IDEAS home Printed from https://ideas.repec.org/a/idp/bizinf/y2013i5p165_172.html
   My bibliography  Save this article

Fundamental Cost Aspects of Effectiveness of Development of Ukrainian Food Companies

Author

Listed:
  • Lisnichenko Yelena A.

    (Donetsk National University of Economy and Trade named after M. Tugan-Baranovsky)

Abstract

The article assesses effectiveness of development of food industry in Ukraine on the basis of application of the fundamental cost approach. Logic of economic assessment is based on comparison of the results of formation of capital of food companies and profitability of functioning of their assets. Effectiveness of capital formation is analysed from the point of view of the structure of sources of formation of assets of food companies and calculation of its weighed average cost (WACC). Profit flows are generated in the process of productive use of the capital (assets) and sufficiency of these flows is determined by the potential of formation of fundamental cost of the studied companies. The article conducts analysis of effectiveness of the use of main and circulating capital and assessment of investment and innovation activity of food companies and identifies main factors and problems that influence the low level of return on capital, which, in its turn, destroys internal cost of food industry companies.

Suggested Citation

  • Lisnichenko Yelena A., 2013. "Fundamental Cost Aspects of Effectiveness of Development of Ukrainian Food Companies," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 5, pages 165-172.
    • Handle: RePEc:idp:bizinf:y:2013:i:5:p:165_172
    as

    Download full text from publisher

    File URL: https://www.business-inform.net/pdf/2013/5_0/165_172.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:5:p:165_172. 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.