RANKING OF PROFITABILITY AND COSTS INDICATORS OF AGRIBUSINESSES
DOI:
https://doi.org/10.60022/sis.1.(01).7Keywords:
profitability, direct material costs, labour costs, general production costs, forecasting, ranking, agribusinessesAbstract
The microenvironment of agricultural enterprises is influenced by the external environment, which affects entrepreneurial activity in different ways. However, any response of managers to external changes must be justified, logical and in line with the needs of the current market. Timely diagnostics of profitability and costs indicators of agricultural enterprises and forecasting of their values are of great importance. Such actions will provide managers with reference points for making the necessary decisions and allow them to respond to any impulses affecting the development of the enterprise. To rank the profitability indicators of business entities we have chosen the activities of agricultural enterprises. Using methods of mathematical modelling, taxonomic analysis and ranking, we have analysed the dynamics of agricultural enterprises’ performance indicators. The testing of some statistical functions made it possible to forecast the rating indicator of agrarian enterprises’ activity in 2023–2024. The result of the profitability and costs ranking of agribusinesses for the reporting year 2020 showed an increase compared to previous years. At the same time, it is possible to observe an increase in expenditures by enterprises, which indicates the need for stricter and deeper monitoring of the activities of agribusinesses by top managers. This monitoring will prevent bankruptcy or inefficient allocation of finances by the enterprises. The profitability and costs ranking of agribusinesses described in the article is a universal method, ap-plicable to any facility or industry. Ranking can be tested not only in studies of statistical units or their totality but also for determining dynamic changes in retrospective time series. The forecasting of the investigated indicators can serve as impulses for managers concerning the improvement of strategic orientation and making correct decisions by managers of agricultural enterprises with the purpose of forming the goals of further activity.
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