Risk analysis of the business profitability in agricultural companies using combine harvesters

Abstract

This article presents the results of entrepreneurial risk analysis in a company providing agricultural services where a group of combine harvesters is used. An economic model was created in order to emulate the operational costs of the combine harvesters using MS Excel. Based on the results of the sensitivity analysis, the key factors were determined. For these factors, the risk of achieving the desired economic results was created subsequently. For the simulated situation, the key factors were activated within the range of ± 10% using a triangular distribution of these values. The result of this analysis showed that the most frequent value of CZK 389,692/year will be achieved with a probability of 49.42%. The overall outcome of the combine harvesters should be profitable.