108 research outputs found

    THE FINANCIAL PERFORMANCE OF EUROPEAN COMPANIES: A COMPARATIVE APPROACH

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    The present study empirically examines the financial performance of European companies and tries to identify the profitability differences that exist between: enterprises with same profile, economic sectors and between several countries from the European Union. Based on data of the year 2009, the newest available on the BACH-ESD database, three financial performance main indicators are being calculated, namely: Return on Assets, Return on Equity and Net Margin. Results are discussed and compared with the ones obtained in former similar studies and some conclusions are drawn. The most performing sectors are found to be mining, quarrying, professional, scientific and technical activities, utilities and IT&C. The sectors that perform the worst are transport and storage, agriculture, accommodation and food service. As shown in other studies the most profitable and competitive companies in the sample belong to the Nederland, Belgium and Austria and the least profitable ones are situated in Italy and Portugal. As a complementary useful result of the study, the average values obtained for the three variables, in the various sectors considered, can be utilized for future comparisons, for assessing the financial performance of companies that belong to same sectors as those surveyed. This paper is a dissemination of the results obtained by the author in the doctoral program "The financial performance of EU member states' companies", coordinator: Professor Carmen Corduneanu, PhD, carried out within West University of Timişoara, Romania, in the period October 2010- July 2012.financial performance, return on assets, return on equity, net margin, BACH-ESD database
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