ANALYSIS OF SUSTAINABLE GROWTH RATES OF COMPANIES INCLUDED IN THE MIXED HOLDING POWER UTILITY OF REPUBLIC OF SRPSKA

Goran Radivojac; Aleksandra Krčmar

doi:10.7251/ACE2033065R

Authors

Goran Radivojac University of Banja Luka, Faculty of Economics http://orcid.org/0000-0003-4979-7463
Aleksandra Krčmar University of Banja Luka, Faculty of Economics http://orcid.org/0000-0001-6680-486X

DOI:

https://doi.org/10.7251/ACE2033065R

Keywords:

sustainable growth, revenues, Banja Luka Stock Exchange, Elektroprivreda

Abstract

This paper analyzes selected data on the performance of companies that are part of the power utility Elektroprivreda Republike Srpske with the aim of determining their sustainable growth rates. The energy sector was chosen because of its importance both for the Republic of Srpska capital market (measured by the participation in the total market capitalization of the Banja Luka Stock Exchange and the basic Stock Exchange index) and the entire Republic of Srpska economy (measured by the participation in gross domestic product). The analysis considered data from published financial statements for 2019, with an emphasis on the following: operating assets, liabilities, capital, operating income and net profit. The dividend policy was also considered, but it was concluded in the paper that none of the observed companies paid dividends from profit for 2019 by the end of this analysis. The research results show that the rate of sustainable growth exceeds 1% in only one case, while in several other cases there are negative rates of sustainable growth caused by the loss in the observed period. Such facts could raise concerns, but also indicate possible directions for future actions in order to improve the performance of the considered companies.

References

Andrić, M. & Vuković, B. (2011). Analiza finansijskih izvještaja i ocena performansi (preduzeća kotiranih na Banjalučkoj berzi. Zbornik radova 15. Kongresa SRRRS: Refleksije međunarodnih standarda finansijskog izvještavanja na računovodstvo, reviziju i poslovne finansije (str. 491-509). Teslić, BiH: Savez računovođa i revizora Republike Srpske

Higgins, Robert C. (2011). Analysis for Financial Management, 10 Ed. New York, NY, USA: McGraw-Hill/Irwin

Higgins, Robert C. (1977). How Much Growth Can a Firm Afford? Financial Management, 6(3), 7-16.

Higgins, Robert C. (1981). Sustainable Growth under Inflation. Financial Management, 10(4), 36-40.

Jandrić, M. (2019). Glasine i tržište kapitala. Zbornik radova sa 8. naučne konferencije sa međunarodnim učešćem: Jahorinski poslovni forum (str. 189-200) Pale, BiH: Ekonomski fakultet Pale

Johnson, Dana J. (1981). The Behavior of Financial Structure and Sustainable Growth in an Inflationary Environment. Financial Management, 10(4), 30-35.

Kester, George W. & Radivojac, G. (2011). Istraživanje finansijske politike i prakse kompanija koje kotiraju na Banjalučkoj berzi. Zbornik radova 6. Međunarodnog simpozijuma o korporativnom upravljanju: Korporativno upravljanje – motor ili olovne noge razvoja (str. 243-263). Teslić, BiH: Savez računovođa i revizora Republike Srpske

Kester, George W. (2002). How Much Growth Can Borrowers Sustain? The RMA Journal, 84(10), 49-53.

Republika Srpska Institute of Statistics (2019). Statistički godišnjak 2019. Available on: https://www.rzs.rs.ba/

Banja Luka Stock Exchange (n.d.): Available on: www.blberza.com