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Return on Assets and Financial Soundness Analysis: Case Study of Grain Industry Companies in Uzbekistan

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  • Anvar Avlokulov

    (Department of Audit, Faculty of Accounting and Audit, Tashkent Institute of Finance, Tashkent, Uzbekistan)

Abstract

TEnsuring financial stability and soundness of companies operating in a particular industry depends on the several internal and external factors, which can be classified as firm and macro levels. According to classical business finance theories, return on assets (ROA) are thought to be the most effective instrument of measuring monitoring the financial status of companies. In most literature, revenues from sales, total operating cost and asset structure of a company plays an important role in shaping an acceptable ROA indicator. In this paper, impact level of these factors on ROA was examined in case of three grain processing companies in Uzbekistan. Conducted OLS test showed that total operating cost and asset structure had negative influence on ROA, while revenues from sale supported the financial stability of the companies.

Suggested Citation

  • Anvar Avlokulov, 2018. "Return on Assets and Financial Soundness Analysis: Case Study of Grain Industry Companies in Uzbekistan," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 4(6), pages 52-56, September.
    • Handle: RePEc:mgs:ijmsba:v:4:y:2018:i:5:p:52-56
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.46.1006
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    References listed on IDEAS

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    1. Carlos Lassala & Andreea Apetrei & Juan Sapena, 2017. "Sustainability Matter and Financial Performance of Companies," Sustainability, MDPI, vol. 9(9), pages 1-16, August.
    2. Abdullah Mohammed Alzharani & Ayoib Che-Ahmad & Khaled Salmen Aljaaidi, 2012. "Factors Associated With Firm Performance: Empirical Evidence From The Kingdom Of Saudi Arabia," Accounting & Taxation, The Institute for Business and Finance Research, vol. 4(2), pages 49-56.
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    More about this item

    Keywords

    Return on assets; Financial soundness; Grain industry; Uzbekistan;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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