The relationship between debt, activity, and the profitability of company in the cold supply chain
Rapid development, constant changes in the market, changes in consumer habits and needs, numerous innovations, growth in storage and distribution costs, especially in the food industry, present challenges in supply chains and force companies to look for numerous innovative solutions for their business to survive. This paper aims to investigate the relationship between financial structure, asset turnover, and company profitability, with an emphasis on return on assets (ROA) and equity (ROE). In order to analyze the set goal, debt ratios and activity ratios were analyzed to assess their impact on the profitability of company in the cold supply chain sector. The results show that lower debt has a positive effect on ROA, while moderate debt can increase ROE through the leverage effect. Furthermore, higher asset turnover and effective accounts receivable and inventory management improve both ROA and ROE, highlighting the importance of operational efficiency in a capital-intensive industry. These findings confirm that both financial structure and asset utilization are key factors in company profitability.
Authors
- Ana Magdić
- Ivana Martinčević
Institutions
- University North (HR)
Publication Details
- Journal
- Obrazovanje za poduzetništvo - E4E
- Published
- 2026-03-09
- DOI
- https://doi.org/10.38190/ope.15.2.5
- Primary Topic
- Working Capital and Financial Performance
- Type
- article
- Field-Weighted Citation Impact
- 0.00