Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2019, No. 2, Article 2, Year of publication: 10, June 2019

Analysis of Profitability and Factors of Profitability of Companies listed on the
Banja Luka Stock Exchange in the period 2017−2018

AUTHOR

Dejan Jakšić, PhD*

*PhD Associate Professor, University in Novi Sad, Faculty of Economics Subotica, Department of Finance and Accountancy

ABSTRACT

ARTICLE INFO

The paper presents the results of analyzes the profi tability of 281 companies listed on the Banja Luka Stock Exchange in the period 2017−2018. The results indicate that companies have a positive net result on average, but the level of profitability is not at a satisfactory level. In 2018, the average return on assets is 0.55%, while the average net profi t margin is 2.39%. In 2018, 61% of enterprises earned positive net income. Furthermore, a study of the infl uence of factors on the profi tability was carried out using regression analysis. The results show that the company’s liquidity, the growths of the company measured by sales growth and lagged profitability have a significant and positive effect on profitability.

Keywords: profitability, return on assets, net profit margin, profitability factors

DOI: 10.7251/FIN1902045J

Corresponding author:
jaksicd@ef.uns.ac.rs