Determinants of Profitability of Grain Production Enterprises from Ap Vojvodina

Abstract

This study calculates profitability and identifies the determinants influencing the profitability of enterprises engaged in growing cereals (except rice), leguminous crops and oilseeds in AP Vojvodina in 2022. The analysis is based on data from 320 small and medium-sized agricultural enterprises using multiple linear regression, with Return on Assets (ROA) as the dependent variable. Descriptive statistics showed a median ROA of 2.62%, indicating relatively low profitability. The regression model revealed that liquidity, indebtedness, asset structure, total asset turnover ratio and company size significantly impact profitability. Liquidity and indebtedness negatively affect profitability, suggesting unproductive resource use and high debt levels. Asset structure also negatively impacts profitability, indicating inefficient use of fixed assets. Conversely, the total asset turnover ratio and company size positively influence profitability, reflecting efficient asset use and better investment opportunities. The study recommends better liquidity management, debt reduction, optimizing asset structure, increasing asset turnover efficiency, and leveraging company size to improve profitability. These strategies can enhance financial performance and competitiveness, contributing to the sustainable growth of agricultural enterprises in Vojvodina.

Keywords

• agricultural enterprises
• profitability
• regression
• vojvodina