Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Possibilities of Difference Analysis Utilisation in Profit Rate Assessment

Contents:

Author Info

  • Marie Vejsadová Dryjová

    ()
    (University of South Bohemia in České Budějovice)

Registered author(s):

    Abstract

    The main aim of this article is the application of selected methods of difference analysis to the chosen profit indicator of Return on Equity (ROE). First, the importance of the ROE indicator is described in the paper and then, also, the possible methods of pyramidal decomposition in multiplicative structures – ie. the method of gradual changes, the decomposition method with residue, the logarithmic method and the functional method. The pyramidal decomposition of the ROE top indicator is implemented using the functional method, the only one that can be used in the case of a negative volume index indicator and, at the same time, this method is not sensitive to the order of the factors. In conclusion, the assessment of the impact of partial analytical indicators of pyramidal decomposition on the top analysed indicator of ROE is accomplished. The degree of various influences of sub-indicators on the ROE top indicator, in the analysed periods, was different. The ROE indicator was most affected by the Sales Profitability indicator on the second level of decomposition. In the first and last assessment periods, the Sales Profitability indicator was determined by the Cost Efficiency indicator, in the first, and in the second period, by the cost of sales indicator. The partial factor Financial Leverage affected the ROE the least within the assessment period. The Tax Earnings Reduction indicator following the Interest Earnings Reduction indicator presented the stronger influence on the ROE after the Financial Leverage indicator.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://ojs.ef.jcu.cz/acta/article/download/433/425
    Download Restriction: no

    Bibliographic Info

    Article provided by University of South Bohemia in Ceske Budejovice in its journal Acta Universitatis Bohemiae Meridionalis.

    Volume (Year): 16 (2013)
    Issue (Month): 1 ()
    Pages: 45-54

    as in new window
    Handle: RePEc:boh:actaub:v:16:y:2013:i:1:p:45-54

    Contact details of provider:
    Postal: Studentská 13, 370 05 České Budĕjovice
    Web page: http://acta.ef.jcu.cz/
    More information through EDIRC

    Related research

    Keywords: Return on Equity ROE; Pyramidal Decomposition; Functional Method;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:boh:actaub:v:16:y:2013:i:1:p:45-54. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jaroslava Pražáková).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.