Analysis Model For Return On Capital Employed
At the microeconomic level, the appreciation of the capitals’ profitability is a very complex action which is of interest for stakeholders. This study has as main purpose to extend the traditional analysis model for the capitals’ profitability, based on the ratio “Return on capital employed”. In line with it the objectives of this work aim the identification of factors that exert an influence on the capital’s profitability utilized by a company and the measurement of their contribution in the manifestation of the phenomenon. The proposed analysis model is validated on the use case of a representative company from the agricultural sector. The results obtained reveal that in a company there are some factors which can act positively on the capitals’ profitability: capital turnover, sales efficiency, increase the share of sales in the total revenues, improvement of the expenses’ efficiency. The findings are useful both for the decisionmaking factors in substantiating the economic strategies and for the capital owners who are interested in efficiency of their investments.
Volume (Year): 1 (2013)
Issue (Month): (February)
|Contact details of provider:|| Postal: Str. Victoriei 24, Targu-Jiu, Gorj|
Phone: 004 0253 211062
Web page: http://www.utgjiu.ro/fse_new/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ph D Professor Aslau Titus & Ph D Lecturer Cuc Lavinia Denisia, 2010. "Assigning Strategic Objectives and Managing Profitability Ratios," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1422-1425, May.
- S C Bardia, 2008. "Evaluation of Financial Performance: A Dialectics," The IUP Journal of Accounting Research and Audit Practices, IUP Publications, vol. 0(1), pages 36-49, January.
- Imran Omer Chhapra & Nousheen Abbas Naqvi, 2010.
"Relationship between Efficiency Level of Working Capital Management and Profitability of Firms in the Textile Sector of Pakistan,"
Indus Journal of Management & Social Science (IJMSS),
Department of Business Administration, vol. 4(1), pages 30-42, December.
- Chhapra, Imran Umer & Naqvi, Nousheen Abbas, 2010. "Relationship between Efficiency Level of Working Capital Management and Profitability of Firms in the Textile Sector of Pakistan," MPRA Paper 51057, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2013:v:1:p:82-87. 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: (Ecobici Nicolae)
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.