Evaluation of the Performance of Ukraine’s Engineering Enterprises
Authors: Tsyhanova О. S., Burlan S. A., Katkova N. V.
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The article analyzes activities of the engineering industry of Ukraine in terms of their effectiveness. The study considers dynamic patterns of changes in the volumes of production and sales of engineering products, financial results before tax, net profit (loss) and profitability (loss-making) of operating activities of the engineering industry as a whole and in the context of types of production for 2013–2018. It is revealed that in all areas of engineering industry in the period 2013–2017 their share in the total volume of industrial production fell, although, in monetary terms the manufacturing and sales of engineering products has been growing since 2015. The proportion of sold engineering products in the total volume of sold industrial products for 2013–2016 decreased from 8.6 % to 6.1 %, and in 2017–2018 it rose to 6.9 %. It is determined that the 2014 crisis significantly affected the performance of engineering enterprises: financial results sharply decreased to negative values, the net profit value fluctuated depending on the financial results, operating activities were unprofitable. However, starting from 2015, engineering enterprises were able to adapt to the market and political changes, increase their production volumes and profitability, primarily those engaged in the production of computers, electronic and optical products, and electrical equipment. Thus, in 2014, all industrial enterprises including engineering ones suffered losses; in 2015, only enterprises engaged in the production of computers, electronic and optical products gained profit, and, in 2016, enterprises engaged in the production of machinery and equipment joined them; in 2017, enterprises of all areas of engineering gained profit; in 2018, the profit of the entire engineering industry grew by 88.5 %. Accordingly, in 2015–2017, there observed a dynamic growth in the profitability of operating activities to 9.8 %, although in 2018 there was a decrease by 13.3 %. Enterprises engaged in the production of computers, electronic and optical products, and electrical equipment had the highest operating profit.