Profit/Loss and Profitability of Farms
Jaroslav Svoboda, Martina Novotná

Language: cs
Last modified: 2013-10-29


This paper analyses the Profit/Loss and profitability on selected farms in the years 2004 - 2010. The data included a follow-up period of approximately 830 companies that have been evaluated components of Profit/Loss, profitability ratios and pyramidal decomposition Du Pont. Influence factors affecting the economic results of farms is apparent - be it in the first place EU Common Agricultural Policy, natural and climatic conditions and price fluctuations of agricultural commodities.

It was found that the farms are profitable, except for 2009. On the positive profitability has a significant share of CAP as subsidy represent 17% of total revenues. However, return on assets doesn’t reach top level (in the most successful year of follow up 2007 was 7%). The pyramid decomposition Du Pont was identified as the most important factor affecting the return on equity, the indicator of return on sales. The debt leverage had a negative effect on the change in the return on equity.


Profil/Loss, Profitabilty, Du Pont, Farms

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