IDEAS home Printed from https://ideas.repec.org/a/idp/bizinf/y2013i8p192_198.html
   My bibliography  Save this article

Effectiveness of Activity of Food Companies of Ukraine

Author

Listed:
  • Korzh Roman V.

    (Kryvyi Rig Economic Institute of the Kiev National Economic University named after V. Getman)

Abstract

The article provides results of assessment of effectiveness of activity of the food industry companies. It presents the assessment logic in the financial projection and covers the following substantial aspects: structure of the capital, profitability and business activity. The structure of the capital of food companies is assessed from the point of view of financial risk, which is identified with a degree of dependence on external investors and lenders and level of securing reserves with own circulating assets. The article makes a conclusion about a high level of the financial risk, which was typical for the food industry companies during 2007 - 2011 and caused by reduction of the share of long-term sources of financing in the structure of the capital. A positive characteristic of the structure of the capital of the studied companies is a relatively low value of the weighed average cost of their capital. However, despite this fact, the functioning capital of food companies ensured assets profitability less than the cost of capital, which resulted in destruction of the fundamental cost of the food industry companies during the studied period. The main factors that had negative influence upon the change of the level of economic profitability of food companies: reduction of profitability of products sales, deterioration of liquidity and slowing down of turnover of receivables. Analysis of business activity allowed making a conclusion about the extensive character of development of the technological base of food companies and reduction of their innovation activity.

Suggested Citation

  • Korzh Roman V., 2013. "Effectiveness of Activity of Food Companies of Ukraine," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 8, pages 192-198.
    • Handle: RePEc:idp:bizinf:y:2013:i:8:p:192_198
    as

    Download full text from publisher

    File URL: https://www.business-inform.net/pdf/2013/8_0/192_198.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idp:bizinf:y:2013:i:8:p:192_198. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khaustova Viktoriia (email available below). General contact details of provider: https://www.business-inform.net .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.