• Title/Summary/Keyword: business profit

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Profit efficiency and constraints analysis of shea butter industry: northern region of Ghana

  • Tanko, Mohammed
    • Korean Journal of Agricultural Science
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    • v.44 no.3
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    • pp.424-439
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    • 2017
  • This study was undertaken to examine the profit efficiency and its determining factors, the investment opportunity, and the challenges of shea butter producers in the northern region of Ghana. The methods employed in this research were the Stochastic Profit Frontier (SPF) model, gain-cost and investment return analyses, as well as Kendall's W statistic using primary data collected from 120 purposively-selected respondents. Results from the analysis indicated that profit efficiency was positively influenced by sex, household size, marital status, educational level, transportation cost, store rent, and price of shea nut with a gain in profit efficiency of 58.5%. The investment analysis demonstrated a net gain per person of $8,077 equivalent to GH₵ 28,270 Ghanaian cedi (GH₵) using 2016 exchange rate (GH₵ 3.5 = $1). Among the challenges identified, the poor quality of shea nuts was the most prioritised challenge with 72.8% agreement among the respondents. Based on these findings, it was recommended that proper training and education, as well as improvement in shea nut quality, should be promoted to improve the profit efficiency of shea butter producers.

The Effect of Conventional Bank's Interest Rate & Islamic Bank's Profit Rate on Investment & Return: An Empirical Investigation in Bangladesh

  • Chowdhury, Mohammad Ashraful Ferdous;Rahman, Syed Mohammad Khaled
    • Asia-Pacific Journal of Business
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    • v.5 no.1
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    • pp.33-41
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    • 2014
  • Since depositors are motivated by returns, it is important for Islamic banks management to understand the extent that rates of return on deposits influence their customers' decision to deposit. The main objective of the study is to explore the degree of influence of conventional bank's interest rate on Islamic bank's profitability and vice-versa. It has been seen from 2005 to 2011 that the rate of interest declared on deposit by conventional banks has a negative impact on profitability of both types of banks in Bangladesh. Rate of profit declared on deposit by Islamic banks is positively related with their profit earned but negatively related with profit earned by conventional banks. We see that rate of interest declared on deposit by Conventional Banks is positively related with their deposit volume but negatively related with Islamic Bank's deposit. On the other hand, rate of profit declared on deposit by Islamic Banks is negatively related with deposit levels of both types of banks. The survey result shows that almost 85% of the respondents are choosing Islamic banks only from their religious point of view and more than 60% of the sampled Islamic bank customers are reluctant to leave the bank even if conventional banks offer better interest rates.

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The Effect of Meteorological Information on Business Decision-Making with a Value Score Model (가치스코어 모형을 이용한 기상정보의 기업 의사결정에 미치는 영향 평가)

  • Lee, Ki-Kwang;Lee, Joong-Woo
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.30 no.2
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    • pp.89-98
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    • 2007
  • In this paper the economic value of weather forecasts is valuated for profit-oriented enterprise decision-making situations. Value is estimated in terms of monetary profits (or benefits) resulted from the forecast user's decision under the specific payoff structure, which is represented by a profit/loss ratio model combined with a decision function and a value score (VS). The forecast user determines a business-related decision based on the probabilistic forecast, the user's subjective reliability of the forecasts, and the payoff structure specific to the user's business environment. The VS curve for a meteorological forecast is specified by a function of the various profit/loss ratios, providing the scaled economic value relative to the value of a perfect forecast. The proposed valuation method based on the profit/loss ratio model and the VS is adapted for hypothetical sets of forecasts and verified for site-specific probability of precipitation forecast of 12 hour and 24 hour-lead time, which is generated from Korea meteorological administration (KMA). The application results show that forecast information with shorter lead time can provide the decision-makers with great benefits and there are ranges of profit/loss ratios in which high subjective reliability of the given forecast is preferred.

Investment Analysis of Venture Business for Probabilistic Cases (벤처사업의 투자결정기법: 확률적 사례를 중심으로)

  • 백관호
    • Journal of Technology Innovation
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    • v.6 no.2
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    • pp.178-207
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    • 1998
  • This article suggests a methodology to decide the priority of investment project for venture business under the dynamic circumstance. By the Monte Carlo procedure on the probability distribution of cost and revenue, the model simulates the investment project to estimate profit ratio and risk. The profit ratio is calculated on the yearly basis for the relative comparison. The project risk is calculated as semi-variance under the target yield. After sufficient simulations in this fashion for several projects, the efficient projects with more profit and less risk are selected by the dominance principle. Then the regression equation of the selected projects is produced to find the relative value of the projects. The relative value is obtained through dividing the raw profit ratio by the estimated one on the equation. This value shows the degree to which the simulated project yields over the equation. The priority of investment is decided by this value. An examplary venture business of chemical development for semi-conductor is presented as a case study.

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A Mediation Model among the Entrepreneurial Orientation, Market Orientation and Business Performance of Non-Profit Organization (비영리조직의 기업가지향성과 시장지향성 그리고 경영성과 간의 매개모형)

  • Hong, Jin-Hyuk;Cho, Dong-Hwan
    • Proceedings of the KAIS Fall Conference
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    • 2011.12a
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    • pp.78-81
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    • 2011
  • The main object of this study is explore to be consider a mediation model on the entrepreneurial orientation, market orientation, and business performance of the non-profit organization in the Western Gyeongnam and Busan Regions of South Korea. As a result, the $H_1$ was not shown to significantly the financial performance, and From $H_2$ to H8 was adopted to be effect on the variable. This study will be able to become data that is suitable system introduction in various field of Not-Profit organization and sector.

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The Impact of Financial Variables on Firm Profitability: An Empirical Study of Commercial Banks in Oman

  • JAYARAMAN, Gopu;AZAD, Imran;AHMED, Hanaa Sid
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.5
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    • pp.885-896
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    • 2021
  • The general role of commercial banks is to provide financial services to the general public and business, ensuring economic and social stability and sustainable growth of the economy. Commercial banks play an important role in mobilizing and channelizing funds for investment activities. This study analyzes the impact of the key financial variables on the net profit of the selected commercial banks in Oman. The study employs times series panel data - cross-sectional analysis of the key financials of five leading commercial banks for a period of 13 years from 2007 to 2019. The results reveal that the correlation matrix of the selected variables has a positive relationship with net profit, assets, deposits, loans, and interest income. However, the findings also shows a negative relationship between net profit and net loans to total deposits ratio. The study found net loans is the main independent variable that influences the profitability of the banks since the key source of revenue comes from the lending operations. The assets, total capital adequacy ratio have a mixed effect on the profitability of commercial banks. The total deposits and capital adequacy ratio have a negative effect on profitability mainly because excessive liquidity will increase the cost of capital and reduce the return on investment. Focusing on lending operations with a sound credit portfolio will improve profitability.

Designing a Supply Chain Coordinating Returns Policies for a Risk Sensitive Manufacturer

  • Lee, Chang-Hwan;Lim, Jay-Ick
    • Management Science and Financial Engineering
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    • v.11 no.2
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    • pp.1-17
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    • 2005
  • In this article we consider a supply chain consisting of a risk-sensitive manufacturer and a riskneutral retailer. The manufacturer maximizes her individual expected profit by designing a supply chain coordinating returns contract (SCRC) that consists of (i) a channel coordinating returns policy that maximizes the supply chain joint expected profit, and (ii) a profit sharing arrangement that gives the retailer an expected profit only slightly higher than that in the no returns case so that it is just enough to induce the retailer to accept the SCRC. Thus, the manufacturer captures as high a percentage as possible of the jointly maximum supply chain profit. However, this contract can sometimes lead to the manufacturer's resulting realized profit being lower than that in the no returns case when demand is lower than expected. In this context, even though profit is sufficiently attractive on average, will the risk-sensitive manufacturer ever consider applying a SCRC? Our research raises this question and focuses on designing a SCRC that can significantly increase the probability of the manufacturer's resulting realized profit being at least higher than that in the no returns case.

Business Performance of Manager's Perspective in Small Apparel Retailer's Stores Operated Independently (경영자 관점의 소규모 독립 의류소매점의 경영성과)

  • Hwang, Yeon-Soon;Park, Jong-Hee
    • Fashion & Textile Research Journal
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    • v.11 no.1
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    • pp.75-83
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    • 2009
  • The primary purpose of this study was to investigate business performance in small apparel retailer's stores operated independently. Data were collected from 167 managers independently operating small apparel stores in Busan and Ulsan. The aforementioned were analyzed utilizing frequency, factor analysis, ANOVA, regression analysis using SPSS Win 12.0. The results showed as follows; Factors influencing on perception of managers on business performance were market information, cost/quality control, opposing power to business depression, store management, product management, sales promotion. There were significant differences between factors influencing on perception of managers on business performance and business performance(the extent of success, profit and growth). It was market information and store management that the most important for the extent of success. It was opposing power to business depression, store management and product management that the most important for the extent of profit. It was market information, store management and product management that the most important for the extent of growth.

Efficiency and Returns to Scale in the Bangladesh Banking Sector: Empirical Evidence from the Slack-Based DEA Method

  • Sufian, Fadzlan;Kamarudin, Fakarudin
    • Asia-Pacific Journal of Business
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    • v.5 no.1
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    • pp.1-11
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    • 2014
  • The study provides new empirical evidence on the level of profit efficiency and returns to scale of the Bangladesh banking sector. We employ the Slack-Based Data Envelopment Analysis (SBM-DEA) method to assess the level of profit efficiency of individual banks over the years 2004 to 2011. The empirical findings indicate that the Bangladesh banking sector has exhibited the highest and lowest level of profit efficiency during years 2004 and 2011 respectively. We find that only eight banks have been profit efficient throughout the period under study. The empirical findings seem to suggest that most of the Bangladesh banks have been experiencing economies of scale due to being at less than the optimum size, or diseconomies of scale due to being at more than the optimum size. Thus, decreasing or increasing the scale of production could result in cost savings or efficiencies.

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Comparative Analysis of Financial Performance in University Hospital (대학병원의 재무성과 비교 분석)

  • Yang, Jong-Hyun
    • The Korean Journal of Health Service Management
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    • v.14 no.2
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    • pp.15-27
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    • 2020
  • Objectives: The purpose of this study is to compare analysis of financial performance in university hospitals. Methods: Data from 2005 to 2017 were collected from income statement, balance sheet, and annual reports in 23 university hospitals. The dependent variables are used financial performance, namely, medical profit to total assets, medical profit to medical revenue, and net profit to medical revenue. The independent variables are establishment type, hospital province, bed, open liquidity, stability, and activity. Results: From 2005 to 2007, university hospitals steadily increased medical revenues, nonmedical revenues, medical profit, net profit, and reserve fund for essential business by investing fixed assets using financial leverage. From 2015 to 2017, the debt ratio was minimized based on existing management performance. Results showed that university hospitals maintained high profitability by actively investing in medical equipment, medical environment, and facilities using reserve fund for essential business. Conclusions: Results suggest that this will be the basic data for efficient management of university hospitals.