Analyzing financial indicators of FSC certified companies in Croatia

Earnings before interest and taxes (EBIT) is an indicator of a company's profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest.

In the period from 2014 to 2016 it was noticed that in 2014 the values of all companies with FSC certification in all sectors of activity were much higher than the values companies without a certificate, in the period from 2015, these values were equal, but again in 2016 a small difference was seen, in which companies with a certificate again had higher values. 

Business efficiency (EU) is calculated by comparing sales revenue and sales expenses. When sales revenues are higher than sales expenses, the business efficiency is positive. The general rule for the value of this indicator implies that it is better for the economy coefficient to be as large a number as possible.

In the period from 2014 to 2016 it can be seen in 2014 all values of the observed financial indicator of companies without a certificate are higher than companies with a certificate. In 2015, there was an increase in the EU value of companies with a certificate, and this increase can also be seen in 2016, in which the values of companies with a certificate are visibly higher than companies without a certificate in all sectors of activity.

Return on assets (ROA) is an indicator of the success of using assets in generating profit. This indicator shows the intensity of the company's assets. Capital-intensive industries such as wood sector industries require expensive equipment and machinery and thus have a high degree of asset intensity.

In the initial period companies without certificates in the furniture sector have a higher value than certified companies from the same sector, while throughout the rest of the periods the values of certified companies tend to increase. In the period from 2015 to 2016, the values of all certified companies across all sectors of activity have higher values than non-certified companies.

Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity. ROE is a gauge of a corporation's profitability and how efficiently it generates those profits.

During the period from 2014 to 2016, in most activities, certified companies had a higher rate of capital return than non-certified companies, except in the furniture sector, where in the period from 2014 to 2015 non-certified companies still had a slight advantage, but in 2016 year that value goes to the side of the certified companies.

Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency. This measure provides insight into how much profit is being produced per dollar of sales. 

In the period from 2014 to 2016, it is evident that non-certified companies in most sectors have higher values than certified companies, except in sector wood processing sector where certified companies have a better value throughout all periods.