the evolution of turnover of listed firms in the
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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 1/2019
„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007
THE EVOLUTION OF TURNOVER OF LISTED FIRMS IN THE
EXTRACTIVE INDUSTRY DURING THE PERIOD 2015-2018
ECOBICI MIHAELA LOREDANA
PHD LECTURER, ”CONSTANTIN BRÂNCUȘI” UNIVERSITY, FACULTY OF ECONOMICS
e-mail:ecobici.mihaela.loredana@gmail.com
Abstract The main objective of any economic agent is to obtain profit, and in order to achieve it economic agents must
apply an efficient management that combines in the most logical way the material, human and financial resources.
Alongside this primary goal, another goal is to maximize turnover.
Turnover is one of the most important indicators to reflect the company's position on the market and the
company's ability to deploy profitable businesses in its field of activity.
The purpose and importance of turnover in a dynamic approach is one of the most common concerns of
economic and financial practitioners, with turnover being the indicator of global appreciation of a company's business.
The purpose of this article is to track down the evolution of the turnover of mining companies by analyzing the
data series offered by the Bucharest Stock Exchange. In this respect, the research carried out and the results obtained
will provide an overview of the turnover status in the period 2015-2018. The evolution that will be engaged in research
will show whether or not turnover has registered an upward trend, a trend that should indicate a good development of
the activity that these companies carry out.
Keywords: turnover, dynamic analysis, evolution, turnover index, growth rate of turnover, extractive industry
JEL Classification: D22
1.Introduction
The study of turnover over a longer period of time provides information about the business activity of
the enterprise and its tendency by classifying it or its object in one of the life cycle phases: launch, growth,
maturity, decline. In order to be relevant in establishing the enterprise development strategy, the dynamics of
the analyzed company must be compared with the market dynamics, respectively the sector of activity or
competition considered representative. If the sector is more dynamic than the society, it will be noticed that
the firm under study will lose market share, either as a result of the increase in sales volume of existing
competition or as a result of the emergence of new competitors, or as a result of the interaction of the two
causes. [3]
Getting a bigger business score is the goal of any business, increasing the turnover, boosting the
company's market position and subsequently increasing profitability.
Several definitions in the literature provide this indicator with an important role in increasing the
economic and financial performance of the firm:
”turnover represents the total income obtained from the commercial activity of an enterprise over a
certain period of time.”, Bușe Lucian, Analiză economico-financiară, Ed. Economică, București, 2005, page
143;
”turnover represents the total revenue earned by an enterprise in current business activities. It is one
of the most important indicators of measuring the company's economic performance.”, Hristea Ana Maria,
Analiza economică și financiară a activității întreprinderii, Ed. Economică, București, 2015, page 24;
”turnover represents the total revenue earned by the firm in current business activities and is one of
the most important indicators and shows the company's economic performance” Popescu Dan Dumitru,
Entreprise analysis, Ed. Ase, București, 2009, page 40.
From the specialized research literature as well as from the field researches it can be seen that the
turnover analysis is one of the most approached and debated topics. The connection between the topic and
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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 1/2019
„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007
the work in the field can be highlighted by the inspirational works that will constitute the base in the
elaboration of this article, such as: Economic and Financial Analysis - Buşe Lucian, Economic and Financial
Analysis of the Business Activity - Hristea Ana Maria, Entreprise analysis - Popescu Dan Dumitru and many
others.
The main objectives of this study are:
-identifying the turnover trend of the mining companies based on the data provided by the Bucharest
Stock Exchange;
-calculating and analyzing the evolution of the turnover index and its index of growth in the period
2015-2017.
2.Turnover dynamics
Any enterprise, irrespective of its size and the work it performs, must permanently demonstrate its
viability and ability to compete and adapt to the economic and financial environment.
The economy of any country manifests itself through all the economic, technological and socio-
economic activities. The manifestation of economic activities is based on certain types of activities, which
are complementary to the production of various economic goods or constitute elements of the chain of
certain types of activities involved in the production of certain types of products. [5]
The development of any company's business activity is primarily reflected in the achievement of a
turnover, the level of which will determine the firm's position on the market, its chances to expand. An
increasing turnover trend will always be a sign of growth, of consolidation of the market position.
Some factors, both internal and external, may occur in the evolution of turnover. The internal factors
include the financial, material and human potential of the firm, the degree of knowledge of the client
segment to which it is addressed, the management of sales and distribution chain of products, the quality of
products offered by the market. External factors include: competitors encountered by the company, demand
from the market segment competing with the company, socio-professional, legal and legislative changes.
The dynamics of the turnover is followed by the evolution of the company's business in order for the
company's management to take the best decisions to increase the economic and financial performances.
Therefore, in this type of analysis, the absolute percentage change, including the annual growth rate, is used.
The following formulae can be used to reflect these aspects:
1 0CA CA CA (1)
1
0
CAICA 100
CA
(2)
RCA ICA 100 (3)
where:
CA- turnover; 0 – the previous period; 1 – the current period.
Depending on the growth and the sign of these changes, it is possible to assess the increase or
decrease of the company's turnover in the period analysed. [1]
3.Materials and methods The article is based on a theoretical, conceptual and empirical research that will conclude in an
interpretation of the analyzed data, namely: drawing conclusions, understanding the evolution of the
phenomenon, establishing forecasts, etc. The main method used in conducting this study is a qualitative
analysis method, namely the comparison method.
This method plays an important role in the analysis process because each result of the enterprise's
activity is studied not only in terms of its own size but also in relation to a certain criterion taken as a basis
of comparison which allows knowledge of the deviations occurring in time and space.[6]
The sources and materials used are based on a series of primary information (magazine articles,
situations, reports) as well as a number of secondary sources. The research area is the mining companies
listed on the Bucharest Stock Exchange.
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4. Research, investigation and results
4.1.Evolution of in the turnover of companies in the extractive industry
The Romanian industry sector is one of the pillars of support for one of the main strategic objectives
of Romania in the European context, namely reaching a level of economic development at European
standard. Alongside all the other industrial sectors and mining industry, it is one of the main pillars
supporting Romania's economic development. Thus, turnover is one of the indicators reflecting the evolution
of the activity of the mining companies.
The data necessary for analyzing the evolution of turnover in the period 2015-2017 are presented in
the table below:
Table no.1 The turnover of the companies in the manufacturing industry No.
crt.
Company name
2015 2016 2017 Deviation Deviation
2016/2015 2017/2016
1. SC COMREP SA
PLOIESTI
33.481.219
33.687.772
22.178.104
+206.553 -11.509.668
2. SC DAFORA SA 87.078.619 48.952.327 74.811.160 -38.126.292 +25.858.833
3. SC FORAJ SONDE
SA VIDELE
61.856.069
42.599.008
49.938.956
-19.257.061 +7.339.948
4. SC FORAJ SONDE
SA CRAIOVA
124.099.902
78.478.248
127.343.760
-45.621.654 +48.865.512
5. SC FORAJ SONDE
SA ERNEI
52.622.278
9.871.723
22.899.638
-42.750.555 +13.027.915
6. SC ROMPETROL
WELL SERVICES
SA
49.975.025
31.106.110
39.997.068
-18.868.915 +8.890.958
7. SC S.N.G.N.
ROMGAZ SA
4.052.683.743
3.411.867.648
4.585.189.376
-640.816.095 +1.173.321.728
8. SC OMV PETROM
SA
13.687.616.179 12.523.026.432 14.764.836.864
-1.164.589.747 +2.241.810.432
9. SC STICLOVAL
SA VALENII DE
MUNTE
3.248.001
3.131.669
2.917.003
-116.332 -214.666
Source: www.bvb.ro
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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 1/2019
„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007
Graphically speaking, the evolution of turnover over the past three years is as follows:
0
20000
40000
60000
80000
100000
120000
140000
Thousands
2015
SC COMREP SA PLOIESTI
SC DAFORA SA
SC FORAJ SONDE SA VIDELE
SC FORAJ SONDE SA CRAIOVA
SC FORAJ SONDE SA ERNEI
SC ROMPETROL WELL
SERVICES SA
SC S.N.G.N. ROMGAZ SA
SC OMV PETROM SA
SC STICLOVAL SA VALENII DE
MUNTE
Chart no.1
The evolution of turnover in 2015
Source: personal data processing based on www.bvb.ro
From the chart above, one can notice that in 2015 SC OMV PETROM SA is the leader in terms of
turnover, followed by SC S.N.G.N. ROMGAZ SA, and these are followed by other 6 companies with an
average turnover of 68.185.518 lei. At the end of the classification there is SC STICLOVAL SA VALENTI
DE MUNTE with a turnover of 3.248.001 lei.
0
20000
40000
60000
80000
100000
120000
140000
Thousands
2016
SC COMREP SA PLOIESTI
SC DAFORA SA
SC FORAJ SONDE SA VIDELE
SC FORAJ SONDE SA CRAIOVA
SC FORAJ SONDE SA ERNEI
SC ROMPETROL WELL
SERVICES SA
SC S.N.G.N. ROMGAZ SA
SC OMV PETROM SA
SC STICLOVAL SA VALENII DE
MUNTE
Chart no.1
The evolution of turnover in 2016
Source: personal data processing based on www.bvb.ro
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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 1/2019
„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007
In 2016, SC OMV PETROM SA is still a leader with a turnover of 12.523.026.432, but with a
decrease of 1.164.589.747 lei. Just as in 2015, OMV PETROM is also followed by SC S.N.G.N. ROMGAZ
SA, followed by other 6 companies with an average turnover of 40.782.531 lei. At the end of the ranking
there is also SC STICLOVAL SA VALENTI DE MUNTE with a turnover of 3.131.669 lei.
0
20000
40000
60000
80000
100000
120000
140000
Thousands
2017
SC COMREP SA PLOIESTI
SC DAFORA SA
SC FORAJ SONDE SA VIDELE
SC FORAJ SONDE SA CRAIOVA
SC FORAJ SONDE SA ERNEI
SC ROMPETROL WELL
SERVICES SA
SC S.N.G.N. ROMGAZ SA
SC OMV PETROM SA
SC STICLOVAL SA VALENII DE
MUNTE
Chart no.1
The evolution of turnover in 2017
Source: personal data processing based on www.bvb.ro
In 2017, the same positions were held, namely SC OMV PETROM SA in top position, followed by
SC S.N.G.N. ROMGAZ SA. With turnover under their level, there are other 6 companies with an average
turnover of 56,194,781 lei. At the end of the classificaton there is SC STICLOVAL SA VALENII DE
MUNTE with a turnover of 2,917,003 lei, turnover which has decreased as compared to 2015, 2016.
The evaluation of the size of the activity of the 9 listed companies in the extractive industry based on
the turnover dynamics indicators is presented in the table below:
Table no.2 Indicators of dynamic of turn over No.
crt.
Company name 2015 2016 2017 Turnover index Growth rate of
turnover
2016/
2015
2017/
2016
2016/
2015
2017/
2016
1. SC COMREP SA
PLOIESTI
33481219
33687772
22178104
100,62 65,83 +0,62 -34,17
2. SC DAFORA SA 87078619 48952327 74811160 56,22 152,82 -43,78 +52,82
3. SC FORAJ
SONDE SA
VIDELE
61856069
42599008
49938956
68,87 117,23 -31,13 +17,23
4. SC FORAJ
SONDE SA
CRAIOVA
124099902
78478248
127343760
63,24 162,26 -36,13 +62,26
5. SC FORAJ
SONDE SA
52622278
9871723
22899638
18,76 231,97 -81,24 +131,97
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ERNEI
6. SC ROMPETROL
WELL
SERVICES SA
49975025
31106110
39997068
62,24 128,58 -37,76 +28,58
7. SC S.N.G.N.
ROMGAZ SA
4052683743
3411867648
4585189376
84,19 134,39 -15,81 +34,39
8. SC OMV
PETROM SA
13687616179 12523026432 14764836864
91,49 117,90 -8,51 +17,90
9. SC STICLOVAL
SA VALENII DE
MUNTE
3248001
3131669
2917003
96,42 93,15 -3,58 -6,85
Source: personal data processing based on www.bvb.ro
Graphically speaking, the evolution of the two dynamic indicators is as follows:
0
50
100
150
200
250
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
Company 7
Company 8
Company 9
Turnover index 2016/2015
Turnover index 2017/2016
Chart no.4
Evolution of turnover index in 2016/2015, 2017/2016
Source: personal data processing based on www.bvb.ro
The chart indicates that the turnover index has registered an increasing trend for SC COMREP SA
PLOIESTI and SC STICLOVAL SA VALENII DE MUNTE in 2016 compared to 2015, and in 2017 as
compared to 2016 there is a decreasing trend for SC FORAJ SONDE SA ERNEI, SC FORAJ SONDE SA
CRAIOVA, SC DAFORA SA, SC SNGN ROMGAZ SA, ROMPETROL WELL SERVICES SA, SC OMV
PETROM SA.
-100
-50
0
50
100
150
Company 1
Company 2
Company 3
Company 4
Company
5
Company 6
Company 7
Company 8
Company 9
Growth rate of turnover
2016/2015
Growth rate of turnover
2017/2016
Chart no.4
Evolution of turnover growth in 2016/2015, 2017/2016
Source: personal data processing based on www.bvb.ro
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Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 1/2019
„ACADEMICA BRÂNCUŞI” PUBLISHER, ISSN 2344 – 3685/ISSN-L 1844 - 7007
The indicator "growth rate of turnover" is an indicator that has both positive and negative values. In
2016 as compared to 2015, the increase was recorded for SC COMREP SA PLOIESTI, w fhile or all other
companies the value of the indicator was negative. In 2017 compared to 2016 negative values were
registered for SC COMREP SA PLOIESTI and SC STICLOVAL SA VALENII DE MUNTE, all for the
other companies values have been positive.
3.Conclusions
The profit and loss account is the financial statement that reflects the value of turnover and the value
of other indicators, such as operating result, financial result, gross profit, etc. From this accounting
document we can draw conclusions regarding the structure and evolution of turnover related to the analyzed
period of time.
Turnover must always be reported to the strategic position of the firm in the economic sector in which
it operates. A company with a favorable turnover trend and a strong strategic position is, as a rule, a
profitable company, meanwhile a constant or declining company will end up in a risk situation with poor or
even no performance. Thus, in order to develop an efficient market strategy, the turnover dynamics will
always have to be based on the forecasts of the economic and financial indicators.
The conclusions derived from the above research express the state of turnover and the evolution of
this indicator as reported to the selection of companies in the period 2015-2016. Therefore, with respect to
the evolution of turnover in the case of the 9 companies listed on the stock market of mining transactions,
the highest level both in 2015, as well as in 2016 and 2017 still goes to SC OMV PETROM SA, followed by
SC S.N.G.N. ROMGAZ SA, the two representing 22,22% from the selection of 6 companies (66,66%) at a
value of 55.054.276 lei. The weakest turnover has been registered by SC STICLOVAL SA VALENII DE
MUNTE both in 2015, as well as in 2016 and in 2017.
4. Bibliography
[1] Bușe Lucian, Analiză economico-financiară, Ed. Economică, București, 2005;
[2] Gheorghe Ana, Profitul, Ed. Economică, București, 1998;
[3] Hristea Ana Maria, Analiza economică și financiară a activității întreprinderii, Ed. Economică,
București, 2015;
[4] Popescu Dan Dumitru, Entreprise analysis, Ed. Ase, București, 2009;
[5]*** https://utm.md/meridian/2010/MI_3_2010/10_Articol_Duhlicher_A.pdf [6]***https://sjse-ct.spiruharet.ro/images/secretariat/secsjse-
ct/biblioteca_virtuala_management/sinteze_si_intrebari_orientative/2014-
2015/an_2_man_2014_2015/sem_1/06b_analiza_economico_financiara/CURS_ANALIZA_ECONOMICO-
FINANCIARA.pdf
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