Efficiency of Use Fixed Assets in the Context of Profitability – Empirical Evidence of Food Industry Enterprises in Visegrad Group

Abstract

Efficient use of production resources in enterprises is necessary for increasing their competitiveness and the potential for their future development. In today's global world, companies are forced to invest in new technologies that are both more energy-efficient and more environmentally friendly, including in the food industry. The paper focusses on the efficiency of production factors in relation to their economic success. The aim is to find possible variants of the development of the links between capital labour ratio and labour productivity in relation to the development of profitability of returns. Empirical analysis coved 2,526 enterprises in food industry in four examined European countries (Visegrad group -V4) - Czech Republic, Hungary, Poland, Slovak Republic. The contribution of the paper is the generalization of the links between the indicators of the efficiency of production factors in the form of recommended inequalities that can be used by enterprises for economically successful development.