Economic analysis of rendering companies of forest service in two regions of the state of Santa Catarina

Abstract

This research aims at improve an economic description of forest service companies based on cost and profit analyses. The study focused companies present in ‘Vale do Itajaí’ and ‘Planalto Serrano’ regions, in the State of Santa Catarina. Forty six companies were sampled, they develop forestry services such as wood extraction, and forest transport. Their cost composition, amount of direct and indirect costs, as well as fixed and variable costs within the total cost were characterized. Based on the Earning Before Interest, Taxes, Depreciation and Amortization (EBITDA), cash earning (Earnings Before Depreciation and Interest), and economic earning methodologies, it was analyzed their break-even point, as well as profitability by sales and capital. The forestry, mechanized wood extracting, and forest transport companies presented high profitability on sales. The big service companies revealed better economic conditions. The service companies have high indirect costs and a high participation of fixed costs in total cost. Wood extracting companies that improve manual or semi-mechanized systems had unsatisfactory results in relation to the break-even point. The identified profitability is similar in both regions.