Annals of the University of Oradea: Economic Science (Jul 2015)
STUDY REGARDING THE PROFITABILITY INDICATORS FOR THE ROMANIAN COMPANIES OPERATING IN THE TOURISM AND LEISURE SERVICES SECTOR IN THE PERIOD OF 2010-2013
Abstract
The current paper deals with an issue of absolute importance for the shareholders, managers and creditors of the Romanian companies: the analysis of profitability indicators. The study concentrated over 10 companies which are registered in the Bucharest Stock Market and which are operating in the field of leisure and tourism. These companies can be considered the most significant in the field based on both their history: founded before 1990, previously state owned and later transformed into private company, and on their financial sustainability. The profitability indicators were selected to be analyzed in the current paper since they are considered to be the most significant indicators which guide the financial decisions of managers, investors and creditors alike. While addressing the issues of performance indicators most of the authors concentrate on the profitability indicators. These indicators provide first-hand information regarding the company’s bottom line and its return of value towards the investors. While the other ratios from the managerial finance provide some information about the way the firm is operating, the profitability indicators are considered to combine the effects of liquidity management, asset management and debt management on operation results. The paper is organized in three chapters. In its first chapter the paper deals with the theoretical and practical concept of profitability for Romanian companies and defines several profitability indicators. In the second chapter a case study is realized and three profitability indicators are tested and interpreted. Later aggregate results are calculated and analyzed. The last chapter draws the conclusions of the current paper and is analyzing the results both on individual and also on aggregate level.
