Profitability analysis of hotel companies in the Republic of Serbia

Aleksandra  Mitrović; Snežana  Knežević; Marko Milašinović

doi:10.5937/menhottur2101121M

Authors

Aleksandra Mitrović University of Kragujevac, Faculty of Hotel Management and Tourism in Vrnjačka Banja, Serbia https://orcid.org/0000-0002-8302-0853
Snežana Knežević University of Belgrade, Faculty of Organizational Science, Belgrade, Serbia https://orcid.org/0000-0003-0176-6107
Marko Milašinović University of Kragujevac, Faculty of Hotel Management and Tourism in Vrnjačka Banja, Serbia https://orcid.org/0000-0002-9346-9283

DOI:

https://doi.org/10.5937/menhottur2101121M

Keywords:

profitability, ratio analysis, hotel companies, comparison, Republic of Serbia

Abstract

The purpose of the research is to examine the level and trends of profitability ratios of hotel companies operating in the Republic of Serbia in the period from 2016 to 2019. The research was conducted on a sample of 100 hotel companies, where profitability was measured by the operating profit rate, the net profit rate, the rate of return on total assets and the rate of return on equity. The results of the research show that the values of the used profitability indicators have increased in 2017 compared to 2016, but decreased in 2018 and 2019. Statistical analysis found that changes in the operating profit rate and net profit rate during the observed four-year period were not statistically significant, while the decline in the value of the rate of return on total assets in 2018 compared to 2017 and the decline in the rate of return on equity in 2018 compared to 2017 and in 2019 compared to 2018 was statistically significant. The results of the research can be important for (1) the management of a company, (2) its owners, because they enable gaining an insight into the level of profitability of entrusted companies, i.e. the companies that are in the ownership, and (3) investors and creators of tourism development policy.

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