Evaluation Aspects of Return on Assets and Equity in State Forestry in Lithuania

This paper addresses the evaluation aspects of return on assets as well as equity considering state forestry in Lithuania. According developed methodology of forest value determination the state commercial forests (III and IV groups) is evaluated. M. Faustmann approach is applied to determine the value of forest land and forest stands using alternate interest ratios (1; 2; 3; 6.25; 6.5 %). Evaluation aspects of the indicators of Return on Assets (ROA) also Return on Equity (ROE) are analysed in state forestry. Calculated state forest value is from 8872.1 to 1536.6 mill. EUR respectively to interest rates set in this research. Pine, spruce and birch stands have the highest value share out of total forest value. However, the highest average value per ha retain oak and aspen stands. According to analysis of ROA and ROE indicators, the recommendations in respect to return on assets and equity determination as well as evaluation in state forestry are provided.