Search results for "Profit margin"

2019

Research Summary We explore the qualitative differences in entries and exits over time. Using qualitative and quantitative data on 96 firms over 200 years, we study industry evolution from the perspective of individual decision‐making situations. Our historical and statistical analyses reveal the vital role of technology investments in determining firm outcomes, and the technological, institutional and governance dynamics that lead firms to invest or to abstain. Our main theoretical and methodological contribution concerns the importance of the multiplicity of firm‐level rationalities and decisions as fundamentals in theorizing on industry evolution. Managerial Summary What determines firm …

STRATEGY TO INCREASE THE FARM COMPETITIVENESS

2014

Italy’s wine-growing production structure is highly pulverized. So, for many wine-growing farms loweri ng the production cost represents the only way of gain ing a competitive advantage. Production at average unit costs lower than competitors allows to improve prof itability. Among farming operations, winter pruning and tying of productive vine-branches require a high hu man labor. For this reason the paper presents the r esults of research conducted on a sample of Sicilian wine- producing farms in order to study the cost-effectiv eness to make the pruning and the subsequent ligation of productive branches with tools that facilitate the work. The economic analysis, after the determination o…

Top management team demography and firm operating performance: a path analysis

2020

PurposeThis paper examined the relationship between TMT demographic properties and firm performance using diversity and level variables and measuring differing constructs of firm performance representing divergent strategies.Design/methodology/approachStructural equation modelling was used to test the relationships between TMT demographic properties and firm performance measured as return on net operating assets (RNOA), and its disaggregates profit margin (PM) and asset turnover (ATO). Data were from 89 Finnish firms during the years 2008–2011, resulting in 320 observations.FindingsTMT team tenure had associations with RNOA through both PM and ATO while TMT age, age diversity, firm tenure, …

ECONOMIC ANALYSIS OF PROCESS INNOVATIONS IN THE MANAGEMENT OF OLIVE FARMS

2014

Within a business enterprise, process innovations l ead to reduced production costs and to increased profit margins. In this study, we shall examine an olive farm that operates in a perfectly competitive market that has introduced a process innovation so as to contain labour costs and therefore production costs. So, the paper aimed at comparing economic co mpetitiveness of an olive farm that introduced mechanical olive pickers (process innovation) for h arvest respect to manual harvest. In the case under scrutiny, for the same price, the reduced productio n cost determined a shift from a situation of being at a loss to one of profit for the business. Economic analysis showed that introducti…

Cost and profit efficiency in the Spanish banking sector (1985–1996): a non-parametric approach

2003

The aim of this article is to analyse the efficiency in costs and in profits of the Spanish banking sector (SBS) in the period 1985–1996 using a non-parametric approach. The results obtained show the existence of profit efficiency levels well below those corresponding to cost efficiency, alternative profit efficiency being below standard profit efficiency. These results imply the existence of market power in the setting of prices and/or the existence of differences in the quality of bank output reflected in the differences in prices. With regard to the immediate future, of full economic and monetary integration, the reduction of profit levels associated with higher competitive pressure may …

The Impact of Exchange Rate Fluctuations on Profit Margins: The UK Car Market, 1971–2002

2007

We investigate the impact on profit margins of exchange rate fluctuations in order to examine optimal pricing policy by source countries in the UK car market. We first estimate a nested logit deman...

Offshore wind turbine operations and maintenance: A state-of-the-art review

2021

Abstract Operations and maintenance of offshore wind turbines (OWTs) play an important role in the development of offshore wind farms. Compared with operations, maintenance is a critical element in the levelized cost of energy, given the practical constraints imposed by offshore operations and the relatively high costs. The effects of maintenance on the life cycle of an offshore wind farm are highly complex and uncertain. The selection of maintenance strategies influences the overall efficiency, profit margin, safety, and sustainability of offshore wind farms. For an offshore wind project, after a maintenance strategy is selected, schedule planning will be considered, which is an optimizati…

Profit Margin Ratio, Markup, Profit Margin Per Unit, Economic Profit, and Profitability as Objectives for the Firm: An Economic Point-of-View

2015

We study five operational objectives for the firm: three marketing objectives (maximizing profit-margin ratio, maximizing markup, and maximizing profit-margin-per-unit), and two financial objective (maximizing economic profit (i.e., EVA) and maximizing profitability), as alternatives to the scholarly objective of maximizing profit. We prove that (i) Sales are lowest for profit-margin-per-unit, intermediate for profit-margin ratio and markup, and highest for profit maximization. Input consumption, including labor, is lower. Prices are in the reverse order. In terms of profit, profit-margin ratio, markup, and profit-margin-per-unit are necessarily less efficient than the classical profit maxi…

An overview about fashion retailing sector: UK versus Spain

2012

Within the international context, fashion retailers have suffered the most in the economic downturn in the last years. Nevertheless, the historically high-margin fashion sectors composite net profit margin was still the highest of all the product groups. Based on the importance of fashion retail sector for the international economy in general, this paper examines the international retailing situation showing sales data between most important retailers around the world in general and Europe in particular. Specifically, this paper offers an overview on fashion retailing sector in the international context in order to study the position of this sector in the international crisis context. Due t…

Study on the financial performance of companies operating in the pharmaceutical industry in romania

2016

Abstract The study aims at determining the financial performance of companies in the pharmaceutical industry between 2009 and 2014 by means of the indicator of the financial return rate, using multiple linear regressions as research method. By analysing the evolution of the share of companies in the pharmaceutical industry based on the trend of the financial rate of return, we can estimate that the number of entities that resort to supporting the financial activities from loans and liabilities is growing in the period under analysis. This is due mainly to the liquidity crisis faced by entities, as a result of the high recovery duration of debts. Also, using the multiple linear regression we…