SHS Web Conf.
Volume 160, 2023Innovative Economic Symposium 2022 – Opportunities in Post-Covid Era (IES2022)
|Number of page(s)
|Opportunities in Post-Covid Era
|23 March 2023
Return on sales in the Czech building industry? Does firm size matter?
Institute of Technology and Business in České Budějovice, School of Expertness and Valuation, Okruzni 517/10, 37001 Ceske Budejovice, Czech Republic
* Corresponding author: email@example.com
The presented paper explores the link between firm size and returns on sales (RoS) in Czech building companies. We examined how different business sizes relate to the return on sales, considering staff numbers and the RoS movement over a period. The CRIBIS database of CRIF Company - Czech Credit Bureau provided relevant data from 2016 to 2020, including profitable and active building enterprises. The industry analysis involves an empirical approach using industry structure analysis, return on sales analysis and observing its movement from 2016 to 2020. The industry predominantly encompasses small firms of fewer than 25 employees, exhibiting dramatic variations of the average return on sales over the period. Large companies exceeding 250 employees show complete conformity, yet their numbers are small in the construction sector. The correlation analysis revealed that the business size, i.e., staff numbers, is independent of the return on sales. The submitted work suggests a new size classification according to total assets and sales.
Key words: Cost of capital / size premium / discount rate / valuation
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/).
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