Analysis of the profitability of road freight transport in the Republic of Serbia

DOI: 10.5937/etp240424P

Authors

Keywords:

profitability, road freight transport, unbalanced panel models

Abstract

This paper analyzes the profitability of companies in the field of road freight transport in the Republic of Serbia. The primary goal of the profitability analysis is to determine whether companies are profitable and to identify factors that positively or negatively influence profitability. The research sample consists of 614 observations of road transport freight companies over the period from 2006 to 2023. Profitability is measured based on return on assets, while independent variables include company size, number of days for receivables collection, liquidity, the ratio of sales revenue to total assets, and indebtedness. The research results primarily indicate that companies achieve, on average, a positive profitability of 6.54% over the observed period. Furthermore, the results of the unbalanced panel regression analysis show that liquidity, the ratio of sales revenue to total assets, and the number of days for receivables collection have a significant impact on profitability. The findings may be of interest to management, company owners, regulatory bodies, and other stakeholders in making appropriate business decisions and ensuring adequate profitability and business sustainability.

References

Agencija za bezbednost saobraćaja. (2024). Strateška dokumenta. Preuzeto (2024, Decembar 10) sa https://www.abs.gov.rs/rsc/strateska-dokumenta

Božić, V. & Aćimović, S. (2021). Marketing logistika. Beograd: Univerzitet u Beogradu, Ekonomski fakultet.

Davidović, B. (2013). Međunarodni transport i špedicija. Kragujevac: Visoka tehnička škola strukovnih studija.

Engström, R. (2016). The roads’ role in the freight transport system. Transportation Research Procedia 14, 1443–1452. https://doi.org/10.1016/j.trpro.2016.05.217

European Commission. (2023). Commission Staff Working Document, Serbia 2023 Report. Preuzeto (2024, Oktobar 29) sa https://neighbourhood-enlargement.ec.europa.eu/system/files/2023-11/SWD_2023_695_Serbia.pdf

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2014). Multivariate Data Analysis (7th ed.). Pearson.

Hassan, M., Rahman, N. & Shah, N. (2022). Financial performance analysis of transportation industry pre and during covid 19 pandemic: a profitability approach, Jurnal Intelek, 17(2), 149-159, DOI: http://10.24191/ji.v17i2.18193

IBIS World. (2024). Freight Road Transport in Serbia - Market Size, Industry Analysis, Trends and Forecasts (2024-2029). Preuzeto (2024, Oktobar 30) sa https://www.ibisworld.com/serbia/industry/freight-road-transport/200606/#FinancialBenchmarks

Iimi, A. (2023). Estimating Road Freight Transport Costs in Eastern Europe and Central Asia Using Large Shipping Data. World Bank Group, Transport Global Practice, Policy Research Working Paper 10533. Preuzeto (2024, Oktobar 28) sa https://documents1.worldbank.org/curate/en/099542207312319005/pdf/IDU0e82b93e00034b0458f09ed203c7e2ad23763.pdf

International Trade Administration U.S. Department of Commerce. (2024). Serbia - Country Commercial Guide: Infrastructure. Preuzeto (2024, Oktobar 29) sa https://www.trade.gov/country- commercial-guides/serbia-infrastructure

Jakšić, D. & Mijić, K. (2013). Uticaj profitabilnosti na mogućnosti dodatnog kreditnog zaduženja učesnika na finansijskim tržištima. Novi Ekonomist, 13, 52-55. Preuzeto (2024, Oktobar 29) sa https://www.noviekonomist.info/ojs/index.php?journal=Novi-Ekonomist&page=issue&op=view&path%5B%5D=13

Karam, A., Jensen, A. J. K. & Hussein, M. (2023). Analysis of the barriers to multimodal freight transport and their mitigation strategies. European Transport Research Review, 15(43), 1-16. doi.org/10.1186/s12544-023-00614-0

Nkesah, S., K., (2023). Making road freight transport more Sustainable: Insights from a systematic literature review. Transportation Research Interdisciplinary Perspectives, 22(6): 100967, 1-12. DOI: 10.1016/j.trip.2023.100967

OECD. (2024). Western Balkans Competitiveness Outlook 2024: Serbia. Preuzeto (2024, Decembar 10) sa https://www.oecd- ilibrary.org/transport-policy_f6548b4b-en.pdf?itemId=%2Fcontent%2Fcomponent%2Ff6548b4b-en&mimeType=pdf

Pastori, E., Brambilla. M., Maffii, S., Vergnani, R., Gualandi, E. & Skinner, I. (2018). Research for TRAN Committee – Modal shift in European transport: a way forward, European Parliament, Policy Department for Structural and Cohesion Policies, Brussels. Preuzeto (2024, Oktobar 28) sa https://www.europarl.europa.eu/RegData/etudes/STUD/2018/629182/IPOL_STU(2018)629182_EN.pdf

Republički zavod za statistiku. Republika Srbija. (2024a). Ukupan prevoz putnika i robe, 2022. i 2023. Preuzeto (2024, Oktobar 30) sa https://publikacije.stat.gov.rs/G2024/Pdf/G20241170.pdf

Republički zavod za statistiku. Republika Srbija. (2024b). Statistički godišnjak Republike Srbije, 2024. Preuzeto (2024, Oktobar 30) sa https://publikacije.stat.gov.rs/G2024/Pdf/G20242057.pdf

Rodić, J., Andrić, M., Vuković, B. & Jakšić, D. (2024). Analiza finansijskih izveštaja, Subotica, Ekonomski fakultet u Subotici. Preuzeto (2024, Oktobar 30) sa https://www.dropbox.com/s/ev0llbdk4dxx0d8/Analiza%20finansijskih%20izvestaja%2C%20III%20izdanje.pdf?dl=0

Scoring. (2024). Baza finansijskih izveštaja. Preuzeto (2024, Oktobar 15) sa https://www.scoring.rs/

Silalahi, M., Zunairoh, Z., Silalahi, S. & Silalahi, M. (2023). Measuring transportation and logistics companies performance before and during the covid 19 pandemic. Proceedings of the 19th International Symposium on Management (INSYMA 2022), 13-17, DOI: https://doi.org/10.2991/978-94-6463-008-4_3

Sukiati, W., Wardini, A. & Gustirani, I. (2022). The importance of fixed assets and leverage to profitability in transportation companies. JEMPER, 5(1), 71-83. Preuzeto (2024, Oktobar 30) sa https://jurnal.usbypkp.ac.id/index.php/jemper/article/view/2666

Tica, T., Vuković, B., Saković, D. & Jakšić, D. (2023). Specific impact of the covid 19 pandemic on the profitability of logistics companies based in the western Balkans countries. Ekonomika preduzeća, 71(5-6), 313-324, DOI: 10.5937/EKOPRE2306313T

Tsekeris, T. & Vogiatzoglou, K. (2014). Public infrastructure investments and regional specialization: empirical evidence from Greece. Regional Science Policy & Practice 6(3), 265-290. https://doi.org/10.1111/rsp3.12040

Vieira, J., Neuenfeldt Júnior, A., Alves, V., Bouzon, M. & Francescatto, M. (2024). The intermodal transport tactical planning: A literature review on the use of transportation modes for cargo delivery. Annals of the Brazilian Academy of Sciences, 96(4), 1-28. doi: 10.1590/0001-3765202420240081

Vuković, B., Milutinović, S., Mirović, V. & Milićević, N. (2020). The profitability analysis of the logistics industry companies in the Balkan countries. Traffic and Transportation, 32(4), 497-511, DOI:10.7307/ptt.v32i4.3311

Wang, H., Han, J., Su, M., Wan, S. & Zhang, Z. (2021). The relationship between freight transport and economic development: A case study of China. Research in Transportation Economics 85, 1-9. https://doi.org/10.1016/j.retrec.2020.100885

Downloads

Published

04/25/2025

How to Cite

Peštović, K., Nuševa, D., Dakić, S., & Đurković Marić, T. (2025). Analysis of the profitability of road freight transport in the Republic of Serbia : DOI: 10.5937/etp240424P. Ekonomija - Teorija I Praksa, 17(4), 24–40. Retrieved from https://casopis.fimek.edu.rs/index.php/etp/article/view/313

Issue

Section

Original scientific work