The Analysis of the Operative Profit Margin of Trade Companies in Serbia

Abstract

Both theoretical and practical importance has recently been attached to an analysis of the operating profit margin as a measure of the long-term performance of companies. In the integrated financial reporting it is presented through various indicators based on it. In view of this, we have made a comparative analysis of the operating profit margin and its impact on the performance of trade companies in Serbia and comparable countries. The general conclusion is that it shows a growth tendency and is, nevertheless, lower in comparison to trading companies from countries of a developed market economy. In order to increase the operating profit margin, as a measure of long-term performance, it is necessary to manage the financial structure of the trading companies in Serbia as effectively as possible.