FINANCIAL HEALTH & PROFITABILITY: EXAMINING ACCOUNTING PRACTICES IN CUTTACK'S WHOLESALE VS. RETAIL SECTOR
DOI:
https://doi.org/10.53555/ssh.v12i1.2476Keywords:
Wholesale trade, Retail trade, Financial health, Firm-level analysis, CuttackAbstract
Wholesale and retail trade play a crucial role in urban economies by facilitating the distribution of goods, generating employment, and supporting market integration. The study examines the financial health and structural characteristics of wholesale and retail enterprises in Cuttack city using firm-level microdata. Adopting a comparative and exploratory research design, the analysis employs descriptive, non-parametric, and typology-based methods to assess differences in revenue scale, profit margins, capital structure, and formalization status across the two trade segments. The findings reveal clear and systematic differences between wholesale and retail enterprises. Retail firms predominantly operate at smaller scales but exhibit higher profit margins, reflecting efficiency-oriented business models. In contrast, wholesale enterprises function at substantially larger scales with greater revenue, capital intensity, and formalization, but comparatively lower margins, indicating volume-driven operations. A composite Financial Health Index shows that overall financial strength is more closely associated with scale and capital depth than with margin efficiency alone. The scale efficiency typology further highlights distinct business models across the two sectors. The study contributes to the literature by providing firm-level, city-specific evidence on urban trade dynamics and financial health. The findings have important implications for enterprise development and urban trade policy, particularly in designing differentiated support mechanisms for wholesale and retail enterprises in emerging urban centres such as Cuttack.
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