PROFITABILITY IN SERVICE BUSINESSES - SUPPORT ACTIVITIES FOR CROP PRODUCTION IN NORTHWEST ROMANIA
2017
Lucica Armancă | Marius Sabău
The service business, i.e. support activities for crop production, through the existing business, is contributing to the development of service economy mainly towards other businesses, at national level. Each participant develops its activity within a competitive environment, dependent on the succession of seasons. The actors of this market, i.e. agricultural services for crop production are characterised by the varying number of participating companies, turnover rate, but mostly by means of their profitability indicator ratios. Profitability ratios characterise the economic units by effect to effect or effect to effort ratios. Evaluating the batch of competitors is a complex activity, which is achieved by using a set of information, methods and work tools. By using the turnover metric we are able to determine the competitive position of the market participant, but the results, that is, the effects, come to complete and enable us to establish, at one point, the average value of profitability ratios.
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