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- Title
THE EVOLUTION OF PROFIT MARGINS IN THE MINING AND EXTRACTION INDUSTRY.
- Authors
MIERZEJEWSKI, Mateusz; TOMALA, Justyna
- Abstract
Purpose: The aim of this paper is to test the hypothesis of the occurrence of increased margin values in the mining and extraction industry in an environment of increased CPI inflation rates in selected EU countries. Design/methodology/approach: The study used selected quantitative methods, including: categorising companies by mean and standard deviation and the Kruskal-Wallis test for nonparametric independent variables. Findings: The study showed that an increase in margins was observed in France and Italy in the 2021 and 2022 periods analysed. The largest increase was found in France, where the median gross profit margin increased from 3.5 per cent between 2015 and 2020 to 7.3 and 6.3 per cent, respectively, between 2021 and 2022. Research limitations/implications: A significant limitation is the limited access to complete data. In addition, the analysis included countries that differ in terms of the availability of raw material deposits and also have varying levels of socio-economic development. As soon as more data becomes available, it would be worth expanding the area of analysis. Practical implications: The occurrence of increased gross profit margins is a phenomenon limited to selected countries and not generally observable in the global market. These findings can be valuable for understanding economic trends in specific regions and can help isolate countries where companies experience higher margins compared to others. Our research provides basic information that can provide a starting point for decision-makers involved in the extractive sector at both EU and individual EU member state level. The conclusions drawn by the authors suggest the need for further exploration of the identified research area. Originality/value: To our knowledge, this is one of the first articles on the verification of elevated margin values in the mining and extraction industry. The study contributes to the assessment of the adaptability of the European Union mining and quarrying industry and the phenomenon of increased margins.
- Subjects
FRANCE; EUROPEAN Union; PROFIT margins; CORPORATE profits; MINERAL industries; GROSS margins; KRUSKAL-Wallis Test; INFLATION targeting; ECONOMIC trends
- Publication
Scientific Papers of Silesian University of Technology. Organization & Management / Zeszyty Naukowe Politechniki Slaskiej. Seria Organizacji i Zarzadzanie, 2023, Issue 188, p327
- ISSN
1641-3466
- Publication type
Article
- DOI
10.29119/1641-3466.2023.188.19