ANALYSIS OF PROFIT AND LOSS STATEMENT OF THE LISTED COMPANIES IN CROATIA
ANALYSIS OF PROFIT AND LOSS STATEMENT OF THE LISTED COMPANIES IN CROATIA

Author(s): Vlasta Roška, Dalija Kuvačić, Zvonko Merkaš
Subject(s): Economy, National Economy, Socio-Economic Research
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Profit and loss statement;cost-effectiveness indicators;revenue;expenses;sales revenue;profit;
Summary/Abstract: The efficiency of business results of listed companies is significant for investors. If total revenues increase from the year to year, especially business revenues from regular activities, investors receive a positive result of their investment. However, investors pay special attention to the efficiency of costs management, especially of operating expenses to create a revenue. If companies have a bigger increase in revenue than in business expenditures, the management and the investors are satisfied. If lower growth in expenditures is accompanied by faster growth of revenue, management and investor can expect a good reward, bonus or dividends. The main goal of this paper is to determine how successful are managers of listed companies on the Zagreb Stock Exchange for the selected business year in the research period from 2008 to 2017 in increasing of profits of shareholders in the way to maximize the revenues and minimize the expenditures and have they managed to achieve results prior to the financial crisis. The data are processed statistically with the SPSS programme. Vertical analysis of companies listed at the Zagreb Stock Exchange has pointed out a need for improvement of revenues from regular business, i.e. sales. Horizontal analysis of listed companies shows that proportions of the profit and loss statements from 2008 have not yet been achieved. Also, the cost-effectiveness indicators show that a company’s management is a little bit more efficient today than in the past, but the reason is financial revenue, and not the increase in sales operation.

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