Analysis of the Economic Performance of a Business Entity in the Current Realities of Ukraine's Economy
Year: 2025
Type: article
Abstract: The stochasticity and uncertainty of the external environment, intensified by force majeure and the destructive consequences of military actions in Ukraine, necessitate a rethinking and search for new approaches and mechanisms to manage the efficiency of domestic enterprises of any ownership type in the current conditions. This premise defines the focus of the article. The study analyzes the financial and economic results of a private commercial enterprise operating in the wholesale trade of wood-based components used in the production of upholstered and cabinet furniture. Based on a representative dataset of statistical information from a private Ukrainian trading enterprise, the article examines the values and dynamics of its key financial and economic indicators, specifically: sales volumes in monetary terms, net operating profit after tax (NOPAT), economic value added (EVA), and return on invested capital (ROIC). Using a holistic approach, the authors provide an interpretation of the impact of the external environment on the dynamics of these indicators. One of the external factors influencing the financial and economic performance of the business under consideration is the analysis of the dynamics of the weighted average cost of capital (WACC). The dynamics of the economic value added (EVA) indicator is viewed as a measure of business management efficiency. The authors attempt to analyze the impact of stochasticity, uncertainty, and specific force majeure circumstances on the dynamics of the financial and economic indicators of the commercial business structure in the current socio-economic conditions in Ukraine. The article proposes directions for improving EVA, NOPAT, and ROIC indicators under martial law in Ukraine through cost optimization based on business process reengineering, reorganization of the company’s organizational structure, and the development of a balanced system of performance, efficiency, and business activity metrics.
Authors: Iryna Popovychenko, Andrii Andriichuk
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4408943718