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Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity

Author

Listed:
  • Róbert Štefko

    (Department of Marketing and International Trade, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia)

  • Petra Vašaničová

    (Department of Mathematical Methods and Managerial Informatics, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia)

  • Sylvia Jenčová

    (Department of Finance, Faculty of Management, University of Prešov, 080 01 Prešov, Slovakia)

  • Aneta Pachura

    (Faculty of Management, Czestochowa University of Technology, 42-200 Czestochowa, Poland)

Abstract

Industry 4.0 and related automation and digitization have a significant impact on competition between companies. They have to deal with the lack of financial resources to apply digital solutions in their businesses. In Slovakia, Industry 4.0 plays an important role, especially in the mechanical engineering industry (MEI). This paper aims to identify the groups of financial ratios that can be used to measure the financial performance of the companies operating in the Slovak MEI. From the whole MEI, we selected the 236 largest non-financial corporations whose ranking we obtained according to the amount of generated revenues in 2017. Using factor analysis, from eleven traditional financial ratios, we extracted four independent factors that measure liquidity (equity to liabilities ratio, quick ratio, debt ratio, net working capital to assets ratio, current ratio), profitability (return on sales, return on investments), indebtedness (financial leverage, debt to equity ratio), and activity (assets turnover, current assets turnover) of the company. Our analysis is an essential prerequisite for developing a realistic financial plan for companies operating in the MEI, especially when considering investments in new technologies related to Industry 4.0.

Suggested Citation

  • Róbert Štefko & Petra Vašaničová & Sylvia Jenčová & Aneta Pachura, 2021. "Management and Economic Sustainability of the Slovak Industrial Companies with Medium Energy Intensity," Energies, MDPI, vol. 14(2), pages 1-15, January.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:2:p:267-:d:475541
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    References listed on IDEAS

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    6. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Veronika Machova, 2022. "COVID-19 Pandemic and Its Impact on Challenges in the Construction Sector: A Case Study of Slovak Enterprises," Mathematics, MDPI, vol. 10(17), pages 1-20, September.
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