Evaluating profitability of Firms in the Swedish Industry for Wooden Single-Family Houses
2016 (English)In: The 70th Forest Products Society annual convention - new horizons for the forest products industry, June 27-29, 2016, Portland, Madison: Forest Products Society, 2016Conference paper (Refereed)
The market for Swedish wooden single-family house producers is characterized by perfect competition, i.e. products are highly substitutional and firms mainly compete by prices. Variance in net profit margins, as a key number for profitability, for firms in this industry ranges by 60 %. As net profit margin is defined as net profit divided by revenue, these latter two directly affect net profit margin. Yet, leaving the obvious determining mathematical explanations aside, other factors might affect the profitability of the firms, showing, what distinguishes successful firms from less successful ones.
This study is aiming at exploring the factors affecting the profitability of Swedish firms producing wooden single-family houses. By means of those factors, variances in net profit margins might be explained more thoroughly. Data from annual reports were collected from 52 firms in the industry and a correlation analysis performed.
The results will show if there are factors that correlate with net profit margins and if yes, what explanatory power these factors have. This in turn might serve as an input for the firms’ strategic development towards a higher profitability of their businesses.
Place, publisher, year, edition, pages
Madison: Forest Products Society, 2016.
Wooden houses, Single-family houses, Profitability, Profit margin, Industry analysis
Production Engineering, Human Work Science and Ergonomics
Research subject Technology (byts ev till Engineering), Industrial economy; Technology (byts ev till Engineering), Forestry and Wood Technology; Technology (byts ev till Engineering), Civil engineering
IdentifiersURN: urn:nbn:se:lnu:diva-51325OAI: oai:DiVA.org:lnu-51325DiVA: diva2:914508
The 70th Forest Products Society annual convention - new horizons for the forest products industry, June 27-29, 2016, Portland