Analysis of joint stock companies’ capital efficiency in building industry of Ukraine

Authors

  • Володимир Миколайович Бабаєв O. M. Beketov National University of Urban Economy in Kharkiv, 12, Revolution Street, Kharkiv, Ukraine, 61000, Ukraine https://orcid.org/0000-0002-4638-5263
  • Наталія Олександрівна Чех O. M. Beketov National University of Urban Economy in Kharkiv, 12, Revolution Street, Kharkiv, Ukraine, 61000, Ukraine https://orcid.org/0000-0001-5728-804X

DOI:

https://doi.org/10.15587/2312-8372.2016.76390

Keywords:

equity, return, DuPont method, return on sales, return on assets

Abstract

This article analyzes the building industry in Ukraine is analyzed and activity of selected building companies by analyzing the return of their own capital is investigated. Peculiarities and the main factors that affect the return of equity capital of joint stock companies of the building industry were revealed using DuPont method. Comparison with corresponding performance of German building company was conducted. A detailed return analysis of the base companies showed that the equity return of Ukrainian companies in the last ten years has undergone significant fluctuations, due to the crisis, leading to a decrease in sales and profits, respectively. At the end of 2014 two of the four domestic companies were unprofitable. The other two were profitable mainly due to the effect of financial leverage. In this regard, it was concluded that it is necessary to attract additional capital, including through stock markets.

Author Biographies

Володимир Миколайович Бабаєв, O. M. Beketov National University of Urban Economy in Kharkiv, 12, Revolution Street, Kharkiv, Ukraine, 61000

Doctor of Science in Public Administration, Professor, Rector

Наталія Олександрівна Чех, O. M. Beketov National University of Urban Economy in Kharkiv, 12, Revolution Street, Kharkiv, Ukraine, 61000

Post-graduate student

Department of Financial and Economic Security, Accounting and Audit

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Published

2016-07-26

How to Cite

Бабаєв, В. М., & Чех, Н. О. (2016). Analysis of joint stock companies’ capital efficiency in building industry of Ukraine. Technology Audit and Production Reserves, 4(5(30), 17–21. https://doi.org/10.15587/2312-8372.2016.76390

Issue

Vol. 4 No. 5(30) (2016): Economics and management of enterprise

Section

Economics and Enterprise Management: Original Research

License

Copyright (c) 2016 Наталія Олександрівна Чех, Володимир Миколайович Бабаєв

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