Analysis of Ukraine’s construction companies profitability as a tool for achieving the SDG

Abstract

The volumes of completed construction works in Ukraine over the past eight years are analyzed. The factors influencing the profit formation of construction companies are highlighted and presented. Subjects of institutional influence on the formation of construction companies profit are defined. In the process of profitability analysis of the main activity of Ukraine’s three construction companies the dynamics of individual indicators for five years are determined. Conclusions regarding the trends of the gross profitability of assets, the gross profitability of invested capital, the profitability of products, the gross profitability of sales and the gross profitability of equity capital are formed. Interrelationship between operational, production and financial cycles is established and presented. The expediency of calculating of three profitability indicators by construction companies, in particular profitability of the operating cycle, profitability of the financial cycle, profitability of the financial cycle is proven. Appropriate formulas for such calculations are developed. The dynamics of the proposed profitability indicators of operational activity are determined and analyzed (three construction companies of Ukraine are taken as examples). The main ways for increasing profitability of construction companies are defined.