Risk analysis of the business profitability in agricultural companies using combine harvesters

Miroslav Mimra, Miroslav Kavka and František Kumhála
Additional contact information
Miroslav Mimra: Department of Machinery Utilization, Faculty of Engineering, Czech University of Life Sciences Prague, Prague, Czech Republic
Miroslav Kavka: Department of Machinery Utilization, Faculty of Engineering, Czech University of Life Sciences Prague, Prague, Czech Republic
František Kumhála: Department of Agricultural Machines, Faculty of Engineering, Czech University of Life Sciences Prague, Prague, Czech Republic

Research in Agricultural Engineering, 2017, vol. 63, issue 3, 99-105

Abstract: This article presents the results of entrepreneurial risk analysis in a company providing agricultural services where a group of combine harvesters is used. An economic model was created in order to emulate the operational costs of the combine harvesters using MS Excel. Based on the results of the sensitivity analysis, the key factors were determined. For these factors, the risk of achieving the desired economic results was created subsequently. For the simulated situation, the key factors were activated within the range of ± 10% using a triangular distribution of these values. The result of this analysis showed that the most frequent value of CZK 389,692/year will be achieved with a probability of 49.42%. The overall outcome of the combine harvesters should be profitable.

Keywords: economic model; scenarios; profit; machinery utilization; business profitability (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://rae.agriculturejournals.cz/doi/10.17221/63/2016-RAE.html (text/html)
http://rae.agriculturejournals.cz/doi/10.17221/63/2016-RAE.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlrae:v:63:y:2017:i:3:id:63-2016-rae

DOI: 10.17221/63/2016-RAE

Access Statistics for this article

Research in Agricultural Engineering is currently edited by Bc. Michaela Polcarová

More articles in Research in Agricultural Engineering from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().