Detail publikace

The Impact of Estimated Depreciation of Infrastructure Assets on Sales Profitability

VÍTKOVÁ, E. KORYTÁROVÁ, J. KOCOURKOVÁ, G.

Originální název

The Impact of Estimated Depreciation of Infrastructure Assets on Sales Profitability

Typ

článek v časopise ve Web of Science, Jimp

Jazyk

angličtina

Originální abstrakt

Acquired long-term tangible assets of water management companies generate depreciation costs during operation. The cost item naturally reduces the profit/loss and income tax deduction and, at the same time, creates financial space for the future restoration of this property, reinvestment by being able to include it in the unit price of water and/or sewerage charge rates if certain rules are met. On the basis of these legislative rules, it follows that property financed by subsidies cannot be depreciated in this way, i.e., cannot generate funds for future reinvestment. The contribution aims to present a methodical procedure for deciding on a strategy for the development of the profit/loss of enterprises when “predicted” (modeled) depreciation of fixed assets acquired from subsidies is included in the model, with a focus on the indicator of financial performance—profitability of sales. Basic methods and selected indicators from ratio indicator methods used in financial analysis were used in the methodical procedure. The methodological procedure, which was developed on the basis of a case study as part of a research report for a selected water management enterprise, was further implemented and verified on a sample of water management enterprises, which have almost a 50% share in the value of all assets in the form of infrastructure assets in the Czech Republic. The output of the article is the fact that when “predicted” (modeled) depreciation is included in the profit/loss, the profitability of sales decreases. The study shows that there is up to a 15% change in the profitability of sales. The contribution of the article is a proven methodological procedure that takes into account the generation of profit/loss with regard to the necessary reinvestment of assets acquired with subsidies. This strategy can generally be used by all companies that acquire assets from public subsidy sources.

Klíčová slova

wear and tear; infrastructure assets; subsidies; profit/loss; water management companies

Autoři

VÍTKOVÁ, E.; KORYTÁROVÁ, J.; KOCOURKOVÁ, G.

Vydáno

31. 1. 2025

Nakladatel

MDPI

Místo

Basel, Switzerland

ISSN

2073-4441

Periodikum

Water

Ročník

2025

Číslo

17(3)

Stát

Švýcarská konfederace

Strany od

1

Strany do

18

Strany počet

18

URL

https://www.mdpi.com/2073-4441/17/3/393

BibTex

@article{BUT196513,
  author="Eva {Vítková} and Jana {Korytárová} and Gabriela {Kocourková}",
  title="The Impact of Estimated Depreciation of Infrastructure Assets on Sales Profitability",
  journal="Water",
  year="2025",
  volume="2025",
  number="17(3)",
  pages="1--18",
  doi="10.3390/w17030393",
  issn="2073-4441",
  url="https://www.mdpi.com/2073-4441/17/3/393"
}