The operative profit margin and interest cost in retail food

• Main Authors: Vojteski-Kljenak Dragana, Lukić Radojko, Gavrić Gordana, Gavrilović Milan
• Format: Article
• Language: English
• Published: Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt 2019-01-01
• Series: Ekonomika Poljoprivrede (1979)
• Subjects: net profit; interest; tax; depreciation; amortization
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0352-3462/2019/0352-34621903799V.pdf

Under the influence of different factors, the dynamics of the size of the operating profit margin of food trading companies in Serbia varies from comparable global food retailers in various countries. Based on the obtained results of empirical research, we can also conclude that the operating profit margin of the leading food trading companies in Serbia is lower than the in analyzed comparable food retail trade companies from the developed market economies. It points to the conclusion that it is necessary to efficiently manage revenues, costs, profit, assets, and financial structure in order to improve the performance of food trading companies in Serbia in the future. In order to increase the operating profit margin, as a measure of long-term performance, it is necessary to manage the financial structure of the food trading companies in Serbia as effectively as possible. The main objective of this paper is to apply dynamics of size and structure of operating margin of global retailers in Serbia by applying accounting methodology based on data from annual financial statements. It is an increasingly significant non-standard indicator of their performance. Therefore, this indicator will receive increasing attention in the future.