Financial Performance Analysis and Profitability Enhancement Strategies for 'Afrosiyob Parranda' LLC: An Econometric Approach

Authors

  • Misirov Jo'rabek Boboqand Ugli Banking and finance academy of the Republic of Uzbekistan Trainee of state financial control and audit Author

Keywords:

Afrosiyob Parranda LLC, financial activity, revenue dynamics, profitability, OLS regression, operating expenses, administrative expenses, financial losses, currency exchange, net profit, cost of goods sold, cost optimization, analysis, profitability improvement, production efficiency, loan refinancing, currency management, econometric modeling, revenue growth, cost reduction.

Abstract

The presented paper reviews the financial activity of "Afrosiyob Parranda" LLC in 2022 from the perspective of the dynamics of revenues and profitability using econometric modeling according to OLS regression.

As a result of the study, it was determined that even though the company had grown in revenue in 2022, the rise in operating expenses-especially administrative costs and financial losses on currency exchange-had a negative influence on the net profit.

Key findings include the following:

  • The decline in production costs contributed positively to net profit. Specifically, the reduction of COGS was the leading factor that contributed to profitability.
  • An increase in administrative and financial expenses negatively influenced net profit. Once again, this underlines that positions of these types are worthy of the attention of "Afrosiyob Parranda" LLC.

Having summarized the results obtained, we give recommendations for the optimization of financial performance, focusing on the strategy of cost reduction and enhancement of the efficiency of operations. Conclusively, with the basis of our findings, it can be stated that "Afrosiyob Parranda" LLC will achieve its sustainable net profit increase by prioritizing the production cost reductions and controlling administrative and financial expenses.

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Published

2024-10-10