INPROFORUM 2015

Analysis of Firm Profitability in Terms of Size Structure in the Czech Food and Beverages Industry
Ivana Blažková

Language: en
Last modified: 2016-01-28

Abstract


The paper deals with the profitability of enterprises in the food and beverages industry of the Czech Republic and analyses the relationship between the level of profitability and the firm size. The development of the average ROA of individual size groups of enterprises is analysed graphically in period 2003-2013 and the correlation between company size and the level of ROA is statistically validated by using parametric ANOVA.

Based on the analysis it can be concluded that the level of profitability in the Czech food and beverages industry is relatively low, and moreover, there is a tendency to decrease during the observed period. The highest values of ROA are achieved by the largest companies (expressed by the number of employees) and on the contrary, the ROA values of the smallest companies are often negative and in the whole observed period there are significantly lower than ROA values of other size groups of enterprises. The analysis has shown that the level of profitability is determined by the company size. Significant differences in the size of ROA in different size groups were also statistically verified with the use of ANOVA.


Keywords


Profitability; ROA; Firm Size; Food and Beverages Industry

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