 701 agricultural enterprises were selected, with sales of more than onemillion crowns. Companies from the manufacturing industry were used for comparison. Thecorrelation between the value of the financial ratio and the company&apos;s profitability in thefollowing years was calculated. Spearman&apos;s correlation coefficient was used. Research showsthat the success rate of agricultural enterprises is relatively stable. The correlation betweenROA value and subsequent profitability is 0.41 to 0.48 (for year t+1). In the following years,the correlation decreases. These values are approximately 5 – 10 percentage points below theimportance of the manufacturing industry. However, correlations can be increased bydividing businesses into categories of similar size or according to similar altitudes. Theusability of other financial ratios is lower. The correlation between indebtedness and futureprofitability is approximately -0.25, and the correlation between liquidity and futureprofitability fluctuates around the value of 0.20. These values correspond to values fromother industries as well. A significant difference is the usability of activity indicators. Formanufacturing, correlation values range from 0.21 to 0.24, but for agricultural enterprises,the correlation is considerably lower. The reason is the high dependence of the indicator onthe altitude and the production orientation of the agricultural enterprise.

Název v anglickém jazyce

Financial ratios and profitability prediction

Popis výsledku anglicky

The presented article deals with the possibility of using financial ratio indicatorsto predict the profitability of agricultural enterprises. The Albertina database was used as adata source. A total of 701 agricultural enterprises were selected, with sales of more than onemillion crowns. Companies from the manufacturing industry were used for comparison. Thecorrelation between the value of the financial ratio and the company&apos;s profitability in thefollowing years was calculated. Spearman&apos;s correlation coefficient was used. Research showsthat the success rate of agricultural enterprises is relatively stable. The correlation betweenROA value and subsequent profitability is 0.41 to 0.48 (for year t+1). In the following years,the correlation decreases. These values are approximately 5 – 10 percentage points below theimportance of the manufacturing industry. However, correlations can be increased bydividing businesses into categories of similar size or according to similar altitudes. Theusability of other financial ratios is lower. The correlation between indebtedness and futureprofitability is approximately -0.25, and the correlation between liquidity and futureprofitability fluctuates around the value of 0.20. These values correspond to values fromother industries as well. A significant difference is the usability of activity indicators. Formanufacturing, correlation values range from 0.21 to 0.24, but for agricultural enterprises,the correlation is considerably lower. The reason is the high dependence of the indicator onthe altitude and the production orientation of the agricultural enterprise.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název statě ve sborníku

Proceedings of the 16th International Scientific Conference INPROFORUM 2022. DIGITALIZATION. Society and Markets, Business and Public Administration

ISBN

978-80-7394-976-1

ISSN

—

e-ISSN

2336-6788

Počet stran výsledku

8

Strana od-do

157-164

Název nakladatele

Jihočeská univerzita v Českých Budějovicích, Ekonomická fakulta

Místo vydání

České Budějovice

Místo konání akce

České Budějovice

Datum konání akce

3. 10. 2022

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

—