Received:
2024-11-15 | Accepted:
2025-01-22 | Published:
2025-03-30
Title
Financial performance of SMEs wineries in Slovakia: DuPont decomposition analysis
Abstract
Winegrowing has a long tradition in Slovakia, from the point of view of grape cultivation and wine production. The country area is divided into 6 winegrowing regions, and most wine producers are in South Slovakia and Small Carpathian regions. Around 800 active wine producers are currently operating in Slovakia. Most of them are self-employed. In the paper, we dealt with micro and SME wineries and quantified DuPont decomposition in these wineries for a period of 2013 – 2022. To reach a profit or be profitable is the companies' primary goal. If the company is gaining a profit, it is profitable. In DuPont decomposition, the peak indicator is ROE, which points out how efficiently the company uses equity to reach a profit. This indicator is spread into several levels of decomposition to partial indicators such as ROA, financial leverage, ROS, asset turnover, etc. In all three types of wineries, the significant influence of the change in ROA and the influence of the change in financial leverage prevails. From the second level of decomposition, the influence of the change in ROS prevails over asset turnover. From the perspective of individual types of assets, the most significant impact is the share of non-current assets and equity. From the standpoint of individual sales, the most important influence is the share of sales from the products and assets.
Keywords
financial analysis, DuPont analysis, pyramid decomposition, ROE, SME, wineries
JEL classifications
M21
, M41
, Q10
URI
http://jssidoi.org/jesi/article/1274
DOI
Pages
22-33
Funding
This paper is an output of the science project VEGA No. 1/0429/22 with the title The assessment of property valuation impacts on the financial health of agricultural enterprises in the Slovak Republic.
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
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