The impact of depreciation expense on performance of trade in Serbia

Abstract

Large retail chains conduct intensive replacement of old technology with new, more efficient one, especially in the field of energy, and in accordance with the application of the concept of sustainable development in business. These changes affect depreciation expenses and profits. Due to this, in this paper we will primarily research the dynamics of depreciation expenses and their impact on profit in sales of US, Japan, European Union, Russia, with special insight into Serbia based on original collected data. In order to thoroughly process given issues, numerous cases from practice were analyzed - depreciation of retail companies from different countries, especially the developed market economies. Presented methodological approach (comparative analysis, ratio analysis, descriptive statistics, correlation analysis, case studies) and research results(especially to point out the significance of continuous complex analysis of all relevant angles) should serve as a basis for more efficient management of depreciation expenses in modern trade.

Keywords

• capital expenditures
• depreciation and amortization
• technical equipment of work
• profit