| Abstract [eng] |
The main purpose of this master thesis is to create a system of methods to evaluate and analyze performance of Real Estate development sector in Lithuania. The work consists of three main parts; the analysis of literature, the research and its results, conclusions, and recommendations. Literature analysis reviews operational efficiency importance for business, presents main factors affecting efficiency and worldwide used methods to evaluate efficiency for enterprises and for Real Estate developers. Another important theme for thesis was to analyze construction and Real estate sectors in Lithuania, determining significance of these two sectors for country ‘s economic health and people living standards. After the literature and sectors analysis the author presents main methods and a system used to evaluate operational efficiency of Lithuania Real Estate Development Association members. Systems consists of profitable ratios, economic value-added methods and regression analysis used to evaluate a connection between developers’ revenue and macroeconomics factors. The performed research and calculations revealed that Real Estate developers in Lithuania for 2008–2019 years do not manage enough their efficiency. Gross margin and return on assets expressed volatility every year, however return on equity shows effective capital using to gain profit. Economic value-added method showed negative results for most analyzed companies. Meaning that cost of capital is higher than economic profit gain for the year. And macroeconomic factors analysis determined that Real Estate Developers are being affected by various factors, including average income, population of the country and unemployment rate. So, analyzed companies should put more attention to market analysis and be aware of mentioned factors changes, to prepare accurate plans. The system of three methods revealed inconsistent activity and uncertainty in Real Estate development sector. The conclusions and recommendations summarize the main concepts of literature analysis as well as the results of the performed research. The author believes that Real Estate developers should be more aware of changes in economics, which results in changes of company’s gross profit or loss. As well Real Estate development sector should take more attention to evaluation of performance and preparation of operational and strategic plans to present high value for the company and shareholders. |
