Ioana Ignat, Liliana Feleaga
THE ROLE OF IT IN THE LOGISTICS SECTOR: THE IMPACT OF DUPONT MODEL ON THE PROFITABILITY OF IT COMPANIES
Background: The information technology (IT) is presented in all levels of the supply chain, from the communication with suppliers, through the manufacture process and until the delivery to clients. Moreover, IT has a positive effect on the performance of the supply chain. In this context, it is important for the IT sector to register a positive evolution, in other words it is important that the IT companies to be profitable and to continue to exist on the market ensuring the provision of the necessary tools for the logistic sector. Therefore, the objective of this paper was to analyze the profitability of the IT companies and to identify which factors impact it. The importance of our study in the context of the logistic sector can be sustained by the fact that technology information constitutes a crucial strategic aspect for the logistics service providers and it is important to maintain a positive evolution of the IT sector.
Methods: There was used a regression analysis which started from the factors of the DuPont model and afterwards supplemented by one factor identified based on the Stepwise method.
Results: The results show that the profitability of the Romanian IT companies is influenced by the Net Profit Margin, the Asset Turnover, the Financial Leverage and the Sales Growth.
Conclusions: More exactly, the profitability of these companies is impacted by the capacity to generate net income based on the sales performed (and indirectly by the management of the costs), the efficiency with which the assets are used in order to generate revenues, the financing source of the assets and by the growth of the sales volume. Our results may present importance for the financial management, investors and researches offering insights about the factors which should be observed in order to improve the profitability of an IT entity from Romania. The importance of this study for the logistics sector can be interpreted as following: knowing which is the evolution of the IT market from a country and which factors impact the profitability of it represents an asset from the point of view of the logistics aspects, as there can be provided insights in case that the continuity for the tools needed is uncertain. Future research direction may imply the analysis of the correlation between the evolution of the IT companies and the logistic sector. Considering the fact that, as far as we know, no similar study was performed at the level of the Romanian IT industry, the novelty and originality of the research is represented by the performance of the research at the level of this market.
Keywords: profitability, IT market, Romania, DuPont model, ROE, supply chain
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|MLA||Ignat, Ioana, and Liliana Feleaga. "The role of IT in the logistics sector: the impact of DuPont model on the profitability of IT companies." Logforum 15.2 (2019): 2. DOI: 10.17270/J.LOG.2019.236|
|APA||Ioana Ignat, Liliana Feleaga (2019). The role of IT in the logistics sector: the impact of DuPont model on the profitability of IT companies. Logforum 15 (2), 2. DOI: 10.17270/J.LOG.2019.236|
|ISO 690||IGNAT, Ioana, FELEAGA, Liliana. The role of IT in the logistics sector: the impact of DuPont model on the profitability of IT companies. Logforum, 2019, 15.2: 2. DOI: 10.17270/J.LOG.2019.236|