Performance analysis of solid waste management companies in the Republic of Serbia

Abstract

In the context of increasingly domestic concern about profitability of domestic, publicly-owned, solid waste management companies, the need for economic analysis has occurred. In this paper financial statements of private and public companies in Serbia were analyzed, with comparison on the financial indicators basis. The efficiency and effectiveness indicators of five selected mutual comparable pairs of private and public companies were analyzed. For the purpose of financial analyze chosen companies were assembled in two clusters – private and public one. The results indicated that private and public companies are experiencing difficulties in business, for different reasons. Public companies are paying high interest rates for credits taken to cover losses from previous years. Although, they have increased operating efficiency, they still have losses. On the other side, private investors are constantly improving financial indicators after very low starting point that is the result of high initial investment and short business period.